Significance of FPOs

Context- The article discusses how Farmer Producers’ Organisations (FPOs) in Uttar Pradesh
(UP) help small farmers by pooling resources and improving farming practices. The government
supports these FPOs through funding, resources, and collaboration. As a result, FPOs are
boosting crop variety, enhancing farming methods, and increasing exports in UP.
What are FPOs?

  • FPOs, or Farmer Producers’ Organisations, are collectives of farmers who come together
    in a geographical cluster.
  • They help farmers by pooling resources, improving farming techniques, and accessing
    better markets.
    How are governments supporting FPOs?
  • Formation Plans: The Centre aims to form 10,000 FPOs. In Uttar Pradesh (UP), the goal is
    to establish one FPO in each of its 826 blocks every year for five years.
  • Dedicated Support: UP has a dedicated FPO cell to guide these organizations, ensuring
    scheme convergence and addressing compliance.
  • FPO Shakti Portal: Launched in UP, it’s a platform for FPOs offering grievance redressal
    and business partnership opportunities. As of July 15, 1,600 FPOs with a turnover of Rs
    229 crore have registered.
  • Financial Assistance: The Agriculture Infrastructure Fund provides FPOs with a 3%
    interest subvention. UP adds another 3%, cutting loan interest to around 3%.
  • Subsidies: Both Central and state-sponsored schemes offer capital subsidies,
    encouraging post-harvest infrastructure development.
    How do FPOs in Uttar Pradesh (UP) help small farmers?
  • Pooling Resources: FPOs are groups of farmers collaborating to maximize collective
    resources and expertise.
  • Crop Diversification: FPOs are driving diversification, with 1,316 involved in cereals, 378
    in horticulture, and others focusing on different crops.
  • Seed Processing: 100 FPOs have set up seed processing units, with many selling seeds in
    the open market or partnering with seed corporations.
  • Farm Machinery Access: Over 480 FPOs have created Farm Machinery Banks, renting out
    equipment at reasonable rates.
  • Innovative Farming: Techniques like direct seeding of rice are introduced via FPOs. An
    FPO also promotes farming special rice in Siddharthnagar.
  • Collaboration with Companies: FPOs have facilitated deals, like the 200 MoUs between
    68 FPOs and 37 companies, boosting market linkages for small farmers.
    What innovations do FPOs bring?
  • Specialized Farming: An FPO led the initiative to farm special Kalanamak rice in
    Siddharthnagar district.
  • Nutritional Focus: FPOs are enhancing local diets by developing the value chain of
    nutrient-rich agri-products like millets, mushrooms, moringa, and fortified cereals.
  • Local Campaigns: In Rampur, an FPO collaborated with district administration for the
    “Aahaar Se Upchar Tak” campaign, supplying nutrition-rich products to anganwadi
    kendras, enhancing local nutrition.
  • Unique Recognition: FPOs have successfully registered local products under
    Geographical Indications, such as Adam Chini rice and Banarasi langda.