Farmers Producer Organization (FPO): How it is changing farming scenario

Abstract

Farmer producer organization (FPOs) is egalitarian farming association that is registered as an institution under various legal act like Company Act, Co-operative Society Act, Trust act etc. The aggregation of marginal, small and landless farmers as FPOs has helped increase market linkages to improve farmers’ income and economic strength. It provides end-to-end services and support to the small farmers and covers marketing, technical services, processing, marketing and other aspects of cultivation inputs. The aim of the FPOs is to increase the income for the producers through an organisation of their own. As farmers confront a variety of difficulties such as limited access to land and water, impassable roads, a lack of adequate financial services, the adoption of new technology and chain of intermediaries in agricultural marketing often works non-transparently, leading to a situation where the producer receives only a small portion of the value that the ultimate consumer pays. The FPOs will help to eliminate the chain of intermediaries in agricultural marketing.