PMMSY guidelines on Fish Farmer Producer Organization(FFPOs), Objectives, composition & managing committee of FFPOs, Implementation agencies, Responsibilities of CBBOs, financial support, payment releasing pattern, monitoring and evaluation of FFPOs, annexures relavant to FFPOs and case study.

1. मछली किसान उत्पादि संगठन
Machhalee kisaan utpaadak sangathan
Fish Farmer Producer Organization (FFPO)
మత్స్ య రైతుల ఉత్సప త్తిదారుల సంస
సథ
BY:
B. BHASKAR & D. NARSHIVUDU
FRM, Indian FISHERIES
& AEM dept, COF, Pebbair, TS
Source: Dept. Of Fisheries, Ministry of fisheries, animal husbandry and dairying, GOI,
Guidelines on Formation and promotion of FFPOs

2. Introduction
• India is the third largest fish producing country in the world and accounts for 8% of the global
production.
• The contribution of the fisheries sector to National Gross Value Added (GVA) during the year
2018-19 stood at Rs 2,12,915 crores (current basic prices) which constituted 1.24% of the
total National GVA and 7.28% share of Agricultural GVA.
• . The livelihood opportunities provided by this sector have been instrumental in sustaining
incomes for over 28 million people in India, especially for marginalized and vulnerable
communities, and have contributed towards engendering meaningful socio-economic
development.
• Fish Farmer Producer Organizations (FFPOs) have emerged as a successful model for
promoting sustainable fish farming practices and improving the socio-economic conditions of
smallscale fish farmers.
• These collective organizations provide a platform for fish farmers to access technical,
financial, and marketing support, which would be difficult to obtain individually.
• The Indian government has been actively promoting FFPOs through schemes like the
Pradhan Mantri Matsya Sampada Yojana (PMMSY) and One District-One Product (ODOP)
etc.
• So far 720 Fish Farmers Producers Organizations (FFPOs) Approved under Pradhan Mantri
Matsya Sampada Yojana during Till Date (as on Aug, 2023)

3. Cont...
• There are over 33711 FPOs across India with 28.2 lakh stakeholders with over Rs
4000 crore revenue in 2022-23 (Source: - FPO Platform for India, Tata Cornell
Institute).
• Government of India has launched Formation & Promotion of 10,000 FPOs Scheme
with a clear strategy and committed resources in order to form and promote 10,000
new FPOs across India. Rs 6866 crore have been allocated for this scheme.
• In accordance with the legislation enacted after its passing by the Parliament (e.g.
Sec 2 (d) of The Farmers’ Produce TCFC Act 2020) Fish Farmers producer
Organization (FFPO) is a generic name, which means an association or group of
fishers or fish farmers or of fisheries stakeholders, with the primary objective of
carrying out sustainable fisheries value chain business by whatever name called, (i)
registered under any law for the time being in force; or (ii) promoted under a
scheme or programme supported by the Central or State Government.
Pradhan Mantri Matsya Sampada Yojana (PMMSY) is the scheme for sustainable and
responsible development of fisheries sector at an investment of Rs. 20050 Crores.
• FFPOs can be registered under either Cooperative Societies Act / Companies Act.
• National cooperative development corporation (NCDC) is an implementing
agency for this scheme, under which FFPOs will be formed initially.
• It can be registered under Cooperative Societies Act of the State OR Under
Companies Act.

4. Objectives of developing fish farmer producer organisations:
Economically empower the fishers and fish farmers and
enhance their bargaining power by achieving
economies of scale.
Enhance productivity through efficient, cost-effective
and sustainable resource use.
Realize higher returns for fishers and fish farmers
through better liquidity and remunerative market
linkages for their produce.
Build capacities of fishers and fish farmers to develop
entrepreneurial skills for making the FFPOs
economically viable and self-sustaining.
Develop vibrant and sustainable income-oriented
fisheries value chains.

5. Broad Services to be undertaken by FFPOs
Production and Productivity:
• Supply of quality inputs like seed, fingerlings, brood
stock, fish feed, fishing nets
• and such other inputs for production at reasonable
rates.
• Undertake Pond Culture, Pen Culture, Cage culture,
RAS, Raceways, Bio-floc
• related fish culture activities for both inland and marine
regions.
• Dissemination of Technology, Quality control and other
fisheries related
• activities and innovations.
• Undertake aggregation of smaller lots of farmer-
members produce.

6. Post-Harvest Management and Infrastructure:
• Make available need-based production and post-production machinery and
• equipment like storage – Ice flakes, ice boxes, and transportation/logistic
• support – reefer vans, insulated cargo and such other machinery and
• equipment on custom hiring basis for members to reduce the per unit
• production cost.
• Make available services offering value addition like cleaning, assaying.
• sorting, grading, packing and also fish farm level processing facilities at user charge
• basis at a reasonably cheaper rate.
• Undertake high value addition / processing units for better price realization and
• Traceability related interventions can also be proposed by FFPOs.
• Undertake higher income generating activities like cold chain development,
• seed/brood stock production, ornamental fisheries, seaweed cultivation, cold
• water fisheries, fish kiosks, aquarium manufacturing etc.
• Undertake any activity (including but not limited to microfinance, e-market,
• technical support, repairs and maintenance services for boats, motors, cold
• chain, reefer transport etc.) associated with fisheries supply chain as door-step
• support

7. Marketing and Branding:
• Branding, packaging, leveling, standardization of
products.
• Market the aggregated produce with better negotiation
strength in marketing
• channels offering better and remunerative prices.
• Facilitate market information about the produce for
educated decision-making
• in production and marketing. FFPOs may also
undertake operation of fish
• vending kiosks at various urban centers.
• Development of fish and fisheries related products /
by-products and tie ups for
• domestic and export sales

8. Key differences between Cooperative Societies and
Producer Companies

9. Implementing Agencies (IA) role and Composition of FFPO
The membership size of the FFPOs will be determined as follows: (a) Plains: Minimum member-size of 100 shall be eligible (b) Hilly*
and North Eastern regions: Minimum member-size of 35 shall be eligible
• The Implementing Agencies should within a period of 2 years from the date of inception/creation of FFPOs will make efforts to
enhance the membership to 300 in plain areas and 100 in Hilly and North-Eastern regions.
• The Implementing Agencies should make efforts to further enhance the membership to the size of 500 fishers and fish farmers
in plain areas and 200 in Hilly and North-Eastern regions to make them sizeable for economic sustainability and profitability
Composition of FFPO:
• The FFPOs may comprise of,
• Fishers
• Fish Farmers
• Fish Workers and Fish Vendors
• Fisheries entrepreneurs
• Or any other person(s) associated with fisheries sector as decided by Dept of Fisheries, Government of India.
Implementing Agencies (IA)
(i) State/UT Fisheries Departments and their entities
(ii) National Fisheries Development Board (NFDB)
(iii) Small Farmers Agriculture Consortium (SFAC)
(iv) National Cooperatives Development Corporation (NCDC)
(v) National Bank for Agriculture and Rural Development (NABARD)
Main role of Implementing Agency
• IA works with Community Based Business Organizations (CBBOs) to make FFPOs economically sustainable.
• Monitor and supervise the functioning of CBBOs.
• Formulation of rating tools for FFPOs
• (i) SFAC will form and promote FFPOs which are to be incorporated under Part IX A of Companies Act.
• (ii) NCDC will form and promote FFPOs which are to be registered under any Cooperative Societies Act of the States.
• (iii) NABARD, NFDB and State/UT Fisheries Departments and their entities will form and promote FPOs which are to be
registered either under Part IX A of Companies Act or registered under any Co-operative Societies Act of States.

10. • Dept. of Fisheries, (DoF), Govt of India may, in due course, identify and assign
other additional Implementing Agencies (IA) to cover various sectors and
geographical locations to form and promote FFPOs.
• On application by the respective Ministry/Department, DoF will consider the
proposal on merit in terms of (i) its experience in formation and promotion of
FFPOs, which should have minimum experience of not less than one year; and (ii)
its presence in the geography and sector of operation.
• Based on the norms and after due consideration, DoF will designate the proposed
organization/ agency as additional Implementing Agency.
• Based on sectoral and geographical needs, DoF can relax the norms for designating
additional Implementing Agencies.
Duties and Responsibilities of Implementing Agencies:
• (i) Implementing Agencies will closely and cohesively work with CBBOs to ensure
that CBBOs perform their activities to make FPOs economically sustainable.
• (ii) Implementing Agencies will monitor and supervise the functioning of CBBOs.
• (iii) Implementing Agencies in consultation with DOF will formulate rating tools for
FFPOs to assess them in terms of level of activity, economic viability and
sustainability, etc. The rating of the FFPOs can be used as an instrument to
promote FFPOs.
• (iv) Implementing Agencies will endeavor to make their software inter-operable
with integrated portal, if they develop their own independent software with
respect to FFPOs.

11. Cluster based business organizations (CBBO)
• CBBOs are empaneled by IA.
• In a State, based on geography, fisheries clusters etc.,
there may be one or more than one CBBO.
• One CBBO may serve more than one State/UT as per
requirement.
• CBBOs given work as per human resources available
with them, past turnover and work experience etc.
• CBBOs should have experience in formation of FFPOs in
fisheries and allied sector and should provide
handholding support to FFPOs.
• CBBOs must have five specialists– Fisheries Business
Operations, Fisheries Post Harvest Management, Social
Mobilization, Law & Accounts and Fisheries/
AgriMarketing with IT/MIS skills.

12. Duties and Responsibilities of CBBOs:
i. Assist in the implementation of the scheme as suggested by the Implementing Agency as per
the scheme guidelines.
ii. Assist Implementing Agency in cluster identification
iii. Assist in community mobilization – baseline survey, cluster finalization, value chain study,
formation of groups and FFPO/Cs and assist in their periodic meetings. They may seek the
assistance of Local Bodies, wherever feasible in identification of proper produce cluster and
mobilization of members.
iv. Registration of FFPOs/Cs and Training of Board of Directors (BOD) on roles, responsibilities,
management and capital/ equity mobilization.
v. Training and capacity buildings of FFPOs/farmer groups – Training needs identification,
develop training modules; conduct basic training workshops; exposure visits, on-line
training, webinars etc.
vi. Encourage and promote social cohesiveness amongst members of FFPOs vii. Preparation and
execution of Business Plans – Business plan preparation (for different incubation services),
facilitate in acquiring land, if required.
viii. Assist in regular interface with stakeholders like various government departments, Financial
Institutions, training and Research and Development institutions at the cluster level.
ix. Assist FFPOs in mobilizing/availing Equity grant and Credit guarantee facility as per need and
growth.
x. Incubation/handholding services for sustainability – Provide support and monitoring in terms
of incubation activities; capacity building of BODs and FFPO Management for sustainability.
The incubation/handholding services include ensuring inputs, credit, market linkages,
preparing and implementing related business plans.
xi. Facilitate establishment of necessary common pool production, marketing and processing
infrastructure facility by the FFPO, as may be necessary, to develop the business for
longterm viability.

13. Cont...Duties and responsibilities of CBBOS
xii. Facilitating traceability, certification and standards, international
compliance and global market connectivity.
xiii. Review and Monitoring of the field team during implementation as per
desired outcomes.
xiv. Assist in communication and dissemination of information to fishers and
fish farmers by way of market advisory.
xv. Progress report on all specified target activities to be submitted periodically
to the Implementing Agencies.
xvi. Ensuring programme/project targets are met.
xvii. Assist in compliance issues of FFPO including their capacity building in the
subject
xviii. Assist Implementing Agencies in data collection and generating MIS
reports/information in the required data sheets.
xix. Assist Implementing Agency in rating of FFPOs as may be necessary.
xx. Assist in federating FFPOs when necessary for business growth and
expansion.
xxi. Assist FFPO in proper financial management and utilization of fund and
accounting and timely submission of returns and certificates.
xxii. Any other activity related to implementation, management and
monitoring of the project.

14. Strategy for FFPOS formation
• Based on Fisheries Business Cluster Area, defined as - for the purpose of FFPO
formation, promotion, operations and management means a geographical area
wherein a fisheries related business can be formed for leveraging economies of
scale in the entire fisheries value chain in a sustainable manner.
• Fisheries Business Cluster Area to be identified by CBBO, with IA’s approval.
• CBBOs will undertake feasibility studies - two components.
• i. Diagnostic study including baseline survey
• ii. Business plan
• FFPOs can be federated at District and State levels
• Existing FFPOs (including fisheries primary cooperatives) may avail relevant
benefits including advisory services from CBBO and IA.
• FFPOs, to be supported through technical and managerial training for their BoDs
and CEOs to implement business plan.
• FFPOs including fisheries primary cooperatives which are already registered but
have not yet started business operation also covered.

15. Payment criteria for CBBOs
• Payment criteria for CBBOs
• Six months from beginning
• Number of FFPOs formed
• Aggregation activities
• Six months to one year
• Institutional Training to CEO/BODs
• Number of FFPOs formed
• Members –Min 100 members in plain areas and 35 in hilly/ NER.
• Registration FFPOs & Formulation of Business Plan
• Second Year
• 1 st equity grant availed by the FFPO
• Statutory clearance to carry out business
• Minimum 50% of business activities as per business plan
• Number of awareness program for FFPOs
• 1 st tranche of equity grant and credit guarantee availed by FFPOs
• Third year
• Issue of share certificate to each member
• Members – 300 members in Plain areas and 100 in Hilly/NE Regions.
• Audited Financial Statements of FFPOs
• 2nd tranche of equity grant and credit guarantee availed by FFPOs
• Final year
• Utilization Certificates
• 100% of business plan executed and value chain developed
• Revenue model showing financial stability in last 3 consecutive years
• Detailed Project Completion Report
• 3rd tranche of credit guarantee facility

16. Govt support, Funding and minimum qualification of office bearers of FFPOs,
• Minimum qualification of office bearers of FFPOs
• CEO / Manager should be graduate in Fisheries / AgriBusiness Management or BBA or equivalent.
• Accountant with educational qualification of 10+2 with Mathematics as a compulsory subject or alternatively
with Commerce or Accountancy background.
• Member of FFPOs can be considered if they meet the criteria.
• Government support
• Provision for Equity Grant scheme:
• The objectives of Equity Grant are to (i) enhance viability and sustainability of FFPOs; (ii) increase credit
worthiness of FFPOs; and (iii) enhance shareholding of members to increase their ownership and participation in
their FFPO.
• Equity Grant will be in the form of matching grant up to Rs. 2,000/ per producer member subject to a limit of Rs.
15 lakh per FFPO. This Equity Grant is not in the form of government participation in equity, but only as a
matching grant to the FFPOs as members’ equity.
• The Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairying through Small Farmers
Agri-Business Consortium of Ministry of Agriculture and Farmers Welfare (MoAFW), Government of India
assisted setting up of 5 FFPOs in the states of Bihar, Himachal Pradesh, Andhra Pradesh and Uttar Pradesh on
pilot basis under the erstwhile Centrally Sponsored Scheme Blue Revolution-Integrated Development and
Management of Fisheries and these 5 FFPOs have already been registered.
• Further, under PMMSY, the Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairying
during 2020-21 has accorded approval to the proposal of National Cooperative Development Corporation,
MoAFW for setting up of 50 FFPOs at a total cost of Rs.24.50 crore. Besides, approval has also been accorded
during 2020-21 to the proposal of National Fisheries Development Board (NFDB) for setting up of 22 FFPOs at
total cost of Rs. 10 crore under the PMMSY.
• Funding
• Formation and promotion of FFPOs will be taken up under the Central Sector Scheme component of PMMSY
with 100% central funding.
• As per Union Budget 2020, the Department of Fisheries, Government of India will set up 500 Fish Farmers
Producer Organisations. While formation and promotion of 300 FFPOs/Cs will be supported under PMMSY,
efforts will be made to support the remaining 200 FFPOs/Cs through convergence with the 10,000 FPO scheme
of Department of Agriculture,Cooperation and Farmers Welfare (DoACFW), Ministry of Agriculture and
Farmers Welfare (MoAFW), wherever possible.

17. FFPO Financial Support:
The Equity Grant Provision will be in the form of matching grant up to Rs
2000/- per member of FFPO subject to a maximum limit of Rs 15 lakhs per
FFPO on the lines of 10,000 FPO scheme of Department of Agriculture,
Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers
Welfare.
Sl NO Particulars
Funds(upper
limit)
1 FPO Formation and
Incubation Cost
Rs. 25 Lakh / FFPO
2 FPO Management Cost(up to
3 years)
Rs. 18 Lakh / FFPO
3
Equity Grant Provision
Rs. 15 Lakh /
FFPO*

18. Mode of Implementation of FFPOs
• State/UT Fisheries Departments and their entities
• The State/UT Fisheries Departments and their entities will submit Annual
Action Plans (AAPs) / Self-Contained Proposals (SCPs) to the Project
Appraisal Committee (PAC) of PMMSY in NFDB.
• The Project Appraisal Committee (PAC) of PMMSY in NFDB will scrutinize
the AAPs/proposals and forward with its recommendations to the Central
Apex Committee of PMMSY.
• The CAC will consider the AAPs/proposals and recommend to Dept of
Fisheries, Government of India for approval and release of funds to the
State/UT Fisheries Departments and their entities.
• Other Implementing Agencies
• The IAs, viz. SFAC, NFDB, NCDC and NABARD will submit Annual Action
Plans (AAPs)/SelfContained Proposals (SCPs) to Project Monitoring and
Evaluation Unit (PMEU) of PMMSY in the Dept of Fisheries, Government of
India.
• The PMEU with its recommendations will place the Action Plans/proposals
before the Central Apex Committee (CAC) of PMMSY.
• The CAC will consider the AAPs/proposals and recommend to Dept of
Fisheries, Government of India for approval and release of funds to the
Implementing Agencies.

19. Training and capacity building of FFPOs
• Laxmanrao Inamdar National Academy for
Cooperative Research & Development (LINAC),
Gurugram and its Regional Training Centres (RTCs)
across the country under NCDC is designated as a
Nodal Training Institution at central level.
• NFDB will be overall Nodal Agency for coordination
at national level for capacity building, training and
skill development of FFPOs.
• Nodal Training Institution may work in coordination
with other reputed training organizations like NIRD,
MANAGE, Agriculture / Fisheries Universities, ICAR
Institutions, KVKs etc for extending training to FFPO
stakeholder.

20. Release of Government Assistance
• DoF will make the advance release to the Implementing Agencies (IAs) on a six-monthly
basis based on recommendation of CAC, Annual Action Plan (AAP) / Self-Contained Proposal
(SCPs) of IAs and the due utilization certificate submitted to meet the expenses of:
• a. FFPO formation and incubation cost to CBBO
• b. FPO management cost direct to concerned FFPOs/Cs account on recommendation of
concerned CBBO
• c. Equity Grant direct to concerned FFPOs/Cs account
• DoF wilI release funds to the implementing agencies basis the following pattern:
• (i) The Implementing Agencies will develop the payment schedule based on stages of
functioning of FFPOs and component of payment involved.
• (ii) The Implementing Agencies will raise the demand to Dept. of Fisheries (DoF) for release
of payment.
• (iii) The Implementing Agencies will submit utilization certificate of last payment released as
per GFR for releasing the next payment to them.
• (iv) In case of training, NABARD and NCDC will submit to the CAC of PMMSY the training
schedule for a year with tentative expenditure for training through specialized training
institutes organized through their respective nodal training Institute.
• Payment of Supervision charges to Implementing Agency (IA)
• (i) Implementing Agencies will be given 2.5% of total estimated annual expenditure in the
form of supervision charges to meet the expenses incurred in discharge of their duties and
responsibilities. This amount shall not include expenditure towards Equity Grant.

21. Monitoring and Evaluation of FFPOs
Monitoring
• In addition to monitoring and supervision by Implementing
Agencies of the FFPOs sub-component, the Project
Monitoring Unit (PMU) of PMMSY in NFDB, the State Level
Approval and Monitoring Committee (SLAMC) of PMMSY and
the District Level Committee (DLC) of PMMSY will undertake
periodic review, monitoring and supervision of the
implementation of the FFPO sub-component under PMMSY
at the National, State and District levels respectively.
Evaluation
• Mid-term and end-term evaluation of the performance of the
FFPO sub-component 25 under PMMSY will be carried out
through a third party either as a part of the overall evaluation
of the PMMSY scheme or as a standalone sub-component by
the Department of Fisheries, Government of India.

22. Annexure-I Application form for seeking equity grant by FFPOs

23. Cont... Application form for seeking equity grant by FFPOs

25. Enclosure-III of Annexure-I Consent Form of all
Shareholders

26. State wise distribution of FFPOs in India

27. Case study on Bhavi Aqua and Fish Farmer Producer Company
(BAFFPC)
• Bhavi Aqua and Fish Farmer Producer Company (BAFFPC) Mr G. Bhupesh Reddy is
a Managing Director of Bhavi Aqua and Fish Farmer Producer Company (BAFFPC)
situated in Nidimusali village of Nellore district, Andhra Pradesh, having 989
members engaged in the marketing of fish and prawns which was found to boost
fisher folk’s income and to mainly address the problem of getting a better price for
their catch.
• To solve this problem, they started aggregating fish collected from all the farmers
and selling them in bulk quantity to export companies, to get better margins for
their produce.
• They sell their produce in Nellore city market and market outlets at Kavali, Kovuru,
and Guduru. This technique helped them to overcome their immediate financial
needs, before harvesting the whole crop.
• NABARD initially supported Bhavi Aqua with ₹4.42 lakhs. Later, ₹8.66 lakhs were
given to them for business development and ₹5.16 lakhs to set up a small shop
offering one-stop solution to farmers.
• Small Farmers Agribusiness Consortium (SFAC) gave financial aid of ₹8.07 lakhs for
the BAFFPC’s operation.
• To help the Joint Liability Groups, a loan of ₹40 lakhs was provided by Andhra
Pragathi Grameena Bank (APGB).
• With the subsidy of ₹80 lakhs provided by the Department of Fisheries, Andhra
Pradesh, BAFFPC distributed 500 aerators to its members.
• This new technology is being introduced to properly manage inland rearing and
give better access to fish for oxygen.

28. Cont... Case study
• The FFPO prepared an action plan for their business activities subsequently,
resulting in an increase in sales from ₹1.35 lakhs (2017-18) to ₹51.70 lakhs
(2019-20) and 60% of turnover was from the sale of fish.
• Recently, they started branding their products under the brand name
“Gunapatis” and trying to connect the farmers directly with the consumers.
This move is also aimed at empowering farmers with digital marketing.
• To get better prices, BAFFPC is carrying out value addition activities like
making fish pickles, fish chutneys, and fish manures as a by-product of fish
waste.
• They offered capacity-building programs for their members by organizing 20
awareness programs, 5 Training of Trainers (ToTs), exposure visits, and a
conclave at the World Brackishwater Aquaculture Conference.
• This helped them learn about scientific management of fish cultivation, and
fish health management which increased their productivity.
• Regular convergence meetings with farmers, feed mills, and hatcheries are
facilitated for easy availability of seed and feed.
• They are promoting awareness among farmers not to use antibiotics.

29. Conclusion
• The future of FFPOs looks promising, as the demand for fish and
seafood products is expected to increase in the coming years.
• FFPOs have the potential to play a crucial role in meeting this growing
demand, while also improving the socio-economic conditions of
small-scale fish farmers.
• There are several challenges that need to be addressed, such as
access to finance, technical expertise, and marketing channels.
• FFPOs are emerging as a popular model for promoting sustainable
fish farming practices and improving the socio-economic conditions
of small-scale fish farmers.
• They provide a platform for accessing technical, financial, and
marketing support, and promote the adoption of eco-friendly farming
practices.

30. REFERENCES
• file:///C:/Users/IYAPPAN/Desktop/FFPO/FFPO%20Guidelines.pdf
• https://nfdb.gov.in/PDF/FFPO%20Guidelines.pdf
• https://pib.gov.in/PressReleasePage.aspx?PRID=1739463
• https://www.ncdc.in/documents/notice-circular/3218280721FFPOs-
Guidelines.pdf
• https://fisheries.karnataka.gov.in/info-
2/Karnataka+Fish+Farmer+Producers+Organizations/en
• Maulika J. Patel, Ph.D. Scholar, Department of Extension Education,
N.M.C.A., NAU, Navsari- 396 450, Email
ID: maulipatel8140117127@gmail.com, Contact No.: 6355215698
• Dr. Keyur V. Gardhariya, Ph.D. (Agril. Extension), Research Associate,
EEI, Anand
• Email.ID: keyur.gardhariya.007@gmail.com , Contact No.:
9033584688
• https://krishijagran.com/featured/fish-farmer-producer-organization-