FPO (Farmers' Producer Organization): A legal entity formed by primary producers like farmers, fishermen, weavers, etc. It is a form of collective farming to improve income and livelihood.
In 2010, a group of small farmers in Nashik, Maharashtra, formed Sahyadri Farmers’ Producer Company Ltd. to safeguard their agricultural interests. Thirteen years later, the FPO has reported a turnover of Rs.1,007 crore for 2022-23, marking a 28% growth from the previous year. The FPO has diversified into 48 FPCs, each focusing on a specific horticulture crop or zone. During the fiscal year 2023, they processed and exported about 2,75,327 tonnes of produce from 40,000 acres cultivated by 24,500 affiliated farmers. The revenue included Rs.352 crore from exports and Rs.654 crore from domestic markets. The FPO has also invested Rs.558 crore in infrastructure and generated about 1,300 full-time and 4,000 seasonal jobs.
Economic Growth: The FPO's turnover of Rs.1,007 crore and 28% growth rate indicate a robust economic model that can be replicated.
Diversification: The formation of 48 FPCs shows a strategic approach to diversify risks and focus on specialized horticulture crops.
Export and Domestic Balance: With Rs.352 crore from exports and Rs.654 crore from domestic markets, the FPO has a balanced revenue stream, making it resilient to market fluctuations.
Job Creation: The FPO has generated significant employment, offering 1,300 full-time and 4,000 seasonal jobs, thus contributing to the local economy.
Infrastructure Investment: The investment of Rs.558 crore in infrastructure indicates a long-term vision and contributes to the overall development of the agricultural sector.
Model for Replication: Sahyadri Farms serves as a successful model for how collective farming through FPOs can lead to economic growth, diversification, and sustainable development in agriculture.
This case study serves as an inspiration and a blueprint for the establishment and growth of FPOs in other regions, potentially revolutionizing the agricultural sector.