What is a farmer producer organisation (FPO)?

Farmer -producer organisation is a type of producer organisation in which farmers are members of this organisation. The task of the farmer producer organisation is to improve the income of small and marginal farmers. These organisations help in increasing market connectivity for farmers' economic reforms. Farmer producer organisations are an organisation formed by producers that include non -agricultural products, artisan products and all products related to agriculture. This organisation also provides marketing, processing and technical assistance to small farmers.

By identifying the problem of small and marginal farmers, the FPO is also being actively encouraged by the government. So that the link to the market of small and middle farmers can be increased and the income of farmers can be increased.

When did the farmer producer organisation come into force?

The farmer producer organisation was launched on 29–02-2020 by the Honourable Prime Minister in UP Chitrakoot. The government formed a formation of 10000 farmer producer organisations under this scheme. The main objective of this organisation is to increase income for producers through its own organisation. This organisation has eliminated a series of middlemen from agricultural marketing. Because middlemen act illegally in agricultural marketing work. Due to which small and medium farmers get only a small portion of the price.

Features of Farmer Producer Organization (FPO)

1. Farmer producer organisation is a voluntary organisation controlled by farmers. Members of this organisation actively participate in the formation of policies made for this organisation. The membership of the farmer producer organisation can be obtained without any religion, gender, caste, social discrimination. But the person who wants to become a member of this organisation should be ready to take all the responsibilities related to this organisation.

Also read: Farmers Producer organisation is a boon for farmers, it provides help

2. The director of the farmer producer organisation, gives education and training to all the farmer members of this organisation, so that they too can contribute to the development of the farmers producer organisation. This organisation has seen very good results in Rajasthan, Madhya Pradesh, Gujarat and Maharashtra.

3. Farmers producer organisations are formed on the basis of CBBOs ie cluster based business organisations. In this, agencies are applied at the state level. Initial training is provided by CBBOs while hand holding training is provided by farmer producer organisations.

Benefits of Farmer Producer Organization

1. Conversation with corporates

The farmer producer organisation provides farmers an opportunity to compete with big corporations. It also inspires all farmers to talk in a group. It provides permission to assist small farmers in both output and input markets.

2. Social Impact

Social capital will be developed by the farmer producer organisation. This organisation will reduce social conflicts, as well as reduce nutrition values in the community. Women farmers will also be able to make decisions by the farmer producer organisation, their decision capacity will also increase. This organisation will also help reduce gender discrimination.

Also read: Special service Centres have been opened to help farmers

3. Average holding size challenge solution

In this, farmers can also be motivated for collective farming. This will increase productivity and will also help in employment creation. The share of small and marginal farmers in the agricultural sector has increased from 70% in 1980 -1981 to 86% in 2016 -17. And not only this, in 1970 -71, the size of the holdings has come down from 2.3 hectares to 1.08 hectares in 2016-17.

4. Aggregation

Good quality equipment is provided to farmers at a very low cost by the farmer producer organisation. In low -cost devices such as procurement of machinery, loans for crop and pesticides and fertilisers. Direct marketing after purchasing all of them. The farmer producer organization serves to be able to save farmers, enable them to transport, transaction costs and quality maintenance.

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