Farmers Producer Organisations:
The Indian Council for Research on International Economic Relations (ICRIER) recently analyzed challenges faced by India’s Farmer Producer Organisations (FPOs) and suggested necessary reforms.
- An FPO is a type of Producer Organisation (PO) formed by farmers.
- It operates as an organization of the producers, by the producers, and for the producers.
- The Small Farmers’ Agribusiness Consortium (SFAC) plays a vital role in promoting FPOs across India.
- A PO represents producers of various goods, including agricultural products, non-farm items, and artisan goods.
- It can adopt legal forms such as producer companies, cooperative societies, or other entities that allow members to share profits and benefits.
- The ownership of an FPO lies entirely with its member farmers. It operates on the principle of shared decision-making and benefits.
- FPOs can be registered under the following:
- Companies Act, 1956 or Companies Act, 2013.
- Societies Registration Act, 1860.
- Public Trusts Act, 1882.
- These legal frameworks ensure transparency, accountability, and effective management of FPOs.
