The Aim of Formation and Promotion of Farmer Producer Organisation (FPO) is to catalyse transformation of agriculture sector, where small and marginal holdings less than 2 hectares constitute over 80% of farmers’ population and distressingly have ownership of a minor share of land. This Scheme aims to achieve inclusive and sustainable transformation through the creation of a holistic and supportive ecosystem for the formation of 10,000 FPO in India by 2023-24, and their nurturing, handholding and capacity building over a five years period from their inception, to facilitate the development of vibrant and sustainable income-oriented farming that would lead to the overall socio-economic development and wellbeing of agrarian communities. The rationale for setting up farmer producer organisations is based on the premise that collectivisation of farmer producers, particularly smallholder farmers, has a direct effect on increasing farmer incomes, through securing production by increasing productivity and reducing costs of cultivation, adding value to production through reducing transaction costs, up scaling trade and bulk selling of the produce or its further processing into downstream products, enabling access to technology, increased bargaining power and integration with value chains and above all increasing market access and power. Further, it is in their democratic functioning based on Cooperative Principles, that FPO most definitely have an advantage and are seen as the way for taking small and marginal farmers forward, through offering them better and more dignified livelihood options and living.
The National Cooperative Development Corporation (NCDC) is an Implementing Agency (IA) under the Central Sector Scheme, “Formation and Promotion of 10,000 Farmer Producer Organisations” through Cluster Based Business Organisations (CBBOs) who are professional organisations that are engaged by NCDC to function at the Block level for formation and nurturing of FPOs. CBBOs have a critical role in the entire process right from cluster identification, baseline study, community mobilisation, registration of FPO as cooperative, training and capacity building of FPO and farmers, business planning for FPO, regular interface with other institutions including research, dissemination of information to farmers, incubation and handholding, reporting and data collection, FPO rating, assisting FPO in financial management and accounting. CBBOs are supposed to train FPOs in subject matters covering topics ranging from organisational management/ behaviour, crop husbandry, value addition, processing, marketing, trading, export, supply chain, grading, branding, packaging, accounting, auditing, compliance requirements, incubation, Information and Communications Technology (ICT) and Management Information System (MIS) as may be relevant for promotion of FPOs including case studies in best practices, if any.
The Competent Authority of NCDC and thereafter Agricultural Extension Division of ICAR, New Delhi has sanctioned and released an amount of Rs.2,32,00,000/- (Rupees two Crore Thirry Two Lakhs only) for Formation and Promotion of FPOs by KVKs and ICAR Institutes, as CBBOs during 202l-22. Accordingly, Rs. 8,00,000.00 has been received from the Council on 02.07.2021 and then each Rs. 4,00,000.00 has been given to ICAR-National Rice Research Institute, Cuttack and KVK, Nuapada for the formation of four FPOs at Balasore Sadar and Remuna of Balasore district and Komna and Boden of Nuapada district of Odisha, respectively.
- To facilitate the development of a sustainable income-oriented farming and business platform for the smallholder farmers.
- To assure the farmers’ income by enhancing productivity and reducing costs of cultivation, up scaling trade and bulk selling of the produce or its further processing into downstream products, enabling access to technology, integration with value chains, increasing market access and bargaining power.
Salient achievements of the project: