Rajiv Gurung, Manesh Choubey and Runa Rai
Farmer producer organisations (FPOs) are considered as a strategy to improve the livelihoods of small farmers through economies of scale by providing collective strength to…
Abstract
Purpose
Farmer producer organisations (FPOs) are considered as a strategy to improve the livelihoods of small farmers through economies of scale by providing collective strength to farmers for improved access to production technology, value-addition services, high-quality inputs and marketing services for improving their incomes. This study investigates the impact of FPO membership on organic farming household's income in Northeast India.
Design/methodology/approach
This study uses field survey data collected from all four districts of Sikkim. Primary data were obtained from a survey of 560 organic farming households, 280 of which are FPO members and the rest 280 are non-members. Propensity score matching (PSM) is used to estimate the impact of FPO membership on net returns, return on investment (ROI) and profit margin.
Findings
Results show that the FPO members had, on average, Rs. 7,254–8,133 higher annual net returns, 4.6–4.8% higher ROI and 8–8.4% higher profit margin than the non-members. The findings confirm that FPO membership has a positive and significant impact on net returns, return on investment and profit margin. Also, heterogeneity analysis indicates that FPO membership has larger positive impact on relatively bigger farmers and female-headed households.
Research limitations/implications
As the study was based on a cross-sectional survey, the findings may be subjected to some limitations.
Originality/value
This study is based on a novel data set, collected specifically to examine the economic impact of FPO membership on organic farming in India.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2023-0451
Details
Keywords
This case is about SEWA – the Chikankari concept of Runa Banerjee, which started with the objectives of skill development, training and improving the livelihood conditions of…
Abstract
Subject area
This case is about SEWA – the Chikankari concept of Runa Banerjee, which started with the objectives of skill development, training and improving the livelihood conditions of Chikankari artisans by encouraging self-sustenance through employment opportunities and entrepreneurial ventures. In recent years, SEWA has been working for export and domestic orders and has been retailing through exhibitions and its only outlet in Hazratganj, Lucknow. The company over the years due to its social initiatives and good quality Chikankari work has become a known brand name but is also facing stiff competition from the organized market, various other retailers and substitute products. The case discusses the competitive and the market forces with respect to the brand.
Study level/applicability
The case has been designed for the students of business administration who have completed their basic module on marketing. The students need to have understood the concept of marketing mix, competition, segmentation, targeting and the basics of marketing strategy to ensure effective learning.
Case overview
The case discusses the competitive and market analysis for Lucknow-based firm SEWA in focus. SEWA started as a firm indulged in social upliftment of Chikankari workers which was achieved through trainings in skill upgradation, design and technical development, entrepreneurship development and linkages for social security. The various types of competition, such as direct competition from local retailers, secondary competition from unorganized markets of Chauk and Nazirabad and indirect competition from substitute products, have been studied and analysed. The problem of similar brand names adopted by various Chikankari retailers selling similar products has been highlighted as a major threat in the case. SEWA has adopted the strategy of product innovation to attain competitive advantage. SEWA has developed various traditional and contemporary designs which have fared well in the market.
Expected learning outcomes
Familiarizing management students with the concept of competitive analysis with the case of SEWA, Lucknow., and acquainting students with the basic understanding of market forces and competition with a firm supporting a traditional art form in focus, are the expected learning outcomes.
Supplementary materials
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Subject code
CSS 8: Marketing.