The study assesses the role of 3 Farmer Producer Organisations (FPOs) in enhancing rural livelihood in Ramanathapuram district, Tamil Nadu. One hundred and twenty farmers, including 60 FPO members and 60 non-members, were surveyed to compare socio-economic characteristics and livelihood impact. The research is multi-dimensional as it uses the frequency percentage analysis in the socioeconomic profiles of the farmers but also conducts SWOT analysis about FPOs to judge effectiveness and challenges. Besides this, the paper also examines the economic and operational impact of such FPOs on the farmers' livelihood. It uses the Heckman model to correct the selection bias present in the data. The Garrett ranking method is used to identify significant constraints faced by FPOs and suggests possible solutions. The study finds that FPOs positively impact farmers’ livelihoods by boosting income, improving market access and promoting modern farming practices. However, challenges like limited credit, poor infrastructure and low technical knowledge hinder their effectiveness. Addressing these through policy support, financial access and training can enhance FPO performance and farmer wellbeing.