Convergence of Self-Help Groups (SHGs) and Farmers Producer Organizations (FPOs) in leveraging growth of agricultural value chain in India

Abstract

India’s GDP has crossed the trillion-dollar mark making it a member of an elite club of 12 countries with ‘Trillion Dollar Economies’. Agriculture continues to exert significant influence on the country’s economy as reflected in the correlation between agricultural GDP and overall GDP of the country. India is self-sufficient in production of food grains and horticultural products. While the production is high, the post-harvest losses are also high due to inadequate processing infrastructure. India could meet its growing demand for agricultural produce by indigenous production by strengthening value chains in agriculture. Value chains in agriculture comprise a set of actors who conduct a linked sequence of value-adding activities involved in bringing a product from its raw material stage to the final consumer. Currently these value chains are affected with various problems such as inadequate infrastructure, numerous intermediaries, poor logistics, minimal processing and lack of quality standards leading to significant post-harvest losses which is measured to be about US $ 11 billion. There are some Self Help Groups (SHGs) and Farmers Producer Organizations (FPOs) which are engaged in production, processing, value addition, packaging, marketing/exporting providing them a fair share in consumer rupees. Streamlining agricultural value chains through convergence of SHGs and FPOs adds efficiency and enables all the actors right from farmers to ultimate customers to benefit from value addition activities subsequently leading to inclusive growth in the agricultural sector.