Promise and prospects of farmer producer organizations: The Kerala experience

The farmer producer organizations, as a new form of farmer collective combining the elements of cooperation and commercial companies, is being promoted aggressively as a means to address the challenges faced by small holder producers. This paper examines the evolution, role and potential of these organizations in the agrarian economy of Kerala. The state, which has a strong network of cooperative farmer institutions, has focused on its strength in the cooperative sector to harness the benefits from FPO's. Using data from official government sources and developmental agencies, the potential of farmer collectives is brought out. The network of FPO's in two major crops of the state, coconut and rubber shows the importance of handholding institutional services in development of FPO's. By focusing on crops with high potential for value addition like spices, leveraging network of self help groups and addressing constraints like access to training services, credit and technology can further strengthen the FPO sector in the state.