The Swayamshree Conclave in Bhubaneswar recently brought together leaders from government, private sector, and development organizations to explore pathways to strengthen women-led enterprises across Odisha.
We spoke about how FPOs in India generally have a low appetite for risk. However, any business that aims to scale must be willing to take calculated risks.
This reluctance often stems from two factors: limited business acumen and working capital constraints.
An even bigger challenge is the lack of product-level understanding.
For example, we recently worked with an FPO producing mustard oil using expeller machines. The team had little understanding of the oil’s existing pungency levels. A relatively simple intervention could significantly enhance pungency level and therefore the market price. However, determining the right blend ratio requires first measuring the current pungency level. It is fundamentally a data and quality issue. After establishing these fundamentals can an FPO effectively identify and target the right buyers.
Investing in quality and certifications can enable converting high quality premium brands into FPO buyers. This helps build stable business relationships for farm produce, protecting farmers from shocks or being at the mercy of the mandi. It’s a win-win for farmers and consumers.
