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Institute of Agribusiness Management, S.V. Agricultural College, ANGRAU, Tirupati-517 502.
The purpose of the study is to find the challenges hindering the performance of FPOs. The study was carried out with the members and the Board of Directors from the FPOs in Anantapur District of Andhra Pradesh. Five FPOs were selected randomly selected by using simple random sampling methos for the purpose of the study. Total of 100 respondents, covering of five FPOs in the Anantapur district of Andhra Pradesh were selected. In India small holder farmers are suffering with market uncertainties as most policies and institutional supports favours large and progressive farmers and smaller farmers are devoid of them increasing wider gap between producers and consumers. Farmer Produces Organization plays an important role in promoting and strengthening member based institution of farmers. FPO’s links smallholder’s farmers to local, regional, national and international markets effectively. FPOs which are formed as Farmer Producer Company (FPCs) allow its member to access financial services, technical services, market oriented, economic and extension services and other input services. Prices in the local market and price fluctuations in the market are influenced by seasonality, and during the off-season, market prices significantly decline due to improper market connections and price erosion are some of the constrains faced by the FPOs.
KEYWORDS: Farmer Producer Organisations (FPO), Challenges, Performance, Simple random sampling.