THE Institute of Cost Accountants of India, Nagpur Chapter recently organised a webinar on ‘Promoting and nurturing of Farmer Producer Organisations (FPOs)’. H M B Murthy, Secretary of Nageshwara Charitable Trust (NCT), a Producer Organisation Promoting Institution (POPI) for farmers was the keynote speaker. The event commenced with welcome address and inauguration of the session by CMA Anil Verma, Chairman of Nagpur Chapter of Cost Accountants. He highlighted about the collectivisation of producers, especially small and marginal farmers into producer organisations has emerged as one of the most effective pathways to address the many challenges of agriculture, but most importantly, improved access to investments, technology, inputs and markets.

 

H M B Murthy said that the Department of Agriculture and Cooperation, Ministry of Agriculture, Government of India has identified farmer producer organisation registered under the special provisions of the Companies Act, 1956 to mobilise farmers and build their capacity to collectively leverage their production and marketing strength. “FPO is a hybrid of cooperative society and private limited company. It offers a statutory and regulatory framework that creates the potential for producer owned enterprises to compete with other enterprises on a competitive footing,” he said.

 

The main qualifying criterion for an FPO to attract benefits under various schemes and programmes of the Central and State Governments is that it must be a body registered and administered by farmers and the organisation must be focused on activities in the agriculture and allied sectors. He said that the purpose of FPO is to collectivise small farmers or producers for backward linkages for inputs like seeds, fertilizers and credit, insurance, knowledge, technology and extension services and forward linkages such as collective marketing, processing, value addition, market led agriculture production etc.

 

The effort in promoting FPO is to provide collective bargaining power for small and marginal farmers and producers. Government has taken many initiatives at different times. In Union Budget (2014-15) a fund of Rs 200 crore was allocated for promotion of 2,000 Farmer Producer Organisations (FPOs). In Union Budget (2020-21) an allocation of Rs 6,866 crore was made for promotion of 10,000 FPOs, Murthy added. CMA P V Bhattad, Past President of the Institute of Cost Accountants of India, highlighted the way forward for the FPOs whereas CMA Dr Sreehari Chava emphasised the role of cost accountants in effective functioning of FPOs. The workshop was attended by Past Chairman, senior members, members in practice, FPOs and farmers.The session was moderated by CMA Jyotsna Rajpal. CMA Rachana Dixit summed up the proceedings and CMA V V S Murty, Secretary of Nagpur Chapter of Cost Accountants proposed a vote of thanks.