Perceived Constraints by the Board of Directors in Managing the activities of Farmers’ Producer Organizations (FPOs) In Odisha

Abstract

Finance Minister Nirmala Sitaraman emphasised in her first Budget address for the fiscal year 2019–20 the Government’s goal to create 10,000 new Farmer Producer Organisations (FPOs) by 2022. Previously, the Ministry of Agriculture had convened an expert committee to review the 2013-draft policy guidelines, prompted by the burgeoning growth of FPOs in the state governments of Odisha and Karnataka. The emergence of an FPO movement seems imminent, considering the substantial evidence. A decade ago, the term "FPO" held little significance for many, but today, it is sparingly used outside of conferences by civil society organizations. In 2019, two separate award ceremonies were slated to honor the achievements of FPOs, reflecting their growing importance. Recognizing their significance, even corporate leaders and entrepreneurs like Ms. Kiran Shaw have acknowledged the value of FPOs. The concept of forming entrepreneurial clusters was proposed as a transformative initiative for rural India. Discussions surrounding FPOs have extended beyond agricultural and rural studies to encompass rainfed areas and other related subjects. Both federal and state-level initiatives have been undertaken to evaluate suitable policies and ecological support for FPOs. However, concerns have arisen as several FPOs have disbanded, struggling to sustain their operations effectively, raising doubts about their long-term viability.

Consequently, a research endeavor titled "Functional Analysis of Farmer Producer Organisations (FPOs) in Odisha" was initiated to evaluate their growth, development, and the extent of familiarity among their board of directors (BoDs) with efficient operational practices. Following an ex-post-facto research methodology, the study utilized a sample size of three per district, totaling ninety participants selected randomly from nine FPOs across the districts of Cuttack, Puri, and Khordha in Odisha. The survey findings indicated that FPOs demonstrated stronger networking relationships, with technical and social mobilization services ranking second and third, respectively. Data analysis involved multiple regression analysis, correlation, and frequency distributions to derive meaningful insights.