Over two-thirds farmers satisfied with their FPO linkages, reveals study

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A study conducted by agri-fintech firm Dvara E-Registry (DER) revealed that more than 70 percent of farmers surveyed were highly satisfied with their FPOs, as they can gain through cheaper inputs, increased market access and credit. among other things.

The study explores the impact of a DER intervention with 25 FPOs across Maharashtra, Madhya Pradesh, Rajasthan, Odisha and Manipur. The study, which began in October 2022 and involved 1,498 farmers, examined FPO operations, the use of the Doordrishti Krishak app, financial linkages, and overall farmers’ experiences with FPOs.

The Dvara E-Registry Impact report revealed that 70% of farmers surveyed were satisfied with their FPO, while 31% were highly satisfied. Nearly 70 percent of the farmers surveyed were new to credit, underscoring the pivotal role of DER in addressing a gap that has not been filled by traditional banks/NBFCs and MFIs. Moreover, competitive prices offered by farmer farmer organizations for both agricultural inputs and sale of produce contributed to the financial well-being of farmers and enhanced their competitiveness in the market.

vital services

Another major finding is DER’s critical role in providing farmers with vital services such as soil testing and weather forecast prevention. Through DER’s intervention, farmers negotiated better prices with agricultural input manufacturers and suppliers. Farmers made an average profit of about 10 percent by purchasing inputs from their FPOs through this pooling model.

Sameer Shah, Executive Vice President and Founding Partner of Dvara Holdings, stated, “Throughout our 15-year journey at Dvara Holdings, our unwavering focus has been on advancing financial inclusion in India. DER, a shining example of our mission, is transforming the lives of smallholder farmers Powered by technology and innovation, our strong engagement with the farming community is perfectly aligned with Dvara Holdings’ mission to ensure that every individual and every organization has full access to financial services.”

Tharakeswar G, Co-Founder of DER, said: “The positive impact of DER services and use of the Doordrishti Krishak app underscores the effectiveness of technology in overcoming age-old challenges faced by farmers. The results of our impact study will guide our future endeavours, fueling continuous innovation and improvement in our services, aiming to amplify profitability farmers and their productivity.

DER is currently partnering with 50 FPOs in Maharashtra, Rajasthan, Madhya Pradesh, Manipur and Odisha, supported by Nabard, SFAC, NCDC and Nafed, providing comprehensive support to their business activities and market linkages over five years, starting from 2021-22. In addition, DER has also built successful partnerships with over 160 FPOs across 12 countries, and has reached a large grower base of over 55,000 members.