CHALLENGES FACED BY FPOs & STRATEGIES TO OVERCOME: A REVIEW

Small holder farmers are have to suffer market uncertainties as most policies and institutional supports favours large and progressive farmers and smaller farmers are devoid of them increasing wider gap between producers and consumers. In such situation Farmer Produces Organization plays an important role in promoting and strengthening member based institution of farmers. This business form allows 10 or more producers to form an organisation as per its memorandum of association. FPO's can link smallholder's farmers to local, regional, national and international markets effectively if there is no political interference. FPOs which are formed as Farmer Producer Company (FPCs) allow its member to access financial and other input services. To surpass this effective and viable profit making FPCs needs to be competent with other companies and rivals in the market and has a huge potential to capture the future food retails not only in India but in the world.