The FPO model is an effective instrument to cater to the aggregation needs of farmers at the grass root level. The key reason for developing FPOs is to counter the increasing fragmentation in farm-holding size, by promoting collaboration in landholders, to regain economy of scale. It is also becoming increasingly apparent that many of the risks in agriculture can be significantly mitigated when producers (especially small and marginal producers) aggregate production and marketing efforts. The Doubling Farmers’ Income (DFI) committee has also identified the FPO model as a tool to reorient farming or agriculture as a ‘value-led enterprise’.
Given the right policy thrust there has been substantial increase in the number of FPOs offering a huge opportunity to change the agro landscape. As a result we have seen successful FPOs emerging that have been instrumental in not only uplifting the primary producer but impacting the entire value chain and empowering the member farmers to leverage economies of scale for advisory, production, procurement, credit access and most importantly, market access and value addition of members’ produce. However, these islands of excellence are limited, and the need of the hour is to replicate the best practices in order to benefit larger number of farmers.
Identifying the need, CII and NCDEX jointly in partnership with National Bank for Agriculture and Rural Development (NABARD) and NABARD Consultancy Services Private Ltd (NABCONS) are organizing a ‘FPO Summit’. The aim is to bring together all the stakeholders in the agri value-chain connected with FPOs to discuss the long-term benefits of the FPO model, role of government & industry in helping FPOs achieve their goals and objective and also towards preparing a progressive roadmap towards nurturing large number of FPOs