MSc

The study entitled “Farmer Producer Organisations (FPOs) of Idukki district: A
multidimensional analysis on role, function and performance” was conducted to understand and
assess the role, function and performance of FPOs in Idukki district along with the socio-
economic development of members and the various constraints related to formation, functioning
and performance of FPOs. The location of study was whole of Idukki district, as the FPOs were
spread throughout the district. Exhaustive selection of thirteen FPOs were made from the district
and a total of 120 respondents were selected from these FPOs using probability proportion to
size sampling
Data collection was done using a structured interview schedule, prepared with necessary
variables for the study. Obtained data was subjected to analysis using statistical tools such as,
arithmetic mean, standard deviation, frequency, percentage, correlation analysis and principle
component analysis.
The study had two dependent variables, namely Group dynamics and Performance of
FPO. The variable group dynamics had four component variables and it was used to develop a
group dynamics index, on the basis of which the FPOs were ranked. In terms of Group dynamics
Thodupuzha Farmers Agro PC (84.02%) ranked higher. Using principle component analysis it
was found out that, of the four components, Group Cohesiveness contributed more to Group
Dynamics. Performance of FPO had three components and it was also converted into index by
taking the average of sum of indices of the individual components. In terms of Performance of
FPO also Thodupuzha Farmers Agro PC(77.94%) ranked higher compared to other FPOs. Effect
of group dynamics on performance was found out using correlational analysis and both variables
were positively correlated.
Majority (50.83%) of the respondents belonged to age category of more than 55 years
(58.5%). More than half (55%) of the respondents had education up to high school level and
majority of the respondents (78.33%) had farming as their sole profession. Most of the
respondents (39.16%) had their annual income in the range of 0.6-2 lakhs. In case of social
participation (85.33%) of the respondents were members and (57.5%) of the respondents had
occasional participation. In terms of market orientation 80% of the respondents belonged to
medium category. Extension agency contact for major share of the respondents (44.16%) was
low but 54.16% of them had high extension participation. Among the five roles, role number one
„Facilitate development of member farmers‟ was identified as the most important role. In terms
of economic efficiency Green Vivo Agro PC was ranked as the most efficient. Medium socio-
economic development was showcased for most of the respondents. These FPOs were supported
by NABARD, Govt of Kerala, Supplyco etc in marketing, finance and functioning.
Constraints faced by members and FPOs were found out by discussing with respondents.
Major constraints faced by FPOs include competition from retailers and existing brands,
difficulty in marketing products, lack of professional management, lack of adequate funds during
incubation period, inadequate support from State, stringent export norms etc. Constraints faced
by the members included lack of minimum support price for commodities, lack of storage
facilities for their produces, unavailability of services in time, lack of proper extension services
and political discrimination. Appointing professionally qualified personals as CEOs of these
organizations, establishing dedicated market led extension services, assured market linkages
through Govt system, Govt t based quality assurance and testing centers, providing interest free
loans through government mechanisms during incubation period and assured minimum support
price for commodities are some of the strategies and suggestions for improving the functioning
of these FPOs
As a result of the study it was found out that Group dynamics had a positive effect on
Performance of FPO. Most of the respondents were found to be in medium level with respect to
all components of independent variables except for extension contact. FPOs have a positive
impact on socio-economic development of members. Members could identify increase in social
participation and interaction after being part of the FPO. Lot numbers of constraints are faced by
FPOs of Idukki district and better policy making is necessary for providing better support for
these FPOs.
As an institutional model FPOs can be successful if provided with better
management and target orientation.