Citation:

Snehashis Samantaray. "Enhancing Small and Marginal Farmers Income Through Farmer Producer Organizations (FPOs)" International Research Journal of Economics and Management Studies, Vol. 4, No. 8, pp. 1-8, 2025. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V4I8P101

Abstract:

Small and Marginal farmers constitute the backbone of the agrarian economy of the country, yet they face multiple burgeoning challenges in the form of fragmented landholdings, lack of proper access to the markets, credit constraints, mounting input costs, and limited institutional support. This paper seeks to examine the role of the Farmer Producers Organisations (FPOs) in enhancing the income and livelihood of small and marginal farmers. It explores the multiple essential services rendered by the FPOs, which include input supply, procurement services, financial and technical support, as well as credit facilitation. Undertaking a review of major policy documents and relevant literature, the work highlights the vested potential of the FPOs in facilitating input cost reduction, improving market access, facilitating procurement benefits and rendering other essential services (insurance and technical services). The paper also highlights the need for facilitating greater transparency, governance mechanisms, capacity-building measures, and policy interventions to ensure the sustainability of the FPOs. Strengthening FPOs with the right institutional and financial support takes prominence to facilitate rural transformation and secure the economic well-being of small and marginal farmers in the Indian landscape.

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Keywords:

Small and Marginal Farmers, Farmer Producer Organization (FPO), Small Farmers' Agri-Business Consortium (SFAC), National Bank for Agriculture and Rural Development (NABARD), Income Enhancement.