"A Comparative Cost–Benefit Analysis of Farmers Before and After Joining Farmer Producer Organizations: With Special Reference to Nalgonda and Mahbubnagar Districts, Telangana State"

Abstract

The study aims to assess the performance of selected Farmer Producer Organizations (FPOs) in Telangana and examine the association between FPO membership and the economic conditions of farmers in comparison with their pre-membership condition. It also assesses farmers’ perceptions regarding the services and functioning of FPOs. The study was conducted among 400 member farmers of six selected FPOs located in Telangana. Primary data were collected through a structured questionnaire during July–December 2025, while secondary data were obtained from government reports, FPO records, research studies and other published sources. Descriptive statistics, Chi-square test, ANOVA and paired sample t-test were employed to analyse farmers’ perceptions and differences in economic performance before and after joining FPOs. The findings indicate that farmers’ overall perception of FPO functioning was moderate, with 67.0 per cent reporting moderate perception, 28.8 per cent low perception and 4.3 per cent high perception. DMRPCL recorded a comparatively better perception among the selected FPOs. Farmers expressed stronger satisfaction with quality input supply, soil testing and awareness programmes, while relatively weaker performance was observed in crop insurance, storage, processing, marketing and financial services. The paired t-test indicated perceived differences in economic profit per acre between the pre- and post-membership periods. All six FPOs recorded higher mean economic profit in the post-membership period, with the highest mean increase observed in DMRPCL at ₹32,172.69 per acre. The study suggests that FPO membership is associated with improved economic outcomes, particularly in terms of profitability and access to agricultural services. Variations in performance across the selected FPOs highlight the need for stronger infrastructure, professional management, financial support, value addition and market integration to enhance their long-term sustainability and effectiveness. While the post-membership period shows an improvement in economic profit, this change should be interpreted as an association rather than as evidence of a direct effect of FPO membership, as the observed outcomes could have been influenced by factors such as input and output prices, production practices, crop composition, institutional support and prevailing market conditions.