Drives and Determinants for Forming Farmer Producer Organization Developed by NGO

A Study in Dang District, Gujarat

Abstract

The development of the agriculture sector has been India’s top priority since the first five-year plan. Although agriculture's contribution to India's GDP has fallen below 15 per cent, its importance remains significant due to the reliance of 75 per cent of Indian families on rural incomes and the vast rural population of 770million, 70 per cent of whom live in poverty. Ensuring food security and meeting theneeds of a growing population hinges on productive, competitive, diversified, and sustainable agriculture. Small and marginal farmers face production risks, and organizational models like Farmer Producer Organizations (FPOs) are emerging to integrate them into value chains, enhance their livelihoods and reduce transaction costs. This study addresses four objectives related to FPOs: discussing the concept, determining performance indicators, identifying factors contributing to effective FPOs, and recognizing traits of FPO leaders and members. The development process of FPOs is also explored. These objectives provide insights into comprehending FPO dynamics. The study draws on responses from NGO officials and members of Dang FPO in Gujarat, along with a review of relevant FPO studies, contributing to ongoing research on NGOs and FPOs in Gujarat.