Farmer Producers’ Organisations: Engines of agri-innovation in UP

Source: The post is based on the article “’Farmer Producers’ Organisations: Engines of agri-innovation in UP” published in “Indian express” on 20th October 2023.

Syllabus: GS3- Agriculture- marketing of agricultural produce and issues and related constraints; e-technology in the aid of farmers.

News: 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.