Abstract: The concept of Farmer Producer Organizations (FPOs) was introduced to strengthen the socio-economic conditions of small and marginal farmers by improving their access to inputs, credit, markets, and technology. FPOs operated as registered entities under the Companies Act and were promoted by various government and non-government organizations to address market inefficiencies and enhance the collective bargaining power of farmers. The present study, entitled “Comparative Analysis of Income of the FPO Farmers and Non–FPO Farmers in Raisen District of Madhya Pradesh,” was conducted in the Gairatganj block of Raisen district. A purposive sampling technique was used to select soybean-growing villages where five percent of FPO farmers were identified, and fifteen percent of respondents were randomly chosen for analysis. The study examined the marketing channels adopted by both FPO and non-FPO farmers. For FPO farmers, three channels were identified: Channel I (FPO Farmer → FPO → Retailer → Consumer), Channel II (FPO Farmer → FPO → Wholesaler → Retailer → Consumer), and Channel III (FPO Farmer → FPO → Processor → Retailer → Consumer). Similarly, non-FPO farmers followed Channel I (Non-FPO Farmer → Local Trader → Retailer → Consumer), Channel II (Non-FPO Farmer → Commission Agent → Wholesaler → Retailer → Consumer), and Channel III (Non-FPO Farmer → Village Market → Retailer → Consumer). The findings revealed that FPO farmers experienced better marketing efficiency and lower price spread compared to non-FPO farmers. Overall, the study demonstrated that FPO membership positively influenced farmers’ income and market participation through more efficient marketing mechanisms.
Keywords: Farmer Producer Organization, Soybean, Marketing Channels, Income Comparison, Marketing Efficiency
Author: Ankita Tiwari and Victoria A. Masih
doi: https://doie.org/10.10346/AE.2025317384
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