What is fpo in agriculture


As the world’s population increases and the demand for agricultural products rises, small farms have an opportunity to play a big role and reap many benefits, if they can join together to form farmer producer organizations (FPOs) to increase their aggregate size.

What is the full form of FPO agriculture?

FPO Agriculture Abbreviation 4 FPO Farmer Producer Organizations+ 4 variants Farmer, Producer, India Farmer, Producer, India 1 FPO FarmersProducersOrganizations

What is the aim of the FPO?

The aim is to enhance farmers’ competitiveness and increase their advantage in emerging market opportunities. The FPO’s major operations will include the supply of seed, fertilizer and machinery, market linkages, training and networking and financial and technical advice.

What is farmer producer organizations (FPO)?

The concept of ‘Farmer Producer Organizations, (FPO)’ consists of collectivization of producers especially small and marginal farmers so as to form an effective alliance to collectively address many challenges of agriculture such as improved access to investment, technology, inputs, and markets. FPO is one type of PO where the members are farmers.

What is a Po in agriculture?

A PO can be a producer company, a cooperative society or any other legal form which provides for sharing of profits/benefits among the members. In some forms like producer companies, institutions of primary producers can also become member of PO.


What is the role of FPO?

FPO stands for Farmers Producers Organisation. It is an organisation of farmer-producers that provide support to small farmers with end-to-end services covering almost all aspects of cultivation from inputs, technical services to processing and marketing.

What is FPO for farmers?

A Farmer Producer Organization (FPO) is a type of Producer Organisation (PO) where farmers are its members. The PO is an organisation of any produce, such as non-farm products, agricultural, artisan products, etc., by producers. The Small Farmers’ Agribusiness Consortium (SFAC) provides support for FPOs promotion.

What is FPO and FPC?

The instrument of Farmer Producer Company (FPC), registered under Companies Act, 1956 is emerging as an effective Farmer Producer Organization (FPO) to cater to the aggregation needs of farmers at the grass root level.

What is FPO company?

What is an FPO? The concept behind Farmer Producer Organizations is that farmers, who are the producers of agricultural products, can form groups. To facilitate this process, the Small Farmers’ Agribusiness Consortium (SFAC) was mandated by Department of Agriculture and Cooperation, Ministry of Agriculture, Govt.

Who is eligible for FPO?

Any FPOs already registered under the Companies Act or various central and state cooperative society laws is eligible for the FPO scheme. The FPOs should be registered and administered by farmers, and also the organisation should be focused on activities related to agriculture and allied sectors.

Who can apply in FPO?

Following investors can apply in yes Bank FPO:QIBs.Non-Institutional (Companies, NRI, HUF, Trusts etc.)Retail Individual (Resident, NRI, HUF)Eligible Employees.

How many farmers can form FPO?

Members of FPO Initially, the minimum number of members in FPO will be 300 in plain area and 100 in the North East and hilly areas. However, the Department of Agriculture and Farmers Welfare may revise the minimum number of membership-based on experience.

How many FPO are there in India?

There are nearly 10,000 FPOs in the country today out of which 5000 have been promoted by NABARD. “It has been seen that farmers belonging to the FPOs get additional benefits ranging from 40 per cent to 60 per cent.

Is FPO profitable?

FPOs are relatively less profitable than IPOs as in the FPO stage, the company is stabilising.

How is FPO price calculated?

The issue price for an FPO is mostly lower than the prevailing market price. This is done by the company to get more and more subscribers to its issue. Lower demand for the listed shares eventually brings down the market price and levels it with the FPO issue price.

What is FPO allotment?

A follow-on public offering (FPO) is the issuance of shares to investors by a company listed on a stock exchange. A follow-on offering is an issuance of additional shares made by a company after an initial public offering (IPO).

What is an FPO in India?

The Government of India has approved and launched the Central Sector Scheme of “Formation and Promotion of 10,000 Farmer Producer Organizations(FPOs)” to form and promote 10,000 new FPOs till 2027-28 with a total budgetary outlay of Rs. 6865 Cr.

What is FPO in agriculture?

What is the full form of FPO in agriculture? FPO (full form in agriculture) is a Farmer Producer Company. It is a registered Indian company in the Registrar of Companies (ROC). 1.

What is FPO in business?

FPO are empowered for business tracking & decision making. FPOs are now able to have data at their finger tips. Using one of our FPO digitization tools, The output dashboards, our FPOs are able to get a respectable seat at the buyer’s table.

What are the features of an FPO?

1. FPO’s shareholder members are mainly composed of farmers. Share capital of the FPO is contributed by these member farmers. 2. FPO’s member farmers are geographically close, in the closeby villages & usually within a district. They grow same / similar agricultural produce.

What is the purpose of FPO collectives?

This structure of FPO collectives is meant to bring better business practices, better aggregation, better bargaining power, better value and retain more income for the Indian farmers. 4. Business profits from the FPO from these agricultural businesses are distributed fairly between the farmers as per their contributions.

How long does it take for FPOs to confirm?

Therefore even after getting an enquiry, FPOs take over 48 hrs to confirm if the produce is…

What is FPO in agriculture?

FPO is one type of Producers Organisation where the members of the organisation are the farmers. These are also known as farmers’ producer companies (FPC). It is imperative to understand about the Producers Organisation in order to understand about the Farmers Producers Organisation- FPO.

What is FPO in farming?

It is an organisation of farmer-producers that provide support to small farmers with end-to-end services covering almost all aspects of cultivation from inputs, technical services to processing and marketing . FPO is an important topic with regards …

What is the Need of an FPO for Farmers?

Small Size of landholdings. Nearly 86% of farmers are small and marginal with average land holdings in the country being less than 1.1 hectares.

What is FPO in government?

FPO is an important topic with regards to different competitive exams. Questions based on Farmers Producers Organisation may be framed under the general awareness section of various Government exams .

Why are farmers facing difficulties in operating at the regulated Mandis?

Farmers Producers Organisation usually faces difficulties in operating at the regulated Mandis because of the resistance offered by the licensed traders. It is because these traders have a significant hold over the markets.

What is NPMA in SFAC?

There will be a National Project Management Agency (NPMA) at SFAC for providing overall project guidance, data compilation, and maintenance through integrated portal and Information management and monitoring.

What training is provided to FPOs?

Adequate training and handholding will be provided to FPOs. CBBOs will provide initial training.

What is a FPO?

Article Summary: The concept of ‘Farmer Producer Organizations, (FPO)’ consists of collectivization of Producers especially small and marginal farmers so as to form an effective alliance to collectively address many challenges of agriculture such as improved access to investment, technology, inputs and markets.Department …

What is PO in agriculture?

The main aim of PO is to ensure better income for the producers through an organization of their own. Small producers do not have the volume individually (both inputs and produce) to get the benefit of economies of scale. Besides, in agricultural marketing, there is a long chain of intermediaries who very often work non-transparently leading to the situation where the producer receives only a small part of the value that the ultimate consumer pays. Through aggregation, the primary producers can avail the benefit of economies of scale. They will also have better bargaining power vis-à-vis the bulk buyers of produce and bulk suppliers of inputs.

How are cooperatives managed?

Cooperatives are efficiently managed by experienced, trained and professionally qualified staff under the supervision and control of democratically-elected boards of directors. Organisation should be led and managed by energetic, professional and dynamic persons. Business should be conducted in accordance with modern management principles. The managers of cooperative business should be more professional in their market operations. They should be active enough to trace new marketing opportunities as and when they appear and make use of them for their further growth. They should make brilliant purchase decisions by studying the market trends. For example, investing more in fast moving products may increase the returns. Quality should be the key in cooperatives and steps should be taken to reduce the wastages and cost of goods sold. In short, the manager / secretary of a cooperative store should deliver his service in a professional way to prove himself competent and his business successful.

What is the case for enhanced allocation of public and private resources to promote FPOs?

Any case for enhanced allocation of public and private resources to promote FPOs must be based on solid evidence, which illustrates the benefits of aggregation of farmers into institutions for increased access to income, investments and market opportunities.

Why are cooperatives successful?

Experience has shown that success of cooperatives is due to strong relationship and trust with their membership, which has been built over years through effective marketing support, services support and transparency of the exchange process.

Why are farmers organizations important?

Farmers’ Organizations are seen as a useful organizational mechanism for mobilizing farmers’ collective self-help action aimed at improving their own economic and social situation and that of their communities. Such organizations were perceived to have an ability to generate resources from their members.

How can cooperative societies be financially self sustained?

They should be made financially self sustained by increasing the members and their contribution as a share capital.

What is an FPO?

A Farmer Producer Organisation (FPO) is an organisation formed by farmers or other primary producers such as artisans, dairy farmers, fishermen, bee-keepers etc. A FPO is a legal entity which is usually registered as a producer company under the Companies Act, 1956 (as mandated in 2002) or as a cooperative society.

What is the role of FPO?

FPOs are engaged in providing a host of services for their members (and even non-members) that include (but not limited to) capacity building, production, harvesting, packaging, processing, marketing, technical support, input supply, financial services, insurance and any other support as and when required.

What are the essential features of FPO?

a. An FPO is a registered body and a legal entity formed by a group of producers for either farm or non-farm activities.

Who owns the FPO?

Ownership of FPO rests with its members who are also the shareholders while the management of the FPO is through the Board of Directors who are elected from amongst the members.

What are the different legal forms of FPO?

a. Cooperative Societies Act/ Autonomous or Mutually Aided Cooperative Societies Act of the respective State

Who can become member of FPO?

FPO is an organization of the producers, specifically the primary producers. All primary producers residing in the relevant geography, and producing the same or similar produce , for which the FPO has been formed, can become member of the FPO. Membership is voluntary. The procedure for obtaining FPO membership depends on the bye-laws of the FPO. The founder-members are those who were there at the time of formation of the FPO. Other members join the FPO later. However, all members enjoy equal rights. A primary producer can become member of a FPO by submitting an application and a nominal membership fee. Some FPOs also charge annual membership renewal fee.

Who is a primary producer?

Any person engaged in any activity connected with or related to any primary produce will be treated as producer. Primary produce means the produce of farmers from agriculture and allied activities or produce of persons engaged in handloom, handicrafts and other cottage industries, including any by-product and product resulting from ancillary activities thereof. Primary produce also includes any activity intended to increase the production or quality of aforementioned products or activities. Persons engaged in agriculture, horticulture, animal husbandry, fishery, sericulture, apiary, handloom, handicrafts, etc., can become members of appropriate FPO. Persons engaged in collection of minor forest produce are also eligible for membership of FPO although they gather these from forests and strictly are not producers.

What is the purpose of FPOs in India?

of India in the Union budget 2018-19, announced the following measures to promote FPOs for a prosperous and sustainable agriculture sector that enable farmers to enhance productivity through efficient, cost-effective and sustainable resource use and realize higher returns of the produce ;

What are the constraints facing FPOs today?

Lack of access to affordable credit for want of collaterals and credit history is one of the major constraints, the FPOs are facing today. Further, the credit guarantee cover being offered by SFAC for collateral free lending is available only to Producer Companies (other forms of FPOs are not covered) having minimum 500 shareholder membership. Due to this, large number of FPOs particularly those, which are registered under other legal statutes as also small size FPOs are not able to access the benefits of credit guarantee scheme.

What is the Ministry of Food Processing Industries?

The Ministry of Food Processing Industries, Govt. of India is implementing a scheme to provide effective and seamless backward and forward integration for processed food industry by plugging the gaps in supply chain in terms of availability of raw material and linkages with the market. Under the scheme, financial assistance is provided for setting up of primary processing centers/ collection centers at farm gate and modern retail outlets at the front end along with connectivity through insulated/ refrigerated transport. The Scheme is applicable to perishable horticulture and non-horticulture produce such as fruits, vegetables, dairy products, meat, poultry, fish, Ready to Cook Food Products, Honey, Coconut, Spices, Mushroom, Retails Shops for Perishable Food Products, etc. The Scheme would enable linking of farmers to processors and the market for ensuring remunerative prices for agri produce. The scheme is implemented by agencies/ organizations such as Govt./ PSUs/ Joint Ventures/ NGOs/ Cooperatives/ SHGs / FPOs / Private Sector / individuals, etc.

What is a PODF?

NABARD created Producers Organization Development Fund (PODF) with initial corpus of Rs. 50 crores out of its operating surplus during 2011-12, for supporting the existing POs including PACS to create innovative financing models for mainstream banking. The broad objective of the fund is to provide financial/ non-financial support to Producers’ Organizations for facilitating improved credit access, ensure adequate capacity building, market linkages and need based handholding services to meet their ‘end to end’ requirements and thereby ensuring sustainability and economic viability. Considering the success of financing to POs/PACS in terms of improved access to inputs, affordable credit, better price realization by members by building scale and enhanced skill development of farmers, NABARD created its own subsidiary (NABKISAN Finance Ltd.) for meeting the credit requirements of FPOs by adopting a flexible approach based on life cycle needs, while it continues to provide promotional support towards capacity building, market linkages and other incubation services to FPOs out of grant fund. The scope of this fund has been further enhanced during 2017-18 to provide need-based grant assistance to those FPOs also, which are financed by the Commercial Banks, Cooperative Banks and Regional Rural Banks.

How many FPOs are there in India?

FPOs are farmers’ collectives, with membership mainly comprising small/marginal farmers (around 70 to 80%). Presently, around 5000 FPOs (including FPCs) are in existence in the country, which were formed under various initiatives of the Govt. of India (including SFAC), State Governments, NABARD and other organizations over the last 8-10 years. Of these, around 3200 FPOs are registered as Producer Companies and the remaining as Cooperatives/ Societies, etc. Majority of these FPOs are in the nascent stage of their operations with shareholder membership ranging from 100 to over 1000 farmers and require not only technical handholding support but also adequate capital and infrastructure facilities including market linkages for sustaining their business operations.

What is the role of agriculture in India?

Agriculture in India is predominantly production oriented confined in large number of fragmented small holdings and plays a pivotal role in the Indian economy. It provides employment to around 56 per cent of the Indian workforce, contributes to overall growth of the economy and reduces poverty by providing employment and food security to the majority of the population. However, due to highly fragmented, scattered and heterogeneous landholding, rising cost of cultivation and limited access of small/marginal farmers (SF/MF) to public resources and markets, the small holding based agriculture has gradually become unviable. The limited production quantities, lack of farmers’ access to public resources, quality inputs, credit facility, modern technologies, etc. and frequent crop failures, lack of assured market, income safety and poorly developed supply chain, has resulted in high dependency of farmers on the exploitative intermediaries and local money lenders. Small and marginal farmers constitute around 85% of the total land holding and hold around 44% of the land under cultivation. Some of the key concerns relating to small farm holders include:

What is the Union Finance Minister’s plan for 2013-14?

The Union Finance Minister, in the Budget Speech for 2013-14, announced two major initiatives to support Farmer Producer Companies (FPCs) viz., support to the equity base of FPCs by providing matching equity grants and Credit Guarantee support for facilitating collateral free lending to FPCs.


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