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FAQ

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 need for FPO?

FPOs aim to ensure better incomes for primary producers (or farmers) through aggregation, value addition and collective marketing of produce which result in ensuring better prices for the members. Thereby reducing vulnerability of small producers and their exploitation by intermediaries who often work in a non-transparent manner. By aggregating the demand for inputs, the FPO can buy inputs in bulk and provide them to the members at cheaper prices thus reducing the overall cost of production. Similarly, the FPO may aggregate the produce of all members and market in bulk, thus, fetching better price per unit of produce. FPO can also assist the members by providing market information to enable them to hold on to their produce till the market price become favourable.

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.