Farmer’s Producer Organization (FPOS): Doubling the Farmers Income

Abstract

Even though it still accounts for roughly 55% of all employment, the agriculture sector currently contributes only 14% of the GDP (GoI, 2014). According to the Agricultural Census of 2020, there were more than 138 million farm holdings in India. Of these, approximately 24.8 million were small farm holdings with individual operational land holding dimensions of less than 2 hectares, and approximately 92.8 million were marginal farm holdings, defined as having a man or woman operational landholding of less than 1 hectare. Though they will encounter many difficulties, small and marginal farmers in India will undoubtedly remain for a very long time. As a result, what happens to them has a significant impact on the entire financial system as well as the agricultural zone in particular. Consequently, their actions have a significant impact on the agricultural region in particular and the financial system as a whole, both of which affect people's ability to make a living. The current challenge is to bring these smallholders together and alter their economic outlook. The aforementioned circumstances necessitate radical measures and crucial structural changes aimed at reviving Indian agriculture. The most beneficial way for Farmer Producer Organisation (FPO) to fulfil the wishes of farmers at the local level is through the Farmer Producer Company (FPC) instrument, which is registered under the Companies Act. Encouraging small farmers in particular to join member-owned producer organisations, tripling their income, and boosting the nation's agricultural sector's output, productivity, and profitability are all crucial objectives.