Centre all set to bring out policy on FPOs, says officials

Contact Counsellor

Last Updated05/09/2024

The national FPO policy is significant as the government has emphasised on farmers’ collectives in recent years.

In a significant move to strengthen the Farmer Producer Organisation (FPO) movement across India, the Centre is poised to unveil a national policy on FPOs within the next fortnight.
This announcement was made by Faiz Ahmad Kidwai, Additional Secretary at the Ministry of Agriculture and Farmers’ Welfare, during the Samunnati FPO Conclave held on Tuesday.

The national FPO policy aims to provide a cohesive framework that integrates the various state-level FPO policies into a unified national strategy.
States like Karnataka, Kerala, Uttar Pradesh, Haryana, Maharashtra, and Tamil Nadu have already implemented their own FPO policies, and the national policy will serve to align these with a broader vision.
Kidwai emphasized the role of FPOs as the collective voice of farmers and highlighted the government's commitment to supporting these organizations. "FPOs are the voice of farmers," he said, noting the significance of creating a unified policy to propel the FPO movement forward.

The national policy comes in the wake of the Centre's 2020 initiative, which allocated ₹6,865 crore for the establishment of 10,000 new FPOs by March 2024. Kidwai revealed that more than 9,000 FPOs have already been constituted, reaching approximately 20 lakh farmers.
The goal is to ultimately engage 50 lakh farmers under this program. Notably, 28% of the farmers reached are women, and 21% belong to Scheduled Castes and Scheduled Tribes.
The government has provided over ₹210 crore in equity to these FPOs, matching the contributions collected by the farmers themselves. Additionally, more than ₹400 crore has been provided as credit guarantees, further bolstering the financial backbone of these organizations.

Kidwai underscored the importance of building a comprehensive database of FPOs, not just for businesses and aggregators, but also as a tool for political advocacy. He noted that a unified FPO voice, representing millions of farmers, could be a powerful force in securing their rights and demands.

The event also saw international participation, with Takayuki Hagiwara, India representative of the Food and Agriculture Organization (FAO), acknowledging the pivotal role FPOs play in supporting small and marginal farmers.
The FAO is currently developing a project to collaborate with FPOs in selected Indian states.
In addition to policy developments, the Samunnati FPO Conclave witnessed the launch of the Bharat FPO Finder, an online platform offering a single-source database of over 35,000 Farmer Producer Companies (FPCs).
Developed by the National Association for Farmer Producer Organisations and Samunnati, this platform is expected to play a key role in the digital transformation of agriculture in India, facilitating better connectivity between FPOs and stakeholders.
Samunnati's Founder and CEO, Anil Kumar SG, described the Bharat FPO Finder as central to the ongoing digital revolution in agriculture. Pravesh Sharma, director of Samunnati, lauded the platform as "India’s Google for FPOs."
Additionally, a White Paper on Financing Climate-Smart Agriculture (CSA) was released during the conclave. The paper outlines strategies to accelerate financing for sustainable and climate-resilient agricultural practices, reflecting the growing emphasis on environmentally conscious farming.

The upcoming national policy on FPOs represents a strategic effort to unify and strengthen the role of farmers' collectives in India's agricultural landscape.
By focusing on collective action, financial support, and technological integration, the policy aims to enhance the economic resilience of small and marginal farmers, ensuring their sustainable participation in the market.