FPO STATUS
OPPOURTUNITY
AND CHALLENGES
PRESENTED BY –
ANAMIKA KUMARI
FARMER PRODUCER ORGANISATION
• Farmers Producer Organisation (FPO) are groups of farmers coming together on
the basis of principle of membership, to pursue specific common goal and
developing farming as economic activities that benefit their members and
maintaining relations with partners working with them.
• FPO is an organization, where the members are farmers itself. FPO provides end-
to-end support and services to the small farmers, and cover technical services,
marketing, processing, and others aspects of cultivation inputs.
Research Methodology
Area of study – Six FPO in three districts were selected for carrying out the
research . Districts which are selected are , Ramghar, Hazaribagh and Giridih.
In this research methodology I have used both qualitative and quantitative method
(mixed method ).
Research instrument -
Method of sampling • Questionnaire
• Semi-structured interview
The reason for selection of the FPOs. The FPOs are
• Focus group discussion
selected based on their of performance and they are
also selected randomly from whom the data would
be collected. Interaction with farmers, BODs and CEO
of the FPOs, apart from interaction with bank, APMC
and POPI will also be carried out to know the status
of the FPOs.
HAZARIBAGH
1.Churchu wadi fal sabji producer
company Ltm
2.Dadi sanyukt gramin producer
company Ltm
RAMGARH
1. Haryali harit krishak
producer company Ltm
2. Snehlata Agrofood
producer company Ltm
GIRIDIH
1. New fresh basket producer
company Ltm
2. Aarohi farmer producer
company Ltm
OBJECTIVE OF STUDY
•1.To analyse organisational and management structure of FPOs, its effectiveness in operations and governance.
•2.Role played by the FPOs in supporting-Input supply, Output and marketing, Crop planning, good agriculture
practices, Credit support and Government scheme support.
• 3. Understanding the current Business model &suggest new strategy.
• 4. Identifying present marketing channels of agriculture produce and price realisation mechanism.
• 5. Role of Govt department, opportunity and changes if any.
• 6. Social and economic impact on farmer through FPO.
• 7.To identify opportunities and bottle neck in FPO system for long term sustainability of FPO.
Step1-Points covered
• Formation, Reach and Coverage Sr no FPO name Registration Date
1 Haryali harit krishak PC 21.01.2021
2 Snehlata Agrofood PC 5.07.2016
3 Dadi Sanyukt Gramin PC 7.09.2020
4 Churchu wadi fal sabji PC 19.12.2016
Chart Title 5 New Fresh Basket PC 6.07.2020
1000
835 845 6 Aarohi FPC 2.02.2020
504 503 619
1000
2 5
500 27 4 12
16 14 13
31 150 2
0 13
HaryaliSnehlata
harit Agrofood Dadi Churchu
krishak PC Sanyukt wadi fal New
Aarohi
PC Gramin Fresh
sabji PC FPC
PC Basket PC
Villages Panchayat Members
Sr. Name of FPOs Education
no qualification of
CEO
STEP -2 1 Haryali harit krishak PC inter
• No of BOD members and CEO along with their education
qualification 2 Snehlata Agrofood PC Inter
• BOD & AGM meetings 3 Dadi Sanyukt Gramin PC MBA
30
24 MEETINGS 24 24
25 4 Churchu Wadi fal sabji PC Inter
20 15
15 12 12
5 New fresh basket PC Graduate
10
5 0 1 1 1 1 1
6 Aarohi FPC Inter
0
EDUCATION QUALIFICATION OF
BODs
12
10
10
8 7
6 5 5 5
BOD MEETING AGM MEETING mn1
4 3 3
2 2 2
From above we can conclude that educated 2 1 1
BOD members and CEO have better
understanding of roles and responsibility and 0
their FPOs are running smoothly . They also haryali harit snehlata sanyunkt churchu wadi new fresh aarohi fpc
conduct ther BOD and AGM meeting gram sabha basket
regularly for better understanding of the matrix inter graduation or Above non matrix
business .
Step -3
FPO ACTIVITIES
Sr FPO name Activities
no
1 Haryali harit FPC Rice, Wheat, Maize, Mustard, potato, groundnut,
seasonal vegetables.
2 Snehlata Agrofood PC Rice, finger millet, maize, vegetables and fruits like
watermelon, muskmelon, lady finger, mango, guava
etc.
3 Dadi sanyukt gramin PC Rice , maize , Seasonal vegetables and poultry.
4 Churchu wadi fal sabji FPC Seasonal vegetables along with fruits and rice.
5 New fresh basket FPC Sattu, potato chips, chickpea flour, sago papad,
turmeric powder along with vegetables fruits, rice,
wheat, maize etc.
6 Aarohi FPC Sattu, potato chips, chickpea flour, sago papad,
turmeric powder along with vegetables fruits, rice,
wheat, maize etc.
Step -4 SR
.
Name of FPOs
Input
sellin
Mark
et
Storage
Prim
ary
Pick
up
Market linkage
NO linka proce
g van
ge ssing
Haryali harit
1 YES YES - - -
All the FPOs have kishlak PC
license for the 2
Snehlata
Agrofood PC
YES YES - - YES
procurement and
selling of seed and 3
Dadi Sanyukt
YES YES
COLD
- -
fertilizer . gramin PC STORAGE
Only 3 FPOs have 4
Church wadi fall
YES YES - - YES
Cold storage and 3 sabia PC
FPOs have pick up van New fresh basket COLD
5 YES YES YES YES
Few have processing PC STORAGE
unit like rice mill , rice
flour , potato chips 6 Aarohi FPC YES YES
COLD
YES
and turmeric or spice STORAGE
grinder .
PROFIT
85
90 72
80 68.4
STEP -5 GROWTH AND 70
Axis Title
60
PROFIT 50
40
30 15.2 14.4
20 11.2
10
Here are the turn over and 0
profit of the FPOs which
shows that FPOs which are
Established during 2016
have higher turn over . PROFIT IN 2021
Other are trying to
increase their turnover . TURN OVER
TURN OVER IN LAKH
AAROHI FPC 23
NEW FRESH BASKET FPC 16
CHURCHU WADI PC 40
DADI SANYUKT GRAMIN PC 11
SNEHLATA PC 35
HARYALI HARIT PC 20.35
0 10 20 30 40 50
Way forward
Sr. Name of FPOs Long term vision
no
1 Haryali harit krishak PC • to scale up operations (target: 1,000 members in the next year).
• to build a storage facility and purchase a vehicle to save on transport costs.
• to set up mustard oil processing unit.
• to cultivate Jeeraful rice organically .
2 Snehlata Agrofood • export to other states.
producer Company • applied for equity grant to expand their business.
3 Dadi sanyukt gramin PC • to scale up operations (target: 1,000 members in the next year).
• they will expand their Agribusiness through duckery, poultry and utilizing
cold storage.
4 Churchu wadi fal sabji PC • to scale up operations (target: 1,000 members in the next year).
• to set up a nursery unit, poultry and vermicompost.
• also go for Mushroom cultivation.
5 New fresh basket PC • to scale up operations (target: 1,000 members in the next year).
• They will go for non-farm activities like Tailoring to empower women.
• To enter the field of 5-layer farming, nursery, duckery.
6 Aarohi FPC • to scale up operations (target: 1,000 members in the next year)
• To enter the field of 5-layer farming including sagwan, mango, turmeric,
elephant foot yam and ginger.
• To establish village hart or mart.
Step -6 CREDIT
Credit linkage
AORHI FPC 19.5
Majority of the FPOs has availed
loan for cold storage and pick up
van from banks under the scheme NEW FRESH BASKET 19.95
of Agriculture infrastructure fund
scheme .Two FPOs(New fresh
basket PC & Aarohi FPC) has CHURCHU WADI
availed it from Bank of India and
4
one from (Snehlata Agrofood PC)
Bank of Baroda & others from
RRB . SANYUNKT GRAMIN 15
SNEHLATA 4.5
HARYALI HARIT 0
0 5 10 15 20 25
CREDIT
TRADE VALUE
Step – 7 2500000
APMC and e- NAM
Out of 6 FPOs only 4 FPOs are
2000000
convenient to use e-NAM for selling
their produce because majority of them 1500000
are facing problem.
These FPOs are also not willing to sell 1000000
their produce to APMC because they
have to deal with the middle men which 500000
again creating the problem of Cartel
system .
0
HARYALI DADI CHURCHU
HARIT SANYUNKT WADI FAL AAROHI FPC
KRISHAK PC GRAMIN PC SABJI PC
TRADE VALUE 166188 1324035 2321726 38400
TRADE VALUE
Major findings
1. Governance and group dynamics
• Members – In all FPO members are less than 1000 except for one Snehlata Agrofood PC . The
CEO of all the FPOs are educated up to intermediate.
• The annual financial audit was observed to be regular and systematic.
• 2. Business mix and turnover
• Majority had availed licenses for procuring and distributing (selling) of fertilizers to its members
and 2 has paddy procurement facility.
• All FPOs had received grant and handholding support during the early stages
• FPOs which were primarily dealing with high value commodity as their major commodities had
attained high turnover
• A few FPOs (33%) had installed facilities for primary processing, like cleaning, sorting, grading
and milling of grains, mostly rice, peeling and slicing of potato and also sorting and grinding for
turmeric.
Agri value Chain Systems
• Majority FPOs had involved in procurement of inputs for members.
• In one FPOs, where farmers having vegetable farming were involved in wholesale
marketing, tie up arrangement with big retail outlets, like, Reliance Fresh.
4. Capital and Access to Bank Finance
• Equity capital @Rs.1000/- was contributed by each farmer shareholder in all
FPOs.
• Only five sample FPOs applied for credit. one of the FPO has also applied for
equity grant scheme .
• All FPOs has availed Agriculture infrastructure fund scheme .
OPPOURTUNITY
• Vast untapped membership
• Scope of more value addition
• Diversification to more remunerative crops
• Scope for activity diversification
• FPOs emerging as new MSME and village industry
• Scope for export
• Employment generation
• Improvement of risk management systems in
FPO
• Intra FPO learning and development platform
to be started
• Increase role of FPO in social development
activities
Opportunity for farmers
Low cost of
cultivation
Negotiation
Input supply
with
on time
corporates
Produce are Economics of
sold aggregation
Networking Financial
sevices services
Availability of
Social impact
mechanisation
CHALLENGES
Conflicting
interests
Knowledge
. Lack of and
openness professional
skills
Lack of self-
motivation.
Low
Weak sense
financial
of
literacy and Ownership
business skill
Lack of
clarity on
role and
responsibility
Challenges
• Availability of qualified and experienced manager/personnel to run the company professionally, issue of
adequate remuneration for personnel.
• Availability of a good accountant for proper maintenance of books of accounts
• Adequate Information flow and documentation – availability of technology and ability to use the
technology
• Dependence on Chartered Accountants located far away – financial and regulatory compliances.
• Cartel system of APMC .
• Lack of capital for establishing backward and forward linkages.
• Lack of access to market .
• Lack of long term vision to develop FPO .
SOLUTIONS
1. Building confidence of BOD & CEO
2.Clarity of vision and road map of business plan
3.Awareness among the farmers or members
4.Not make a family or friend-oriented boards
5.Fund arrangements
6. Be a professional manager
7.Capacity building
8.Tie – up with big corporations
9. Setting up of our own brand
10.Regular meeting and coordination with research institutions
Glimpse of my work
Q & A Session
Thank you
