To boost farmers’ incomes and reduce reliance on middlemen, the Government of India has undertaken multiple initiatives to link Farmer Producer Organizations (FPOs) directly with industries. The Central Sector Scheme for Formation and Promotion of 10,000 FPOs enables farmers to collectively market their produce and secure better deals. Through the National Agriculture Market (e-NAM), FPOs engage in transparent, competitive trading.
Cluster-Based Business Organizations (CBBOs) help connect FPOs with buyers, while Buyer-Seller Meets (BSMs) provide platforms for procurement partnerships. Digital tools like ONDC, e-NAM, and GeM have expanded reach—over 9,000 FPOs are on ONDC and 216 on GeM.
FPOs have forged backward linkages with agri-input companies like Bayer, Syngenta, and NSC, and forward linkages with major players such as ITC, Reliance, Patanjali, Big Basket, and Mother Dairy. So far, 171 industries have partnered with 430 FPOs under SFAC for sourcing farm produce and supplying inputs.
FPOs are also being empowered with input licenses to establish formal ties with agri-input sectors. These linkages mark a significant step toward an integrated value chain. The update was shared by Minister Ramnath Thakur in Rajya Sabha.
