Govt to Soon Come Up with Institutional Instruments for FPOs Financing: Faiz Ahmad Kidwai

The National Association of Farmer Producer Organizations (NAFPO), in collaboration with Samunnati, launched the much-anticipated ‘State of the Sector Report 2024’ on October 28, 2024. This comprehensive report sheds light on the key challenges and emerging opportunities for Farmer Producer Organizations (FPOs) across India, aiming to drive strategic policy-making and sectoral growth.

The report was officially unveiled in presence of distinguished dignitaries, including Prof. Ramesh Chand, Member of NITI Aayog, Faiz Ahmad Kidwai, (Additional Secretary Ministry of Agriculture & Farmers Welfare, GoI, Pravesh Sharma, Ex-IAS & Director - NAFPO and Dheeraj Sahu, MD, SFAC. The ‘State of the Sector Report 2024’ serves as a valuable resource for agencies, policymakers, and stakeholders, offering actionable insights to address existing gaps and enhance the effectiveness of FPOs.

Faiz Ahmad Kidwai, Additional Secretary, Ministry of Agriculture & Farmers Welfare, GoI, congratulated NAFPO and Samunnati for their efforts in producing this landmark report. During the launch, Faiz Said “India is on a mission to develop FPOs as thriving enterprises, driven by national policies and grassroots input. We are encouraging states to design their own FPO policies in alignment with the national agenda, ensuring a cohesive approach to agricultural development,”. States must come forward with their own FPO policies to strengthen mission FPO in India added, Faiz.

He highlighted the Ministry of Agriculture’s vision of expanding the reach of FPOs, particularly through the 10,000 FPO initiative, which has already impacted over 2.5 million farmers. Kidwai also noted that the Ministry aims to expand this initiative to bring even more farmers under its fold, facilitating enterprise-driven growth through marketing linkages, input licensing, and streamlined market access.

In his address, Dheeraj Sahu emphasized the report’s role in “recalibrating FPO strategies,” envisioning it as a roadmap for the sector’s sustained growth.

Prof. Ramesh Chand, Member of NITI Aayog spoke on the evolving role of FPOs in reshaping India’s agricultural landscape, underlining the importance of the creation of federated FPOs to increase farmers’ bargaining power. “Strengthening FPO federations, from district to national levels, will enable farmers to navigate price fluctuations and ensure stability during times of excess supply,” he stated.

“Samunnati is proud to partner with NAFPO to come up with SoFPO report 2024. This enriching report will certainly bring great impact on the future of FPOs in India,” said Anil Kumar SG, Founder & CEO, Samunnati.

The report further underscores the government’s commitment to creating a supportive ecosystem for FPOs through initiatives like ONDC and eNAM, which are expected to facilitate market access and drive FPO growth. With over 75,000 registered FPOs, of which 45,000 are operational, India is well-positioned to enhance farm registry management and empower FPOs as critical economic entities., said Pravesh Sharma during the launch.

The launch of the ‘State of the Sector Report 2024’ marks a significant step in India’s journey toward a self-reliant, empowered farming community, aligning with the broader goal of transforming FPOs into dynamic agrarian enterprises.