Problems faced by the farmer producer organization members and their suggestion in Manipur

Introduction

Agriculture is the backbone of the Indian economy, engaging nearly 65 per cent of the population and providing livelihood support to about 42.3 per cent of the people. The sector also contributes around 18.2 per cent to the national GDP at current prices (GOI, 2024). Despite its importance, small and marginal farmers face several challenges such as lack of market access, low bargaining power, inadequate storage facilities, and limited access to quality inputs and credit. To address these issues, the concept of Farmer Producer Organizations (FPOs) has emerged as an important institutional mechanism. A Farmer Producer Organization (FPO) is a legally registered organization formed and managed by primary producers such as farmers, dairy producers, fishers, weavers, and other rural producers. FPOs may be registered under the Companies Act, Cooperative Societies Act, or Mutually Aided Cooperative Societies Act. The main objective of FPOs is to organize farmers collectively to achieve economies of scale in production, procurement, processing, and marketing activities. Since many FPOs are registered as Producer Companies, the terms FPO and Farmer Producer Company (FPC) are often used interchangeably (Bal & Gupta, 2023) [1] . The formation of FPOs begins with creating awareness among farmers about the benefits of collective action. Interested farmers become members, and each member has equal voting rights irrespective of the number of shares owned. Government agencies and nominated institutions provide financial support, technical guidance, training, and professional management assistance for establishing and strengthening FPOs. NABARD and other agencies also support FPOs through capacity building, seed capital, storage facilities, and value addition initiatives (NABARD, 2015) [6] . FPOs possess several important characteristics. They are producer-owned organizations, registered as legal entities, and operate for the benefit of member producers. These organizations engage in commercial activities related to agricultural and allied products, distribute profits among members, and reinvest surplus funds for future growth and sustainability. FPOs provide numerous benefits to small and marginal farmers through collectivization. They help farmers access quality inputs at lower costs, improve bargaining power, www.extensionjournal.com reduce transaction costs, and establish better market linkages. FPOs also provide extension services, financial services, market information, processing facilities, transportation, storage, and technology support. Through collective marketing and value addition, farmers can obtain better prices for their produce and improve their income levels (Bizikova et al., 2020; Manaswi et al., 2019) [2,5] . The major objectives of FPOs include collective production and procurement, grading and processing of produce, effective marketing, and promotion of export and import activities related to agricultural commodities. Most FPOs follow the principle of "one organization-one product" to ensure specialization and better market efficiency. The Government of India has adopted a cluster-based strategy for the formation and promotion of FPOs. Under this approach, FPOs are formed in geographically similar areas producing similar agricultural commodities, known as "Produce Cluster Areas." Cluster identification is carried out with the support of government departments, monitoring committees, and Cluster-Based Business Organizations (CBBOs). CBBOs conduct baseline surveys and feasibility studies to identify production potential, infrastructure gaps, and opportunities for sustainable business development (GOI Guidelines, 2020). Under the Central Sector Scheme for the Formation and Promotion of 10,000 FPOs, financial assistance and incubation support are provided for five years to strengthen FPOs and make them economically sustainable. The scheme includes support for awareness programmes, training, professional handholding, and infrastructure development. In plain areas, an FPO must have at least 300 farmermembers, while in North-Eastern and hilly regions, a minimum of 100 members are required. As per the Press Information Bureau (PIB, 2025) [7] , all 10,000 targeted FPOs have been registered across the country by July 2025.

Research Methodology

The present study on Farmer Producer Organizations (FPOs) in Manipur was carried out during 2025-2026 using an ex-post facto research design, which is appropriate for studying situations where the independent variables cannot be manipulated by the researcher. The design helped in assessing the status, challenges, prospects, and effectiveness of FPOs functioning under the Central Sector Scheme for Formation and Promotion of 10,000 FPOs. The study was conducted purposively in four districts of Manipur, namely Kamjong, Ukhrul, Imphal East, and Imphal West. These districts were selected based on the presence of well-performing FPOs. One FPO from each selected district was chosen purposively for detailed investigation. From each selected FPO, 10 per cent of the total members were selected randomly, resulting in a total sample size of 115 respondents.

Finding and Discussion

Problems faced by the Farmer Producer Organization members and their suggestion 1. Problems Faced by CAU, Imphal FPO Members

The study revealed that the major problems faced by members of the CAU, Imphal FPO were mainly related to marketing, finance, and institutional support (Table 1). The absence of proper market linkage was reported as the most serious problem by 90.00 per cent of the respondents and ranked first. Poor credit facilities (86.67%) and complexity in the FPO registration process (83.67%) were also major constraints. Other important problems included nonavailability of custom hiring services (76.67%), lack of proper input supply (70.00%), and non-existence of a procurement system (66.67%). Respondents also faced issues such as lack of processing units (63.33%), heavy paperwork and bookkeeping (60.00%), inadequate knowledge about FPO services (56.67%), and high initial share capital or membership charges (53.33%). Overall, inadequate market access and financial limitations were the most critical challenges experienced by the members.

Suggestions by CAU, Imphal FPO Members

The respondents of CAU, Imphal suggested several measures to improve the functioning of FPOs (Table 3). Establishment of proper market linkages was ranked first with 83.67 per cent, indicating the urgent need for better marketing opportunities. Provision of inputs at subsidized rates (80.00%) and enhancement of credit facilities (76.67%) were also highly prioritized.

References

1. Bal, Gupta. IDR explains: farmer producer organizations (FPOs). IDR Online. 2023 Aug 10.
2. Bizikova L, Nkonya E, Minah M, Hanisch M, Sperling L, Reddy A. Farmer organizations and their role in agricultural transformation: a review of global evidence. Winnipeg: International Institute for Sustainable Development; 2020.
3. Government of India. Press Information Bureau. Ministry of Agriculture and Farmers Welfare. 2024 Aug 2.
4. Government of India, Ministry of Agriculture & Farmers' Welfare, Department of Agriculture, Cooperation & Farmers' Welfare. Formation and promotion of 10,000 Farmer Producer Organizations (FPOs): operational guidelines. New Delhi: Government of India; 2020.
5. Manaswi V, Singh R, Singh S. Farmer Producer Organizations (FPOs): concept, practices and prospects in India. International Journal of Agriculture Sciences. 2019;11(6):8220-8226.
6. NABARD Head Office, FSPD and FSDD. Farmer producer organizations. Mumbai: National Bank for Agriculture and Rural Development; 2015.
7. Press Information Bureau. Formation and promotion of FPOs. New Delhi: Ministry of Agriculture & Farmers Welfare, Government of India; 2025 Aug 8.