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What Is The Farmer Producer Organisation And How Is It Helpful To Farmers?

A Farmer Producer Organisation, as the name suggests, is an organisation formed by producers like milkmen, farmers, fishers, weavers, and also rural handicraftsmen. The organisation looks after the overall development and revenue aspects of the producers and what lifestyle benefits they can be given.

A Farmer Producer Organisation helps to support and sustain the livelihood of the farmers, the rural handicraftsmen and fishers, weavers and all those attached to agricultural works. Suppose the primary producers have a complete umbrella-like organisation of their own. In that case, individual outputs and individual incomes will not matter. Under the same umbrella, all of their demands, profits and shares can increase, contributing to their overall development. PO can be a general name for any type of producer like any agricultural farmer. The small farmers can form a consortium where their needs, demands, growth and scale of profits should be channelised, enabling them to work toward the country’s progress. This can include some non-farm and also some artisan products. 

A Farmer Producer Organisation helps the small-scale producers not to fall into the traps and become victims of the intermediaries. The right amount of profit, monetary and saving benefits that they are entitled to everything is given by the FPO. The FPO works very transparently in assuring the farmers of their genuine rights and how they can reap maximum benefits from any type of work they do. With this FPO, the farmers can go for an easier way to bargain with the customers directly and sell their products. This will also enhance the primary producer-consumer relationship. 

It is also to be noted that there can also be a Producer Organisation for non-farm items. If someone deals with non-farm products, like artisan or rural handicraftsmen, the non-farm products will come under the domain of the Producer Organisation. There can be an aggregation of all the small non-farm producers, and the main idea is to generate better profit and income. There can be a person related to the FPO, there can be more than one person, and there can be one or more institutions or organisations that might fall under the guidance of the FPO. Right from mobilisation, business planning, strategy etc., the work of the FPO goes a long way in ensuring the best possibilities for the farmers. This includes a better lifestyle, revenues, and profit. Business planning and operational methods are done keeping in mind the general upliftment of the people. 

What Are The Key Points Of FPO?

If you want to know more about the Farmer Producer Organisation, you can go through the following points:

  • A group of producers look for farm-related or no-farm activities that are essentially done, keeping the country’s overall economic benefit in mind. 
  • It is a legal and registered body, and no unofficial work systems or transactions can work as a part of it. In the case of an FPO, the producers remain and work as the company’s shareholders. The part of the profit is shared and distributed equally among all the producers; hence, there is no stopgap or lacunae in the part of the profit. 
  • After the producers take their share of the profit, the surplus gets distributed for the betterment of the business and how the business output can be enhanced. 
  • The FPO mainly deals with all business activities related to the primary product and the producer. 

One additional point that can be considered is who promotes the FPO. Any individual or organisation can try to promote the FPO as per their own will, which adds to the FPO’s overall value and working system. Even an NGO can promote a Farmer Producer Organisation if it considers feasible. 


How Does The FPO Help The Farmers?

It is the work of the FPO to look for the overall development of the farmers so that they are not cheated at any point. It is also the work of the FPO to check the overall development of the farmer’s concern. They can work under the legalities of the Cooperative Societies Act or the Mutually Aided Cooperative Societies Act. These can be beneficial for the overall betterment of the Indian economy. 

While filling up the details to register as the FPO, the agenda and the working procedures should be maintained very clearly. The FPO looks after any government control over the farmers, how can the revenues be made into a floating part, how can the distribution of revenues happen through several active and useful channels etc. In addition, the FPO’s work is to maintain its stance as a cluster-based business entity that cannot be dissolved suddenly. Some rules and regulations govern the working of the FPO; it provides the right education and information sharing regarding the right and the share of the farmers and how can they concentrate on their betterment. 

Generally, when the FPO works, it works under the mechanism of one district product so that there is no confusion in creating a balance as part of the farmers’ produce and sell items. Moreover, it is the work of the FPO to see that the benefits of any farmer are not compromised on any racial, ethnic, monetary, religious or political ground. They also help in the processing, marketing and export of items for a fair price to a large number of other countries. In addition, their work is also to negotiate on better terms with most of the corporates that benefit and profit the farmers. There is no need for an intermediary when the FPO takes charge. 


Certain laws govern the working of the FPO. The FPO must work well for the betterment of the farmers, and try to promote, sell, and distribute the farming products and share the profits among them. Along with that, it is also the work of the FPO to take care of any unforeseen circumstance that might hamper or delay the growth of the farmers or groups of farmers. 

For more information about FPO’s formation, working, and benefits, you can check out the most informative platform, Vakilsearch. It gives you a succinct idea of how an FPO works and its benefits to consumers. 

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