Assessing administrative constraints faced by Farmer Producer Organizations (FPOs) in Madhya Pradesh

Abstract

The foundation of the Indian economy is agriculture, which is dominated by small and marginal farmers who deal with issues like low productivity, inefficient markets, and restricted access to resources. Farmer Producer Organisations (FPOs) are an institutional structure that has emerged to increase market integration, input procurement, value addition, and collective strength. The administrative difficulties faced by FPOs in Madhya Pradesh, a state that leads in agricultural production and FPO promotion, are investigated in this paper. Data were gathered from 15 FPOs using a multi-stage purposive sampling technique, a pre-tested interview schedule, and secondary sources such as company records, SFAC, and NABARD. Lack of semi-skilled labour, insufficient assistance from the federal and state governments, a shortage of technical personnel, a lack of training and extension services, and the Board of Directors' poor managerial skills are the main administrative obstacles, according to the findings. The efficacy of FPO is further hampered by internal issues including insufficient shareholder collaboration and inadequate farmer mobilisation. Access to credit and the collecting of share capital are still secondary but important financial concerns. In order to increase the durability of FPOs and boost rural economies, the results emphasise the necessity of more robust institutional support, capacity building, and expert management.