Strategies for Promoting Farmer Producer Organisations (FPOs) in India

Abstract

The present study investigated different facets of FPOs promoted by NABARD and SFAC. Both primary and secondary data has been used for the analysis. The study revealed that NABARD has supported around 4000 FPOs across the country which cover 2157 are registered entities. On the other hand, SFAC has promoted around 897 FPOs of which more than 835 have already been registered as legal entities. The findings of the study revealed that the number of farmer members who became shareholders in FPOs are marginally higher in the case of NABARD (878157) compared to shareholders of FPOs promoted by SFAC (846039). Thus, it is revealed that NABARD has promoted more number of FPOs than SFAC. However, average number of members per FPO is higher in the case of SFAC (1013.22) than that of NABARD (407.11). An opinion survey was conducted among different stakeholders of FPOs promoted by both the agencies. About 70- 90 per cent of the members opined that the payments from FPC were received regularly. About 15-20 per cent of the members opined that the price for the produce given by FPCs is higher than traditional market prices and improvement in the employment opportunities due to the intervention of FPOs. Thus, establishing basic business principles within farming communities through FPOs intervention would bring industry and agriculture closer together and boosts rural development