Placing Indian agriculture on the global map

Farmer producer organisations should be supported per their requirements, which currently are know-how about international standards and scaling

- ARPITA MUKHERJEE KETAKI GAIKWAD

THE ESTABLISHMENT OF farmer producer organisations (FPOs) was a great initiative started by the government of India in the early 2000s to help small and marginal farmers achieve economies of scale, increase their bargaining power by negotiating collectively, double their income, and reach the global markets. FPO is not a unique concept —similar models have been adopted in other countries like Mexico, Thailand, and China. It has helped their small farmers to enter the export market. In India, small and marginal farmers represent 86% of farmers, and they lack access to essential inputs, credit, modern technology, infrastructure, and are unable to connect to global sourcing firms/buyers.

To resolve such issues, the Indian government, in 2021, launched a new central sector scheme, Formation and Promotion of 10,000 Farmer Produce Organisations, with an allocation of ₹68,650 crore to form and promote 10,000 new FPOs nationwide. However, an ongoing survey by ICRIER, covering 43 FPOs and over 200 member farmers in spices (particularly turmeric) across six states, found that FPOs continue to face similar challenges in scaling up and accessing global markets, like the small and marginal farmers.