FPOs in Telangana – Status and Strategies

Abstract

The concept of FPOs was started in the year 2011-12. In Telangana in 2013, ten FPOs were registered, in 2015, five FPOs were registered and in 2016, five FPOs were registered which were promoted by Small Farmers Agribusiness Consortium (SFAC). The current study offers insights on the status of these 20 FPOs and revealed that high levels of indebtedness, increasing unemployment and resultant migration are the serious problems confronting agricultural sector. The strategy of FPOs is innovative institutional support to the farmers to prevent the exploitation of farmers by the middlemen. The major reasons for the success of FPOs include group approach, strengthened linkages and increased income levels among the group members. The lack of financial support was the major hindrance for the functioning of FPOs in Telangana.