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Saurav,
Jyoti Garg,
- Research Scholar, Punjabi University, Patiala, Punjab, India
- Assistant Professor, Department of Economics, Punjabi University College Miranpur Patiala, Punjab, India
Abstract
Farmer Producer Organizations (FPOs) have evolved as an important institutional mechanism for resolving the socio-economic challenges of small and marginal farmers by fostering collective action, expanding market access, and boosting bargaining power. In the broader context of sustainable rural development, FPOs are increasingly acknowledged as catalysts of rural transformation by contributing to numerous dimensions of farmer well-being. However, current study has generally analyzed FPOs through economic and operational indicators, with minimal attention on their multifaceted developmental impacts. The present study proposes a multidimensional framework for evaluating rural transformation through FPOs.The study is based on primary data collected from 390 farmer-members of selected FPOs in Punjab, India, using a structured questionnaire comprising 43 items measured on a five-point Likert scale. Reliability and construct validity were examined using Cronbach’s alpha, Kaiser-Meyer-Olkin (KMO) measure, Bartlett’s Test of Sphericity, and Exploratory Factor Analysis (EFA). The KMO value (0.864) and significant Bartlett’s test (χ² = 8171.233; p < 0.001) confirmed the adequacy of the data for factor analysis.The EFA extracted six dimensions—Economic Impact, Habitat Security, Educational Security, Health Security, Social Empowerment, and Institutional Support—collectively explaining 59.951 percent of the total variance. The findings demonstrate that FPOs contribute significantly to inclusive rural development, social resilience, institutional strengthening, and key Sustainable Development Goals (SDGs), particularly poverty reduction, quality education, good health, and reduced inequalities. The study offers important policy implications for strengthening FPOs as integrated institutions for sustainable rural transformation.
Keywords: Farmer Producer Organizations; Sustainable Rural Development; Rural Transformation; Social Inclusion; Institutional Development;
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| Volume | 15 | |
| 03 | ||
| Received | 02/07/2026 | |
| Accepted | 14/07/2026 | |
| Published | 28/07/2026 | |
| Publication Time | 26 Days |