FPO Ecosystem in India

Overview of Policy and Supporting Initiatives Across States

Abstract

The promotion of a large number of Farmer Producer Organisations (FPOs) should be seen as part of the larger solution in addressing farmers' problems, but not as the only solution in and of itself. It is not only important to promote FPOs, but also to provide them with better institutional support and governance mechanism to increase their chances of success, and simultaneously, work towards addressing the challenges facing the farmers. Though the input side interface of the Producer Companies (PCs) in most of the States is relatively better, impact on the output side and also on farmer income happens only in those States where suitable policy measures, convergence efforts and effective governance mechanisms are put in place. There is also a need to rope in more private players in the FPO ecosystem for improved performance and long term sustainability