Farmers Producers Company Limited (FPOs)

MARI has strategically aligned its vision of empowering rural communities with the Strengthening Farmer Producer Organizations (FPOs) project, ensuring small and marginal farmers gain better access to resources, markets, and financial opportunities. Recognizing the need for collective action in agriculture, MARI has facilitated the establishment of 14 FPOs, mobilizing 7,403 farmers as shareholders, and securing ₹74,03,000 in share capital to serve as a revolving fund for infrastructure and service enhancement.

MARI’s execution approach focuses on capacity building, financial inclusion, and value chain integration. The organization has actively provided training programs on sustainable farming, financial management, and market negotiations, ensuring farmers gain the necessary skills to thrive. Through bulk procurement of agricultural inputs, farmers have been able to reduce production costs while gaining better access to credit and insurance services for risk mitigation.

Furthermore, MARI has encouraged crop diversification, value-addition activities, and direct market linkages, helping farmers increase their income and resilience against agricultural uncertainties. By fostering peer learning, leadership development, and gender inclusivity, MARI has strengthened community bonds and created a self-sustaining agricultural ecosystem that promotes long-term economic stability for farming households.

Through this initiative, MARI has not only enhanced farm productivity and livelihoods. Still, it has also driven a transformational shift in rural agriculture, ensuring farmers are self-reliant, organized, and equipped to face future challenges.

Objectives

  • Increased crop yields and higher farm productivity resulted from better agricultural practices, improved technology, and training services provided by the FPOs. Infrastructure and farm equipment projects worth Rs.1.68crores were sanctioned by TRICOR for four FPOs and the same has been implemented.
  • Enabled member farmers to access formal markets and negotiate better prices for their agricultural products. They often aggregate produce from multiple farmers, which can lead to economies of scale and improved bargaining power. FPOs provided access to credit and financial services, allowing farmers to invest in their farms, purchase inputs, and expand their agricultural activities.
  • FPOs encouraged crop diversification and introduced farmers to new crops and varieties that are better suited to local conditions or have higher market demand. Some FPOs engaged themselves in value-addition activities, such as processing and packaging of agricultural products, which increased the value of farm produce and generated additional income for farmers.

"Empowering farmers through collective action, MARI’s FPOs foster self-reliance, sustainability, and equitable growth for resilient rural communities.."

Achievements

  • FPOs regularly provide training and capacity-building programs to help farmers acquire new skills and knowledge related to sustainable farming practices, financial management, and marketing. FPOs have collectivised the demand and could negotiate bulk purchases of agricultural inputs (seeds, fertilizers, pesticides) at lower prices, reducing the cost of production for farmers.
  • The services of FPOs contributed to improved livelihoods for rural communities by increasing income, reducing poverty, and enhancing food security. FPOs are promoting farmers’ access to insurance and risk management services to protect against crop failures or other unforeseen events. FPOs are facilitating knowledge sharing and peer learning amongst farmers, helping them adapt to changing agricultural conditions and challenges.
  • FPOs are fostering social cohesion and a sense of community amongst members, leading to stronger social networks and mutual support.
  • FPOs are actively participating and contributing to community development by initiating health, education and other development activities.
  • FPOs are empowering farmers by involving them in decision-making processes, fostering leadership skills, and promoting gender equality and social inclusion.

Goals

FPOs a legal form of farmer-owned and farmer-controlled organisations empower and improve the livelihoods of small and marginal farmers by promoting collective action, enhancing their bargaining power, and facilitating their participation in various agricultural value chains.

MARI has established 14 FPOs and mobilized 7403 farmers to become shareholders in the same with a total share capital of 74,03,000 which is being used as revolving fund for various infrastructure and supply of services to shareholders.

“Through the establishment and strengthening of FPOs, MARI continues to empower farmers with knowledge, resources, and market access, ensuring sustainable livelihoods and a resilient agricultural future.”

2022

National Bank for Agriculture and Rural Development (NABARD)

Hyderabad

Sustainable Agriculture

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