A Qualitative Exploration of Challenges Faced by Farmer Producer Organizations (FPOs)

Abstract

Background: Farmer Producer Organizations (FPOs) encounter numerous managerial, financial, and institutional constraints. Commonly reported challenges include inadequate professional management, lack of working capital, limited access to credit, weak governance practices, low member participation, and insufficient infrastructure. Aims: The study aimed to explore and analyze the key management challenges confronting Farmer Producer Organizations (FPOs) that influence their overall functioning, efficiency, and long-term sustainability. It specifically sought to identify, categorize, and interpret the major problem areas. Through this, the study intended to provide an evidence-based understanding of the internal and external constraints affecting FPO performance and institutional development. Study Design: A qualitative, exploratory research design was employed to gain in-depth insights into the management problems experienced by FPOs. Place and Duration of Study: The study was conducted among selected Farmer Producer Organizations in Arunachal Pradesh between April and June 2025, covering FPOs functioning across different districts of the state. Methodology: Primary data were collected from 88 respondents, including FPO Chief Executive Officers, accountants, and farmer members, through personal interviews. The collected responses were analyzed using thematic mapping to identify key problem areas, while frequency mapping was applied to determine the intensity and prevalence of issues under each theme. Results: The findings revealed that financial constraints were among the most critical issues, with 67.05% reporting delayed release of government funds and 57.95% citing inadequate working capital. Infrastructure deficits, such as the lack of warehouse and cold storage facilities (92.05%), were nearly universal. Governance issues included members being unaware of leadership details (57.95%) and irregularly held Annual General Meetings (51.14%). Weak market linkages (lack of brand visibility, 55.68%), low member engagement (meeting attendance, 52.27%), and information gaps (members not updated on prices and schemes, 64.77%) further constrained performance. Capacity-building needs and policy compliance delays also emerged as significant organizational weaknesses. Conclusion: A significant disconnect was found between policy intent and field level implementation was evident, therefore policy focus must shift from formation to consolidation. Future interventions should adopt a systems approach linking finance, governance, and technology to create resilient, transparent, and self-sustaining farmer institutions capable of navigating the complexity of modern agricultural markets.