Performance of farmer producer organizations (FPOs) in Chhattisgarh

The present study assesses the performance of farmer producer organizations (FPO) in the Indian state of Chhattisgarh. Multiple case studies of FPOs in major districts were undertaken to understand the modalities and challenges of their functioning. Most farmers were aware of the company business and were satisfied with the inputs supplied by the FPO shops, but FPOs have several shortcomings. Their professionals are poorly skilled and their business plans are poor, and their boards of directors lack vision and do not provide direction to the organization. They suffer from operational problems like a low equity base and share value. They cannot attract capital or credit from outside. Marketing and value addition is poor and the marketing cost is too high. These FPOs lack cold storage and processing facilities and their members are not active.