Research Highlights: Farmer Producer Organizations and Rural Livelihoods in India

Recent research indicates that Farmer Producer Organizations (FPOs) enhance market access, incomes, and social outcomes for smallholder farmers. However, their long-term success depends on effective governance, value-chain integration, and sustained institutional support. Collectively, the evidence positions FPOs as an important pathway for inclusive rural development.

Research Publications

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1. Arabica Coffee FPO Marketing in Andhra Pradesh

Keerthana, K., Rani, S. U., Nagi Reddy, P. P., Naidu, G. M., Kishore, M. R., Sandeep Naik, B. N., & Rao, P. J. (2026). Marketing of Arabica Coffee by Farmer Producer Organisations (FPO's) in Tribal Areas of Alluri Sita Rama Raju District in Andhra Pradesh. International Journal of Bio-Resource & Stress Management, 17(5), 1–11. https://doi.org/10.23910/1.2026.6805

Abstract

The study examined the marketing performance of Arabica coffee Farmer Producer Organisations (FPOs) in the tribal areas of Alluri Sita Rama Raju District, Andhra Pradesh, during the 2024–2025 agricultural year. Three FPOs—Dhimsa Natural Farming FPO, Paderu Farmers Producer Company Ltd., and Maa Thota Tribal Farming & Marketing Producer Co. Ltd.—were analyzed. The findings showed that FPO beneficiaries incurred lower production costs, achieved substantially higher yields (3,400 kg/ha versus 2,050 kg/ha), and obtained better selling prices (₹700/kg versus ₹480/kg) than non-beneficiaries. Beneficiary farmers also earned higher profit margins (91.07% compared with 69.46%). Among the FPOs, Maa Thota FPO recorded the highest marketing efficiency, while Paderu FPO provided farmers with the largest share of the consumer's rupee. Overall, participation in FPOs improved farmers' yields, incomes, market access, and training opportunities, demonstrating the significant role of FPOs in enhancing coffee marketing and value addition. (Adapted from the published abstract.)

2. FPOs as Sustainable Livelihood in Kerala

Suresh, V., Sreejith, S. S., Vivek, S., & Bonin, S. (2026). Can farmers' producers organisations be a sustainable livelihood program for farmers' wellbeing, in Kerala, India? Development in Practice, 36(2), 237–251. https://doi.org/10.1080/09614524.2025.2543357

Abstract

This qualitative case study evaluates whether Farmer Producer Organisations (FPOs) can serve as sustainable livelihood programs for farmers in Kerala using the Sustainable Livelihoods Framework (SLF). While previous research has largely focused on successful FPOs, this study examines moderately functioning FPOs to understand how they address sustainability challenges. The findings highlight the interaction between farmers' vulnerability, the capabilities of FPOs, and the institutional structures and processes that enable sustainable livelihood outcomes. The study identifies community-driven strategies that help FPOs survive despite operational constraints and proposes explanations for why FPOs face sustainability challenges and how they continue functioning. These insights can guide policymakers and practitioners in strengthening similar farmer collectives and improving their long-term sustainability. (Adapted from the published abstract.)

3. FPO Value Chains for Small Farmers

Pasupuleti, S., Nikam, V., Veesam, H., & V, P. K. (2026). Farmer Producer Organization–based value chain to leverage the income of small farmers: An empirical evidence from India. Journal of Asian and African Studies, 61(4), 3343–3361. https://doi.org/10.1177/00219096251376665

Abstract

This study examines the impact of Farmer Producer Organization (FPO)-based value chains on the income of smallholder farmers in the Indian states of Andhra Pradesh and Telangana. Using an Endogenous Switching Regression model, the researchers found that FPO membership significantly increased farmers' output value through both higher productivity and better market prices. The positive outcomes were driven by improved agricultural extension and advisory services, specialized training on cultivation and harvesting practices, and value addition through primary processing. The findings demonstrate that commodity-specific FPO value chains enhance efficiency, strengthen market access, improve farmers' incomes, and contribute to greater economic stability. The authors recommend promoting focused FPO value chains as an effective strategy for improving smallholder livelihoods. (Adapted from the published abstract.)

4. CAP and Olive Producer Organizations

Tamborrino, C., Cacchiarelli, L., Pupo D'Andrea, M. R., Henke, R., Caracciolo, F., & Sorrentino, A. (2026). CAP 2023–2027: Can the fruit and vegetable model address the challenges of olive producer organizations? Journal of Policy Modeling, 48(3), Article 107044. https://doi.org/10.1016/j.jpolmod.2026.107044

Abstract

This study examines whether the successful Producer Organization (PO) model used in the European fruit and vegetable sector can be effectively applied to Italy's olive sector under the 2023–2027 Common Agricultural Policy (CAP). Using hybrid institution theory and a discrete choice experiment, the researchers analyzed olive farmers' preferences for PO services such as co-investment opportunities and risk management support. The findings reveal substantial differences in farmers' preferences and identify a structural interdependence between farmer participation, service quality, and production levels. The study concludes that targeted PO design is essential for increasing participation and strengthening collective action in the olive sector. The results also provide evidence to inform future reforms of the CAP beyond 2027 and the expansion of collective marketing models to other agricultural sectors. (Adapted from the published abstract.)

5. Women's Empowerment through Farmer Collectives

Ray, S., Raghunathan, K., Bhanjdeo, A., & Heckert, J. (2026). Can Farmer Collectives Empower Women and Improve Their Welfare? Mixed Methods Evidence from India. Journal of Development Studies. Advance online publication. https://doi.org/10.1080/00220388.2026.2662647

Abstract

This study evaluates whether women-only Farmer Producer Organizations (FPOs) in India can improve women's empowerment and agricultural outcomes. Using a mixed-methods approach that combines a difference-in-differences model with matching and complementary qualitative research, the authors assess interventions designed to strengthen agricultural productivity, improve access to extension services and markets, and promote gender equality through gender-sensitization training. The findings show no significant improvements in land cultivation, crop yields, revenues, or production costs. However, the interventions positively influenced several dimensions of women's empowerment, including decision-making, asset ownership, control over income, and rejection of intimate partner violence. At the same time, they increased workloads and reduced group participation for both women and men. Qualitative evidence suggests that women spent less time marketing produce and more time on preferred activities, while men ceded some decision-making authority but retained control over key assets. The study concludes that FPO-based interventions can strengthen women's empowerment but require sustained, multi-year investments that extend beyond improving FPO performance to transforming underlying gender norms. (Adapted from the published abstract.)