Strengthening Farmer Producer Organizations (FPOs) for a Viksit Bharat

The modernization of India’s agricultural systems is essential for achieving the vision of Viksit Bharat@2047—a self-reliant and prosperous nation by 2047. A cornerstone of this transformation is the empowerment of small, marginal, and landless farmers through collective efforts. Farmer Producer Organizations (FPOs) play a pivotal role in uniting these farmers, offering them collective strength to address challenges, improve profitability, and enhance their standard of living.

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The Role and Significance of FPOs

FPOs are legally recognized entities that allow farmers to organize themselves for better access to inputs, credit, technology, and markets. By aggregating produce and pooling resources, FPOs help members benefit from economies of scale and gain better bargaining power. These organizations provide comprehensive services, including technical assistance, procurement, processing, storage, marketing, and capacity building. In India, the Small Farmers' Agribusiness Consortium (SFAC) acts as the nodal agency for promoting FPOs. The government also recognizes FPOs as an ideal institutional mechanism for improving rural livelihoods. With over 5,000 FPOs already established and a target of 10,000 new FPOs by 2027-28 under a central scheme, their importance continues to grow.

Current Challenges Faced by FPOs

Despite the growth in numbers, the sustainability and effectiveness of FPOs remain limited. A recent exploratory study involving 1,155 farmers and 25 FPO representatives found that the majority of farmers were not members of FPOs. The key reason identified was the low penetration and awareness of the FPO model among farming communities.