As per G.O(Rt) No.431/2020/AGRI Dated 15/05/2020 Government of Kerala have sanctioned the Kerala Farmer Producer Organizations Policy-2020.Farmer Producer Organization Policy of the State will enable creation , guiding ,strengthening and streamlining the functions of FPO’s in the state by establishing forward and backward linkages for aggregation of inputs, produce, value chain development and better marketing opportunities resulting in higher returns for the farmers.
Aim of this scheme is to initiate 50 new FPO’s in Kerala and strengthen existing 50 FPO’s and bring all FPO’s in Agricultural Field in Kerala under a single umbrella to create a favorable ecosystem for the creation, development , growth and expansion of FPO’s for the benefit of farmers in Kerala.
The Concept of ‘Farmer Producer Organizations, (FPOs’) consists of collectivization of Producers especially small and marginal farmers so as to form an effective alliance to collectively address many challenges of agriculture such as improved access to investment, technology, inputs and markets. Farmer Producer Organizations are groups of rural producers coming together to form organizations in order to pursue specific common interests of their members, developing technical and economic activities that benefit their members by maintaining relations with partners operating in their economic and institutional environment. Farmer Producer Organizations are essential institutions for the empowerment and advancement of farmers.
Vision of the FPOs is to build a prosperous and sustainable member owned producer organizations that enable farmers to enhance productivity through efficient, cost effective and sustainable resource use and realize higher returns for their produce, through collective action. Regaining the lost glory of Kerala in Agriculture and allied sectors is to be achieved by facilitating new technologies, infrastructure facilities, managerial and administrative skills , access to credit and finance to farmers through creation, strengthening and streamlining of FPOs.
In order to promote the activities in the agriculture and allied sectors the State Government desires to have a favorable environment for FPOs by creating new FPOs and strengthening the existing ones by providing necessary technical and managerial skills along with necessary marketing infrastructure facilities. This will be achieved through the integration of various schemes and programmes of the government and other agencies involved in the development of agriculture.
Mission
Kerala will be positioned as a hub for agri processing and investment destination for food processing sectors. FPO’s will be linked with the Agro Parks and Food parks established in the state. FPOs will have the mandate for production, aggregation, storage, processing ,marketing and export of agricultural produce.
Farmer Producer Organization (FPO) is a legal entity which consists of only the practicing farmer. FPOs will be formed by the actual primary producers of a specified commodity/ commodities under as a Farmer Producer Company (FPC) under section 581(C) of the new provision of the Indian companies Act 1956 amended in 2013 or Co-operative Societies Act 1965 An FPO/FPC is regarded as the most appropriate institutional form around which the Government can mobilize farmers for capacity building in production as well as marketing of surplus of sizeable lot. These organizations can be created at cluster, Panchayath, block, district or state levels depending upon the needs of the producers for economic growth and social benefits.
Producers will be organized into Farmer Interest Groups(FIGS) consisting of 10-20 Farmers.12-50 Farmer Interest Groups will joined together to form an FPO. Separate FPO’s can be formed for marketing, export, apex FPO of existing FPO’s and also for empowering women and farmer’s engaged in tribal agriculture.
Strategy
Various organizations like NABARD and Central SFAC have different modalities for operationalization of FPOs. Ministry of Agriculture and Co-operation and Central SFAC guidelines envisage Resource Institutions (RIs) to carry out the task of formation and operationalization of FPOs. Whereas, NABARD entrusts Producer Organization Promoting Institutions (POPIs) in the formation and handholding of FPOs.
SFAC, Kerala is entrusting the forming, norming, grooming and handholding of FPOs to reputed National and International Consulting agencies with experienced staff, which have proven credentials and expertise in such activities. For this purpose, an e-tender will be called for in an open and transparent manner to select Agribusiness Promoting Agencies (ABPAs) and they will be entrusted with the task on zonal basis. The State will be divided into five zones and 10 FPOs will be formed in each zone. The activities of each zone will be entrusted to one ABPA.
FPO SERVICE MODEL:
The FPO will offer a variety of services to its members. It will provide almost end-to-end services to its members, covering almost all aspects of cultivation (from inputs, technical services to processing marketing and export) The FPO will facilitate linkages between farmers, processors, traders, and retailers to coordinate supply and demand and to access key business development services such as market information, input supplies, and transport services. Based on the emerging needs, the FPO will keep on adding new services from time to time. The set of services include Financial, Business and Welfare services.
An indicative list of services includes:
1) Financial Services:
The FPO will provide loans for crops, purchase of tractors, pump sets, construction of wells, laying of pipelines.
2) Input Supply Services:
The FPO will provide low cost and quality inputs to member farmers. It will supply fertilizers, pesticides, seeds, sprayers, pump sets, accessories, and pipelines.
3) Procurement and packaging services:
The FPO will procure agriculture produce from its member farmers; will do collection, grading, sorting, storage/warehousing, packaging, value addition and marketing of produce.
4) Marketing Services: The FPO will do the direct marketing after procurement of agricultural produce. This will enable members to save in terms of time, transaction costs, weighment losses, distress sales, price fluctuations, transportation, quality maintenance etc.
5) Insurance services: The FPO will provide various insurance like Crop Insurance, Electric Motors Insurance and Life Insurance.
6) Technical Services:
FPO will promote best practices of farming, maintain marketing information system, diversifying and raising levels of knowledge and skills in agricultural production and post-harvest processing that adds value to products.
7) Networking Services:
Making channels of information (e.g. about product specifications, market prices). ICT enabled B2 B and B2 C platforms will be enabled by FPO Portal, E-Nam Nodes of the Department and other Government and Popular Platforms.
8 ) Rental Services
FPO can undertake rental of farm machinery like transplanter, Harvester ,Processing and Value Addition equipments, Community Common Service facilities etc at predetermined rates in an efficient and transparent way.
9) Any other service for the benefit of members and farming community which will add value to FPO Operations.
- Click here to download Policy and Operational Guidelines of FPOs in Kerala
- Click here to download SLSC Minutes Dated 17-08-2021 selecting 13 FPO Applicants
- Click here to download SLSC Minutes Dated 12-0-2022 selecting FPO Applicants
- Click here to download Working Instructions for reimbursement of FPC Funds
Click here to Download FPO Promotion in Kerala _ Reimbursement of ABPA funds _ instructions
