Academics News

You want to do a sustainable profitable agriculture business with support of NABARD

If you are intrested in doing sustainable agribusiness this news is for you. Farmers producer organization (FPO) is run by group of farmers or producers and supported by NABARD. Govt of India issued 200 crore rupees for development and upliftment of producer organization . NABARD (National Bank for Agriculture and Rural Development) a govt of India bank support producers organization (PO) for doing business in agriculture sector. A producer organization is a company may establish by farmers, milkman, fisherman, artisans and craftsman. The producer organization goal is to generate a profitable business for small and margin land holding farmers. A producer organization is called farmers producer organization where the members are farmers. Details of farmers producer organization is listed below

Farmers Producer Organization (FPO)

What is FPO

Farmer producer organization is an organization registering under companies act

Managing by farmer or group of farmers

Producers are shares holders in a FPO

FPO is work for benefits for farmers

A part of profit is equal distributing to the share holder

Rest of profit is reinvesting for FPO business development

Benefits of FPO

Sale farm produce on standard price

Use of précise technology at low cost

Benefits from banks

Improvisation of running agribusiness

Increment in ease of doing business

Low farming input cost

Power to bargaining

Role of POPI (Producer Organization Promoting Institution)

Identification of cluster

Registration of producer organization

Producer organization management and organize farmers producers capacity building program

Providing consultation for smooth business operation and management

Who is eligible?

Individual or any organization, NGO and group of farmers

Factors of FPO and its role

Identifying the potential market for selling farm produce

Maintaining supply and demand in market

Encouragement for new investment and adoption of new technology

Identifying challenge in marketing distribution channel and market ecosystem

Studying unfavorable weather impact on market

Cluster identification , establishment of farmers club and self help group

Organizing farmers meeting

Studying market risk and prepare plan accordingly

Share cost

General cost of share is minimum rupees 10/-

Minimum 10 members is require for FPO formation and registration

Six steps of FPO formation

  1. Directors panel appointment
  2. Legal paper work
  3. Registration under companies act
  4. Appointment of director, CEO and other staff
  5. Obtaining FPO registration certificate
  6. Organizing first general meeting

How to do business with FPO

Identifying innovative business startup

Establishing seed processing or food processing unit

Preparing draft for step by step business plan

Collection of capital and its investment as per business plan

Development of information technology management and capacity building

Collaboration with shareholders and stakeholders

Creating network with other agencies and companies

Role of NABARD in FPO formation

NABARD helps in FPO formation and value addition

NABARD help in providing loans and market access

Value addition for FPO

  • Training
  • Exposure visit
  • Collaboration with Agriculture Universities, meetings with agriculture experts and ease of doing business
  • Business planning and extension activities
  • Providing grants for capacity building program

For detailed information click here

https://www.nabard.org/FPO/story_html5.html

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button