Farmer Producer Organization (FPO)

A Farmer Producer Organization is a kind of Producer Organization where farmers are became members. The PO is an organization of any product, such as non-farm products, agricultural, artisan products, etc., by producers. The Small Farmers’ Agribusiness Consortium (SFAC) gives support to Farmer Producer Organization promotion.

The association of small, marginal, and landless farmers as FPO has helped increase market linkages to improve farmers’ income and financial strength. It provides complete services and support to small farmers and helps them in all the areas of development like marketing, technical services, processing, and other forms of cultivation inputs.

The motive of FPO is that the farmers who are the actual producers of agricultural products, FPO created an organization where farmers can form the groups and register themselves under the Companies Act, 2013.

The objective of FPO for Farmers

The main motive behind FPOs is to increase farmers' leverage in emerging market opportunities and their repetitiveness. The fundamental operations of the organization include the supply of seed, market linkages, fertilizer, machinery, training, financial, networking, and technical advice to farmers.

The main aim of the FPOs is to increase the income for the farmers with the help of an organization of their own. A small producer does not have the power or market connections to take advantage of economies of scale. The FPOs will help to eliminate the chain of intermediaries in agricultural marketing for farmers.

The FPO supports farmers so the producers can get benefit from the economies of scale through accretion. The farmers have good bargaining power in the form of a huge number of suppliers of inputs and buyers of produce.