Economic Affairs
  • Year: 2025
  • Volume: 70
  • Issue: 3

Quantifying the Performance of Farmer Producers Organization: An Insight on Index Development Approach

  • Author:
  • Trishita Banik1, Satya Prakash1, Sudhanand Prasad Lal1,*, V.N. Narendra2
  • Total Page Count: 10
  • Page Number: 291 to 300

1Department of Agricultural Extension Education, Post-Graduate College of Agriculture, Dr. Rajendra Prasad Central Agricultural UniversityPusa, Samastipur, Bihar, India

2Scientist, ICAR-NRC on Mithun, Medziphema, Nagaland

*Corresponding author: E-mail: sudhanand.lal@rpcau.ac.in

Online published on 24 February, 2026.

Abstract

This research employs a comprehensive methodology to develop a performance index for Farmer Producer Organizations (FPOs) in the agricultural sector. The study identifies and prioritizes 8 key dimensions viz., governance, infrastructure, legal services, financial services, production services, capacity and skill building, marketing and technical services. The selection and weighting of these dimensions are determined through a ordinal rankings into weightage. The scoring pattern has been suggested for different sub-indicators, and that would normalized through the FPO water formula after obtaining the data from the stakeholders. The paper concludes with a detailed analysis of the weighted dimensions, offering insights into the performance of FPOs in agriculture.

⓿ Performance index developed in the present investigation has 8 dimensions & 77 sub-indicators crafted through one of the most robust Alfares approach

⓿ Out of 8 “capacity and skill building” dimension hold paramount importance with an 88.13 weightage.

⓿ Performance index value will range from 0-1 after normalization of the proposed score of different sub-indicators.

Keywords

Alfares approach, Dimensions, Farmer Producer Organization (FPO), Sub-indicators, Performance Index