Have Over 50 Lakh Farmers Become Shareholders in 10,000 FPOs in Just 5 Years?
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Synopsis
Over the last five years, a significant shift has occurred in the agricultural sector, with more than 5 million farmers becoming shareholders in 10,000 FPOs. This movement not only empowers farmers but also enhances their economic prospects through collective strength.
Key Takeaways
- 5 million farmers now shareholders in FPOs.
- 10,000 FPOs established in five years.
- 38% of shares held by women farmers.
- Cumulative turnover of FPOs exceeded Rs 15,282 crore.
- Government support includes matching grants for members.
Mumbai, Sep 15 (NationPress) An increasing number of farmers are becoming shareholders in farmer-producer organisations (FPOs), with over 5 million farmers having taken equity in over 10,000 FPOs in the last five years, according to government data.
The trend of farmers increasing their shareholdings in FPOs has led to enhanced local aggregation and lower production costs through economies of scale.
This has resulted in the collectivisation of small and marginal farmers, enabling member farmers to access cheaper agricultural inputs, including fertilisers, crop protection products, and equipment, as reported by government officials.
Women farmers hold a 38 percent share in these collectives. FPOs aim to boost farmers' income and provide small farmers with direct access to significant market benefits, improved bargaining power, and enhanced market access.
Telangana has 0.67 million shareholders, followed by Uttar Pradesh with 0.59 million, Andhra Pradesh (0.57 million), Madhya Pradesh (0.32 million), and Maharashtra (0.3 million), collectively representing 50 percent of the total shareholders, as per data from the agriculture ministry.
The initiative to establish 10,000 FPOs, supported by a budget of Rs 6,865 crore over five years, was launched in February 2020. By FY25, the cumulative turnover of FPOs surpassed Rs 15,282 crore.
These collectives were registered under various provisions, including the Companies Act, 2013, for farmer-producer companies, the State Cooperative Societies Acts, and the Multi-State Cooperative Society Act.
To sustain these collectives, the government provides a matching grant of up to Rs 2,000 for each farmer member of the FPO, with a maximum limit of Rs 15 lakh per collective.
Over 5,880 FPOs hold seed licenses and over 5,500 farmer collectives are licensed to distribute fertilisers. More than 400 FPOs operate dealerships for agrochemical distribution, ensuring that dealer discounts are passed on to member farmers.
Additionally, over 200 collectives are selling products on platforms like GeM, while agricultural product sales have started significantly through Amazon and Flipkart.
Over 1,100 farmer-producer organisations (FPOs), from the total 10,000 launched under the Centre's special incentive scheme, have achieved a business turnover exceeding Rs 1 crore, according to figures compiled by the Ministry of Agriculture and Farmers Welfare.
Point of View
The surge in farmer-shareholders in FPOs illustrates a remarkable shift towards collectivisation in agriculture. By empowering small and marginal farmers, this initiative not only enhances their bargaining power but also promises a more sustainable and profitable agricultural ecosystem.
NationPress
20/09/2025
Frequently Asked Questions
What are FPOs?
FPOs, or farmer-producer organisations, are collectives that enable farmers to work together to enhance their bargaining power and improve market access.
How many farmers are involved in FPOs?
Over 5 million farmers have become shareholders in more than 10,000 FPOs in the past five years.
What benefits do FPOs provide?
FPOs provide farmers with access to cheaper agricultural inputs, enhanced market opportunities, and increased income potential.
What is the government support for FPOs?
The government offers matching grants for each farmer member of the FPO, up to Rs 2,000, with a maximum limit of Rs 15 lakh per collective.
Where can FPOs sell their products?
FPOs can sell their products on various platforms, including GeM, Amazon, and Flipkart.
