FPOs-FAQs (Frequently Asked Questions) for FPOs (Farmer Producer Organisation) किसान कंपनी शुरू करना है ? ये महत्वपूर्ण बातें समझें

FPOs-FAQs (Frequently Asked Questions) for FPOs
(Farmer Producer Organisation)  

किसान कंपनी शुरू करना है ? ये महत्वपूर्ण बातें समझें

                           What is the need for FPO? The main aim of FPO is to ensure better income for the producers through an organization of their own. Small producers do not have the volume individually (both inputs and produce) to get the benefit of economies of scale. Besides, in agricultural marketing, there is a long chain of intermediaries who very often work non-transparently leading to the situation where the producer receives only a small part of the value that the ultimate consumer pays. Through aggregation, the primary producers can avail the benefit of economies of scale. They will also have better bargaining power vis-à-vis the bulk buyers of produce and bulk suppliers of inputs. 1.3 What is a “Farmers Producer Organisation” (FPO)? It is one type of PO where the members are farmers.   

                            Small Farmers’ Agribusiness Consortium (SFAC) is providing support for promotion of FPOs. PO is a generic name for an organization of producers of any produce, e.g., agricultural, non-farm products, artisan products, etc. What are the essential features of a PO? a. It is formed by a group of producers for either farm or non-farm activities. b. It is a registered body and a legal entity. c. Producers are shareholders in the organization. d. It deals with business activities related to the primary produce/product. e. It works for the benefit of the member producers. f. A part of the profit is shared amongst the producers. g. Rest of the surplus is added to its owned funds for business expansion. 1.6 Who owns the PO?

                                 The ownership of the PO is with its members. It is an organization of the producers, by the producers and for the producers. One or more institutions and/or individuals may have promoted the PO by way of assisting in mobilization, registration, business planning and operations. However, ownership control is always with members and management is through the representatives of the members. What are the important activities of a FPO? The primary producers have skill and expertise in producing. However, they generally need support for marketing of what they produce. The FPO will basically bridge this gap. The PO will take over the responsibility of any one or more activities in the value chain of the produce right from procurement of raw material to delivery of the final product at the ultimate consumers’ doorstep.

                 In brief, the FPO could undertake the following activities: a. Procurement of inputs b. Disseminating market information c. Dissemination of technology and innovations d. Facilitating finance for inputs e. Aggregation and storage of produce f. Primary processing like drying, cleaning and grading g. Brand building, Packaging, Labeling and Standardization h. Quality control i. Marketing to institutional buyers j. Participation in commodity exchange What important factors should be kept in view while facilitating formation of PO?

                                  Aggregating producers into collectives is one of the best mechanism to improve access of small producers to investment, technology and market. The facilitating agency should however keep the following factors in view: a. Types of small scale producers in the target area, volume of production, socioeconomic status, marketing arrangement b. Sufficient demand in the existing market to absorb the additional production without significantly affecting the prices c. Willingness of producers to invest and adopt new technology, if identified, to increase productivity or quality of produce d. Challenges in the market chain and market environment e. Vulnerability of the market to shocks, trends and seasonality f. Previous experience of collective action (of any kind) in the community g. Key commodities, processed products or semi-finished goods demanded by major retailers or processing companies in the surrounding areas/districts h. Support from Government Departments, NGOs, specialist support agencies and private companies for enterprise development i. Incentives for members (also disincentives) for joining the FPO Keeping in view the sustainability of a Producer Organisation. b. The productive land under an FPO may be around 4000 ha. c. The PO may cover generally one or two contiguous Gram Panchayats for ease of management. d. The number of farmer producers that need to be covered may be around 700 to 1000. e. The cost of managing a Producer Organisation of the above nature may be around Rs. 2 lakh per month or Rs. 24 lakh per annum. g. Further, the markets selected for the Producer Organisation for selling their produce may be within 200 KM to make their marketing activities viable.

Manmath Biradar

manmathbiradar@gmail.com



Below are the Social Media links-








Concept of Producer Organisation,

Registered as Cooperative Society,

Registered as Producer Company,

Business Planning,Financial Management,Funding Arrangement,Monitoring by the PO,

POPI and Funding Agencies,

Producer Company Act provisions,

Memorandum of Agreement between NABARD and POPI,

Memorandum of Understanding between NABARD and RSA,

Indicative Framework of the process of forming a PO

Comments

Popular posts from this blog

Farm Machinery Custom Hiring Centre (CHC) -Business Model (कृषि मशीनरी किराये पर देना)

Agro-Processing Industry (Big Business Opportunity) (Non-Food & Food ) कृषि प्रसंस्करण उद्योग