Development of performance evaluation matrix for farmer producer organizations in India

Purpose

As per the vision of promoting agricultural collectives, the government of India promoted the farmer producer organization (FPO). However, with the fast growth of FPOs, there is an issue with performance measurement. This study is aimed at the development of performance metrics for the FPOs.

Design/methodology/approach

In the first stage, we selected the measures from a secondary literature review and identified 11 parameters. Further, the Delphi round was conducted in the second stage with 26 experts working with FPOs and they were asked to rank these parameters. Based on the weightage of each parameter, the most important parameters were decided. The mean ranks and deviations of the performance parameters were analyzed. The hypothesis test and Kendall’s coefficient of concordance have been further used to validate the performance parameters. In the third stage, based on the inputs from the experts, a questionnaire was designed, and the data was collected from chief executive officers (CEOs) of the FPOs to identify the most important performance parameters.

Findings

The experts identified governance, financial support and professional management as important measures for FPOs. In the second round of the study, finance and governance were identified as the most important factors. It is important to note that finance and governance were the two most important factors in making an FPO successful. Finally, a 100-point metric was developed in seven major heads.

Research limitations/implications

This study will be advantageous for all the stakeholders involved in the promotion of FPOs, including FPOs themselves, funding agencies providing funds to FPOs, skill-building organizations, etc.

Originality/value

This paper is one of its kind to develop a 100 points metrics for performance evaluation of FPOs.