Farmer Producer Organizations

In India, a vast majority of farming households are cultivators of small plots which yield low returns.An intervention that can potentially lessen transaction costs of small farmers is aggregation or collectivization, wherein a group of producers come together and jointly manage resources and access credits and inputs. Collectivization via Farmer Producer Organizations (FPOs) can help in improving the economic situation of small producers.The FPOs undertake various activities, which are aimed at providing economic empowerment to the small and medium farmers through better price realization, enhancing their linkages with the market and promoting sustainable agriculture.

Anuvaad undertook a pilot study to assess the potential impact of FPO membership on crop production diversity, household income, dietary diversity, and women’s empowerment in Uttar Pradesh which found that promotion of FPO membership may help contribute to slightly greater crop production diversity, higher incomes from cultivation​, higher expenditures on food and greater dietary diversity, particularly for OBC and SC/ST households​. Access the full report here.