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LATEST NEWS UPDATES | 67 per cent of 92 farmer-producer organisations' business hit due to COVID-19 lockdown: Survey

67 per cent of 92 farmer-producer organisations' business hit due to COVID-19 lockdown: Survey

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published Published on May 26, 2020   modified Modified on May 28, 2020

-PTI/ The New Indian Express

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.

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.

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PTI/ The New Indian Express, 26 May, 2020, https://www.newindianexpress.com/business/2020/may/26/67-per-cent-of-92-farmer-producer-organisations-business-hit-due-to-covid-19-lockdown-survey-2148260.html


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