Overview
FPOs are companies or cooperatives owned by farmers that buy inputs, aggregate produce, process and sell together. The government set out to form 10,000 new FPOs, and successful ones such as Sahyadri Farms now run large businesses.
How It Works in Practice
A well-run FPO can buy inputs in bulk at lower cost, aggregate members' produce into lots big enough for processors and exporters, run grading and storage facilities, and negotiate better prices. Many FPOs supply supermarkets, food companies and government procurement.
Rules and Support
FPOs are supported by SFAC, NABARD and NCDC with equity grants, credit guarantees and management help, and can sell on eNAM and ONDC.
What It Means for Farmers and Traders
Common challenges include weak management, lack of working capital and limited market linkages. Federations of FPOs, such as MahaFPC in Maharashtra, help smaller FPOs reach markets and government schemes.
Companies, Bodies and Schemes
- SFAC (Small Farmers' Agribusiness Consortium)FPO promotionAboutExplore
- NABARDFPO supportAboutExplore
- NCDCCooperative developmentAboutExplore
- Sahyadri Farmers Producer Company LtdNashik · large FPOAboutExplore
- MahaFPCMaharashtra FPO federationAboutExplore
Related: All inputs, services and schemes · All crops
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