Mobilization is important factor as per scenario keeping in mind some key notes are addresed on FPO

1. FPO-Farmers Producer Organization
FPO-It is an legal entity and it is centre sector scheme
Aim of FPOs:To increase farmers income and provide employment
Key features(Financial Assistance)
*upto Rs 18.00 lakhs per FPO for period of 3 years
*CBBOs-Cluster Based Business Organizations providing support for the promotion of FPOs
*SFAC-providing support for the promotion of FPOs

2. Role of Farmer Producer Organisations (FPOs) in Doubling Farmers' Income
• (1) Supply quality production inputs like seed, fertilizer, pesticides and such other inputs at reasonably
lower wholesale rates.
• (2) Make available need based production and post-production machinery and equipment like
cultivator, tiller, sprinkler set, combine harvester and such other machinery and equipment on custom
hiring basis for members to reduce the per unit production cost.
• (3) Make available value addition like cleaning, assaying, sorting, grading, packing and also farm level
processing facilities at user charge basis on reasonably cheaper rate. Storage and transportation
facilities may also be made available.
• (4) Undertake higher income generating activities like seed production, bee keeping, mushroom
cultivation etc
• (5) Undertake aggregation of smaller lots of farmer-members’ produce; add value to make them more
marketable.
• (6) Facilitate market information about the produce for judicious decision in production and marketing.
• (7) Facilitate logistics services such as storage, transportation, loading/unloading etc. on shared cost
basis.
• (8) Market the aggregated produce with better negotiation strength to the buyers and in the marketing
channels offering better and remunerative prices.

3. Scheme of Formation and Promotion of 10,000 FPOs
• The scheme is based on the produce cluster approach to
enhance production, productivity, market access, promote
diversification, value addition, processing and export.
• While adopting a cluster-based approach, the formation of FPOs
will be focused on ‘One District One Product’ for the
development of product specialization.
• To strengthen the financial base of FPOs and entail them to avail
collateral free loan, there is also provision for matching equity
grant of maximum Rs. 2000/- per member with ceiling of Rs, 15
lakh /FPO and Credit Guarantee facility upto bankable project
loan of Rs. 2.00 crore respectively.

4. Detail of Producer companies for the year 2020 statewise
State Number of Producer Companies
Andhra Pradesh 147
Arunachal Pradesh 15
Assam 87
Bihar 221
Chandigarh 1
Chattisgarh 32
Delhi 7
Gujarat 108
Haryana 257
Himachal Pradesh 7
Jammu & Kashmir 10
Jharkhand 70
Karnataka 195
Kerala 53
Madhya Pradesh 237
Maharashtra 1950
Manipur 26
Meghalaya 1
Mizoram 4
Nagaland 6
Orissa 177
Puducherry 1
Punjab 13
Rajasthan 114
Tamil Nadu 241
Telangana 119
Tripura 8
Uttar Pradesh 654
Uttarakhand 14
West Bengal 184
Grand Total 4959

5. • Nearly 86 per cent of farmers are small and marginal with average land
holdings in the country being less than 1.1 hectare.
• These small, marginal and landless farmers face tremendous challenges
during agriculture production phase such as for access to technology,
quality seed, fertilizers and pesticides including requisite finances.
• They also face tremendous challenges in marketing their produce due to
lack of economic strength.
• FPOs help in collectivization of such small, marginal and landless farmers
in order to give them the collective strength to deal with such issues.
Members of the FPO will manage their activities together in the
organization to get better access to technology, input, finance and market
for faster enhancement of their income.

6. Objectives of FPOs
• To provide holistic and broad-based supportive ecosystem to form 10000 new FPOs to
facilitate development of vibrant and sustainable income-oriented farming and for
overall socio-economic development and wellbeing of agrarian communities.
• To enhance productivity through efficient, cost-effective and sustainable resource use
and realize higher returns through better liquidity and market linkages for their produce
and become sustainable through collective action.
• To provide handholding and support to new FPOs up to five years from the year of its
creation in all aspects of management of FPO, inputs, production, processing and
value addition, market linkages, credit linkages and use of technology etc.
• To provide effective capacity building to FPOs to develop agriculture entrepreneurship
skills to become economically viable and self-sustaining beyond the period of support
from the government.

7. FPO-OpERATION SECTORS

8. 1.Cost of production can be reduced.
ex:*Bulk input orders
*Aggregation of produce
*Bulk transport reduces marketing cost
*Post harvest losses can be minimized
2.Easy access to modern technologies.
3.Easy coomunication for dissemination of information.
4.Easy access to financial resources.
5.Advantages of economics scale
Ex.for farmers as well as traders

9. Organizational structure of FPOs

10. Activities of FPOs

11. CLUSTER IDENTIFICATION AND EXECUTIONS
1.Identification
of the area
2.Identification
of farmers
3.Meeting with
farmers to
discuss about
FPO
4.Forming
small groups-
FIG
5.Collection of
share capital
6.Selecting
members from
FIG for FPO
board
7.Meeting of
selected
members to
become
directors of
FPO board
8.Finilising
Board of
directors and
getting
registered

12. FPO roles in capacity building through digital interventions
8.All form of information through technological interventions and by means of information communication tools
7.Weather based information at finger print
6.Dissemination of critical information regarding govt schemes and initiatives
5.Securing hassile free financial services with minimum paperwork
4.Post harvest management services for end to end tracebility lucrative market linkages secured through yield potential.
3.Timely Agronomy services to improve yield while mitigating crop loss
2.Implementation of climate resilence practices from sowing till the harvest
1.A centralised digital platform for effective management of resources

13. Problems facing by FPO
*Very few FPOs in INDIA
*Majority of these FPOs
are in the nascent
stage of their
operations
*Low membership
*FPO lack technical
handholding support
*FPO lack adequate
capital and
infrastructure facilities
including market
linkages for subsiding
their business
operations

14. THANK YOU