Participatory Guarantee Systems (PGS) and short organic supply chains have emerged as promising solutions for smallholder farmers to provide organic produce to nearby consumers. PGS is an institutional innovation that builds trust among producers, traders and consumers through a low-cost transparent and participatory certification mechanism. They have particularly gained a foothold among smallholder farmers in middle- income countries, where third-party certification costs are often unaffordable.

In India, Farmer Producer Organizations (FPOs) are considered as the most preferred institutional mechanism for enhancing productivity and income of farmers. This is based on the resounding success of a few farmer collectives that have aggregated their produce to realise better incomes. However, when efforts were made to scale up this interesting model across the country, several challenges emerged.