FARMER
PRODUCER ORGANISATIONS – GEOGRAPHY
News:
‘Farmer producer
organisations perform better under Women’
What's
in the news?
●
Women farmers benefiting from a Walmart
Foundation market access programme have shown better participation, awareness,
decision-making and are financially independent as office-bearers of farmer
producer organisations (FPOs).
What
is FPO?
●
Farmers’
Producer Organisation (FPO), also known as farmers’ producer
company (FPC), is an entity formed by primary producers including farmers, milk
producers, fishermen, weavers, rural artisans and craftsmen.
●
An FPO can be a Producer Company, a
Cooperative Society or any other legal form.
●
FPOs are basically the hybrids of
cooperatives and private companies.
●
The participation, organisation and
membership pattern of these companies are more or less similar to the
cooperatives.
●
But their day-to-day functioning and
business models resemble those of the professionally-run private companies.
●
The
Companies Act was amended by incorporating Section-IX A in it to allow creation
and registration of FPOs under it.
Significance
of FPO:
Challenges
faced by FPOs:
●
Lack
of awareness: According to a study by the National Bank
for Agriculture and Rural Development (NABARD) in 2015, only 15% of farmers in
India are aware of FPOs. This lack of awareness can lead to low participation
in FPOs and a lack of trust in their ability to deliver results.
●
Lack
of infrastructure: A study by the Indian Institute of
Management Ahmedabad in 2013, found that only 20% of FPOs in India have access
to basic infrastructure, such as storage facilities, transportation and
processing facilities. This lack of infrastructure can make it difficult for
FPOs to aggregate produce, add value and market their products effectively.
●
Lack
of financial resources: A study by the National Council of
Farmer Cooperatives in 2018, found that only 30% of FPOs in India have access
to credit. This lack of financial resources can limit the ability of FPOs to
invest in infrastructure and other resources.
●
Lack
of management skills: A study by the Confederation of Indian
Industry in 2019, found that only 40% of FPOs in India have qualified managers.
This lack of management skills can lead to poor decision-making and a lack of
coordination, which can hinder the organization's effectiveness.
●
Lack
of government support: The government has not always
provided adequate support to FPOs. A study by the Ministry of Agriculture in
2016, found that only 20% of FPOs in India receive government support. This
lack of government support can make it difficult for FPOs to succeed, especially
in the early stages of their development.
The Government’s plan to
form and promote FPOs under the “Formation and Promotion of 10,000 Farmer
Producer Organisations” scheme is a step in the right direction. However, to
realize the true potential of FPO the government and other stakeholders should
help FPOs by increasing awareness about them among the farmers, improving
infrastructure, providing access to credit, and improving the management skills
of the members of FPO.