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Farmer Producer Organisation (FPO) Policy

Farmer Producer Organisations (FPOs) have been identified as the most appropriate institutional form around which to mobilize farmers and build their capacity to collectively leverage their production and marketing strength. Collectivization of producers, especially small and marginal farmers, into producer organisations has emerged as one of the most effective pathways to address the many challenges of agriculture but most importantly, improved access to investments, technology and inputs and markets.

Promotion of member-based Farmer Producer Organisations (FPOs) was initially launched as a pilot programme during 2011- 12, by the Department of Agriculture and Cooperation (DAC), Ministry of Agriculture, Government of India, in partnership with state governments.


  1. To promote economically viable, democratic, and self governing Farmer Producer Organisations (FPOs).
  2. To provide support for the promotion of such FPOs by qualified and experienced Resource Institutions.
  3. To provide the required assistance and resources to strengthen these FPOs.
  4. To remove hurdles in enabling farmers’ access the markets through their FPOs, both as buyers and sellers.
  5. To create an enabling policy environment for investments in FPOs to leverage their collective production and marketing power.

Financial Support:

Financing requirements of the FPOs are categorized into three phases:

  • Incubation and Early Stage
  • Emerging and Growing Stage
  • Matured Stage (Business Expansion)

FPOs will be actively encouraged and supported by the Central and State Governments and their agencies, using financial resources from various Centrally sponsored and State-funded schemes in the agriculture sector agencies.

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