Farm Producers Organizations a collectiveness Approach, Study & Review of Scheme

Abstract

Small and marginal farmers always face problem in production and income in absence of economy of scale. Farmers and governments always tried to get the advantage of collectiveness to get the both ended advantage of economy of scale. Cooperative societies of farmers were one of the mitigation techniques. SHG, JLG, farmers club etc are the efforts to achieve the economy of scale in production and marketing but distress of the farmers proved all efforts incomplete. In the year 2002 a special structure comprising the characteristics of cooperatives society and company was designed for original farm producers in the form and style of FPOs (farm producer organizations) managed and run by Cluster based Business organization (CBBO).The ownership of the PO (Producer organization) is with its members it is an organization of the producers for the producers. FPO also known as farmers company (FPC) is an legal entity by primary producers. An FPO can be a producer company, a cooperative society or any other form. The small farmers Agri-business consortium (SFAC) developed by Government of India to increase the Income of small and marginal farmers. Central Sector Scheme of “Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs)” is the attempt to accelerate the formation of FPO, Govt. assistance at all level of formation and operation of FPO, hand holding support for five year budget allocation GOI budget 2020-21. The study will evaluate and asses the scheme and role to increase the farm producers’ income by way of FPO on account of budget allocation and implementation of central scheme.