June 23, 2024


Passion For Business

FPOs show the way of turning agriculture into a profitable venture

Far more than 86 per cent of farmers in the country are modest and marginal. But several of these modest farmers have joined fingers to kind Farmer Producer Organisations (FPO), and in States like Maharashtra, they have turned agriculture into a lucrative undertaking.

Aggregation of modest, marginal and landless farmers in FPOs has aided improve the farmers’ financial toughness and industry linkages for strengthening their cash flow.


Inspired by the achievements of FPOs, the Centre has introduced a new plan titled ‘Formation and Promotion of 10,000 Farmer Create Organisations (FPOs)’ with a apparent system and committed methods with a budgetary provision of ₹6,865 crore.

Union Finances 2018-19 declared a 5-yr tax getaway for FPOs with a turnover of up to ₹100 crore even though Union Finances 2019-twenty exposed the government’s intention to kind 10,000 new FPOs more than the following 5 many years.

One particular District One particular Products cluster

The Ministry of Agriculture and Farmers Welfare on Tuesday reiterated the significance of FPOs which are to be formulated in generation clusters, whereby agricultural and horticultural provides are grown/cultivated for leveraging economies of scale and strengthening industry entry for associates.

“One District One particular Product” cluster will boost specialisation and better processing, marketing and advertising, branding and export. In the course of 2020-21, 2,two hundred FPO make clusters have been allocated for the development of FPOs, which also incorporate specialised FPO make clusters these types of as a hundred FPOs for natural, a hundred FPOs for oil seeds and so on. Of these, 369 FPOs are focused for development throughout the recent yr in a hundred and fifteen aspirational districts.

Ravindra Kamble, a member of Loaded Agri Farmer Producer Corporation, suggests that modest farmers could endure only if they join fingers. “ There should be better co-ordination and cooperation in between FPC/ FPOs operating in agriculture” he extra.

The federal government has declared that FPOs will be presented financial assistance up to ₹18 lakh per FPO for a few many years. In addition to this, provision has been designed for matching fairness grant up to ₹2,000 per farmer member of FPO with a limit of ₹15 lakh per FPO and a credit history assurance facility upto ₹2 crore of venture financial loan per FPO from the eligible lending establishment to make certain institutional credit history accessibility to FPOs.

Shailaja Narwade and other girls farmers in Osmanabad who have commenced a producer business come to feel that the government’s initiative will aid modest farmers in a large way. “ Far more concentration should be on building a offer chain and uncover new markets. Women of all ages farmers will perform a key purpose in collective farming,” she extra.