Page 77 - IMDR JOURNAL 2023-24

IMDR’s Journal of Management Development & Research 2023-24

5.11 Measures to Promote Welfare of FPO Members:
• FPO officers provide training and education to their farmers,\develop their skills, create jobs,

livelihood,\improve living standards, improve health and hygiene, provide good education to their

children.
• FPO provides loans to its members for purchase of crops, purchase of tractors, pumping equipment,

construction of wells and pipelines.

• FPO offers various insurances such as crop insurance, power insurance and life insurance for its
members.

5.12 Administration and Management:

FPOs can struggle to effectively lead and manage, as many members may have limited experience in managing
collective enterprises. Leadership, decision-making and accountability can create problems. Securing adequate

and affordable credit and financial resources for FPO operations such as purchasing production inputs,

investing in infrastructure and expanding operations can be difficult. Many FPOs do not have collateral to get
the loan. Building and maintaining strong market linkages is very important for FPOs to ensure fair pricing

for their products. Lack of reliable markets, price fluctuations and limited bargaining power can be a major
obstacle. FPOs often face limitations in the availability of modern farming techniques, storage facilities and

transport infrastructure, which can lead to post-harvest losses and reduced profitability. FPOs can focus on a

limited number of crops, which can make them vulnerable to market fluctuations or crop failure.
Diversification can be difficult due to limited resources and knowledge.

In some regions, social and cultural norms may limit the participation of women and marginalized groups in
FPOs and limit their impact and scope. Inconsistent policies and lack of a supportive regulatory framework

can hinder the growth and sustainability of FPOs. Clear policies promoting FPO are important. Continuous

training and capacity building programs are very important for FPO members to adopt best practices in
agriculture, marketing and financial management. FPOs may face challenges in sustaining long-term

operations, including issues related to leadership, resource mobilization, and changing priorities. FPOs

sometimes compete with each other or with other agricultural marketing channels, which can lead to
inefficiencies in the industry. Coordination between the FPO and other stakeholders is important. The

seasonality of agricultural production can create challenges for FPOs in planning and managing operations,
especially when dealing with perishable crops.

Addressing these challenges requires a multifaceted approach that includes government support, capacity

building programs, better market infrastructure and financial inclusion. Collaboration between government
agencies, NGOs and private sector organizations can help FPOs defeat these difficulties and understand their

expected in working on the vocations of smallholder farmers in India.