Farmers Producers Organizations (FPOs) are known as legalized form institutions owned by farmers, consisting of farmer members who share common interests and concerns. It is primarily an entity formed by prominent producers, like the farmers, milk producers, the fishermen, rural artisans, weavers, craftsmen, etc. These organisations can be established in the form of a Producer Company or a Cooperative Society that can potentially provide systems for sharing profits and benefits among the members. Registered under the companies act these institutions are governed by a set of laws and rules.
FPOs are progressively evolving as a new generation producer-led organization, helping the farmers to receive the perks of aggregation and also the economies of scale. Discrete organized systems and institutions are necessary to make small-scale producers aggregate their demand and supply and obtain competitive prices for their input materials and commodities produced, thereby increasing their benefits.
Let us run through the basic advantages of the FPO’s successfully causing a profitable agriculture to the farmers.
- FPO’s are pathways to an Agricultural Transformation
Small-Scale farmers face a set of challenges like, poor income, extremely limited or no access at all to the necessary inputs, inadequate knowledge of new and improved farming techniques, and a lack of access into the direct market, among several others. Underdeveloped and developing countries often encounter a critical problem wherein farmers produce for their basic subsistence and sell tiny quantities of the harvest produce whenever they face an intrinsic need. The approach towards farming for these farmers is fulfilling their basic needs rather than a scope for business opportunity. With right support and proper guidance a tremendous transformation can be brought about in the agricultural sector with their unflinching potential. This can be made possible and executed with ease by farmer producer organisations that withhold the capacity to mobilise farmers in large numbers, build their inherent capabilities, and leverage their collective strength to enhance production outcomes and marketing opportunities.
- FPO’s generate employment
An FPO crucially responsible for actively engaging farmers in the development process. It provides and creates an organized system to instill modern-day technology in their day-to-day routine, absorb and drench them efficiently into every essential rural developmental programs, and carefully monitor their socio-economic progress. FPO’s also play an important role in creating a sustainable source of employment especially for the youth and the women of the country, and makes a headway towards economic growth reducing poverty for millions of people.
- FPO’s render technological advancement & competitive pricing benefits
The biggest strength and a winning point of Farmers Producers Organizations (FPOs is that it offers a horde of advantages to the Indian farmers. First and foremost, it considerably improves their bargaining power and creates a forward and backward linkage conjoining the supply chain enabling them to gain value from economies of scale. With the accumulation of their demand and supply, the members can invest in an assortment of agri-inputs and with effect of which they can sell their commodities at competitive prices.
Secondly, the farmer producer organisations also facilitates a bond and a strong linkage with various stakeholders, allowing the members to get an open access to a range of conglomerate technical, technological, and financial support systems. Consequently, the members of FPOs can fiercely adopt better agricultural practices, while they have hassle-free financial support from various banks, and potentially leverage the infrastructure being made available to them by the organisation. These practices by the FPO’s significantly enhance their productivity and income too.
Farmer producer organisations (FPOs) are better known as agricultural cooperatives emerging as an approach which is highly practical and monumental towards empowering a great number of smallholder farmers. Padgilwar Corp is an organisation that offers the best solution with high-quality water pumps, engine operated sprayers and a wide range of farming machinery that aid and ensure farmers prosperity.