Archive · 15 Sep 2025
Farmers Embrace FPOs, Boosting Agri Sector Equity
Farmers are forming groups called FPOs, and over 5 million farmers have become shareholders.
This allows them to buy supplies cheaper and sell their products more easily.
The government supports these groups with funding.
Many FPOs are now selling products online through platforms like Amazon and Flipkart.
These groups help farmers get better prices and access markets.
More than 1,100 FPOs have sales over a crore.
The government offers a matching grant of up to Rs 2,000 for each farmer member of the FPO, with a maximum limit of Rs 15 lakh per collective.
Over 5 million farmers have taken equity in over 10,000 FPOs in the last five years.
Farmers are forming groups (FPOs) to increase income.
Women farmers hold a 38 per cent share in these collectives.
The initiative to form 10,000 FPOs, backed by a budget of Rs 6,865 crore, was launched in February 2020.
Over 1,100 FPOs have crossed a business turnover of Rs 1 crore.
- Who
- Over 5 million farmers
- What
- Have taken equity in over 10,000 FPOs
- When
- In the last five years
- Where
- Primarily in Telangana, Uttar Pradesh, Andhra Pradesh, Madhya Pradesh, and Maharashtra
- Why
- To improve market access, reduce costs, and increase farmer income
Farmers View
Government View
Impact on Income
Farmers View
FPOs increase farmers' income and provide direct access to market benefits, bargaining power and improved market access.
Government View
Government aims at increasing farmers’ income through these FPOs and also helps in providing financial assistance
- FPOs with equity
- Over 10,000
- Farmers with equity
- Over 5 million
- Scheme start
- February 2020
- Budget for 5 years
- Rs 6,865 crore
- FPOs turnover in FY25
- Rs 15,282 crore (cumulative)
- Women farmers share
- 38%
- FPOs with 1+ crore turnover
- 1,100+
