Market Linkages, Marketing Costs and Perceptions of FarmerProducer Organizations (FPOs): A Comparative Study of Membersand Non-Members in Central Telangana
DOI:
https://doi.org/10.66635/eahkkj38Keywords:
Farmer Producer Organizations, marketing costs, market linkages, perception, paddy, TelanganaAbstract
Farmer Producer Organizations (FPOs) have emerged as crucial institutional mechanisms to empower small and marginal farmers, eventually leading to the development of rural ecosystems by improving farmers' access to inputs, markets, and services through collectivization and aggregation. This study, conducted from January to March 2025, analyzed the market linkages developed by FPOs and carried out a comparative analysis between members and non-members with respect to input procurement and produce marketing, farmers' perceptions of FPOs, and the problems faced by members. The study was conducted in the Central Zone of Telangana, covering two districts, Medak and Siddipet, and a total of five FPOs. Primary data were collected from 150 respondents (75 members and 75 non-members) across the five selected FPOs using a semi-structured schedule and personal interviews, employing purposive sampling; secondary data were drawn from reports and published literature. Tabular analysis, the independent-samples t-test, the Rank-Based Quotient (RBQ), and Garrett ranking were used to assess market linkages, marketing costs, perceptions, and problems faced. The study found that FPOs were well equipped with backward linkages, that is, collaboration with input suppliers and technical-advisory providers, but need to strengthen their forward linkages with processing industries and develop their own brand and product offerings. A comparison of marketing costs incurred by members and non-members showed that members realized better prices at lower marketing costs, indicating that FPOs play a key role in improving price realization and reducing costs through aggregation. Although profit margins remain modest, continued strengthening of FPOs is likely to enhance rural livelihoods over time.
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