FPO Scheme Giving Farmers a New Identity, India’s agricultural landscape is undergoing a major transformation, with Farmer Producer Organizations (FPOs) emerging as key players in agribusiness. According to recent data released by the Ministry of Agriculture, over 340 FPOs across the country have recorded an annual turnover of more than ₹10 crore, setting a new benchmark in farmer-led enterprise. Additionally, 1,100 FPOs have crossed the ₹1 crore annual turnover mark, indicating a significant shift towards organized, market-driven farming.
One of the biggest enablers of this success has been the adoption of digital platforms. FPOs have actively leveraged government-backed platforms such as ONDC (Open Network for Digital Commerce), e-NAM (National Agriculture Market), and GeM (Government e-Marketplace) to expand their market access. Moreover, many FPOs are now selling their produce on leading e-commerce platforms like Amazon and Flipkart, helping them reach a wider national market and boost sales substantially.
Over the past five years, many FPOs have started procuring oilseeds, pulses, and cereals at the Minimum Support Price (MSP) under government schemes. They are also marketing more than 200 value-added products such as rice, pulses, millets, honey, mushrooms, and spices on a large scale. In addition, FPOs are being provided with licenses and dealership rights for seeds, pesticides, and fertilizers, strengthening their role in input supply and ensuring long-term financial sustainability.
A notable success story is the Babra Khedut Utpadak and Rupantar Cooperative Mandali FPO in Gujarat. By procuring groundnuts and cotton at MSP from its 1,465 members, the FPO reported an impressive ₹102 crore in turnover. According to CEO Nirav Mathukiya, the organization is now planning to further expand its agri-input business.
From Inception to Impact: FPO Scheme Milestones: Launched on February 29, 2020, the central government’s FPO scheme aims to establish 10,000 FPOs by 2027-28 with a total budget outlay of ₹6,865 crore. So far, 4,761 FPOs have received equity grants totaling ₹254.4 crore, and 1,900 FPOs have been provided with credit guarantee coverage worth ₹453 crore, reflecting steady progress.
Government Plans to Recognize High-Performing FPOs: To further encourage excellence, the government is considering recognition and awards for high-performing FPOs. The aim is to inspire other organizations to enhance their performance and deliver greater value to their member farmers.
