With increasing customer expectations for branded, well-packaged, safe, and healthful food, there has been a rising emphasis on organized agriculture value chains (AVCs) and their financing. This revolution will substantially benefit from the involvement of farmer-producer organizations (FPOs). These organizations' value-added capabilities will strengthen their negotiating power, produce quality, and profitability. Therefore, a study was carried out with ten FPOs from Andhra Pradesh and Telangana states to analyze the efficiency of value chain by mapping the value chain at the member and non-member levels. The study found that, in comparison to the marketing channels at the non-member level, the marketing channel involving FPOs obtained higher prices for the farmers. Findings suggest that more role of FPOs in improving the value chain of agricultural and horticultural commodities.

Keyword: Farmer producer organisations; Value chain; Mapping; Marketing channel.