Today there are about 10,000 FPOs in the country out of which 5000 are promoted by NABARD.
NBARD President GR Chintala on Monday said that Farmer Producer Organizations (FPOs) are coming to India in a big way and will help them a lot in getting good prices.
Speaking at a webinar organized by BCCI, Mr. Chintala said that FPO is the new paradigm in Indian farming. Today there are about 10,000 FPOs in the country out of which 5000 are promoted by NABARD.
“It has been observed that farmers associated with FPOs get additional benefits ranging from 40 per cent to 60 per cent. Farmers are getting inputs at lower prices and higher realizations for sale,” he said.
Shri Chintala said that out of 5000 FPOs promoted by NABARD, 2500 have moved to investment grade.
“These investment grade FPOs are getting their money from the banking system and Navkisan Finance,” the NABARD chairman said.
He said that some of them have also started value addition by making finished products like pulses. These finished products are now being sourced by large retailers.
The NABARD chief said that milk production has also increased due to the formation of these organizations.
With regard to farmers reaching the markets, he said that these FPOs are also arranging pickup vans to take the produce to the selling points.
Shri Chintala said that West Bengal should also look at the success stories of FPOs and promote them actively.
Since West Bengal mainly consists of small and marginal farmers, while productivity is very high, FPO will become a viable option.
Regarding the number of members of an FPO, he said that small membership will not add much value and a drive should be launched to increase the number.
Mr. Chintala also said that FPOs should be run in a professional manner. “Some FPOs have hired CEOs who are either graduates from IRMA or IIMs. These people can run the organization and run it professionally,” he said.
Mr. Chintala said that in the new agricultural laws, there is a provision to make any place a market for selling the produce.
He also said that FPOs should go for valuation, branding, state-of-the-art packaging and follow FSSAI standards.
Since agriculture will play an important role in the economy, the FPOs will have to increase their functions, adding that each member-farmer should have an equal share in the organisation.
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