Market linkage could boost farmers’ turnover- study on FPOs
A recent survey by Tata Trusts on Farmer Producers Organisations (FPOs) suggested that to ensure higher returns for farm produce, “FPOs need to increase market linkages”. The report recommends addressing the concerns of agricultural value chains such as availability of infrastructure and credit, information asymmetry and value addition. These issues get importance after the government allowed farmers to directly sell their produce to processors and traders, obviating the need for them to bring their produce to APMCs or market yards.
The survey found out that there is gap between the way FPOs are handling their operations and the available infrastructure. If the gaps are maintained with effective linkages, each cluster will see an increase in overall turnover increasing
If the gaps are addressed through effective linkages, each of the clusters could see an increase in aggregate turnover increasing by 5-20 per cent. The report was based on a field study conducted over a year ago. 49 FPO clusters and 45 agriculture value chains across 52 districts in 18 states were covered in the study. The reports recommended that market linkage should be implemented at organisation- and capability-related issues, as well as technology-related, financial and infrastructure-related and marketing related areas.
The study has recommended nine priority clusters for Centres of Excellence in Agricultural Marketing and Development (CEAD)-related interventions. That includes Amravati, Nagpur, Tehri, Dahod, Chittoor, Kolar, Tumkur, Nashik, Mayurbhanj and Kamrup.
Out of the 1,833 FPOs surveyed, active members were 750. Out of the active FPOs, only 47% had business revenues, and only 42% had a GST registration. 750 FPOs surveyed had 360,000 farmers as members, with an average land holding of 1.02 Ha. Out of the 49 clusters, there were nine in which the aggregate turnover of FPOs was more than Rs 5 crore; 18 clusters has aggregate turnover between Rs 1-5 crore in; and less than Rs 1 crore in about 14 clusters.
