Farmer Producer Organisations Lead Climate-Resilient Farming Amid El-Nino Threat

Farmer Producer Organisation Latest News

• With the southwest monsoon expected to be weak due to El Niño conditions, the Union Ministry of Agriculture is leveraging the network of 10,000 Farmer Producer Organisations to promote drought-resistant crops and climate-resilient farming practices.

About Farmer Producer Organisations (FPOs)

• A Farmer Producer Organisation is a collective body of primary producers, primarily small and marginal farmers, formed to enhance productivity, profitability, and bargaining power through collective action. 
• FPOs are registered either under the Companies Act (as Producer Companies) or under the Cooperative Societies Act of respective states.
• Concept and Structure
  • FPOs combine the strengths of two organisational forms:
  • The professional management of companies.
  • The member-driven democratic governance of cooperatives.
  • This hybrid structure enables farmers to pool resources, access institutional credit, procure quality inputs, and market their produce collectively, thereby capturing greater value from the agricultural value chain.
• Objectives of FPOs
  • Aggregating produce of small farmers for better market access.
  • Improving bargaining power of farmers in input and output markets.
  • Reducing transaction costs through collective action.
  • Providing technical support and capacity building.
  • Facilitating access to credit, insurance, and government schemes.
  • Promoting value addition and processing of agricultural produce.
  • Adopting modern technology and climate-resilient practices.

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Government Initiatives for FPOs

• Formation and Promotion of 10,000 FPOs Scheme
  • Launched in 2020 with an outlay of Rs. 6,865 crore, this Central Sector Scheme aims to form and promote 10,000 new FPOs across the country by 2027-28. 
• Key features include:
  • Financial support of up to Rs. 18 lakh per FPO over three years.
  • Equity grant of up to Rs. 15 lakh per FPO.
  • Credit guarantee facility up to Rs. 2 crore.
  • Cluster-based business organisations approach.
  • Implementation through Implementing Agencies (IAs) such as NABARD, NCDC, SFAC, and state agencies.
• Other Supporting Initiatives
  • NABARD’s Producer Organisation Development Fund (PODF) for credit support.
  • Small Farmers’ Agribusiness Consortium (SFAC) providing equity grants and credit guarantees.
  • Agricultural Infrastructure Fund (AIF) with Rs. 1 lakh crore for farm-gate infrastructure.
  • Mission for Integrated Development of Horticulture (MIDH) support.

Significance of FPOs

• FPOs play a transformative role in Indian agriculture:
  • Economic empowerment of small and marginal farmers who constitute 86% of India’s farmers.
  • Access to markets including e-NAM and direct procurement.
  • Reduced dependence on middlemen, improving farmer incomes.
  • Adoption of best practices in cultivation and post-harvest management.
  • Channel for government schemes and subsidies.
  • Platform for climate-resilient agriculture and sustainable practices.

Current Status

• Over 10,000 FPOs have been formed under the scheme.
• They represent more than 63 lakh farmer members across India.
• FPOs are active across all major agricultural states.
• They cover diverse activities including crop cultivation, horticulture, dairy, fisheries, and beekeeping.

News Summary

• The India Meteorological Department (IMD) has projected that the southwest monsoon (June-September) 2026 is likely to be at 90% of the Long Period Average (LPA), with a model error of ±4%. The LPA, based on data from 1971 to 2020, is 87 cm for the country as a whole.
• More concerning is the projection for the monsoon core zone, where rainfall is expected to be below normal (less than 94% of LPA). 
• The monsoon core zone covers most of India’s rain-fed agriculture areas, including Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Chhattisgarh, Jharkhand, Karnataka, Telangana and Odisha.

Ministry’s Strategic Response

• The Union Ministry of Agriculture is stepping up preparations to tackle the challenges of a weak monsoon by leveraging the vast network of FPOs:
  • Prepared a list of 10,000 FPOs that have adopted climate-resilient farming practices.
  • Identified FPOs cultivating drought-resistant crops like millets.
  • Promoting mulching for moisture conservation, drip irrigation, and mixed cropping systems.
  • Hosting daily webinars to promote natural farming, one state at a time.
  • Planning a series of webinars to promote climate-resilient farm practices.

Climate-Resilient Practices Being Promoted

• Mulching for Moisture Conservation
  • Officials describe mulching as one of the simplest and most effective ways to conserve soil moisture:
    • Covering soil surface with crop residues or organic materials.
    • Reduces evaporation losses significantly.
    • Suppresses weeds and improves soil health.
    • Low-cost intervention accessible to small farmers.
• Drought-Resistant Crops
  • The Ministry is encouraging cultivation of:
    • Millets (ragi, jowar, bajra) – naturally drought-resistant.
    • Pulses (moong, urad, kulthi/horse gram) – require less water.
    • Mixed cropping to spread risk.
    • These crops are naturally resilient, require less water, and perform well in marginal environments.

Success Stories from Jharkhand

• Two FPOs from Jharkhand have emerged as torchbearers:
• Torpa Mahila Krishi Bagwani Swavlambi Sahkari Samiti Limited
  • Located in Khunti district, Jharkhand.
  • Has about 4,000 farmer members.
  • Adopting natural mulching using straw and gunny bags.
  • Planning to shift from paddy to pulses and millets like ragi in kharif 2026.
  • Encouraging other farmers to plant water-efficient crops.
  • The director of this FPO mentioned that the shift is significant; most farmers traditionally grew paddy in the kharif season, but with weak monsoon projections, they are now switching to crops that require less water.
• Senem Nirem Farmer Producer Company Limited
  • Also adopting natural mulching techniques.
  • Low-cost interventions helping retain moisture in soil for longer periods.
  • Enabling crops to withstand dry spells more effectively.

Source: IE | TH