Farmer Producer Organisations

Farmer Producer Organisations

10,000 farmer producer organizations (FPOs) formed under Government’s Flagship Scheme

  • Farmer-led entities registered under the Companies Act or State Cooperative Societies Act.
  • Ownership of an FPO lies entirely with its member farmers.
  • Operates on the principle of shared decision-making and benefits.
  • Purpose – Represents producers of various goods, including agricultural products, non-farm items, and artisan goods.
  • Supported by – Small Farmers’ Agribusiness Consortium (SFAC) 
  • Key roles –
    • Providing quality seeds, fertilizers, and other inputs at wholesale rates.
    • Offering farm machinery on a rental basis.
    • Aggregating and marketing member’s produce for better price realization.
    • Facilitating storage, transportation, and value addition.
    • Providing market information and financial services.
  • Ministry of Agriculture & Farmers Welfare: Provides FPOs with inputs like seed, fertilizer etc, and links them to e-commerce platforms like ONDC and e-NAM.
  • Ministry of Food Processing: Offers financial incentives for branding and marketing.
  • Ministry of Micro, Small & Medium Enterprises (MSME): Provides FPOs with access to funds and capacity-building programs.
  • Ministry of Fisheries, Animal Husbandry, and Dairying: Allocates funding for dairy FPOs

Source: PIB


Previous Year Question

Which one of the following best describes the concept of ‘Small Farmer Large Field?

[UPSC Civil Service Exam – 2023 Prelims]

(a) Resettlement of a large number of people, uprooted from their countries due to war, by giving them a large cultivable land which they cultivate collectively and share the produce
(b) Many marginal farmers in an area organize themselves into groups and synchronize and harmonize selected agricultural operations
(c) Many marginal farmers in an area together make a contract with a corporate body and surrender their land to the corporate body for a fixed term for which the corporate body makes a payment of agreed amount to the farmers
(d) A company extends loans, technical knowledge and material inputs to a number of small farmers in an area so that they produce the agricultural commodity required by the company for its manufacturing process and commercial production

Answer: (b)


Practice Question

Which of the following statements about Farmer Producer Organizations (FPOs) are correct?

  1. FPOs are farmer-led entities registered under the Companies Act or the State Cooperative Societies Act.
  2. FPOs only represent producers of agricultural products.
  3. They are supported by the Small Farmers’ Agribusiness Consortium (SFAC).

Select the correct answer using the code given below:

 
 
 
 

Question 1 of 1

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