Constraints faced by the Farmer Producer Organisations (FPOs) in Gorakhpur District of Uttar Pradesh
Abstract
The present study was conducted in Gorakhpur district of Uttar Pradesh during the year 2023-2024. From Gorakhpur district, Campierganj and Brahmpur blocks were selected purposively based on considerable number of respondents as a member of 'Farmer Producer Company'. A total 100 sample farmers were selected for the study out of which 50 FPO farmers and 50 non-FPO. Information relating to various problems faced by the FPOs was enlisted in a pre-tested interview schedule. The FPOs were asked to rank the constraints in the order of importance. The opinion of the FPOs were analysed by Garrett’s ranking technique. The result of the analysis has shown that the FPOs opined that lack of finance (ranked I) was the major constraints followed by farmers are not aware of FPOs (ranked II), lack of trustworthiness of farmers (ranked III), lack of processing plant (ranked IV), government employ not provide information timely (ranked V), lack of skilled person (ranked VI), FPO members are not active (ranked VII), lack of price policy and crop insurance by Govt. (ranked VIII) respectively.
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Introduction
Agriculture remains the largest source of livelihood in Indian economy. About 45 per cent Indian population depend on agriculture for employment. In India role of small farms (and small holdings) in poverty reduction is well recognized (Lipton, 2006) However, in the absence of robust public/private support system at the ground level farmers face challenges in accessing land, water, inputs, credit, technology and market. Then, there are emerging challenges like risk and vulnerabilities due to climate change and natural calamities (Thapa and Gaiha, 2011). In 2002, through an amendment in the Indian Companies Act. 1956, the Government of India (GOI) enacted the Producer Companies Act. By incorporating a new section IXA in the Indian Companies Act. 1956, based on the recommendations of the Y.K. Alagh Committee set up for this purpose. Many FPOs have been able to develop meaningful arrangements with private enterprises in the supply chain and have opened new spaces for long-term market integration. Innovative linkages and interventions have been made to support FPOs, pertaining to key needs like access to markets, finance, and technology. FPOs have positively responded to the fast-changing environment. There are more than 24,000 FPOs registered in the country and many more are under various stages of promotion.
(pib.gov.in) High-value crops bring high risk of production and marketing to small and marginal farmers. There is fast gender diversification taking place in agricultural activities, with more women taking the major responsibilities where men are gradually shifting to non-farm activities This feminization of agriculture is taking place without any structural changes in matters relating to their property rights or access to productive resources. Despite the challenges discussed above, there are technological as well as institutional innovations taking place to enable small farmers for increasing productivity and income through collective initiatives Different models of collectives have been tried in India such as Primary Agricultural Cooperative Society (PACS), Self Help Groups, Federations of SIGs (special interest group), Commodity Interest Groups (CIGs), Joint Liability Groups (JLGs), Farmers Club, Producers Organizations, etc. Some have succeeded while the majority have not for a variety of reasons. To provide further impetus to the farmer's collective, the government introduce the idea of making the collectives think and behave like business entities by getting incorporated as Producers Companies under the Companies Act of 1956 (Amended in 2002). The announcement regarding FPOs has been followed up with the formulation of guidelines and provision of enabling
Research Methodology
The present study was conducted in Gorakhpur district. Uttar Pradesh is the second largest state having 3073 FPOs, which were registered and functional under Small Farmers Agribusiness Consortium (SFAC) and National Bank for Agricultural and Rural Development (NABARD). Out of these Brahmpur and Campierganj blocks were purposively selected for the present study. Out of these two FPOs Campierganj Banana Farmer producer Limited (718) and Aakib Jawed Farmer Producer Company Limited (850) were selected on the basis of FPOs age and registered member. A total 100 sample farmers were selected for the study out of which 50 FPO farmers and 50 non-FPO. These selections were done by using simple random sampling method for the purpose of the study. For the objective of constraints faced by the Farmer Producer Organisations. The data were collected with the help of pretested interview schedule. The statistical methods and tests such as Garett ranking technique were used for the analysis of data. Return on Assets (ROA) 0.09 0.12 5.
Return on Equity (ROE) 0.08 0.10 6.
Debt-Equity Ratio (DER) 0.39 0.24
Financial Performance of FPOs
The financial ratios of two sampled FPOs were calculated and these were tabulated in Table 7.
Current Ratio
This is a liquidity ratio measures a company's ability to meet short-term obligations. The current ratio of all the two FPOs was found to be greater than one indicating that there are enough current assets to meet the current liabilities. Among these two FPOs, Aakib Javed FPCL. (1.16) had a higher ratio fallowed by Campierganj Banana FPCL. (1.08). The Current ratios of all the two FPOs indicate that companies are in the position to meet their current obligations.
Net Capital Ratio
The net capital ratio of Campierganj Banana FPCL. is (3.43) which is the highest fallowed by Aakib Javed FPCL. (2.38).
The net capital ratio of all the two FPOs was found to be greater than one indicating a high degree of liquidity in the long run and a high degree of availability of assets to pay off the company debts in the long run.
Earnings per Share (EPS)
It is an important financial measure, which indicates the profitability of a company. Earnings per share value found to be highest for Campierganj Banana FPCL. (Rs.557), followed by Aakib Javed FPCL. (Rs.405) Higher the EPS of a company, the better its profitability.
Returns on Assets (ROA)
A higher the returns on asset means than the business able to utilize its resources well in generating income. Campierganj Banana FPCL. (0.12) is having a higher return on assets. Fallowed by Aakib Javed FPCL. (0.09) respectively.
Returns on Equity (ROE)
A higher return on equity shows than the business was able to successfully utilize the resources provided by its equity investors and the company's accumulated profits in generating income. Among all two FPOs, Campierganj Banana FPCL. (0.10) is having a higher return on equity. Followed by Aakib Javed FPCL. (0.08) respectively.
Debt Equity Ratio (DER)
This ratio was calculated for all the two FPOs and among these Campierganj Banana FPCL. (0.24) is having the lower ratio indicating less debt and reduced risk compared to other FPOs. Aakib Javed FPCL. (0.39) respectively. The debtequity ratio of all the two FPOs indicates that the FPOs are in good financial health.
Constraint faced by the of FPOs
The identified constraints were ranked by Garrett scoring technique. It could be observed from the above
Conclusion
From the study, it was concluded that, the major constraints faced by sample FPOs were lack of finance, farmers are not aware of FPOs, lack of trustworthiness, lack of processing plant, government employe not provide information timely, lack of skilled person, FPO members are not active, lack of price policy and crop insurance by Govt. This study suggested that the Government may provide financial facilities to FPOs as it is very essential for sustainability of farmer producer Organisations. To aware the farmers about the FPOs in the study area.
Suggesting suitable strategies for strengthening and betterment of FPOs
• Improving the credit and input provisions to FPOs.
• To aware the farmers time to time.
Acknowledgement
Acknowledgments Not Applicable
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