Barring Sahyadri FPO, a remarkable exception due to super-product- grapes, most of the 2 k FPOs in generation 1 (re-2000) are languishing to say the truth. This is due to lack of professional management, grip on markets the kind Amul, pvt cos like 24 Myntra or AVT co. (TN) have (bot clients of Aharam FPO that was made director in 2004 & won UN awards but little business today).
Indian Organic Farmers Producer Company Limited- among oldest has 600 members & Rs 2 crore T/O only = Rs. 30 k/ farmers (after 15-20 years!) which is peanuts so they sell 90% of produce outside FPO! This is from MANAGE case studies of notable FPOs- https://www.manage.gov.in/publications/eBooks/role%20of%20FPOs.pdf. of the 4 Ps, most FPos have none- 1) no profitable PRODUCT, 2) so no remunerative PRICE, 3) no suitable PLACE (not near metros/ with visible/ reputed partners in their outlets with more footfall, 4) no proper promotion (branding, public events, media channels). So how can they succeed? It’s a recipe for failure.
Govt should plan professional mentors for each/ group of 5-10 FPOs nearby paid by Govt as parental obligation, like “you can’t throw the baby in bathtub”- to tap 4 “M” resources/ critical success factors- a) market, b) money, c) management (expertise), 4) mechanism (technology. For, market access, finance, institutional capacity & technology resp. help.
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