Skip to main navigation menu Skip to main content Skip to site footer
Plant Science Today (PST)

Research Articles

Vol. 12 No. sp4 (2025): Recent Advances in Agriculture by Young Minds - III

The role of farmer producer organizations in enhancing livelihood security: Evidence from Tamil Nadu

DOI
https://doi.org/10.14719/pst.9155
Submitted
27 April 2025
Published
03-12-2025

Abstract

In India, small and marginal farmers have been affected by agricultural production concerns. Several organizational prototypes are emerging that integrate them into the value chain, with the goal of increasing income and decreasing transaction costs. Farmer producer organizations (FPOs) are one of the most essential. The present study was carried out in Tamil Nadu's southern districts, namely Ramnad, Theni, Virudhunagar, Madurai, Sivagangai, Thanjavur, Trichy and Pudukottai. An ex-post facto research design was utilized to analyze the livelihood security of FPO members and non-members. The survey included five districts with a total of 600 FPO members and 300 non-members. This study compares the household livelihood security (HLS) of FPO members and non-members across four domains, including education, food, health and economic security. Farmer producer organization members show higher security in all areas, with a group index of 0.652 for education, 0.707 for food, 0.723 for health and 0.750 for economic security. The composite security index for FPO members is 0.701, indicating medium security, compared to 0.6566 for nonmembers. These findings highlight the benefits of FPO membership in improving access to resources, support systems and overall livelihood security. These findings align with several sustainable development goals (SDGs), including SDG 1 (no poverty), SDG 2 (zero hunger), SDG 3 (good health and well-being), SDG 4 (quality education), SDG 8 (decent work and economic growth), SDG 10 (reduced inequalities) and SDG 12 (responsible consumption and production), highlighting the potential of FPOs in enhancing livelihood security and contributing to sustainable agricultural development.

References

  1. 1. Kumar S, Kumar R, Meena PC, Kumar A. Determinants of performance and constraints faced by farmer producer organizations (FPOs) in India. Indian J Ext Edu. 2023;59(2):1-5. http://doi.org/10.48165/IJEE.2023.59201
  2. 2. Hazell P, Poulton C, Wiggins S, Dorward A. The future of small farms: trajectories and policy priorities. World Dev. 2010;38(10):1349-61. https://doi.org/10.1016/j.worlddev.2009.06.012
  3. 3. Chambers R, Conway G. Sustainable rural livelihoods: practical concepts for the 21st century. Brighton: Institute of Development Studies; 1992.
  4. 4. Kumar V, Wankhede KG, Gena HC. Role of cooperatives in improving livelihood of farmers on sustainable basis. Am J Edu Res. 2015;3(10):1258-66. https://doi.org/10.12691/education-3-10-8
  5. 5. Ramappa KB, Yashashwini MA. Evolution of farmer producer organizations: challenges and opportunities. Res J Agric Sci. 2018;9(4):709-15.
  6. 6. Malaisamy A. Assessment of economic performance of farmer producer companies in the southern districts of Tamil Nadu: delineating socio-economic determinants and their impact. Cur Res Prog Agric Sci. 2024;6(13):52-67. https://doi.org/10.9734/bpi/crpas/v6/3487
  7. 7. Bikkina N, Turaga RM, Bhamoriya V. Farmer producer organizations as farmer collectives: a case study from India. Dev Policy Rev. 2018;36(6):669-87. https://doi.org/10.1111/dpr.12274
  8. 8. Mukherjee AN, Singh P, Rakshit SH, Priya S, Burman RR, Shubha K, et al. Effectiveness of poultry-based farmers’ producer organization and its impact on livelihood enhancement of rural women. Indian J Anim Sci. 2019;89(10):1152-60.
  9. 9. Yazhini A, Malaisamy A, Rani SP, Ramakrishnan K, Prabakaran K, Arunachalam P. A comprehensive review of farmers producer organizations in India: historical evolution, current status and future policy challenges. Plant Sci Today. 2025;12(1):1-13.
  10. 10. Singh D, Sharma V. Understanding the benefits of membership in farmer producer organizations on educational security. J Dev Stud. 2010;29(4):101-14. https://doi.org/10.56093/ijas.v90i3.101510
  11. 11. Malaisamy A, Arun S. Evaluating the socio-economic status and economic performance of farmer producer companies in the southern districts of Tamil Nadu, India. Plant Sci Today. 2024;46(10):700-11. https://doi.org/10.9734/jeai/2024/v46i102993
  12. 12. Lalhmingsangi A, Mahasamudram G. Functioning of farmers producer organisations (FPOs) in Mizoram: a constraints analysis. J Law Sustain Dev. 2023;11(4):e897. https://doi.org/10.55908/sdgs.v11i4.898
  13. 13. Arun S, Malaisamy A, Balasubramanian M, Parimalarangan R, Prabakaran K, Padma Rani S, et al. The role of farmer producer organizations in raising smallholder farmers’ income: a comprehensive review. Indian J Econ Dev. 2024;20(4):621-28. http://dx.doi.org/10.35716/IJED-24104
  14. 14. Darshan NP, Rajashekar B, Patil KV, Ravi KN, Naik JP. Farmer producing organizations for development of farmers in India: an economic perspective. Int J Curr Microbiol Appl Sci. 2017;6(9):1611-15. https://doi.org/10.20546/ijcmas.2017.609.198
  15. 15. Nikam V, Singh P, Ashok A, Kumar S. Farmer producer organisations: innovative institutions for upliftment of small farmers. Indian J Agric Sci. 2019;89(9):1383-92.
  16. 16. Adhikary A, Roy D, Mishra P. Analysing the perceived impact of farmers’ producer organizations on sustainable economic development. ResGate [Internet]. 2024 [cited 2025 Aug 4]. Available from: https://www.researchgate.net/publication/383495005
  17. 17. Small farmers agribusiness consortium (SFAC). Annual report 2021. New Delhi: Ministry of Agriculture and Farmers Welfare, Government of India; 2021.
  18. 18. National Bank for Agriculture and Rural Development (NABARD). Farmer producer organizations: Status and way forward. Mumbai: NABARD; 2020.
  19. 19. Singh S. Farmer producer companies in India as new generation cooperatives: case studies of performance and impact from West Bengal, India. Ann Public Coop Econ. 2023;94(3):1007-29. https://doi.org/10.1111/apce.12436
  20. 20. National Institute of Agricultural Extension Management (MANAGE). Impact Assessment of Farmer Producer Companies (FPCs). Hyderabad: MANAGE; 2020.
  21. 21. United Nations Development Programme (UNDP). Human Development Report 2020: The Next Frontier - Human Development and the Anthropocene. New York: UNDP; 2020.
  22. 22. Oyeyinka RA, Ayansina S, Adamu C. Effect of farmers organization on agricultural technologies development in Afijio local government areas of Oyo State, Nigeria. OIDA Int J Sustain Dev. 2012;5(11):43-50. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2230189
  23. 23. Govil R, Neti A, Rao MR. Farmer producer companies: past, present and future. 2020. [Internet]. Available from: http://publications.azimpremjiuniversity.edu.in/id/eprint/2268
  24. 24. Anand S, Ghosh S, Mukherjee A. Effectiveness of farmer producer organizations (FPOs) at different growth stages in transitioning to secondary agriculture. Indian J Ext Edu. 2023;59(3):90-96. https://www.researchgate.net/publication/372077535
  25. 25. Trivedi PK, Ali M, Satpal. Farmer producer organisations in North India: potentials and challenges. Int J Rural Manag. 2023;19(3):379-98. https://doi.org/10.1177/09730052221107730
  26. 26. Chauhan JK, Ankur A, Pradhan K. Identification of constraints associated with farmers’ producer organisations (FPOs). Int J Curr Micro Appl Sci. 2021;10(1):1859-64. https://doi.org/10.20546/ijcmas.2021.1001.217
  27. 27. Vahoniya DR, Vahoniya ND, Halpati JR. Farmer producer organisation (FPO): a conceptual study about farmer producer company (FPC). Asian J Agric Ext Econ Soc. 2022;40(10):1185-97.
  28. 28. Prasad S, Kanitkar A. Producer Organisations as Twenty-First Century Farmer Institutions. Farming Futures; 2023.
  29. 29. Gurung R, Choubey M, Rai R. Economic impact of farmer producer organisation (FPO) membership: empirical evidence from India. Int J Social Econ. 2024;51(8):1015-28.
  30. 30. Nair R, Prasad S, Singh A. The effects of FPO membership on children’s education in rural India. Rural Edu J. 2021;10(1):22-35. https://doi.org/10.1108/IJSE-06-2023-0451
  31. 31. Yazhini A, Malaisamy A, Raswanthkrishna M. Farmers producer organizations as a catalyst for change in agriculture: improving farmers livelihood in Tamil Nadu. Plant Sci Today. 2025;12(2):7403. https://doi.org/10.7179/PST,7403
  32. 32. Amitha CD, Savitha B, Rani VS, Laxminarayana P. Factors contributing to the performance of farmer producer organizations (FPOs)-a study in Medak district of Telangana state. Int J Bio-Resource Stress Manag. 2021;12(3):192-8.
  33. 33. Rai A, Mishra R, Jha P. The socioeconomic benefits of FPOs on rural communities: education and beyond. J Rural Comm Dev. 2020;14(3):54-68. http://dx.doi.org/10.23910/1.2021.2226
  34. 34. Jaacks LM, Singh N, Veluguri D, Connors K, Sooraj A, Kalra A, Awasthi A. Association of membership in a farmer producer organization with crop diversity, household income, diet diversity and women’s empowerment in Uttar Pradesh, India. PLoS One. 2025;20(3):e0319704. https://doi.org/10.1371/journal.pone.0319704
  35. 35. Siddalingaswamy MG. Economic independence and social upliftment: a conceptual study on the role of FPOs in farmer empowerment. M-JACS. 2025;3(1):7-15. https://doi.org/10.59415/mjacs.v3i1.245
  36. 36. Singh M, Tiwari D, Rana RK. Role of organizational structure and behaviour for ensuring sustainability of farmer producer organisations in Punjab. J Krishi Vigyan. 2022;10(2):283-89. http://dx.doi.org/10.5958/2349-4433.2022.00050.2
  37. 37. Singh S. Re-organising agricultural markets for doubling farmer incomes in India: relevance, mechanisms and role of policy. Indian J Agric Econ. 2019;74(3):390-407. http://dx.doi.org/10.22004/ag.econ.343447
  38. 38. Arahant A, Nayak D, Jindal L, Batra G, Dash DN, Kondasani RK, et al. Farmer producer organization: an ecosystem for building socioeconomic resilience of farmers in India. Curr Agric Res J. 2023.45–59. http://dx.doi.org/10.12944/CARJ.13.1.26
  39. 39. RAS Consortium. Farmer producer companies in India. New Delhi: RAS Consortium; 2021. Available from: https://ras.org.in/farmer_producer_companies_in_india

Downloads

Download data is not yet available.