Why in the News?
- With the southwest monsoon expected to be weak due to El Niño conditions, the Union Ministry of Agriculture is leveraging the network of 10,000 Farmer Producer Organisations to promote drought-resistant crops and climate-resilient farming practices.
What’s in Today’s Article?
- About FPO (Concept, Structure, Objectives, Govt Initiatives, Significance, etc.)
- News Summary (El Nino Situation, Govt’s Preparedness, Success Stories, etc.)
About Farmer Producer Organisations (FPOs)
- It is a collective body of primary producers, primarily small and marginal farmers, formed to enhance productivity, profitability, and bargaining power through collective action.
- FPOs are registered either under the Companies Act (as Producer Companies) or under the Cooperative Societies Act of respective states.
- Concept and Structure
- FPOs combine the strengths of two organisational forms:
- The professional management of companies.
- The member-driven democratic governance of cooperatives.
- This hybrid structure enables farmers to pool resources, access institutional credit, procure quality inputs, and market their produce collectively, thereby capturing greater value from the agricultural value chain.
- Aggregating produce of small farmers for better market access.
- Improving bargaining power of farmers in input and output markets.
- Reducing transaction costs through collective action.
- Providing technical support and capacity building.
- Facilitating access to credit, insurance, and government schemes.
- Promoting value addition and processing of agricultural produce.
- Adopting modern technology and climate-resilient practices.
Government Initiatives for FPOs
- Formation and Promotion of 10,000 FPOs Scheme
- Launched in 2020 with an outlay of 6,865 crore, this Central Sector Scheme aims to form and promote 10,000 new FPOs across the country by 2027-28.
- Key features include:
- Financial support of up to Rs 18 lakh per FPO over three years.
- Equity grant of up to Rs 15 lakh per FPO.
- Credit guarantee facility up to Rs 2 crore.
- Cluster-based business organisations approach.
- Implementation through Implementing Agencies (IAs) such as NABARD, NCDC, SFAC, and state agencies.
- Other Supporting Initiatives
- NABARD's Producer Organisation Development Fund (PODF) for credit support.
- Small Farmers' Agribusiness Consortium (SFAC) providing equity grants and credit guarantees.
- Agricultural Infrastructure Fund (AIF) with Rs 1 lakh crore for farm-gate infrastructure.
- Mission for Integrated Development of Horticulture (MIDH) support.
Significance of FPOs
- FPOs play a transformative role in Indian agriculture:
- Economic empowerment of small and marginal farmers who constitute 86% of India's farmers.
- Access to markets including e-NAM and direct procurement.
- Reduced dependence on middlemen, improving farmer incomes.
- Adoption of best practices in cultivation and post-harvest management.
- Channel for government schemes and subsidies.
- Platform for climate-resilient agriculture and sustainable practices.
Current Status
- Over 10,000 FPOs have been formed under the scheme.
- They represent more than 63 lakh farmer members across India.
- FPOs are active across all major agricultural states.
- They cover diverse activities including crop cultivation, horticulture, dairy, fisheries, and beekeeping.
News Summary
- The India Meteorological Department (IMD) has projected that the southwest monsoon (June-September) 2026 is likely to be at 90% of the Long Period Average (LPA), with a model error of ±4%. The LPA, based on data from 1971 to 2020, is 87 cm for the country as a whole.
- More concerning is the projection for the monsoon core zone, where rainfall is expected to be below normal (less than 94% of LPA).
- The monsoon core zone covers most of India's rain-fed agriculture areas, including Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Chhattisgarh, Jharkhand, Karnataka, Telangana and Odisha.
Ministry's Strategic Response
- The Union Ministry of Agriculture is stepping up preparations to tackle the challenges of a weak monsoon by leveraging the vast network of FPOs:
- Prepared a list of 10,000 FPOs that have adopted climate-resilient farming practices.
- Identified FPOs cultivating drought-resistant crops like millets.
- Promoting mulching for moisture conservation, drip irrigation, and mixed cropping systems.
- Hosting daily webinars to promote natural farming, one state at a time.
- Planning a series of webinars to promote climate-resilient farm practices.
Climate-Resilient Practices Being Promoted
- Mulching for Moisture Conservation
- Officials describe mulching as one of the simplest and most effective ways to conserve soil moisture:
- Covering soil surface with crop residues or organic materials.
- Reduces evaporation losses significantly.
- Suppresses weeds and improves soil health.
- Low-cost intervention accessible to small farmers.
- Drought-Resistant Crops:
- The Ministry is encouraging cultivation of:
- Millets (ragi, jowar, bajra) - naturally drought-resistant.
- Pulses (moong, urad, kulthi/horse gram) - require less water.
- Mixed cropping to spread risk.
- These crops are naturally resilient, require less water, and perform well in marginal environments.
Success Stories from Jharkhand
- Two FPOs from Jharkhand have emerged as torchbearers:
- Torpa Mahila Krishi Bagwani Swawlambi Sahkari Samiti Limited
- Located in Khunti district, Jharkhand.
- Has about 4,000 farmer members.
- Adopting natural mulching using straw and gunny bags.
- Planning to shift from paddy to pulses and millets like ragi in kharif 2026.
- Encouraging other farmers to plant water-efficient crops.
- The director of this FPO mentioned that the shift is significant, most farmers traditionally grew paddy in the kharif season, but with weak monsoon projections, they are now switching to crops that require less water.
- Senem Nirem Farmer Producer Company Limited
- Also adopting natural mulching techniques.
- Low-cost interventions helping retain moisture in soil for longer periods.
- Enabling crops to withstand dry spells more effectively.
