Over 50 Lakh Farmers Join 10,000 FPOs In Five Years

India’s drive to encourage farmer-producer associations (FPOs) has gained pace.

In the last five years, over 50 lakh cultivators have turned stakeholders in above 10,000 FPOs, as stated by the Department of Agriculture and Farmers’ Wellbeing.

The figures indicate a rising pattern of cultivators choosing grouped power to reduce expenses, widen market access, and ensure improved earnings.

Collective Strength and Women’s Contribution

The idea behind FPOs is simple, small and marginal farmers come together to pool resources and negotiate better deals. By aggregating demand, they purchase fertilisers, crop protection products, and equipment at cheaper rates.

This scale has reduced input costs and improved the collective’s bargaining power.

Women farmers have emerged as a strong force in this model. They account for 38 per cent of the total shareholders.

For many, participation in FPOs means direct access to markets without relying on middlemen.

Some collectives have even tapped into e-commerce platforms such as Amazon and Flipkart, while over 200 groups have started selling through the Government e-Marketplace (GeM).

Figures by state show Telangana on top with 0.67 million shareholders.

Uttar Pradesh secures second place with 0.59 million, Andhra Pradesh logs 0.57 million, Madhya Pradesh logs 0.32 million, and Maharashtra with 0.3 million.

Together, these five states contribute nearly half of the total farmer membership.

Business Growth and Government Support

The Centre launched the scheme to create 10,000 FPOs in February 2020 with a budget of Rs 6,865 crore. By FY25, the combined turnover of these collectives crossed Rs 15,282 crore.

Encouragingly, more than 1,100 FPOs have achieved annual business of over Rs 1 crore.

To sustain their growth, the government provides a matching grant of up to Rs 2,000 per farmer member, capped at Rs 15 lakh for each FPO.

Many collectives have also expanded into distribution networks. Over 5,880 hold seed licences, more than 5,500 are licensed to distribute fertilisers, and 400 operate agrochemical dealerships.

These channels ensure that discounts from dealers directly benefit member farmers.

FPOs are legally registered under frameworks like the Companies Act, 2013 and the State Cooperative Societies Acts.

Their growing presence is reshaping rural markets. With stronger turnovers and wider participation, they are set to become a cornerstone of India’s efforts to raise farmer incomes and build resilient farm-based enterprises.

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