Vol. 12, Special Issue 12 (2023)

Author(s):
PS Singh and Dr. ML Sharma

Abstract:
The formation of the collective institution of producers, especially small and marginal farmers, into producer organizations has emerged as one of the most effective pathways to address the many challenges of agriculture. FPOs help the farmers in production, harvesting, processing, procurement, grading, pooling, handling, selling and export of primary produce of the members or import of goods and services for their benefit. Farmer Producer Organizations (FPOs) are a legal entity registered under Company Act 2002. Only farmer producer can become a member of FPO as per amendment done in the act in 2002.The present study was undertaken in Valsad district of Gujarat during 2020-21 to evaluate the performance of FPOs. The study used primary data that were collected from 3 FPOs, regarding their business performance; to assess the impact of FPO on Farmers income. Statistical tools were used for the study included Ratio analysis, Regression Analysis. Current ratios and Acid-test ratios of all the three FPOs were found were to be greater than 1.0 indicating that all the three FPOs were in the position to meet their current obligations. The debt-asset ratio indicated that FPOs were financially healthy. The profitability ratios of all the three FPOs were positive. The operating cost of all the three FPOs were less than 1.0 indicating high operating efficiency. Membership of FPO had a significant and positive impact on farmers income and analysis results revealed that FPO members had 9.7 percent higher income than non-members. Landholding size, household size and livestock had significant and positive effect on Farmers income. It was found that the performance of FPOs were satisfactory and it had a significant and positive impact on farmers income. Therefore, it is recommended that FPOs should be promoted in order to raise the farmer’s income.