Impact of Farmer Producer Organisations (FPOs) on Smallholders’ Livelihood Development

Abstract

Background: Farmer-Producer Organisations (FPOs) are economic entities owned by smallholders that amalgamate resources, enhance market access and offer technical and marketing services in India. They have significant potential for participation in the economic and social welfare of smallholders. However, empirical evidence from northeastern hill states, particularly Tripura, remains scarce. This case study examines the impact of FPOs on smallholder livelihood development in the fruits and vegetables supply chain of Tripura. Methods: A qualitative case study was used, including interviews with government officials (BDOs, ADOs, Directors) and primary data from 12 FPOs engaged in fruit and vegetable production. Collected information was analysed thematically. Result: Four major thematic constraints emerged: (1) infrastructure deficits - non-operational cold chains and non-contiguous farmland limiting cluster benefits; (2) financial exclusion - most farmers rely on Kisan Credit Cards with limited institutional credit access; (3) governance weaknesses – leadership and management skill gaps; and (4) social barriers - scepticism toward collective action and individualistic cultural norms. However, FPOs have partially reduced their dependence on intermediaries through joint marketing and increased bargaining power.