In the bustling daily market of Pub Mangaldai, amidst the vibrant sights and sounds, a quiet revolution is underway. Abida Begum, Director of the Darangi Women Farmers Producer Company, speaks with an infectious enthusiasm “We have a target of one crore business for the upcoming financial year”. Her confidence, mirrored in the eyes of her fellow Board of Directors, underscores the growing impact of Farmer Producer Organisations (FPOs) in the region Farmer Producer Companies/Organisations (FPC/FPO) or Producer Organisation (PO) is a legal entity formed by primary producers, viz. farmers, milk producers, fishermen, weavers, rural artisans, craftsmen. A PO can be a producer company, a cooperative society or any other legal form which provides for sharing of profits/benefits among the members. In some forms like producer companies, institutions of primary producers can also become member of PO (FPO, NABARD, 2015). With one of the most essential criteria that the shareholders have to be “producers” themselves.
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FPOs are being promoted through various schemes of government and most recently is the Central Sector Scheme “Formation and Promotion of 10,000 new Farmer Producer Organisations (FPOs)” with a budget ₹6865 crores allocated in 2021. The scheme was implemented through Implementing Agencies (IAs) such as NCDC, SFAC, NAFED, NABARD etc, who again engage Cluster Based Business Organisations (CBBO) to aggregate, registered & provide professional handholding support to each FPO for a period of 5 years.
The CBBOs play a vital role in developing FPOs within producer clusters, leveraging economies of scale and improving market access for members' agricultural and horticultural produce. The "One District One Product" cluster initiative further promotes specialisation, enhancing processing, marketing, branding, and export opportunities. These value chain organisations within the agricultural sector are forming FPOs and facilitating market linkages for at least 60% of their members' produce.
In the districts of Darang and Udalguri, four FPOs, nurtured by the CBBO Sayanat Development Services (SDS), stand as testaments to this transformative movement. This four FPOs consists of women farmers as shareholders and some among them acting as the BoD members with signatory authority. Marry Narzary, a Board member of the Ujjwal Women FPC and a Krishi Sakhi (a cadre promoted by ASRLM), exudes confidence when discussing their goal of increasing shareholder numbers from 400 to 1000 in the next financial year. Despite the challenges of raising awareness about FPOs, particularly among women in the Kobirali area of Udalguri district within the BTC, Marry is determined to mobilise more women to join their ranks. She believes that many women in her community, particularly younger women who spend their time idly, could significantly improve their livelihoods by becoming shareholders and actively participating in the FPO’s initiatives. Marry envisions these women engaging in the automated weaving centre provided by the district authority under the Aspirational District program, generating income for themselves and boosting the FPO's turnover. These FPOs which are primarily focused on agri-business are involved in buying and selling of good agri-products such as rice, maize, and mustard seeds, also sells fertilizers and paddy seeds at a minimum profit for the FPO. This provides much-needed relief to local farmers.
Some shareholders of Siroheuji Women FPO in Darrang have ventured into activities like processing of pickles and are selling it under the label of their FPO. CEO Dhrubojyoti Saikia, mentioned “Products like pickles, though not much brings in a regular income for the FPO, moreover it reduces the burden of the women from the problems of storage, marketing and reaching out to customers”. Siroheuji FPO has already achieved a turnover of 28 lakhs before the 2024-25 financial year ends and expected to do a business of 35 lakhs before the year end. While progress is evident across these FPOs, challenges remain. The Swarang Women Producers Co-Operative Society Limited, located in Deuri gaon, faces hurdles related to awareness and trust among some members. This FPO, situated amidst acres of jujube plantations and buckwheat fields, stands out as the only one among the four with a female CEO appointed by the CBBO.
CBBO officials provide comprehensive support to the FPOs, encompassing training and ongoing monitoring of the CEO and accountant's activities. This includes hands-on assistance with FPC operations, account management, cash book entries, and MIS, among other crucial tasks. Beyond the formal training, the CBBO also plays a vital, though often unacknowledged, role in maintaining member inspiration and motivation. Furthermore, they actively engage in business planning sessions with the Board of Directors. Recognising the need for broader outreach, Ms. Jayanti Boro, CEO of Swarang, has requested training from Mr. Saunak Bhyuan, Program Leader of SDS, the CBBO. SDS is empanelled for the inception and promotion of a substantial 67 FPOs across multiple states, including Assam, Tripura, Manipur, Arunachal Pradesh, Mizoram, Odisha, and Bihar, working in conjunction with IAs such as SFAC, NAFED, NCDC, NFDB, and TRLM, among others. This request highlights the ongoing need for capacity building and support within the FPO ecosystem.
“FPOs have the potential to play a crucial role in establishing market linkages for farmers and supporting the strengthening of production systems. However, credit support to FPOs through main stream financial institution, building ownership of shareholders and collectivisation of FPCs at state level and national level is much needed.” states Mr Parag Baruah, Managing Director of SDS. With a total of 8875 FPOs registered under the central scheme as of June 2024, according to PIB, and an additional 584 crore budget allocated for the agri-allied sector in the recent union budget, the future for farmer shareholders and producers looks promising. The dedication of women like Abida, Marry, and Jayanti, combined with the support of CBBOs and government initiatives, is paving the way for a more prosperous and empowered rural India.
(The author is a media strategist and research scholar pursuing his PhD at KKHSOU. He is passionately driven by the cause of empowering rural communities. All views and opinions expressed are his own)