Performance of farmer producer organizations (FPOs) in Chhattisgarh plain in terms of ownership and management structure

Abstract

Farmer producer organization (FPOs) is democratic institution of farmers which is registered as organizations under various legal act like Company Act, Co-operative Society Act, Trust act etc. Efficient marketing and low share in consumer per rupee seems a main problem for small and marginal farmers. FPO gives collective platform to small producer for better backward and forward linkage. In Chhattisgarh state, there were 130 FPOs registered since year 2013 to 2017. Out of them 43.85 percent were promoted by National Bank for Agriculture and Rural Development (NABARD), 36.15 percent were promoted by Directorate of Horticulture and Farm Forestry and 20.00 percent FPOs were promoted by Small Farmers Agri-business Consortium (SFAC). There were total 37 FPOs supported by NABARD in Chhattisgarh Plains. The ownership of FPOs is always with their members, irrespective of number of hold shares the principle of ‘one member-one owner vote’ has given the base of voting rights. The producer-members who participated actively in decision making have controlled the Producer Organizations. However, the control of ownership is with producer-member and the management which are elected Board of Directors as representative of members. The management of FPOs consist both governing and operational management of organization.