DMPQ-What are Farmer Producer Organisations (FPOs? Discuss how they have the potential to change the lives of marginal farmers.

. FPO is one type of PO where the members are farmers. Small Farmers’ Agribusiness Consortium (SFAC) is providing support for 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.

In brief, the FPO could undertake the following activities:

  • Procurement of inputs
  • Disseminating market information
  • Dissemination of technology and innovations
  • Facilitating finance for inputs
  • Aggregation and storage of produce
  • Primary processing like drying, cleaning and grading
  • Brand building, Packaging, Labeling and Standardization

A PO is a collective of farmers (and non-farmers) who are the primary producers of a product (an agricultural produce or a manufactured product). It, therefore, can work as a platform to facilitate better access to government services, like PDS, MNREGA, Scholarships and Pensions, etc. It can liaison with the Government Departments for convergence of programmes, like drinking water, sanitation, health and hygiene.

A PO will support the members in getting more income by undertaking any/many/all of the activities. By aggregating the demand for inputs, the PO can buy in bulk, thus procuring at cheaper price compared to individual purchase. Besides, by transporting in bulk, cost of transportation is reduced. Thus reducing the overall cost of production. Similarly, the PO may aggregate the produce of all members and market in bulk, thus, fetching better price per unit of produce. The PO can also provide market information to the producers to enable them hold on to their produce till the market price become favourable. All these interventions will result in more income to the primary producers.


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