Women led FPOs

Why in news?

Farmer Producer Organisations (FPOs) have gained recognition as a vital tool to mobilise women farmers, supported by development agencies and policymakers.

What is the significance of women led FPOs?

• Financial independence-Women in FPOs exhibit greater independence, with fewer needing to borrow from their households to pay FPO share capital.
• High cropping intensity-Women farmers in FPOs have significantly higher cropping intensity (210%) and cultivate a greater diversity of high value crops.
• Social inclusion- Rural women with prior experience in SHGs actively participate in women led FPOs, upholds democratic governance principles and fosters comprehensive inclusive development.
• Financial involvement- Women led FPOs tend to have a higher average share capital which reflect active financial involvement.
• Strong savers- Research has shown that women have lower rate o fnon-performing loans (2.9%) than men (4.2%).

In India several of the women’s collectives promoted by civil society organisations and the National Rural Livelihoods Mission (NRLM) have also demonstrated strong management and financial management skills, even for large sums of money.

• Risk management- They adopt a cautious low risk approach which result in steady revenues and business sustainability.
• Focussed approach- Women exhibits less political orientation compared to male counterparts, this allows for a more d=focussed approach to organizational goals.

What are the challenges faced by women led FPOs?

• Gender inequality- Women often have limited access to information, control over time, mobility and financial resources which puts them in disadvantaged position than men.
• Lack of data- There is no publicly available gender segregated data on FPOs, major promoters of FPOs like NABARD, SFAC etc., do not provide publicly available data on the number of women-centric FPOs.

Estimates suggest that only small % of existing FPOs are women FPOs.

• Underrepresentation- Women constitute 75% of the full-time farm workforce but their participation in FPOs remains disproportionately low.
• Policy paralysis- The guidelines for setting up 10,000 new FPOs in India by 2024 fails to address the gender disparities within the agricultural sector as they do not specifically account for their unique constraints and opportunity.
• Lack of capacity development- Lack of education and training opportunities for women in agriculture can impede their ability to adopt modern technology.
• Technological divide- The gender gap in access to and use of technology can be a significant challenge to women as they may have limited access to information and communication.

To know more about FPOs click here

What lies ahead?                                                                                                                                             

• There is a need to collect gender segregated data on existing FPOs.
• The government should provide larger equity grants and infrastructure support for women led FPOs.
• India should promote gender equality in FPOs which is essential for sustainable agriculture sector growth.
• The government should proposes a policy adjustment mandating at least 50% representation of women on the Boards of Directors of FPOs to foster inclusivity in agriculture sector.
• FPOs with strong female leadership can have a positive ripple effect in rural communities, promoting gender equality, and encouraging young women to pursue careers in agriculture and entrepreneurship.

Reference

    Business Line- How women led FPOs transforms Indian agriculture?