- FPOs are voluntary organizations controlled by their farmer-members who actively participate in setting their policies and making decisions.
- They are open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
- FPOs operatives provide education and training for their farmer-members, elected representatives, managers, and employees so that they can contribute effectively to the development of their FPOs.
- FPOs have shown encouraging results and have been able to realise higher returns for their produce.
- For example, tribal women in the Pali district of Rajasthan formed a producer company and they are getting higher prices for custard apples.
NEST IS COMMITTED TO BUILD MAXIMUM NUMBER OF FPO TO HELP FARMERS IN ACHIEVING THEIR FULL ECONOMIC POTENTIAL
BRIEF OVERVIEW OF FPOS :
BENEFITS EMANATING FROM FPO
DELINING AVERAGE LAND HOLDING SIZE:
The average farm size declined from 2.3 hectares (ha) in 1970-71 to 1.08 ha in 2015-16. The share of small and marginal farmers increased from 70 per cent in 1980-81 to 86 per cent in 2015-16.
- FPOs can engage farmers in collective farming and address productivity issues emanating from small farm sizes.
- Further, this may also result in additional employment generation due to the increased intensity of farming.
NEGOTIATING WITH CORPORATES
FPO can help farmers compete with large corporate enterprises in bargaining, as it allows members to negotiate as a group and can help small farmers in both input and output markets.
ECONOMICS OF AGGREGATION:
- The FPO can provide low-cost and quality inputs to member farmers. For example, loans for crops, purchase of machinery, input agri-inputs (fertilizers, pesticides, etc.) and direct marketing after procurement of agricultural produce.
- This will enable members to save in terms of time, transaction costs, distress sales, price fluctuations, transportation, quality maintenance, etc.
SOCIAL IMPACT
- Social capital will develop in the form of FPOs, as it may lead to improved gender relations and decision-making of women farmers in FPOs.
- This may reduce social conflicts and improved food and nutritional values in the community.
COLLECTIVE FARMING
FPOs can be used to augment the size of the land by focusing on grouping contiguous tracts of land as far as possible.
More focus should be on creating a supply chain and find new markets. Women farmers will play a major role in collective farming.
Connect With Us
51/103 MOO 4, PHETKASEM ROAD, SAMPRAN NAKHON PHATHOM, THAILAND 73110
Opening Hours:
Mon – Sat: 8.00 am – 7:00 pm
