Farm organisations need better market linkage for returns, says report

These issues have assumed greater importance after the government allowed farmers to directly sell their produce to processors and traders.

A recent survey of farmer producer organisations (FPOs) conducted by Tata Trusts suggests that to ensure higher returns for produce, FPOs need to increase market linkages. The consequent report recommends addressing agricultural value chains, which include ensuring availability of infrastructure and credit along with information asymmetry.

These issues have assumed greater importance after the government allowed farmers to directly sell their produce to processors and traders without any compulsion to bring them to agriculture produce market committees (APMCs) or market yards.

The survey discovered gaps in the way FPOs are handling their operations. “If the gaps are addressed through effective linkages, it could help clusters see an increase in their aggregate turnover by 5-20 per cent, depending on the crop,” the report noted. The report released was based on a field study concluded over a year ago.

This study covered 49 FPO clusters and 45 agriculture value chains across 52 districts in 18 states. This was followed by an intensive analysis of the data and discussions with stakeholders. The report is further backed by 49 FPO cluster-level reports, which span across 1,800 FPOs and 399 market players, according to Pradyuman Singh Rawat, project lead, Tata Trusts.