FPO Promotion & Development


FPO Promotion & Development

FPOs Promotion

Our Initiative within 3-5 years, aims to Improve the economic conditions of small farm holders, by addressing the issue of small and fragmented land holdings, through forming of farmer's collectives (FPO) Farmers Producer Organization.

Challenges Faced By The Farmers

Farm production and productivity is not as big barrier in the economic development of farmers as the weak market linkages restricting best bargain and high transaction cost of farm produce and farm inputs/services due to fragmented and small-holdings. Nearly 80% of farmers (Small Holder Farmers) have a net annual income of less than INR 70,000. Due to the small ticket size of the transaction, SHFs have no access to the services of the agriculture value chain, which has a number of inefficient and opaque layers between farmers and businesses.



Our approach & strategy

  • In our areas, four to five geographical area will be identified on the basis of potential of cluster formation for one or two agricultural commodity or products. Farmers of identified geographical area will be mobilized, organized and supported to form Farmer’s Producer Company (FPO) taking one or two principal Commodity or Product in a Cluster approach. The spread and catchment of a FPO in a geographical area will be generally covering a block.
  • Each FPO will develop a membership of one thousand Small Holder Farmer (SHF), which will be facilitated to grow up to 50 SHF member within the project period. One FPO, depending upon population density of region, will cover 10-20 Revenue villages/Gram Panchayat. Each state will have 20-25 FPOs, depending upon existence of product clusters, product strength, geographical advantage and business opportunity/feasibility/viability.
  • All FPOs in a State will be federated to a State level Federation, which will be eventually federated at National Level. These Federations will support FPOs in linkages at National and Global level and provide Institutionalized support to FPO.
  • Business plan of FPOs will be built on the basis of geographical advantages, market potential of product and farmers abilities to scale up. Accordingly, all infrastructure development, technical and material inputs will be mobilized as provisioned in various government schemes. Advantage of recently announced reforms in EC Act, APMC Act, and Contract Farming will be fully realized by developing appropriate business plan.
  • Aggregation of input-output and services will be core business strategy of FPO with value addition, storage, logistics and branding as major business driving operations. Business partnership with private players in input/service sourcing, NCDEX, e-NAM for output linkages will be established.
  • Application of technology, including ICT, ToT, Precision farming, sustainable agriculture, resource conservation technology and climate resilient organic practices will be cross cutting approach for all FPOs.
  • All agriculture interventions, like crop specific package of practices, crop productivity enhancement, crop loss prevention etc. will be designed as per local context.Required agri expertise with related trainings, knowledge transfer will be availed from Technical Institutions (KVK/SAUs).

Our innovative methodology

  • Sustainability in the core essence of this project. FPOs needs long term support to sustain, grow and expand. Federation of FPOs at State and National level is an Institutional mechanism to provide continued support from strategy to operation.
  • Globally proven signature technique of Art of Living for Individual Development to awaken, ignite and motivate human mind, inculcate human values and sense of belongingness will be unique in our approach to mobilize and organize farming community.
  • Women Centric approach in formation and operation of FPOs will be taken to achieve better stability, issue-based action, open to change and mutually supportive community
  • ICT tools will be used to connect, communicate, train and operate at scale.

Expected Outcomeers will get organized in to farmers collectives as FPO

  • Farmer’s income will be impacted positively and by end of the 2025 , an average 20-30%increase in farmer’s income is expected.
  • Various farming, logistics and value addition activities will generate at least 20additional man-days per SHF in villages (50 SHF x 20 = 10000 man days/year)
  • Demonstrate a financially successful and sustainable model of farmer’s collectives incountry for replication.
  • Sustainable Agriculture

  • SAFALs efforts at improving farm productivity has largely been based on ‘Responsible Manner’ or popularly known as “Tikau Kheti”, aform of certification for agricultural practices followed that reduces the environmental and social footprint of agriculture, while increasing yield and productivity for the farmer, making the business of farming more sustainable. These set of practices are also in line with Good Agricultural Practices as propounded by the Food and Agricultural Organization of the United Nations, as well as in line with the proposed objectives of the National Mission on Sustainable Agriculture.