New Delhi: Farmer Producer Organizations (FPOs) across the country are playing a key role in increasing farmers’ income and promoting collective farming. The movement has gained momentum in the last five years, with the formation of over 10,000 FPOs, providing an opportunity for over 50 lakh farmers to become shareholders.
A state-wise analysis shows that key agricultural states such as Telangana (6.67 lakh), Uttar Pradesh (5.90 lakh), Andhra Pradesh (5.70 lakh), Madhya Pradesh (3.20 lakh) and Maharashtra (3.00 lakh) have attracted half of the total FPO shareholders. Another positive aspect is the growing women’s empowerment, where women farmers now account for 38% of the total members, reflecting their growing participation in the agriculture sector.
The ‘10,000 FPO Scheme’ launched by the Central Government in February 2020 is believed to be a major catalyst behind this massive expansion. A budgetary provision of Rs 6,865 crore was made for this scheme over a period of five years.
Strong market performance
The success of FPOs is not limited to numbers only, but it is also clearly visible in their market performance. In the financial year 2024-25, 340 FPOs recorded a sales turnover of more than Rs 10 crore. At the same time, more than 1,100 clusters touched the figure of sales of more than Rs 1 crore. The total cumulative turnover of all FPOs has crossed Rs 15,282 crore.
Government support and business facilities
To facilitate the operation of these organizations, the government provides a matching grant of up to Rs 2,000 per farmer member, with a maximum limit of Rs 15 lakh per cluster. As a result of this comprehensive support, over 5,880 FPOs have obtained seed licences, over 5,500 have obtained fertilizer distribution licences and about 400 organisations have obtained agrochemical dealership licences, enabling member farmers to benefit from discounts directly from dealers.
Modern Marketing and the Way Forward
FPOs are now moving beyond traditional markets to modern platforms like e-commerce. Over 200 groups are selling their produce directly on platforms like Government e-Marketplace (GeM), Amazon, and Flipkart. In addition, many FPOs have also played an active role in the procurement of oilseeds, pulses and cereals under the Minimum Support Price (MSP) scheme.
Under this scheme, each FPO receives financial assistance of up to Rs 18 lakh over a period of three years, which is not only ensuring their sustainable growth but also setting a new example of collective empowerment of farmers.
