India’s agricultural landscape is largely dominated by
marginal and small farmers, who constitute approximately 67% and 18% of the total farming community
respectively. This translates to a staggering 92 million
marginal farmers with less than 0.40 hectares of land
and 24 million small farmers with an average landholding of 1.42 hectares. Despite their higher productivity compared to large farmers, these smallholders
face significant resource constraints and market challenges. While the formation of Farmers Producer Organisations (FPOs) has partially addressed these issues,
newly established FPOs continue to encounter significant sustainability challenges. These include limited
volumes, low capital, low member engagement and a
subsidy-oriented rather than market-oriented approach.
The present article identifies critical challenges such as
limited capital, low member engagement and a predominant subsidy orientation. Currently, over 8875 FPOs
are registered nationwide, but only 16–30% are sustainable. A significant issue is the inability of the majority of
FPOs to raise more sizable amount of paid-up capital,
highlighting the urgent need for a robust grassroots organisational ecosystem. This study proposes an eightcomponent ecosystem model for FPO sustainability,
encompassing market, policy, infrastructure, services,
inputs, HRD, finance and innovation. This model aims to
create a comprehensive support structure for FPOs,
facilitating better market access, financial resources,
member participation and innovative practices. The implementation of this model, along with suggestive measures for strengthening FPOs, is crucial for their longterm viability in India’s evolving agricultural sector.