Farmer Producer Organisations (FPOs) have recorded a sharp and historic rise in business over the past one year. A weekly webinar programme launched with support from the Ministry of Agriculture has played a key role in connecting FPOs with bulk buyers and corporate companies. As a result, FPO trade has grown much faster in the B2B segment compared to B2C sales.
According to the information available, these webinars have enabled farmer representatives to directly engage with corporates and build procurement linkages. So far, FPOs have transacted nearly ₹1,100 crore in B2B agri-trade. The largest share ₹662 crore was earned through the sale of produce on the NCDEX futures platform.
On the other hand, FPOs’ online transactions through government platforms such as the GeM portal and ONDC remain relatively low. Combined turnover on both platforms is reported to be around ₹5 crore. Meanwhile, the presence of FPOs on major e-commerce platforms like Amazon and Flipkart is still minimal.
Out of 10,000 FPOs formed under the Central Government’s Equity Grant and Credit Guarantee Scheme, 1,131 FPOs have already crossed an annual turnover of more than ₹1 crore. Encouraged by the strong performance of FPOs, the government has now set a new target to increase the number of ‘crorepati’ FPOs to at least 5,000 in the next financial year.
Biprojyoti Bhowmik, Managing Director of New Agrivers FPO in Cooch Behar district, West Bengal, said that B2B accounts for 70% of their total business, while the remaining 30% comes through online platforms and their own website. He added that their turnover is expected to cross ₹5 crore this year, up from ₹3 crore in 2024–25.
With around 2,600 farmer shareholders, this FPO primarily deals in mushrooms, honey, millets, and several other quality products. FPO representatives believe export potential is significant, but achieving this will require essential certifications and stronger government support.
6,000 FPOs on ONDC, But Very Few on Amazon and Flipkart:
Sources said around 6,000 FPOs are registered on ONDC and have generated sales of nearly ₹1.25 crore over the last 10 months. In comparison, only 37 FPOs are registered on Flipkart, while Amazon has just 6 registered FPOs.
High Commission Emerges as a Major Challenge:
An FPO representative from Kashmir highlighted that commission rates on large platforms are extremely high. Due to limited branding strength, they cannot afford commissions of 30–40%, and it is also difficult to meet additional requirements such as MRP printing. On ONDC, they are using India Post for deliveries.
Webinars Boost Government and Private Procurement:
After the weekly webinar programme was launched, the government assessed the business generated by FPOs. As per the report, FPOs sold ₹205 crore worth of produce to NCCF and ₹111 crore to NAFED, largely linked to official procurement of wheat and paddy. Among private buyers, purchases were recorded by Mother Dairy (₹1.62 crore), Farmart (₹80 crore), Olam India (₹32 crore), and Kisan Se (₹7.5 crore).
(FPOs):
Q1: What are Farmer Producer Organisations (FPOs)?
A: FPOs are groups of farmers who come together to improve their bargaining power, share resources, and access markets collectively.
Q2: How have webinars helped FPOs grow?
A: Weekly webinars have connected FPOs directly with bulk buyers and corporate companies, boosting B2B trade significantly.
Q3: Why is online sales through platforms like GeM and ONDC low for FPOs?
A: Limited digital presence, high commission rates, and additional requirements like MRP printing challenge FPOs' online sales growth.
Q4: What products do FPOs commonly trade?
A: Many FPOs focus on products like mushrooms, honey, millets, wheat, and paddy.
Q5: How can FPOs increase export potential?
A: Achieving certifications and receiving stronger government support are key to expanding exports.
