After 2020 by the program of PMMSY, an enormous focus is placed on creating FFPO by collectivising fish farmers, Producer Organization is not a recent term. It has been started after 2002 by collectivization of farmers, as they are primary producer of farm and non-farm produce.

1. FACULTY OF FISHERY SCIENCES ( WBUAFS )
Seminar on
Fish Farmers Producer Organization (FFPO)
Concept, Prospects and problems
PRESENTED BY
ABDUL HANNAN MONDAL
M/F/2020/01
Faculty Of Fishery Sciences

2. • What is FFPO ?
Fish Farmers Producer Organization is a legal entity, 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.
• Why FFPO ? FFPO can be a vehicle for transformation & leveraging the economy.

3. Introduction
 Background :
Majority of fish farmers are small and marginal.
Further, presence of intermediate brokers between produce to market.
 So these issues can be mitigated by 1) if they organize themselves in a group and 2) through
exploring alternate sources of revenue.
 Collectivization of producers, (small and marginal farmers) into producer organizations like
FFPOs has emerged as one of the effective pathways to address various challenges in fisheries
sectors.

4. FFPO – Background Information / Genesis
Concept of collectivisation of farmers –
Group Approaches are :
Co-operatives, Self-Help Group, Joint Liability Group, Farmers Interest Group, Farmers Club
Farmer Producer Organization – Agriculture & allied activities
Fish Farmer Producer Organization – Fisheries & related activities

5. FFPO – Background Information / Genesis
• Recognizing the importance and potential of the fisheries sector, the Government of
India launched a flagship scheme, PMMSY.
• In Central sector scheme of PMMSY , major activity is – formation of
FFPO - to foster collectivization of fishers and fish farmers.
As announced in the Union Budget 2020,
500 Fish Farmers Producer
Organizations (FFPO) would be set up ,
FY-2020-21 to 2024-25

6. Structure – FFPO
1) Formation –
Fisheries
Business Cluster
Area
identification by
CBBO
Diagnostic study,
baseline survey &
business planning
Mobilization of
farmers &
Organizing
business operation

7. Structure Cont’d
2) Registration – as legal entity
•Under Companies Act
1.
• Amended Of Companies Act-1956 by incorporating new section IXA , based on the recommendation
of Dr. Y. K. Alagh committee in 2002.
Under Cooperative Societies Act
2.
• Amended Of Cooperative Society Act-1912 by incorporating new section IXB,(article-243) in the year
2011 under state legislature.

8. Structure Cont’d
3) Management –
 Governing Body - Chief Executive Officer/Manager, Board Of Director (BoDs), other staffs- accountant,
shareholders and members.
Share capital – Minimum authorized capital at the time of incorporation should be 5 lakh. Maximum
shareholding per member should <10% of total equity of FFPO.
FFPO Financial support by Dept. of Fisheries – a) FFPO formation and incubation cost – maximum Rs
25 lakh/FFPO , b) FPO Management Cost – maximum Rs 18 lakh/FFPO .
Voting rights – one member, one vote, Govt. implementing agencies, has no Veto power.
under PMMSY Guidelines

9. Institutional support to FFPO
• Formation & promotion support
• Financial support
• Training, Skill development support
• Handholding support or Advisory support
• Miscellaneous supports: Business planning & operation, assessment & audit, extension
services.

10. Objectives
Economically empower the fishers and fish farmers and cutting down intermediaries.
Enhance productivity through efficient, cost-effective and sustainable resource use.
Creating market linkages of 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.
Followed PMMSY Guidelines

11. Core Activities and Services
1) Cluster Based Approach: Commodity specific. Production and Productivity related-
• Supply of quality inputs.
• Undertake various types of Culture.
• Dissemination of Technology etc.
2) Value Chain Approach: Post-Harvest Management and Infrastructure related-
• Make available services offering value addition, Undertake higher income generating activities (seed/brood stock
production, Retail outlets).
• Make available services of storage and transport.
• Marketing and Branding. Domestic and export sales.
3)Backward Linkage Activity: are directed towards producers like providing nets, other materials, technical
knowhow, vending kiosks etc.

12. Available Opportunities
PO (FFPO) have choice of selecting appropriate legal entity.
Potential to compete in emerging market opportunities & manage consumer
demand.
Lot of opportunities are there in value chain approach- from own seed production
unit to branding & export of produce.
NGOs, Private Bankers, Corporate should join in the development and growth of
FFPO by extending their services.

13. Available Opportunities
Producers (fish farmers) can get a good price with this FFPO .
Value addition – priority sector in fishery – by availing of finance from bank at
subsidized rates.
Scheme/program implementation by Govt through FFPO – thereby members can
avail benefits and undertake operations.
Government should also think of transferring input subsidies directly to farmers
through FFPO.

14. Problems Faced By FFPO
A) Management Issues :
Skill set of BODs & CEO.
Active & encourage participation of Members.
Shareholding management issue.
Transparency in accounting, auditing, voting etc.
Networking & continuous interaction with various stakeholder.

15. Problems cont’d
B) Operational Issues:
Need to formulate a proper organizational setup.
There should be a business rationale.
There should optimum size of members.
Require Handholding Support.
Need to upgrade skills, organized, capacity building .
Lack of adequate infrastructure.
Quality maintaining.

16. Problems cont’d
C) Financial Issues:
Credit guarantee facilities & Equity Grant : Govt. of India & Implementing
Agency(NFDB,SFAC,NABARD) should look after this financial support provided to FFPO.
Easy Lending from Bank : Need to provide collateral free loan.
Tax relaxation of their earnings of organization & individual.
Other financial issues – Subsidy related , share capital, borrowings, loans, investment etc.

17. Future roadmap for FFPOs
Assessment of market opportunities and threats – SWOT analysis
Correct positioning : in competitive market segment FFPO can diversify their produce.
Constant support through a viable ecosystem- as it is vulnerable business, need for support in
every step in fisheries value chain.
Continued policy support for promotion and sustainability of FFPOs – from financial
institutions and implementing agencies.
Role of FFPOs in rural development, socio-economic development – by regular consultation with
farmer groups.

18. Conclusion
• FFPOs have been playing a significant role in the fisheries sector where integration of both forward and backward
linkages with the primary goal of increasing farmers' income and their livelihoods through reduced farming and
transaction costs.
• In this regard, the Indian government has been working hard to create and promote these FFPOs throughout the
nation by designating NFDB as a nodal agency and involving other developmental organizations, such as
NABARD.
• As a result, more than 70 FFPOs have come to be established across the country within a span of two years (by
2022) according to the guidelines set. (22 MAR 2022 5:02PM by PIB Delhi )
• In the process of development and promotion of FFPOs, the issues and challenges seem to be common. At the
same time, there are plenty of opportunities also available to FFPOs to shine better in the future.

19. References
 Buddha P. 2017. Feasibility of establishing the farmer producer organization (FPO) on lime in Vijayapur district. M. Sc.
(Agriculture) Thesis, University of Agricultural Sciences, Bengaluru (India).
 Ereneus KM. Chauhan JK. 2019. Farmer Producer Organization (FPO): the need of the hour. Volume 1 -Issue 12. e-ISSN :
2581 – 8317.Article id: 22479.
 Government of India, 2021. PRADHAN MANTRI MATSYA SAMPADA YOJANA . Formation and Promotion of Fish Farmer
Producer Organizations (FFPOs) . Ministry of Fisheries, Animal Husbandry & Dairying: 5-10
 Government of India, 2019. Strategy Paper for promotion of 10,000 Farmer Producer Organizations (FPOs) . SFAC . 7-11
 Government of India, NABARD. (2018). Farmer producers’ organizations (FPOs): status, issues & suggested policy reforms
(National Paper - PLP 2019-20). Retrieved from: https://www.nabard.org/auth/writereaddata/
CareerNotices/2708183505Paper%20on%20 FPOs%20-%20Status%20&%20% 20Issues.pdf
 Kathiravan, N., T. Senthilkumar and Sudeep Kumar, N.K. 2017. Identification of Bottlenecks Perceived among the Farmer
Producer Organizations to Augment its Role and Function. Int.J.Curr.Microbiol.App.Sci.6(9):216 -
219.doi:https://doi.org/10.20546 /ijcmas.2017.609. 029(accessed on 25th July, 2019)
 Murray E. V. 2015. “Producer Company Model-Current Status and Future Outlook: Opportunity for Bank Finance”, Research
Gate,. [https://www.researchgate.net/ publication/228888927_Producer_Co mpany_ModelCurrent_Status_and_Future_ Outlook
_Opportunities_for_Bank_Finance]. (Accessed on 20th July, 2019)
 Ramappa KB. Yashashwini MA. 2018.Evolution of Farmer Producer Organizations: Challenges and Opportunities. DI: 4964-
2702-2018-155.