Challenges faced by Farmer Producer Organizations (FPOs): A comprehensive analysis

Abstract

Farmer Producer Organizations (FPOs) play a pivotal role in empowering small and marginal farmers by enhancing their collective bargaining power, improving access to resources, and ensuring better market linkages. However, FPOs face numerous challenges that hinder their operational efficiency and sustainability. This paper examines the key constraints faced by FPOs, categorized into operational, financial, marketing, policy, and social-cultural dimensions. Using Garrett Ranking Scores, the study identifies and prioritizes the most critical issues affecting FPOs. The findings reveal that insufficient working capital, high production costs, low market prices, complex regulatory procedures, and resistance to change are the most significant barriers. The paper concludes with recommendations to address these challenges and enhance the performance and sustainability of FPOs.