The government, NBFCs, civil societies, and other financial institutions have invested in FPOs, looking at their significant role in the future of rural development. FPOs have the potential to act as a motivation for change in the economic system of our nation. They can only perform as desired when the management systems, governance, and capital system are vital.
Please keep reading to those who have no idea what we’re talking about. And you’ll know how FPOs work and why they can help the majority of small and marginal farmers of our country!
What is an FPO?
FPO (Farmer Producer Organizations) is an organization where the members are farmers. They provide end-to-end support to small farmers, covering technical services, marketing, processing, and other aspects of agriculture inputs.
However, agribazaar offers tech-backed solutions for fpo’s to position them better to help farmers with suitable market linkages, personalized crop advisories and management, quality check services at farm-gate & low-cost community-owned post-harvest processing units for value addition. Primarily being an agri trading platform, agribazaar has connected with numerous FPOs to get them farmer-members the fair prices & instant payments for their stock.
What is its goal?
The aggregation of marginal, small, and landless farmers as FPOs has helped increase market linkages to improve farmers’ income and economic strength. It provides end-to-end services and support to small farmers and covers marketing, technical assistance, processing, marketing, and other aspects of cultivation inputs.
The idea behind the FPOs is that the farmers who produce agricultural products can form groups and register themselves under the Companies Act 2013.
The key features of an FPO are mentioned below for a better understanding of how FPO works.
- The FPOs are voluntary organizations controlled by members who are farmers actively participating in making decisions and setting policies.
- They are open to people who accept the responsibilities of membership without any sort of discrimination.
- Their farmer-members, managers, elected representatives, and employees are provided with training and education to efficiently contribute to the FPOs’ growth.
- The Cluster-Based Business Organisations (CBBO) FPOs promote & form these FPOs that engage further at the cluster or state level by enforcing the agencies.
- ‘One District One Product’ promote the FPOs to encourage better branding and specialization, processing, marketing, and exports.
FPOs increase the income for the producers through an organization of their own since a small farmer does not have the volume to take advantage of economies of scale. The non-transparent workings of a chain of mediators and intermediaries in agricultural marketing usually lead to a situation where the farmer receives only a tiny & unfair part of the value. agribazaar, with its direct buyer-seller contact feature, supports the FPOs throughout to eliminate the chain of intermediaries in agricultural marketing to provide producers their fair share.