Promoting FPOs will help farmers level up, say agri-experts

Manav Mander

Ludhiana, July 27

In the Union Budget, Finance Minister Nirmala Sitharaman announced to promote Farmer Producer Organisations (FPOs) and agri-experts opine that this will help transform agriculture to agribusiness and provide effective solutions to problems faced by modern-day agriculture.

Punjab Agricultural University had been promoting the FPO concept and many FPOs are operating successfully after availing training from the university and its Krishi Vigyan Kendras.

“FPO works for the benefit of its members. A part of the earnings can be divided among the members and the remainder can be ‘ploughed-back’ for the expansion of business activities. The ownership of the FPO is shared by its members,” said Dr Satbir Singh Gosal, vice-chancellor.

A producer organisation (PO) is a legal entity formed by primary producers such as farmers, milk producers, fishermen, weavers and rural craftsmen. It can be formed in several ways including as a producer company and cooperative society.

Detailing the concept, Dr Tejinder Singh Riar, Additional Director of Communication, PAU, said that to increase their income, farmers need to think beyond conventional agricultural practices.

“Agribusiness encompasses diverse activities such as purchase of agri-inputs, production, processing and reaching out to customers with finished products. Nowadays, an agripreneur has to compete with not only his fellow producers but also with big companies and multinational corporations. Usually, a farmer is devoid of resources and capabilities to effectively compete in the given scenario,” said Dr Riar.