A central committee tasked with reviewing Farmer Producer Organisations (FPOs) met with stakeholders in Tiruchi to address sustainability and growth challenges. Representatives demanded urgent policy reforms and financial aid.

Key Takeaways

  • A 7-member committee formed by Union Minister Shivraj Singh Chouhan met FPO leaders in Tiruchi.
  • National data reveals only 4,009 out of 45,000 FPOs remain profitable after five years.
  • FPO representatives urged for pending equity grants and CEO remuneration support.
  • Tamil Nadu hosts nearly 10 lakh farmer members within various FPOs.

Tiruchi: In a significant move to bolster the agricultural ecosystem, the central committee formed to study issues affecting Farmer Producer Organisations (FPOs) held a high-level brainstorming session at the ICAR-National Research Centre for Banana (NRCB) on Tuesday.

The committee, constituted by Union Minister for Agriculture and Farmers Welfare Shivraj Singh Chouhan, aims to examine the systemic hurdles faced by FPOs and recommend remedial measures. The session, titled “Farmer producers organisations in Tamil Nadu: Performance, sustainability, challenges and future prospects,” saw participation from 135 FPO representatives across the state.

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The Sustainability Crisis

During the session, Dr. R. Selvarajan, Director of NRCB, highlighted a grim reality. Citing a National Academy of Agricultural Sciences report, he noted that while nearly 45,000 FPOs function nationwide, a mere 4,009 have remained profitable after five years. He identified inadequate training, lack of capital, and poor marketing infrastructure as the primary drivers of this failure.

Why This Matters

BozokMedia analysis shows that the economic leakage in the agricultural supply chain is massive. Committee member G. Ranganathan pointed out that intermediaries capture nearly ₹44,000 crore in the trade of 27 major commodities in Tamil Nadu. Strengthening FPOs is not just about farmer welfare; it is about reclaiming this massive economic value for the primary producers.

To transform FPOs from struggling entities into market powerhouses, the government must simplify compliance and prioritize direct market access.

FPO representatives presented a list of urgent demands, including the release of pending equity grants, financial support for CEO salaries, and exemptions from mandatory Registrar of Companies (ROC) audits. They also called for NAFED to procure produce directly from FPOs to ensure remunerative pricing and requested dedicated retail outlets at regulated markets.

Did You Know?: NABARD has promoted around 400 FPOs in Tamil Nadu, with approximately 250 currently operating successfully.

Frequently Asked Questions

1. What are the main reasons for FPO failures?
The main reasons include lack of adequate training, insufficient capital, and a lack of robust marketing networks.

2. How can FPOs get better prices for their produce?
By establishing direct procurement links with agencies like NAFED and setting up their own retail outlets or seed processing units.