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-
Instagram: https://www.instagram.com/manmath.biradar/
Twitter: https://twitter.com/BiradarManmath
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
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