Review Articles
Vol. 12 No. 3 (2025)
A review on farmer producer organization: A catalyst for empowering small and marginal farmers
Department of Agricultural Economics, Tamil Nadu Agricultural University, Coimbatore 641 003, Tamil Nadu, India
Department of Agricultural Economics, Tamil Nadu Agricultural University, Coimbatore 641 003, Tamil Nadu, India
Department of Agricultural Economics, Tamil Nadu Agricultural University, Coimbatore 641 003, Tamil Nadu, India
Department of Agricultural Extension and Rural Sociology, Tamil Nadu Agricultural University, Coimbatore 641 003, Tamil Nadu, India
Department of Agronomy, Tamil Nadu Agricultural University, Coimbatore 641 003, Tamil Nadu, India
Abstract
Farmer Producer Organizations (FPOs) are emerging as transformative mechanisms in agriculture, especially amidst land fragmentation and the prevalence of small and marginal farmers. With agriculture supporting nearly half of India's workforce while contributing approximately 18 % to the national GDP, the sector undergoes multiple challenges, including declining farm sizes, climate variability, water scarcity and persistent market inefficiencies. Against this backdrop, this review examines the multifaceted role of FPOs in enhancing agricultural productivity, market access and farmer livelihoods across the diverse and widespread country, India. By consolidating resources, knowledge, information and market power, FPOs help members achieve economies of scale, enhance bargaining power and access premium markets that were previously out of reach for individual farmers. Evidence indicates that well-functioning FPOs contribute to increased farmer incomes, improved food security and enhanced resilience to climate and market shocks-critical considerations as India pursues agricultural self-sufficiency and sustainable intensification. However, FPOs also face significant challenges, including governance constraints, limited access to capital, weak management capacity and concerns regarding long-term sustainability. The review analyses various FPO models, their implementation frameworks within India's policy environment and critical success factors while identifying research gaps in impact assessment methodologies and scalability approaches. With government initiatives like the “Formation and Promotion of 10000 FPOs” scheme, FPOs are poised to play a pivotal role in India’s agricultural transformation, offering both opportunities and lessons for sustainable rural development.
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