The increasing focus in recent years has paved the way for establishing an enabling environment for FPOs so that they might develop as successful business organisations in their own right. The development of farmer organisations is important to the prosperity of India’s smallholder and marginal farmers. The relationship between FPOs and industry is equally important and should be cultivated for the benefit of both sides.
With this in mind, the Indian Chamber of Food and Agriculture is hosting the first India FPOs Convention on FPO Industry Partnerships on September 7, 2022 at the NDMC Convention Centre, Sansad Marg, Connaught Place, New Delhi.
India’s overall “operational holdings” are estimated to be 146.45 million. There are 93.09 million agricultural households in India, according to the National Statistical Office’s Situation Assessment of Agricultural Households (SAAH) report for 2018-19. This means that India has anywhere from 90 million to over 150 million farmers. Although, almost 86% of farmers are small and marginal farmers, with average land holdings of less than 1.1 hectares.
Leveraging their influence is critical for unlocking India’s agricultural potential. However, in its current disorganised state, the task is tough and time-consuming. Aggregating and integrating them under a single platform will allow them to profit from economies of scale.
Farmer Producer Organisations (FPOs) operate on the same premise, attempting to aggregate farmers through an organisational process. Farmers can benefit from FPOs by purchasing supplies in bulk, sharing modern farm equipment, and marketing farm products. They have the potential to increase farmers’ income, provide farmers stronger bargaining power, and create a more transparent agri-market.
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