Performance of Farmer Producer Organi s ation s (FPOs) in Different Regions of Chhattisgarh State: A Case Study

Farmer Producer Organisations (FPOs) are the institutions that can be geared towards protecting small farmers from ill effects of liberalisation and to incentivise them to participate in modern competitive markets. The aim of the Producer Company is to empower and improve the bargaining power and quality of life of small and marginal farmers/producers. Considering the emerging importance of FPOs, the present study was conducted in different agro-climatic sub-regions of the Chhattisgarh state. The study is based on both the survey data and the case study methodologies. Multiple case studies of FPOs in each category and major districts have been undertaken to understand the operational modalities and challenges in the functioning of the FPOs. About 57 FPOs comprising 37 from Chhattisgarh plain, 10 from Northern hills and 6 from Bastar plateau supported by NABARD were registered. Out of these 24, 7 and 3 FPOs were functional respectively. The study noted that farmer collectives are viewed as an important element in linking smallholders with modern markets (input and output) as they provide many benefits for this interface. Producer’s organisations not only help farmers buy or sell better due to scale benefits but also lower transaction costs for sellers and buyers, besides providing technical help in production and creating social capital.