Farmers in Bengal often complain that they do not get the right price for their crops. Even though middlemen sell their produce at high prices, farmers get less than the fair price. The solution to this problem can be to organize and sell their crops through FPO (Farmer Producer Organization). In this blog, we will know:
- What is FPO and how does it work?
- How to get a higher price through FPO?
- Rules for forming FPO and government support
- Examples of successful FPOs
What is FPO? (Farmer-Producer Organisation)
FPO is a cooperative organization of farmers who come together to do production, processing and marketing. It is formed by organizations like Small Farmers’ Agribusiness Consortium (SFAC) and NABARD.
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Main advantages of FPO:
- Direct sale in the market without commission (eliminates middlemen)
- Access to larger market (wholesale market, export, retail chain)
- Government subsidies and assistance (machinery, training, loan facilities)
- Price negotiation power (get higher prices as a group)
5 ways to get higher prices through FPO
Collective production and marketing
It is easier to get large orders through FPO than through individual farmers.
Set up processing unit
More income can be earned through FPO by making value-added products (jam, pickles, powder).
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Agreements with government and private organizations
FPOs can sell crops by directly contracting with APMC, BigBasket, Reliance Fresh.
Use of online marketplaces
Open FPO accounts on e-NAM, DeHaat, AgriBazaar and sell across the country.
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Use of advanced technology at low cost
FPOs can buy drip irrigation, solar pumps at group discounts.
Steps to form an FPO
- Gather at least 100+ farmers (better if they have the same objective).
- Register with SFAC or NABARD.
- Form a management committee (elect president, secretary).
- Open a bank account and learn fund management.
- Create marketing channels (wholesale buyers, food processing companies).
Government assistance
- Grant of Rs. 18 lakh per FPO (SFAC scheme).
- Tax exemption for 5 years.
- Training and technical support (from Krishi Vigyan Kendra).
- Examples of successful FPOs
- Purulia Millet FPO: Selling local ragi rice across the country.
- Sunderbans Honey FPO: Organizing 200+ farmers and exporting organic honey to Europe.
Conclusion
Don’t lose profits to middlemen by selling your crops directly in the market. Get higher prices, avail government benefits and join modern agriculture by organizing through FPO!