Need of promoting Farmer Producer Organizations - The Hindu - 16/12/22

Context:
Recently Watershed Organization Trust organized a webinar themed “Promoting FPOs for resilient incomes and sustainable farming practices in India”.
To address these issues of water stress, natural disasters, uncertainty in yields, etc. the concept of Farmers Producer Organization (FPO) was introduced in 2003 in the Indian agricultural landscape.
Relevance:
GS2; GS3
About:
-FPOs are voluntary organizations controlled by their farmer-members who actively participate in setting their policies and making decisions.
-The FPOs are incorporated as a legal entity under the Companies Act or Co-operative Societies Act of the concerned States.

-->Challenges of FPOs:
-Low capital base
-Poor human resources
-Lack of commercial viability
-Lack market linkages
-Infrequent patronage of membeers
-Obsolete technology
-Negligible value addition to Agri-produce

-->Government’s Initiatives for the promotion of FPOs:
-Financial support
-Tax exemption and other budgetary support
-One district One Product cluster
-Collective Farming

-->Suggestive measures:
-Need to focus on business strategy
-Diversify cropping pattern and integration of Agri-allied activities
-Promotion of extension and knowledge augmenting agencies
-Free access to institutional finance for FPOs

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