Evolution and drivers of farmer producer organizations in Karnataka: Trends and membership determinants

Abstract

This study examines the growth trends, influencing factors, and economic impact of Farmer Producer Organizations (FPOs) in Karnataka, with emphasis on Kalyana Karnataka. Data from 2010 to 2023 showed rapid FPO expansion, achieving a compound annual growth rate (CAGR) of 65.23% statewide. In Kalyana Karnataka, the number of FPOs rose significantly from 1 in 2013 to 378 by 2023, with a CAGR of 42.71%. Logistic regression analysis identified key factors influencing FPO participation, including landholding size (Odds Ratio = 1.8), farming experience (Odds Ratio = 1.7), and farm income (Odds Ratio = 1.57), all positively impacting membership likelihood. Conversely, younger farmers had greater participation rates than older counterparts (Odds Ratio = 0.57). The findings suggest that policy support, market access, and collective action have driven FPO growth, yet targeted support for smallholders and young farmers could further enhance inclusivity. This study highlights FPOs’ critical role in strengthening agricultural value chains and improving livelihoods, underscoring their potential as catalysts for sustainable rural development.