Survival and growth of FPOs

The advantages of the FPOs have been borne out and quantified by a study conducted by the National Bank for Agriculture and Rural Development (Nabard) in 2020-21 and 2021-22

With around 7,600 farmer producer organisations (FPOs) having already come up, the government’s target of extending their tally to 10,000 by 2024 seems within reach. This would be a significant achievement, considering the usefulness of these unique business enterprises for the member-farmers. The FPOs have been found to boost farmers’ income by enabling them to get higher prices for their produce and procuring inputs and services at lower costs, thanks largely to enhanced bargaining power and economies of scale, as also value-addition of the products. However, the long-term socioeconomic impact of these institutions on rural economy would depend on how