Farmer Producer Organization (FPO)

Research has shown that productivity of small farms can be substantially increased through use of technology, mechanization and better support systems. Focus should be on cropping systems and on aggregation of small and marginal farmers’ through development of farmer producer organizations, creating value chain and providing market linkages. Existing institutions of farmers’ like the farmers’ clubs and federations of farmers’ club can be leveraged to establish producer organizations in noticeable scale.

It has been established that due to continuous fragmentation, the farm holdings are not economically viable. They are also unable to realize good value from their marketable surplus by individually selling their produce. In many areas of the country it is observed that at the peak cultivation season there is a shortage of inputs and similarly at the harvesting time there is fall in prices, affecting the profitability. Through better collectives, farmers can utilize economy of scale to procure inputs at a lower price, and gain more selling power for their produce/product. Forming a producer organization can also provide access to timely and adequate finance, build capacity and provide linkages to markets.

Despite existence of farmers’ clubs since last four decades, no significant economic activities have been undertaken by these clubs. Federating the farmers’ provides an opportunity to strengthen Farmers associations. These federations can undertake economic activities to derive benefits of economies of scale.

Collaboration of federations with various government departments will also ensure better access to multitude of government services, thus benefitting the farmer-members. DDM, NABARD can facilitate such collaborations. Many of the development programmes of NABARD can be channelized through the federations.

Currently, one FPO  viz., Thukaram Madavi Producer Company limited with  959 share holders from 33 villages.