Supporting the “ease of doing agriculture”
Collectivization of farmers into business entities like FPO has been recognized as the most effective and appropriate model to mitigate the challenges of land holding fragmentation and increase farming income by getting the benefit of scale. A vibrant and strong network of FPOs will not only help to enhance farmers’ income but also support the “ease of doing agriculture” and establish farming as a business. Considering the immense potential, our governments are aggressively working on the development of FPOs as a key enabler to increase farmers’ income and evolve the farm sector.
Currently, the country has over 10 million growers organized into over 25,000 producer organizations. Though most of these collectives are struggling to achieve their objectives, they are facing challenges in farming revenue aggregation and building a viable business scale. Key reasons grower collectives struggle are the poor awareness of the benefits of collectivization, inadequate business skills, lack of backward and forward linkages, and low bankability.
