ANANTNAG: NABARD has started its village level Farm Producers Organisation (FPO) Campaign in Anantnag.
According to an official handout, 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 unorganised, they are unable to realise desired value from their produce. Organising 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, he added.
“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,” he further said adding that the nodal agency for promotion of FPO could be any government department, Krishi Vigyan Kendras, PRIs, Village Level Organisations or an NGO.
The interested farmers in the particular cluster would then be mobilised 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 organising them into FPOs. Then, the members of the FPOs would elect their Board of Directors for running the company, read the handout.
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, it added.