State of India’s Livelihood (SOIL) Report 2021: FPOs

The State of India’s Livelihood (SOIL) Report 2021 has stated that just 1-5 % of Farmer Producer Organisations (FPOs) have received funding under central government schemes introduced to promote them in the last seven years. Access Development Services, a national livelihoods support organisation has prepared the SOIL report.

• It has analysed only Farmer Producer Companies (FPC — FPOs registered under The Companies Act, 2013) since they make up a large majority of the organisations started in recent years.
• The concept of ‘Farmer Producer Organisations (FPO)’ consists of collectivization of producers especially small and marginal farmers so as to form an effective alliance to collectively address many challenges of agriculture such as improved access to investment, technology, inputs, and markets.
• The average farm size declined from 2.3 hectares (ha) in 1970-71 to 1.08 ha in 2015-16. The share of small and marginal farmers increased from 70% in 1980-81 to 86% in 2015-16.
• FPOs can help farmers compete with large corporate entrepreneurs.

• Social capital will develop in the form of FPOs, as it may lead to improved gender relations and decision-making of women farmers in FPOs.