Page 91 - Putting Farmers First

Farmer Producer Organisations

Farmer Producer Organisations (FPO) help bring
farmers together and form a collective that
represents farmers’ interests.

These farmers can share best practices and more
importantly increase their bargaining power by
collectively negotiating with potential buyers.

An initiative for formation and promotion of 10,000
FPOs with a total budgetary provision of Rs 6,865
crore was launched.

Formation of 10,000 FPOs across the country is
targeted by 2023-24, while providing adequate
handholding to each FPO.

Prime Minister Narendra Modi once narrated
how food processing increases income of
farmers.
He said:

“There is a village, Rupal, close to Gandhinagar
where chillies are cultivated. Sometimes,
whenever a farmer cultivates a crop, many other
farmers in that area also cultivate the same crop,
in this case, chillies. Consequently, the prices fell.
The income of that village never rose higher than
3 lakh rupees after selling all the chillies. This
was too little. So, the villagers decided to form a
society. Since then they had 24-hour electricity
supply, they thought of processing the chillies and
making chilli powder. They bought processors
and finally completed the packaging. The chillies
that were to be sold in 3 lakh rupees were bought
as chilli powder at 18 lakh rupees.”

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