Strengthening Farmer Producer Organizations Through Extension Support

Abstract

The Farmer Producer Organizations (FPOs) have been observed to have emerged as major institutional processes of advancing the socio-economic status of small and marginal agricultural businesses. The FPOs as a group assist the farmers in amalgamizing the produce, purchasing inputs on large scale, accessing improved markets besides undertaking value additions. Such functions are enhancing the bargaining power, minimizes the transactional costs and improves the income stability. Amidst the opportunity, most FPOs have been faced with disadvantages of governance, managerial incompetence, financial literacy, infrastructure and credit and market access. These limitations may adversely affect their long term sustainability and growth unless the institutional support is provided in the long term. The agricultural extension services are significant in empowering the FPOs since it is not only diversified to include the institutional development and enterprise promotion, but also the conventional technology transfer. The extension assistance will entail the leadership training, capacity building, monetary connection and market intelligence dispersion encouragement and promoting the adoption of new methods of production. This is also openness, cost-effectiveness and competitiveness through digitalisation of services via mobile advisory services and e-marketing sites. Eventually, in favour of inclusive and sustainable agricultural transformation will lead to the empowerment of FPOs leading to increased farmer incomes, employment opportunities, food security, and rural entrepreneurship.