FPOs & Agri-value Chains

Farmer Producer Organisations (FPOs) and agri-value chains strengthen collective farming, improve market integration, enhance value addition, and increase farmers’ income by linking producers with input, processing, logistics and marketing systems across India.

Key Beneficiaries

  • Small and marginal farmers
  • Women farmers and SHG-linked producers
  • Farmer Producer Organisations and cooperatives
  • Agri-entrepreneurs and rural startups
  • Horticulture and high-value crop growers

Background

  • Y.K. Alagh Committee (2000-01) recommendations led to the Companies (Amendment) Act, 2002, introducing the concept of “Producer Companies”.
  • The movement gained momentum with the 2020 Central Sector Scheme, which provided financial assistance of ₹18 lakh per FPO for five years as handholding support and matching equity ....
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