Page 78 - IMDR JOURNAL 2023-24

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

5.13 FPO Swot Analysis:
STRENGTHS: Strengths of FPOs may include Work Structure, Coordination with Agencies, Business Model,

and Direct Marketing of Fresh Produce.

WEAKNESSES: Weaknesses of FPOs may include financial support, Lack of Professional Knowledge, Poor
Infrastructure, Low Participation Level.

OPPORTUNITIES: Opportunities of FPOs may include Limited government control, Training of FPOs,

Institutional support, Better connectivity.
THREATS: Threats of FPOs may include Management functions, Long-term sustainability, Competition from

private companies.

5.14 Issues:

Farmer Producer Organizations (FPOs) in India are important entities that aim to empower farmers, improve
their bargaining power and promote agricultural sustainability.

However, FPOs face several issues in their operations and growth. Some of the major issues faced by FPOs in
India are:

i. Many farmers, especially in remote or marginalized areas, lack knowledge about FPOs and their

benefits. Educational and awareness campaigns are needed to encourage their participation.

ii. The process of forming and registering an FPO can be complex and involve legal and administrative
procedures. This may discourage farmers from setting up FPOs.

iii. 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.
iv. Obtaining credit and financial resources to operate an FPO can be difficult because many FPOs lack

collateral or credit history. This limits their ability to invest in infrastructure and technology.

v. Establishing and maintaining strong market linkages are very important for FPOs to ensure fair prices
for their products. However, they may face challenges related to market volatility and limited

bargaining power.

vi. FPO often lack access to modern agricultural techniques, storage and transport infrastructure, resulting
in post-harvest losses and reduced profitability.

vii. FPOs may focus on a limited number of crops, which may make them vulnerable to market

fluctuations or crop failure. Diversification can be difficult due to limited resources and knowledge.
viii. In some areas, social and cultural norms may limit the participation of women and marginalized

groups in FPOs and limit their impact and scope.

ix. Inconsistent policies and lack of a supportive regulatory framework can hinder the growth and
sustainability of FPOs. Clear policies promoting FPO are important.