A recent survey of farmer producer organisations (FPOs) conducted by Tata Trusts suggests that to ensure higher returns for produce, FPOs need to increase market linkages. The consequent report recommends addressing agricultural value chains, which include ensuring availability of infrastructure and credit along with information asymmetry.

These issues have assumed greater importance after the government allowed farmers to directly sell their produce to processors and traders without any compulsion to bring them to agriculture produce market committees (APMCs) or market yards.

The survey discovered gaps in the way FPOs are handling their operations. “If the gaps are addressed through effective linkages, it could help clusters see an increase in their aggregate turnover by 5-20 per cent, depending on the crop,” the report noted. The report released was based on a field study concluded over a year ago.

This study covered 49 FPO clusters and 45 agriculture value chains across 52 districts in 18 states. This was followed by an intensive analysis of the data and discussions with stakeholders. The report is further backed by 49 FPO cluster-level reports, which span across 1,800 FPOs and 399 market players, according to Pradyuman Singh Rawat, project lead, Tata Trusts.

Key areas in need of such market linkages were grouped under several categories such as organisation and capability-related, technology-related, financial- and infrastructure-related, and marketing-related. The report further recommends nine priority clusters for Center of Excellence in Agricultural Marketing and Development (CEAD)-related interventions.

These include Amravati, Nagpur, Tehri, Dahod, Chittoor, Kolar, Tumkur, Nashik, and Mayurbhanj. For instance, in the Amravati and Nagpur region of Maharashtra, the report found the need to establish sorting/grading units for oranges. This could enable farmers to sell their produce to alternative market players. It observed that in these regions, farmers needed more knowledge about crop parameters such as low damage percentage and low moisture content for soybean production, enabling them to sell at a better price.

The report recommends providing small transportable and large mechanical graders to FPOs for grading oranges, in order to enable them to sell outside APMCs.

Similarly, in Tehri district of Uttarakhand, the report found the need to aggregate vegetables better at the FPO level, minimise dependence on local traders, and mitigate the high cost of transportation for farmers. To do this, it recommends improving capacity utilisation using digital technology, improving returns by organic certification, and creating a separate brand for the region’s produce.