Farmer Producer Organisations (FPOS)

Why in the News?

Ministry of Agriculture and Farmers Welfare has designated the National Dairy Development Board (NDDB) as the implementing agency, setting a target of 100 such FPOs in 2022-23.

Key Points:

About FPOs:

• It is one type of Producer Organisation (PO) where the members are farmers. 

• • Small Farmers’ Agribusiness Consortium (SFAC) is providing support for the promotion of FPOs. 
  • PO is a generic name for an organization of producers of any produce, e.g., agricultural, non-farm products, artisan products, etc. 

• Aim: 

• • To increase the income for the producers as a small producer does not have the volume to take advantage of economies of scale. 
  • Thus, FPOs boost farmers’ competitiveness.

Benefits of FPOs

• The average landholding size is shrinking.: The FPOs can engage farmers in addressing productivity issues, collective farming, and emanating from small farm sizes. 
• Additional Employment Generation: It may also result in additional employment generation because of the increased intensity of farming.
• Dealing with Corporations: It allows farmer members to negotiate as a group and help small farmers in both output and input markets.
• Quality and low-cost inputs to member farmers: It can provide quality and low-cost inputs to member farmers such as the purchase of machinery, loans for crops, and input agri-inputs (pesticides, fertilisers, etc.).
  • It will enable members to save time, distress sales, transaction costs, price fluctuations, quality maintenance, transportation, etc.