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23. Empowering the Marginal Farmer: The Emerging Role of FPOs in India's Agricultural Value Chains

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  • Bhoite, Arati Dhananjay

Abstract

Small and marginal farmers in India face persistent challenges in accessing efficient agricultural value chains, resulting in limited market integration, restricted credit availability, and substantial post-harvest losses. Although India has surpassed the target of establishing 10,000 Farmer Producer Organizations (FPOs) by 2025, only a subset are fully operational with access to formal financing and robust market linkages. This study explores the evolving role of FPOs alongside digital platforms such as e-NAM and ONDC in enhancing inclusiveness and competitiveness within India's agricultural supply chains. It underscores critical infrastructural and logistical gaps, commodity-specific value chain efficiencies, and the impact of intermediaries on farm incomes and food security. Additionally, the paper evaluates state-led innovations and financing mechanisms-including Agri-AI initiatives, mechanization subsidies, and electronic warehouse receipts (eNWRs)-aimed at improving sustainability and mitigating inflationary pressures. Through an analysis of supply chain models in cereals and pulses, this study proposes strategic policy and financial interventions to empower marginal farmers, expand market access, and reduce post-harvest losses, thereby fostering a more resilient and inclusive agricultural economy.

Suggested Citation

  • Bhoite, Arati Dhananjay, 2025. "23. Empowering the Marginal Farmer: The Emerging Role of FPOs in India's Agricultural Value Chains," Indian Journal of Agricultural Marketing, Indian Society of Agricultural Marketing, vol. 39(3).
  • Handle: RePEc:ags:injagm:400134
    DOI: 10.22004/ag.econ.400134
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    File URL: https://ageconsearch.umn.edu/record/400134/files/23.%20Empowering%20the%20Marginal%20Farmer_%20The%20Emerging%20Role%20of%20FPOs.pdf
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