A comparative study on the socio-economic status of members and non-members of farmer producer organisations in Telangana

Abstract

Farmer Producer Organisations (FPOs) have emerged as an institutional mechanism to enhance the income and livelihood security of small and marginal farmers through collective action. The present study was undertaken to examine the difference in socio-economic status between members and non-members of FPOs in Mahaboobnagar district of Telangana. A descriptive research design was adopted. Four FPOs promoted by two Producer Organisation Promoting Institutions (POPIs) were selected, and a total sample of 240 respondents comprising 120 FPO members and 120 non-members was drawn using random sampling. Socio-economic status was measured using the modified Kuppuswamy Scale (2017), based on education, occupation, and annual income. Respondents were categorized into five socio-economic classes, and a two-sample Z-test was employed to test the significance of difference between the two groups. The findings revealed that a majority of FPO members belonged to middle (35.84%) and upper-middle (28.34%) socio-economic categories, whereas most non-members were concentrated in the lower-middle (50.83%) category. With respect to income, 46.66 per cent of members fell under the medium income category, compared to only 19.20 per cent of non-members. The calculated Z value (3.17) was found to be significant at 1 per cent level, indicating a statistically significant difference in socio-economic status between members and non-members. The study concludes that membership in FPOs is associated with improved socio-economic standing, suggesting that collective institutional participation plays a vital role in enhancing farmers’ livelihoods. The findings provide empirical support for strengthening FPO-based interventions as a strategy for rural development.