Factors influencing the coffee growers for membership in farmer producer organizations in tribal areas in Alluru Sita Rama Raju district in Andhra Pradesh

Abstract

The research conducted in selected mandals of Araku Valley, Chinthapalli and Paderu in Alluri Sita Rama Raju Distrcit due to their high concentration of coffee production and Farmer Producer organisations (FPO) activity. A sample of 160 Coffee growers comprising 80 FPO beneficiaries and 80 FPO non beneficiaries from three notable FPOs. A binary logistic regression model identified the key determinants of FPO membership. Land holding size, frequency of extension contact and social participation were all positive and highly significant at 1% predictors of a farmer joining an FPO. Where as education identified as positive and significant factor at 5% level. Variables like age and distance to the FPO were found to be statistically insignificant. By providing collective access to inputs, technology and logistics, FPOs enabled beneficiary farmers to slash their establishment costs by a remarkable 29 percent. This efficiency gain, coupled with a 66 percent increase in yield and a 46 percent improvement in price realization, culminated in a transformative increase in profitability. Farmers who are more resourceful (larger landholdings), better connected (extension contact, social groups) and more informed (education) are more likely to join FPOs. FPO membership fundamentally reshapes the economic calculus for tribal coffee farmers.