IJFANS International Journal of Food and Nutritional Sciences

ISSN PRINT 2319 1775 Online 2320-7876

FORMATION OF FARMER PRODUCER ORGANISATIONS: LIMITATIONS AND PROSPECTS

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D.Antony Baskar,Dr.J.Amalanathan

Abstract

In addition to contributing 17% to India's gross domestic product, the agricultural sector has been crucial in providing for the livelihood of over 50% of the population. Even if the average Indian farmer's holdings are shrinking, the vast majority of them (>85%) are tiny or marginal farmers with just 1.16 hectares of land. Huge portions of the rural poor—over 80%—make their living via farming. Compared to medium and large farms, tiny holdings produce more per hectare, but at a substantially greater cost. Small and marginal farmers face numerous challenges in today's competitive and uncertain market, including imperfect market conditions, limited access to credit, poor investment decisions, a human resource base lacking in skills, insufficient access to extension services, and a lack of technological know-how. In this regard, the Indian government has long worked to improve the market value of farmers' goods by formulating more advantageous regulations. In recognition of the many benefits that have accrued to farmers through POs, the Indian government has officially designated 2014 as the "Year of Farmer Producer Organisations" (FPOs), drawing inspiration from the examples set by innovative collectives. The goal of these groups is to help farmers become more competitive so that they can better take advantage of new market opportunities. Nevertheless, FPOs may face a number of problems and obstacles as they develop further, just as cooperatives and other earlier forms of collectives. Based on the observations and proposals provided by numerous scholars over the years, this study aimed to analyse the prospects and obstacles of promoting and developing FPOs in this country, as well as provide a roadmap for the future.

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