Anantnag, Sep 10: NABARD has kick started its village level Farm Producers Organization (FPO) Campaign in Anantnag. Farm Producers Organizations or Producer Companies is a policy of Ministry of Agriculture, Government of India, implemented by NABARD for the benefit of farmers, whereby farmers are registered as company of primary producers. NABARD has been tasked by Government of India to form 5000 Producer Companies in next two years. The process of registering an FPO involves collectivizing farmers in a region and encouraging them to come together to form a company for the benefit of all members.
Inaugurating the series of village level awareness camps, DDM NABARD Rouf Zargar said that formation of FPO paves way for collective farming and better bargaining. He said the small and marginal farmers benefit from economies of scale when they come together as collectives. The majority of land holdings belong to small and marginal farmers. Being unorganized, they are unable to realize desired value from their produce. Organizing them into FPOs will benefit them from economies of scale in purchase of inputs, processing and marketing of their produce,” he said. FPOs can be formed in any farm activity such as Agriculture, Horticulture, Dairy, Sheep Goatery and other Agri-allied sector.
There are various steps in promoting and nurturing a FPO in a block. A baseline survey of the potential clusters in a given geography (block) needed to be undertaken to establish the current situation and map the required interventions. The nodal agency for promotion of FPO could be any Government Department, Krishi Vigyan Kendras, PRIs, Village Level Organizations or an NGO.
The interested farmers in the particular cluster would then be mobilized into an FPO in consultation with other stakeholders such as the State government departments, research institutions, and other agencies. The existing farmer clubs, self-help groups, and joint liability groups would be considered for organizing them into FPOs. Then, the members of the FPOs would elect their Board of Directors for running the company.
The NABARD would provide handholding and financial support to the FPOs through a promoting institution for its registration as a company and carrying out its activities in initial years.