What is FPO?

Principle

जिस प्रकार कृषि में टेक्नोलॉजी से उत्पादन बढ़ने के परिणाम स्वरूप हरित क्रांति आई।उसी प्रकार एफपीओ से मार्केटिंग सुदृढ़ होने से कृषि में आर्थिक क्रांति आएगी

The year 2014 was observed as the “Year of Farmer Producer Organisations (FPO)” by the Government of India. .

It (FPO) is one of the important initiatives taken by the Department of Agriculture and Cooperation of the Ministry of Agriculture to mainstream the idea of promoting and strengthening member-based institutions of farmers..

As per the concept, farmers, who are the producers of agricultural products, can form groups and register themselves under the Indian Companies Act. These can be created both at State, cluster, and village levels. It is aimed at engaging the farmer companies to procure agricultural products and sell them.

Supply of inputs such as seed, fertilizer and machinery, market linkages, training & networking and financial and technical advice are also among the major activities of FPO. The Small Farmers Agribusiness Consortium (SFAC) has been nominated as a central procurement agency to undertake price support operations under Minimum Support Price (MSP) for pulses and oilseeds through the FPO’s.

However, not many FPO’s are registered in the State. As per a rough estimate, the number of FPO’s will not be more than 40 as on date.

It is said that many of them are yet to be registered under the Indian Companies Act. Of them, just 6 or 7 are successfully functioning with the support of well-wishers, who motivated the farmers to form producer companies.

It is said that many of them are yet to be registered under the Indian Companies Act. Of them, just 6 or 7 are successfully functioning with the support of well-wishers, who motivated the farmers to form producer companies. The lack of penetration of the FPO concept among farmers though the concept had many advantages to transform the economy of progressive farmers it had not achieved the expected success.

The performance was almost same in most of the States. There is a need to synchronise the stakeholders including the State and Central governments, officials, bankers, financial institutions, private sector organisations, civil society groups, elected members and others to popularise the FPO concept.

A concerted comprehensive campaign is needed to create awareness among farmers to start companies.

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