A Study of the Institutional and Economic Performance of Farmer-producer Organizations in Hisar District of Haryana, India

Abstract

Farmer-Producer Organizations (FPOs) are increasingly recognized as key institutional mechanisms for enhancing smallholder competitiveness, market integration, and income security in India. This study assesses the institutional performance, governance practices, diversification strategies, technology adoption, marketing structure, and economic viability of eight selected FPOs in Hisar district, Haryana. Primary data were collected from 200 member farmers and FPO officials during 2022-24 and analyzed using descriptive and comparative methods. The findings reveal significant heterogeneity across FPOs. Organizations with higher active membership, regular board meetings, and wider geographic outreach demonstrated stronger institutional foundations. Diversification into high-value horticulture, processing, and allied activities, along with moderate digital adoption, contributed to improved operational efficiency and market access. Institutional sales constituted a substantial share of total transactions, and annual sales revenues ranged between ₹25-30 lakhs with modest but stable profitability. However, financial gains were not uniformly distributed among members, indicating the need for more inclusive governance and benefit-sharing mechanisms. The study concludes that strengthening social capital, professional management, digital capacity, and value addition infrastructure is critical for enhancing the long-term sustainability of FPOs in semi-arid agricultural regions.