The main aim of FPOs is to ensure better income for the producers through an organization of their own.
The farmer producer companies do require technical and managerial expertise to carry on their requisite work, including forward-backwards linkages, best agriculture practices, seed production, value addition, branding etc. to make their business operation sustainable and more profitable for all shareholders. An inclusive yet affable ecosystem is required for any producer organizations to develop and nurture, because they have to deal with issues starting from farm till far-away markets. This ecosystem must comprise of various services like emergency credit, consumer credit, production credit, retail services of inputs for agriculture, storage, transportation and other agricultural production services required by the small and marginal farmers. This ecosystem can be strengthened with various types of services made available for farmer members at the right time and at affordable price. These services provided by POs are capable of diverting surplus produce from the local trader to the producer organization and can help maximize the profit margins of the company.
Additionally, the producer organizations can take up other services related to facilitating linkage with the banks and line departments for ensuring the infrastructure access for the business.
The various government-supported agencies and NABARD has provided initial funds to build capacities, technical assistance and develop innovative financial systems for sustainability of FPCs. NABARD created its own subsidiary (NABKISAN Finance Ltd.) for meeting the credit requirements of FPOs by adopting a flexible approach based on life cycle needs, while it continues to provide promotional support towards capacity building, market linkages and other incubation services to FPOs out of grant fund.
Our Platform will help Farmer producer companies to be strengthened more through various policy and structural reforms, including technology, technology support, financial support through customized services and loan products and marketing support in various markets available (retail, spot and futures).
