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How FPOs has changed the life of an individual farmer

How FPOs has changed the life of an individual farmer

FPO has greatly impacted farmers life not only in terms of economic upliftment but also achieved social up-gradation as they got a platform where they can put their voice effectively at various stakeholders, government machinery, political leader and policy makers. When approaching any govt officer or any public place being a member of FPOs or through FPO then he/she get better response than earlier. Farmers have learned how to earn and save money from agriculture. On an average a farmer earned between 20000-25000 per annum additionally with support from FPO which is happened due to cost saving in buying of Agri inputs, sales of produce in better prices and also in productivity enhancement by use of better Agri inputs and crop advisory received through FPOs.

What are the benefits from FPOs for different stakeholders (like farmer, buyer? supplier)

Farmers benefits: Increased farm income from 25-30% and increased social and economic status in the society

What steps should be taken to increase the number of FPOs in the country:

  1. 20% budget of all central and state sponsored Agriculture and Rural Development schemes should be allocated for development and strengthening of FPOs including support for HR and infrastructure development, processing storage and value adding facilities and FPO eco systems development.
  2. In terms of NCDC (National Cooperative Development Council) FPC Development Council needs to be formed at state t central and state level. Exclusive but provision should be made for strengthening and development of FPCS in annual central and state budgets
  3. Within ministry of cooperation FPC support and development cell should be made and separate budget should made available for value chain development & financing for FPCs. In total annual budget 25 % Quota should made for FPCs only.
  4. Exclusive syllabus for FPC management should be developed and 2 years diploma and PGDM coerces courses should start at each cooperative and rural management institute
  5. Exclusive FPC training institutes should run in collaboration with KVKs in pattern of ITI for development of skilled rural youths who can serve in FPCs
  6. Donation to FPCs in terms of HR & Admin Support, equity matching grant or working capital, or infra structure development grants up to 1 crore/ year max 10 crores should exempt from income Tax for min 5 Years.
  7. Investment up to 49% from private or public equity should be allowed in FPOs which will scale-up and improve business management in FPOs

Government perspective – what more is needed?

It is answered in Point no. 1-3 of Question -3

Additional to this Government should made 25% Quota for FPC within cooperatives sector budget

How FPOs has helped farmers to have a reach abroad-

Several FPOs have established linkage in overseas market for export of agri & horticulture produces like Gujpro FPO of Gujarat is exporting Keshar Mango to UK while other are exporting vegetables to    Dubai. Few FPOs are starting exporting of organic produces in USA


Yogesh Kumar Dwivedi

CEO, Madhya Bharat Consortium of Farmer Producers’ Company

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