Farmer Producer Organization

Farmer Producer Organization (FPO) is a legal entity incorporated under the Companies Act or Co-operative Societies Act of the concerned States and formed to leverage collectives through economies of scale in production and marketing of agricultural and allied sectors.

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What Benefits farmers will get by forming FPO

As a cohesive group, farmers as members of the FPO will have better bargaining power which can be leveraged to buy or sell commodities at competitive prices.

Aggregation of agricultural produce for better marketing opportunities. Trading in bulk saves farmers on associated expenditures like processing, storage, transportation etc.

FPOs may take up activities for value addition like sorting/grading, packaging, basic processing etc. which fetch a higher price for the farmers’ produce.

FPO formation facilitates utilization of pre and post harvest infrastructure like green houses, mechanized farming, cold storage, agri-processing etc.

FPO can expand its business activities by opening input stores, custom centres etc. through which its member farmers can get subsidised inputs and services.