An analysis of constraints affecting FPO performance in Telangana

Abstract

Farmer Producer Organisations (FPOs) have emerged as key institutional platforms for improving farmers’ access to markets, inputs, and collective economic opportunities. Despite their growing importance, several constraints continue to limit their effectiveness and overall performance. Recognizing this, the present study was undertaken in Nagarkurnool and Wanaparthy districts of Telangana to identify and analyse the challenges encountered by farmer members of selected FPOs, with the objective of suggesting measures for strengthening their functioning. Two major Producer Organisation Promoting Institutions (POPIs), namely Child Care Organization (CCO) and Society for Integration and Rural Development (SIRD), were purposively selected for the study, as they have been actively promoting FPOs in the district for over seven years. From the list of FPOs promoted by these institutions, four well-established FPOs (two from each POPI), functioning for more than five years, were selected for detailed investigation. The constraints reported by the members were grouped into four broad categories: operational and technical, organisational, marketing, and those related to POPI support. The findings revealed that irregular procurement of produce was the most critical constraint, affecting 93.33 per cent of the respondents, followed by inadequate storage infrastructure (86.66%). Other major issues included competition among villages for accessing benefits, insufficient infrastructure, and limited availability of credit facilities. Notably, three of the top five constraints belonged to the operational and technical category, indicating systemic weaknesses in service delivery and resource management. Furthermore, members from distant villages expressed dissatisfaction, perceiving that POPIs were concentrating their efforts mainly around central operational locations. The study highlights the need for strengthening procurement systems, improving infrastructure, expanding financial linkages, and ensuring more equitable institutional support to enhance the sustainability and effectiveness of FPOs in the region.