ARUNKUMAR R, M.Sc. (Ag.) Agricultural Extension, Faculty of Agriculture, Annamalai University, Chidambaram, Tamil Nadu, India

1. Farmer Producer Organization
ARUNKUMAR R
M.Sc. (Ag.) Agricultural Extension
Faculty of Agriculture, Annamalai University

2. Previous Attempt to Organize Farmers
• During 1970s, India has introduced “Dairy
Cooperatives” and it is successful
• 60 per cent of milk produced in the country sold
through organized milk producers cooperatives.
• Provides supplementary income over 70 per cent of
rural and urban households

3. Farmers Organizations – As a tool for aggregation
• The purpose of establishing Farmers’ Organization
(FOs) is to internalize extension services for its
members and provide: –
– Backward linkage (input, credit and technology)
– Forward linkage (production facilities, market and
value addition)
• The FOs provide an effective channel for both
dissemination of technology to large number of
small and marginal farmers and feedback to
research and extension

4. Farmers Organizations (FOs)
• Farmers’ organizations are groups of rural
producers coming together based on the principle
of membership, to pursue specific common
interests of their members and developing
technical and economic activities that benefit their
members and maintaining relations with partners
operating in their economic and institutional
environment

5. Farmers Organizations
• Farmers’ groups
• FIGs
• CIGs
• Cooperatives
• Farmers’ associations
• Federations
• SHGs
• Farmers’ unions
• Agricultural cooperatives owned
and controlled by the members

6. Services provided by
Farmers’ Organizations
• Marketing services
• Financial services
• Technology services
• Education services
• Welfare services

7. Producer Organization
• Producers’ organizations refer to independent, non-
governmental, membership based rural
organizations of part or fulltime self-employed
smallholders and family farmers, pastoralists,
artisanal fishers, landless people, women, small
entrepreneurs and indigenous people.

9. Chairman/Board of Directors
General Body
Executive Body (02-Lead farmers per FIG)
Farmers
Farmers Interest Group (FIG)
Farmers Farmers
Structure of FPO

10. Chief Executive Officer (CEO)
Marketing Manager
FPO Staff
Local Resource Person (LRP)
Organogram of FPO
Accountant

11. Cluster
identification Diagnostic
study
Feasibility
analysis
Baseline
assessment
Business
planning
Mobilization
of farmers
Organizing &
formalizing
Resource
mobilization
Business
operations
Assessment &
Audit
Steps of FPO
Formation

12. Features of Producer Organization
• Directors of FPO ranges between 05 to 15
• Minimum paid-up capital of FPO is Rs. 1,00,000 (01-
Lakhs).
• Authorized capital of FPC can be more than Rs.
5,00,000 (05-Lakhs).
• Members’ equity shares can not be traded but can
be transferred.

13. Who can Promote FPOs?
• Small Farmers Agribusiness Consortium
(SFAC)
• NABARD
• Rashtriya Krishi Vikas Yojana (RKVY)
• Department of Agriculture of State Govt.
• Domestic & international Aid agencies
• NGOs

14. My Sincere thanks to:
1) Dr. V. Kalirajan,
Asst. Professor in Agricultural Extension
2) Dr. T. Suthin Raj,
Asst. Professor in Plant Pathology
Faculty of Agriculture, Annamalai university