Do institutional interventions benefit farmers - Evidence from marketing maize through farmer producer organization in Davangere district of Karnataka

Government of Karnataka launched “State FPO Policy 2018” with the vision of forming at-least one Farmer Producer Organization (FPO) in every hobli (group of villages) jurisdiction, thereby collectivizing around 5 lakhs farmers over the next five years. Many of these FPO’s promoted by different development departments are in the nascent stage of development and are involved in input and output business. Davanagere district has the highest production of maize in Karnataka and FPO’s promoted by different organizations in the district are involved in activities of marketing maize of member farmers of FPOs. Hence, an attempt is made in the present study to analyze the benefits of marketing maize through institutional model of farmer producer organizations. Cost, returns, price spread, margins and efficiency of marketing were analysed and studied to understand the economic benefits of member farmers marketing maize through FPO’s. The cost of production per quintal of maize for FPO member farmer of over non-FPO farmers was lower by 86.25/quintal as FPO farmer realized a higher yield of 1.83 quintal per acre. Net returns realized by FPO farmers was higher by 13.46 over non-FPO farmers and producer share in the consumer rupee was higher by 4.93% over non-FPO farmers. The study findings indicate the benefits to member of FPO in marketing maize through institutional model and hence the model can be strengthened by addressing various constraints in the institutional supply chain model.