Farmers Producer Organisations (FPOs)

Category: Agriculture / Economy / Inclusive Growth

Notes

  • An FPO is an organisation of farmers formed to achieve collective economic benefits.

  • It helps small and marginal farmers overcome problems related to:

    • Input procurement

    • Technology

    • Credit

    • Storage

    • Processing

    • Marketing

    • Bargaining power

  • The Government launched the Formation and Promotion of 10,000 FPOs initiative in 2020.

  • FPOs can aggregate production and facilitate economies of scale.

  • They can also promote value addition and direct market access.

Key Pointers

  • Full form: Farmer Producer Organisation

  • Main objective: Farmer collectivisation

  • Beneficiaries: Particularly small and marginal farmers

  • Benefits: Better inputs + credit + technology + markets

  • UPSC angle: Doubling farmers' income, agricultural value chains, cooperative institutions