Determinants of Participation of Members in Farmer Producer Organization in Madurai District

Aims: The study aimed to identify the factors influencing the participation of members in FPO.

Study Design: The study has utilized random sampling method to identify sample districts, sample blocks, sample villages and sample respondents for interview.

Place and Duration of Study: The study was carried out in Madurai district of Tamil Nadu in the month of May 2023.

Methodology: Primary data was used in the study. Logit regression model was used to identify the factors influencing the participation of members in FPO. A well-structured interview schedule was used to collect data from the sample respondents. A sample of 60 members and 60 non-members of FPO were chosen at random and relevant data were collected.

Results: The estimates of the logit regression function revealed that family size, annual income, landholding, distance to market, extension service, marketing facilities and input availability were found to be the major factors influencing the participation of members in FPO and found significant. Of these variables, family size, annual income, distance to market, extension service, marketing facilities storage facilities and input availability were positively influencing the probability of participation of members in FPO programme. However, farm size was negatively influencing the probability of participation of members in FPO.

Conclusion: Based on the analysis, it is evident that the variables such as family size, annual income, distance to market, extension service, marketing facilities and storage facilities were found significant and positively influencing the probability of participation of sample respondents in FPO programme. However, the variable namely farm size was found to be significant but negatively influencing the probability of participation of sample respondents in FPO programme. It is also evident that the probability of participation of small and marginal farmers in FPO is found high. It is concluded that provision of services by FPOs such as training and capacity building programme, marketing facility, supply of inputs, transport arrangements to the farmer may increase their participation in FPO.