Contribution of FPOs to the Growth of Vegetable Supply Chain in India

India's agricultural landscape is marked by diversity in crops, practices, and a large number of progressive farmers.

Among the various sectors, vegetable farming is a key contributor to both the nutritional and economic fabric of the country. However, the vegetable supply chain faces significant challenges such as market volatility, price fluctuations, post-harvest losses, and the inefficiencies caused by intermediaries. Amid these challenges, Farmer Producer Organizations (FPOs) have emerged as a critical driving force that bridges the gap between progressive farmers and larger markets, thereby strengthening the vegetable supply chain in India.

FPOs are farmer collectives registered as legal entities, enabling progressive farmers to pool their resources, access markets more efficiently, and improve their bargaining power. By aggregating both inputs and produce, FPOs can negotiate better deals for seeds, fertilisers, and other necessities. The role of FPOS in enhancing the vegetable supply chain is particularly vital, given that vegetables are perishable and their market demand is highly dynamic. FPOs have created opportunities for progressive farmers to access previously unavailable markets and negotiate prices, which were once out of reach for individuals with small landholdings. The aggregation of produce ensures that farmers can market their vegetables in bulk, which not only increases the volume of transactions but also stabilises prices by reducing the need for intermediaries.

Collective Bargaining Power

In the traditional vegetable supply chain, middlemen play a significant role in determining the prices that farmers receive, often exploiting their lack of market knowledge. FPOs empower farmers by providing real-time information on market prices, allowing them to make informed decisions on when and where to sell their produce.