Archive · 28 Sep 2025
FPCs Barred from Nodal Roles in Government Procurement
The government has changed the rules about how it buys crops from farmers.
Now, Farmer Producer Companies (FPCs) and Farmer Producer Organizations (FPOs) cannot be the main groups that handle the buying for the government.
Instead, the government will involve Primary Cooperative Societies in procurement.
The government buys crops under the Price Support Scheme (PSS) and Price Support Fund (PSF) to help farmers.
Some people think this is bad because FPCs use government procurement to learn about business.
Others think this is good because the FPCs charged commission and did little work.
The move aims to improve how the government buys crops from farmers.
FPCs and FPOs are no longer allowed to be nodal agencies for government procurement.
Primary Cooperative Societies are to be prioritized for procurement.
FPCs and FPOs can only operate procurement in areas where their members reside.
The government procures agricultural commodities under the Price Support Scheme (PSS) and Price Support Fund (PSF).
Some FPCs in Maharashtra faced corruption allegations in onion procurement.
- Who
- Joint Secretary of Department of Agriculture & Farmers Welfare P Anbalagan
- What
- Issued a directive barring FPCs and FPOs from being nodal agencies for government procurement.
- When
- Not specified in article
- Where
- Government procurement operations across states and union territories
- Why
- To ensure efficient and transparent government procurement
Proponents of FPCs
Proponents of Change
Impact on FPCs
Proponents of FPCs
The move hinders FPCs' development and ability to build business knowledge and infrastructure.
Proponents of Change
The move is welcomed; FPCs just charged commissions.
- Action
- FPCs/FPOs barred from being nodal agencies for government procurement
- Government Program
- Price Support Scheme (PSS), Price Support Fund (PSF)
- Minimum Support Price (MSP)
- Farmers allowed to sell commodities under MSP
- Affected Parties
- Farmer Producer Companies (FPCs) and Farmer Producer Organisations (FPOs)
- Official
- Joint Secretary of Department of Agriculture & Farmers Welfare P Anbalagan