NEW DELHI: The nationwide coronavirus-induced lockdown has impacted business operations of 67 per cent of the 92 farmer-producer organisations (FPOs) spread across 48 districts of the country, according to a survey.
An FPO, formed by a group of farm producers, is a registered body with producers as shareholders in the organisation. It deals with business activities related to the farm produce and it works for the benefit of the member producers.
According to the survey unveiled at the webinar organised by the National Institute of Agricultural Marketing (NIAM), about 67 per cent of 92 FPOs' business were highly impacted. About 49 per cent of the FPOs surveyed reported a shortage of finance, 11 out of 18 FPOs dealing in vegetable produce reported losses with a reduction of 35 per cent of sales as compared to last year, it said.
Only 28 FPOs took proactive measures to counter business risk. "The core reasons contributing towards these impact were reduced market demand, shortage of finance and logistics breakdown," the survey, which was conducted by the Arya Collateral Warehousing Services, said.
Out of the 92 FPOs studied, 48 took serious initiatives about member awareness of COVID-19. They created awareness through digital communication, pamphlet distribution and street plays and also explained the need for social distancing.
The survey said that some FPOs undertook the distribution of masks, cash advance to members and reaching out to vulnerable communities within their areas. As many as 24 FPOs distributed food and groceries to vulnerable communities, while 56 per cent FPOs reported labours returning to villages, it added.
In only four out of 67 cases, district administration pro-actively reached out to FPOs in the initial time of the lockdown, three of them were in one district. In nine cases, either FPO sourced permission letters or engaged on behalf of farmers with the establishment.
Social distancing and limited hours of operation made access to essential services difficult for member farmers, particularly those living at a distance. "The next few months will be rife with uncertainty. With the extension of the lockdown and more dynamic decision making based on emerging situations with respect to spreading of COVID-19, the government policy will attempt to balance health and livelihoods, FPOs and other community institutions can be a key partner in the response," the survey noted.