Analysis of collectivization of small holders in India: Competencies, opportunities and economic impact

Farmer producer organizations (FPOs) act as an effective institutional mechanism in addressing the agricultural constraints of small holders and improving their wellbeing. The present study provides analytical inferences of the competencies, opportunities and economic impact of FPOs in the state of Andhra Pradesh. Primary cross-sectional data was collected from 94 managerial team members of FPOs, 150 FPO farmers, 150 non FPO farmers and 15 FPOs.The managerial team showed medium level of competencies with regard to organizing and techno-operational competency domains while exhibited low competencies for other components. The dummy variable regression results showed that compared to non-FPO farmers, FPO members had an average net savings of Rs. 38.83 for every Rs. 100 spent on marketing and realized a farm income of Rs. 12.14 higher for every Rs. 100 earned by non FPO farmers. Developing and implementing a need-based capacity building programmes coupled with external financial support considering the life cycle stage of FPO are important policy implications essential for FPOs to become potential social enterprises.