Challenges and Strategic Interventions for Sustainable Farmer Producer Organizations in Tamil Nadu, India
R. Sasikanth *
Food and Agri Business School, Sagar Group of Institutions, Chevella, Hyderabad-501503, India.
S. Ravichandran
Department of Agricultural Economics, Faculty of Agriculture, Annamalai University, Tamil Nadu-608002, India.
*Author to whom correspondence should be addressed.
Abstract
Background: Farmer Producer Organizations (FPOs) help small and marginal farmers enhance collective action, market access, and rural livelihoods, but many face challenges in becoming self-sustaining due to limited capital, weak governance, and managerial constraints.
Aim: The study aims to examine the major challenges faced by Farmer Producer Organizations (FPOs) in Tamil Nadu and to prioritize strategic interventions that can strengthen their sustainability and long-term viability
Research Gap: While FPOs are widely recognized for enhancing farmers’ bargaining power and market access, empirical studies that systematically prioritize constraints in capitalization, governance, and marketing remain limited, especially in the context of newly established FPOs in Tamil Nadu.
Study Location: The research was conducted across two agro-climatic zones of Tamil Nadu, capturing the diversity of farming systems and socio-economic conditions where FPOs operate.
Sample Size: A total of 30 FPOs were selected as the study sample.
Data Collection: The collected data were analyzed using Garrett’s ranking technique to identify and prioritize the key challenges faced by the sampled FPOs in capitalization, governance, and marketing.
Conclusion: The study finds that most FPOs in their formative years struggle with delayed and complex grant processes, inadequate capitalization, cash flow problems, governance bottlenecks such as licensing delays and frequent CEO turnover, and weak marketing strategies. These constraints collectively undermine organizational stability and growth. To address these issues, the study recommends tailored policy and managerial interventions, including strengthening financial support mechanisms, streamlining governance processes, and adopting innovative marketing approaches, to enhance the sustainability and viability of FPOs in Tamil Nadu.
Keywords: Sustainability, governance, marketing constraints, smallholder farmers