The Modi government has been attempting to make some reforms like e-markets to boost the rural economy, Farmer Producer Organizations (FPOs) and the Model Contract Farming Act, 2018. As Indian farmers have the smallest landholding on the planet, they lack individual bargaining scope in the open market for their little produce. In such a situation, the FPOs can give them an important edge since they can pool in their produce, put resources into cold storerages and better burgain with enormous purchasers along these lines eliminating the mediators in the business and connect themselves to the market in a more direct manner.
Simultaneously, FPOs need to go past simply being “farm cooperatives” and turn themselves into flourishing entrepreneurial clusters. The FPO model ought to be extended with large number of impetus. The govt. needs to step in to make a couple of model FPOs in India. An official from the Ministry of Agriculture can play the job of an enabling agent and facilitator in these model FPOs and guarantee they gain access to the tax and other incentives. A reasonable arrangement for FPOs will urge agricultural entrepreneurs to feel free to emulate the success story of the famous milk cooperative company Amul.
FPOs can be an incredible model for value added agribusiness. For instance, a FPO of farmers who produce ragi or finger millet, a well known staple in the food habit of a large number of individuals in Karnataka, can begin making value added products from their harvest. With the Karnataka government promoting ragi as another super food, similar to quinoa, there is an incredible opportunity for an FPO to look at making value added items like ragi health drinks, multigrain noodles, ragi biscuits, ragi vermicelli and many more. An entire micro entrepreneurial enterprise cluster can come to an all ready urban market.
These FPOs can tie up with top business schools to fabricate the expertise for building up a robust innovative business ecosystem that prompts the formation of an energetic rural economy. If rural farmers can offer produce to the world directly then we will see the growing influence of a micro-entrepreneurial rural agronomy.
