Farmers Producer Organisations (FPOs)

What is a Farmers Producer Organisation (FPO)?

• Definition: An FPO is a type of Producer Organisation (PO) formed by farmers. It operates as an organisation of the producers, by the producers, and for the producers.
• Supporting institution: The Small Farmers’ Agribusiness Consortium (SFAC) plays a vital role in promoting FPOs across India.
• Purpose: A PO represents producers of various goods, including agricultural products, non-farm items, and artisan goods.
  • It can adopt legal forms such as producer companies, cooperative societies, or other entities that allow members to share profits and benefits.
• Ownership: The ownership of an FPO lies entirely with its member farmers. It operates on the principle of shared decision-making and benefits.

Legal Framework for FPOs

• Registration under Legal Acts: FPOs can be registered under the following:
  • Companies Act, 1956 or Companies Act, 2013.
  • Societies Registration Act, 1860.
  • Public Trusts Act, 1882.

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