Knowledge of farmers regarding farmer producer organizations and their services: An ex-post-facto study in Uttar Pradesh

Introduction

Indian agriculture is predominantly characterized by small and fragmented holdings, which often limit the bargaining power of individual farmers, restrict access to quality inputs and technologies, and increase the transaction costs associated with marketing agricultural produce. In this context, Farmer Producer Organizations (FPOs) have emerged as an important institutional mechanism for promoting collective action among farmers. FPOs enable producers to aggregate their resources, undertake collective procurement and marketing, access services and technologies, and establish stronger linkages with markets and other value-chain actors. Their collective nature can improve economies of scale, bargaining power and market access, particularly for small and marginal farmers (Nikam et al., 2019) [3] .

The importance of producer organizations has increased with the changing structure of agricultural markets. Producer organizations can serve as an interface between farmers and external institutions by facilitating backward and forward linkages, market access, capacity building, financial services and agricultural advisory support. Evidence from India indicates that producer organizations can improve market access, marketable surplus and bargaining power and can contribute to improved service delivery to participating farmers (Cherukuri & Reddy, 2014) [1] . The Government of India has accorded considerable importance to the development of FPOs. The Central Sector Scheme for "Formation and Promotion of 10,000 Farmer Producer Organizations" provides an institutional framework for promoting FPOs and supporting their development through implementing and facilitating agencies. The scheme www.extensionjournal.com includes operational guidelines, support mechanisms and provisions for convergence with other government programmes. Although the institutional expansion of FPOs has created opportunities for farmers, the benefits of collective organizations depend substantially on the ability of members to understand their structure, functions, services, registration provisions, membership rules and potential benefits. Knowledge is therefore an important prerequisite for effective participation. A farmer who is aware of the purpose, functioning and services of an FPO is more likely to understand the opportunities available through collective action and make informed decisions regarding participation and utilization of FPO services. Previous research has established that FPOs can strengthen farmers' position in agricultural value chains; however, the performance of FPOs is not uniform and organizational, managerial and capacity-related constraints continue to influence their functioning (Trebbin, 2014; Kumar et al., 2023) [4,2] . Thus, assessing farmers' knowledge of FPOs is important for identifying specific areas where information and capacity-building interventions are required. Against this background, the present study was undertaken to assess the statement-wise knowledge of farmers regarding Farmer Producer Organizations and their services in selected districts of Uttar Pradesh. The study specifically focused on farmers' knowledge concerning the concept of FPOs, membership, registration, organizational features, promotion, activities, member benefits and other institutional aspects of FPOs.

Research Methodology

The study was conducted using an ex-post-facto research design, as specified in the approved synopsis. The design was considered appropriate because the characteristics and experiences of the respondents had already occurred and were not manipulated by the researcher. The study was conducted in Jaunpur and Ghazipur districts of Uttar Pradesh. Uttar Pradesh was purposively selected, followed by purposive selection of Jaunpur and Ghazipur districts based on the concentration of FPO activities. According to the approved synopsis, Jaunpur had 92 FPOs, whereas Ghazipur had 68 FPOs. A multistage sampling procedure was followed. Blocks were selected purposively, followed by random selection of two FPOs from each selected block. From each selected FPO, 60 farmer respondents were selected, resulting in a total sample of 480 farmers. Primary data were collected through a structured interview schedule developed in accordance with the objectives of the study. Farmers' knowledge regarding FPOs was assessed through 15 statements covering the concept and membership of FPOs, registration, organizational features, promotion, support agencies, activities, member benefits and institutional provisions. Responses were classified into complete knowledge, partial knowledge and no knowledge. The data were coded, tabulated and analyzed using frequency and percentage. Overall, the findings demonstrate that farmers were relatively knowledgeable about the basic organizational features, activities, membership provisions and benefits of FPOs, but their knowledge was considerably weaker concerning registration procedures, institutional promoters, supporting agencies and the distinction between FPOs and cooperative societies. This finding is important because the effectiveness of FPOs depends not only on their formal establishment but also on the capacity of members to understand and utilize the institutional and economic opportunities available through them.

Results and Discussion

The findings are consistent with the broader literature emphasizing that FPOs can provide farmers with market access, economies of scale, bargaining power, technology and advisory services, but that organizational capacity and knowledge remain important determinants of effective functioning (Nikam et al., 2019; Trebbin, 2014) [3,4] . The present findings therefore suggest a need for targeted farmer education programmes, particularly on FPO registration, institutional support mechanisms, organizational structure, promotion agencies and the specific rights and benefits of members.

Overall mean knowledge score = 31.87 out of 45

Mean knowledge index

Knowledge Index=4531.87×100 = 70.82%

Thus, the respondents' aggregate knowledge score was 31.87/45, corresponding to a 70.82 per cent knowledge index.

Conclusion

The study concluded that farmers possessed a moderate overall level of knowledge regarding Farmer Producer Organizations, as reflected by the mean knowledge score of 31.87 out of 45 and a knowledge index of 70.82 per cent. Farmers were comparatively more knowledgeable about the basic organizational features, activities and benefits associated with FPOs. However, considerable gaps existed in their knowledge of institutional and procedural aspects, particularly FPO registration, promoting agencies, supporting institutions, the distinction between FPOs and cooperative societies, and the involvement of NGOs.

The findings indicate that merely establishing FPOs may not be sufficient to ensure effective utilization of their services.

References

1. Cherukuri RR, Reddy AA. Producer organisations in Indian agriculture: their role in improving services and intermediation. South Asia Research. 2014;34(3):219235.
2. Kumar S, Kumar R, Meena PC, Kumar A. Determinants of performance and constraints faced by Farmer Producer Organizations (FPOs) in India. Indian Journal of Extension Education. 2023;59(2):1-5.
3. Nikam V, Singh P, Ashok A, Kumar S. Farmer producer organisations: innovative institutions for upliftment of small farmers. Indian Journal of Agricultural Sciences. 2019;89(9).
4. Trebbin A. Linking small farmers to modern retail through producer organizations: experiences with producer companies in India. Food Policy. 2014;45:3544.