Vol. 7, Issue 1, Part M (2025)

An attempt was made in this paper to assess the organizational capacity of Farmer Producer Organizations of Andhra Pradesh and Telangana. The purpose was to find out the relationship between organizational capacity and performance of Farmer Producer Organizations. Standardized Organizational Capacity Assessment instrument was customized to assess the organizational capacity of Farmer Producer Organizations. High (2), medium (2) and low (2) performing Farmer Producer Organizations representing Andhra Pradesh and Telangana were selected, after discussion with a-IDEA (Association for Innovation Development of Entrepreneurship in Agriculture) of Indian Council of Agricultural Research- National Academy of Agricultural Research Management. Perceived opinion of Board of Directors and Chief Executive Officers of Farmer Producer Organizations representing farmer-members (3148) was collected and analyzed through Analysis of Variance and Tukey Multiple Comparison. There was an observed significant difference among the three categories of Farmer Producer Organizations, implying that the performance of these organizations has relationship with organizational capacity. ‘Organizational Structure’ and ‘Community Involvement’ were the grey areas of organizational capacity of Farmer Producer Organizations in Andhra Pradesh; whereas that of Telangana were ‘Service Delivery’ and ‘Financial Policies and Procedures’, implying the need for addressing these areas for effective performance of Farmer Producer Organizations. This paper communicates about the effectiveness of farmer-owned organizations from organizational capacity point of view, thus brings about an element of innovativeness, to the domain of organizational performance.