Srinagar Establishes its First FPO and Exports Vegetables to the UAE

India’s growing interest in closer markets like the UAE has been visible to all, especially since India recently overtook Brazil in food Exports to the Emirates for the first time in 15 years. 

This Growing interest however is not something recent but something which has been mulled over for quite some time. In December of 2020, a 20-member delegation of businessmen and government officials from Jammu and Kashmir participated in the UAE-India Food Security Summit 2020 with an aim to promote its horticulture produce in the Middle East and tap the Gulf market 

And now that decision is paying of well as this year saw the establishment of the first-ever Farmer Producer Organisation in Srinagar and vegetables cultivated in Srinagar were also exported to Sharjah (UAE). If everything goes as planned, officials say that exporting veggies to foreign nations would create new possibilities for people farming vegetables in the Valley, particularly in Srinagar. Mohammad Ajaz Asad, the district development commissioner of Srinagar, has approved the establishment of one Farmer Produce Organisation (FPO) in Tengpora under NABARD's Central Sector Scheme of FPOs. 

Asad said the FPO is an institutional mechanism to reduce the cost of production, increase per unit production and facilitate better market linkage so as to enhance the income of farmers. “We will provide an end-to-end solution to the problems confronted by the farmers. They will be free to manage their affairs from the production level to post-harvest and marketing of their branded products,” he said. 

Officials said the FPO can become eligible to get equity grant support to the tune of ₹15 lakh per FPO and can avail of collateral-free credit guarantee support up to ₹2 crores from banks and other financial institutions. 

This is a major step taken by India to maintain its first lead over Brazil in the past 15 years in food supply exports to the UAE, which will pay off well if executed correctly.