Farmers Producer Organisations (FPOs)
24-12-2024
09:30 AM
1 min read

Overview:
The Indian Council for Research on International Economic Relations (ICRIER) recently analysed challenges faced by India’s Farmer Producer Organisations (FPOs) and suggested necessary reforms.
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.

Q1: What is ICRIER?
ICRIER (Indian Council for Research on International Economic Relations) is an autonomous, policy-oriented, not-for-profit think tank based in India. Established in 1981, it researches various economic policy issues to inform and influence policymaking in India, particularly in areas such as trade, investment, macroeconomics, and technology.
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