N. VENKATA KALYANI*, Y. PRABHAVATHI, P. NAGI REDDY AND P. LAVANYA KUMARI

Institute of Agribusiness Management, S.V. Agricultural College, ANGRAU, Tirupati-517 502.

ABSTRACT

Agriculture is undergoing a significant transformation from fragmented production and marketing to integrated marketing systems. This transition driven by the need for enhanced competitiveness, efficiency and productivity in the global marketplace, underscores the critical role of agricultural value chains. In this context, Farmer Producer Organizations (FPOs) play a vital role in integrating to agri value chains through increasing their access to inputs, outputs and finances. The present study conducted during 2024-25 in Guntur and Prakasam districts of Andhra Pradesh state explores the benefits realized by member farmers of FPOs through FPOs accessing the agri value chain finance. The sample comprised of ten FPOs and 100 member farmers. The data was collected using a structured interview schedule and analysed using percentage analysis and mean scores. The results indicated that Value chain financing significantly enhanced input access and social benefits for FPO member farmers, notably improving trust and timely input supply. However, trade and financial benefits remained limited due to minimal procurement involvement and lack of credit services. Expanding these areas has the potential of leveraging the full potential of value chain finance resulting in strengthening of FPO effectiveness and improving farmer livelihoods

KEYWORDS: Agri value chain finance, Farmer Producer Organization, input access, social benefits, trade benefits.