{"id":41063,"date":"2019-01-24T17:51:42","date_gmt":"2019-01-24T12:21:42","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=41063"},"modified":"2019-01-24T17:51:42","modified_gmt":"2019-01-24T12:21:42","slug":"reforming-farmer-producer-organisations","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/reforming-farmer-producer-organisations\/","title":{"rendered":"Reforming Farmer Producer Organisations"},"content":{"rendered":"<p><a href=\"https:\/\/indianexpress.com\/article\/india\/farmers-collectives-taking-farmer-producer-organisations-beyond-romance-to-relationships-5553053\/\"><strong>Reforming Farmer Producer Organisations<\/strong><\/a><\/p>\n<p><strong>News<\/strong>: The article discusses the functioning of FPOs and need for their reform.<\/p>\n<p><strong>Facts: <\/strong><\/p>\n<ul>\n<li>Indian farming is predominantly subsistence-oriented with 86% of individual holdings below two hectares which occupy 47% of the country\u2019s total cultivated area.<\/li>\n<li>The production and productivity of these farms are generally low, with limited marketable surplus and low realizations.<\/li>\n<li>FPOs are quite effective in addressing above challenges.<\/li>\n<\/ul>\n<p><strong>FPOs: <\/strong><\/p>\n<ul>\n<li>A FPO represents the power of aggregation. Many small farmers come together and form an organisation that collectively purchases inputs required by them and\/or sell their produce.<\/li>\n<li>Initially, only small informal groups of 20-25 farmers are formed and gradually such farmer interest groups or FIGs are, then, aggregated into FPOs.<\/li>\n<li>The FPOs, in turn, can remain informal groups or be registered societies, cooperatives, trusts and companies.<\/li>\n<\/ul>\n<p>Allowing formation of Farmer Producer Companies, by amending the Companies Act of 1956, was recommended by Y.K.Alagh Committee which was implemented. But registering FPOs as companies has certain limitations:<\/p>\n<ul>\n<li>Subjecting farmers to the rigours of company regulations is taxing as they are ill-equipped to handle such issues and have to pay consultants for filing returns.<\/li>\n<li>Small farmers mostly produce paddy, millets, wheat, pulses, vegetables and other staples which have low margins even if they are aggregated into FPOs, hence there is a need to form FPO for a full value chain.<\/li>\n<li>FPOs are mostly organized by NGOs who are good at community mobilisation, but whose business acumen is limited, which raises doubts about efficacy of FPOs.<\/li>\n<li>FPOs are to operate as businesses but the quality of manpower at their member, board and CEO levels is low which are majorly held by NGO members.<\/li>\n<\/ul>\n<p><strong>Reforms needed:<\/strong><\/p>\n<ul>\n<li>FPOs should be created not just for aggregation of produce but for entire value chain of the produce from raw material stage to final processing stage.<\/li>\n<li>Developing proper training programmes for FPOs, including through producing short videos such as those used in massive open online courses.<\/li>\n<li>Introducing a system of issuing equity to CEOs or board members of FPCs as a performance incentive.<\/li>\n<li>FPOs require an enabling ecosystem, through sensitising government officials and bankers to the unique potential of these business entities for improving farmers\u2019 incomes.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Reforming Farmer Producer Organisations News: The article discusses the functioning of FPOs and need for their reform. Facts: Indian farming is predominantly subsistence-oriented with 86% of individual holdings below two hectares which occupy 47% of the country\u2019s total cultivated area. The production and productivity of these farms are generally low, with limited marketable surplus and&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/reforming-farmer-producer-organisations\/\">Continue reading <span class=\"screen-reader-text\">Reforming Farmer Producer Organisations<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-41063","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704460439},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/41063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=41063"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/41063\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=41063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=41063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=41063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}