Page 79 - IMDR JOURNAL 2023-24

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

x. Continuous training and capacity building programs are very important for FPO members to adopt
best practices in agriculture, marketing and financial management.

xi. FPOs may face challenges in sustaining long-term operations, including issues related to monitoring

managers, mobilizing resources and changing priorities.
5.15 Challenges:

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 concerted efforts that

include government support, capacity building programs, market infrastructure improvements and financial
inclusion. Collaboration between government agencies, NGOs and private sector organizations can help FPOs

overcome these challenges and realize their potential in improving the livelihoods of smallholder farmers in
India.

a. Post-harvest losses: Inadequate storage and transport infrastructure can cause significant post-harvest

losses, affecting their profitability and members' incomes.
b. Quality standards and certification: Meeting quality standards and getting your products certified can be a

difficult and expensive process, especially for small and resource-constrained FPOs.

c. Climate change and environmental sustainability: FPOs often lack the resources and knowledge to adopt
climate-resilient and sustainable agricultural practices, making them vulnerable to climate change impacts.

d. Access to inputs and technology: FPOs may face challenges in obtaining good quality seeds, fertilizers,

pesticides and modern agricultural technology, which reduces their productivity and competitiveness.

e. Value addition and processing: Many FPOs are mostly engaged in primary agriculture and miss
opportunities for value addition and processing that can increase their income and reduce post-harvest

losses.
f. Market Volatility: FPOs are subject to fluctuations in market prices that can affect their members and

income and profit.

g. External Dependencies: FPOs are often dependent on external agencies, government systems or NGOs for
funding and support, making them vulnerable to changes in external support.

h. Communication and Outreach: FPOs may have limited access to timely and relevant information about

markets, weather and best practices that affect their decision-making and planning.

i. Geographical Spread: FPOs can have members in different geographical areas, which can make
coordination and management difficult.

j. Legal and Regulatory Challenges: Complying with laws and regulations, including the Cooperatives Act,
can be difficult and time-consuming.