CHALLENGES FACED BY FPOs & STRATEGIES TO OVERCOME: A REVIEW

Abstract

Small holder farmers are have to suffer market uncertainties as most policies and institutional
supports favours large and progressive farmers and smaller farmers are devoid of them
increasing wider gap between producers and consumers. In such situation Farmer Produces
Organization plays an important role in promoting and strengthening member based
institution of farmers. This business form allows 10 or more producers to form an
organisation as per its memorandum of association. FPO’s can link smallholder’s farmers to
local, regional, national and international markets effectively if there is no political
interference. FPOs which are formed as Farmer Producer Company (FPCs) allow its member
to access financial and other input services. To surpass this effective and viable profit making
FPCs needs to be competent with other companies and rivals in the market and has a huge
potential to capture the future food retails not only in India but in the world