Farmer producer organisation: An approach for doubling farmer’s income in Gorakhpur district of Uttar Pradesh

Introduction

A farmer producer organization (FPO) is a legal entity that can be a producer company, a cooperative society, or any other legal firm that provides the sharing of profits and benefits among the members. FPOs are generally formed by primary producers, viz., farmers, milk producers, fishermen, weavers, rural artisans, craftsmen, etc. In India, land holding doesn't support economies of scale as most of the farmers are small and marginal, with an average land holding of 1.33 hectares per farmer household. Due to this fragmentation and disorganization, small and marginal farmers are in a disadvantageous position not only in the use of technology and input but also in their accessibility to the market. The farmer's collectivization was considered one of the important elements to solve their problem, and on this basis, the FPOs were formed in 2002 by amendment to the Companies Act, 1956. The FPOs are promoted in India by SFAC, NABARD, state governments, and other organizations. Under the 12-year plan, promotion and strengthening of FPOs have been one of the key strategies to achieve inclusive agricultural growth. With this background, an effort has been made to study and report the socioeconomic status of the farmer members of FPOs. (Singh et al. 2019) [4] . Effective management of price fluctuations can be achieved through practices like contract farming and agreements.

Additionally, a producer company within the FPO structure aids producers in brand building, packaging, labelling, standardization, quality control, and providing essential storage facilities. The company also offers relevant training and services as deemed necessary. (Behera et al. 2024) [1] . Nearly 7,600 Farmer Producer Organizations (FPOs) were registered in India till November 30 this year, almost 75 percent of the government's target to form and promote 10,000 such organizations across the country by 2024. In 2020, the Government of India launched a scheme to form and promote 10,000 new FPOs by 2024 with a budgetary provision of Rs 6,865 crore. The scheme was aimed at enabling farmers to enhance their bargaining power, leverage economies of scale, reduce the cost of production, and increase farmers' incomes through the aggregation of their agricultural produce. In a reply to a question during the winter session of Parliament, it was stated that as of November 30, 2023, about 7,597 FPOs have been registered in India under the scheme. (Mukherjee et al. 2023) [2] . In Uttar Pradesh, around 1,150 FPOs have been registered, followed by Madhya Pradesh (566), Maharashtra (521), Punjab (475), and Bihar (474). And in Gorakhpur district, around 52 FPOs have been registered till now.

Research Methodology

Gorakhpur district is located in Uttar Pradesh. The district www.extensionjournal.com Gorakhpur is divided into nineteen blocks, one of which was choose at random for the study. The present study was conducted in ten selected villages under Uruwa block. Descriptive research design was followed for the present study. A total 120 respondents were selected by proportionate random sampling for the present study. The data collected from the respondents were scored, tabulated and analyzed by using suitable statistical method.

Objectives of the study 1. To access the socio-economic status of the respondents. 2. To find out the farmer's perception towards FPOs. From the above Table it indicates that the like educational qualification, housing pattern, mass media exposure was found at the 1 percent level of significance, positive relationship with level of perception of the respondents, whereas the relationship with the gender were found at the 5 percent level of significance with the level of perception of the respondents. Rest of the independent variables like age, religion, caste category, family type, family size, source of irrigation, occupation, annual income, land holding, social participation, extension participation, risk orientation, scientific orientation was found non significance with respect to level of perception of the respondents.

Conclusion

From the present research it is concluded that majority of respondents are male, belongs to middle-age group, and most of respondents were intermediate educational qualification. Most of respondents belong to the Hindu religion and the OBC category. They predominantly live in joint families with 5-12 members and rely on hired irrigation sources. The annual family income for most is between 1.1 and 2 lakhs, with semi-cemented housing being common. Medium-sized land holdings (4.01-10.00 hec.) are held by of respondents, who generally exhibit low social participation. Extension participation, risk orientation, and scientific orientation are mostly at medium levels.

Acknowledgement

AcknowledgementI express my heartful thanks to DDU Gorakhpur University and Department of Agricultural extension During my research work for their valuable advice and support.

References

1. Behera RK, Ray B, Chandra V, Laishram C, Bhuvan CR, Padhan SKH. Farmer Producer Organization (FPO). Agric Food: E-Newsletter. 2024;6(4):72-4.
2. Mukherjee S. Nearly 7,600 FPOs registered, 75% government target, boosting farm productivity. Business Standard. 2023 Dec 25:1-3.
3. Sangappa RD, Laxmi B, Charishma E, Itigi P, Arun KP, Jha SK, Tara SC. Farmers' perception towards climate and millet producer organizations. Int J Environ Clim Change. 2023;13(9):2754-61.
4. Singh D, Singh BP, Bhartim R, Pordhiya KI. A socioeconomic and socio-psychological appraisal of farmer producer organisations. Pharma Innov J. 2019;8(4):6869.