This study presents a comprehensive analysis of Farmers Producer Organizations (FPOs) in Nagaland, highlighting their current status, business operations, governance mechanisms, financial health, and integration with broader support ecosystems. Conducted using a mixed-methods approach across 24 FPOs from eight districts, the research explored diverse livelihood sectors including agriculture and agro-processing. The study aimed to generate actionable insights aligned with SELCO Foundation’s priorities around decentralized renewable energy and sustainable rural livelihoods. The findings reveal both the potential and constraints faced by these community-based institutions in a geographically and economically challenging environment.

The formation of FPOs in Nagaland has been led and driven by government schemes like MOVCD-NER and Central Sector Scheme for Formation and Promotion of 10,000 FPOs, with most organizations registering under the Cooperative Societies Act. While this has helped establish basic organizational structures and initial operations, it has also faced the challenge of limited ownership and engagement from farmers themselves. From a business perspective, FPOs in Nagaland engage in core agricultural functions such as procurement, marketing, and distribution of inputs. However, limited access to infrastructure, trained personnel, and financial resources has restricted their capacity for value addition and market expansion. Only a few of the FPOs engage in processing, packaging, or branding, and the overwhelming dependence on middlemen for market access hampers profitability. Financially, most FPOs remain small-scale and undercapitalized, with very few accessing formal credit, leading to dependence on short-term grants or informal lending sources. While some organizations have achieved modest profits, sustainability is hindered by low turnover and limited reinvestment capacity.