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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.
About National Dairy Development Board (NDDB):
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