Farmer Producer Organisations (FPOs)
Collective Agricultural Marketing
Farmer Producer Organisations are legal entities formed by groups of primary producers (farmers) for collective procurement, processing, and marketing of agricultural produce. The Government of India launched the Central Sector Scheme for "Formation and Promotion of 10,000 FPOs" in 2020 with a total budgetary provision of Rs 6,865 crore. FPOs can be registered under the Companies Act 2013 (as Farmer Producer Companies), Cooperative Societies Act, or relevant state legislation. NABARD, SFAC (Small Farmers Agribusiness Consortium), and NCDC (National Cooperative Development Corporation) serve as implementing agencies.
- Target under 2020 scheme: formation of 10,000 new FPOs by 2027-28
- Each FPO to consist of minimum 300 members (100 in North-Eastern and hilly areas)
- FPOs receive equity grants of up to Rs 18 lakh and credit guarantee coverage up to Rs 2 crore
- FPOs are critical for organic certification because grower groups require collective documentation and internal control systems
- India has approximately 7,500+ registered FPOs as of 2025
● Tracked since February 10, 2026 · last seen April 27, 2026 · updates as the daily brief publishes