The significance of Farmer Producer Organizations (FPOs) and Farmer Producer Companies (FPCs) is made up of both farmers and non-farmers who work together to offer farmers end-to-end support in agriculture. These entities serve as pivotal instruments in empowering farmers, particularly smallholders, by aggregating their resources, enhancing market access, and providing various support services. FPOs play a crucial role in improving the socio-economic status of farmers, fostering rural development, and promoting sustainable agricultural practices. Through collective action and cooperative principles, FPOs enable farmers to overcome challenges such as limited access to credit, inputs, technology, and market information. In essence, FPOs represent a pathway towards inclusive growth, resilience, and prosperity in the agricultural sector.
A producer company is basically a corporate body registered as a Producer Company under Companies Act, 2013. Its main activities consists of production, harvesting, processing, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the members or import of goods or services for their benefit. It also includes, promoting mutual assistance, welfare measures, financial services, insurance of producers or their primary produce.