Farmer’s Produce Organization through Common Services Centers (CSCs) NEW FPO REGISTION

Note on Farmer’s Produce Organization through Common  Services Centers (CSCs)  

1. Background  

1.1 Farmers Produce Organization (FPO)  

∙ Farmers Producer Organization (FPO) is a legal entity formed by primary producers  where the members are farmers.A producer company is basically a body  corporateregistered as Producer Company under Companies Act,1956. 

∙ A FPO can be a producer company, a cooperative society or any other legal form which  provides for sharing of profits/benefits among the farmer members. The main aim of FPO  is to ensure better income for the producers through an organization of their own. 

∙ Farmer organization is a group of farmers with specialinterests and concerns with  developed structure, formalmembership, status and functions for its members andwith a  set of byelaws and rules like a company. 

∙ Mobilizing farmers into groups of between 15-20members at the village level (called  Farmer InterestGroups or FIGs) and building up their associations to anappropriate  federating point i.e. Farmer ProducerOrganizations (FPOs). 

∙ Farmers Producer organizations are groups of ruralproducers coming together based on  the principle ofmembership, to pursue specific common interests of theirmembers and  developing technical and economicactivities that benefit their members and  maintainingrelations with partners operating in their economic andinstitutional  environment. 

∙ Budgetary support: A new Central  

Sector Scheme titled “Formation and  

Promotion of Farmer Produce  

Organizations (FPOs)” to form and  

promote 10,000 new FPOs with a total  

budgetary provision of Rs. 4496.00  

crore for five years (2019-20 to 2023- 

24) with a further committed liability  

of Rs. 2369.00 crore for the period  

from 2024-25 to 2027-28 towards the  

handholding of each FPO for five years from its aggregation and formation.

1.2 Common Service Centres (CSCs)  

∙ Common Services Centres (CSCs) are a strategic cornerstone of the Digital India  programme. They are the access points for delivery of various electronic services to  citizen in India, thereby contributing to a digitally and financially inclusive society. 

∙ Currently CSCs are supporting farmers as one stop solution for various needs. The  services available at CSCs for farmers include: 

a. Insurance: Pradhan  

MandtriFasalBimaYojana (PM FBY) 

b. Pension:Pradhan Mantri Kisan  

MandhanYojana (PM KMY) 

c. Loan: Kisan Credit Card (KCC) 

d. Financial Support: Pradhan Mantri  

KissanSamman Nidhi Yojana (PM KISAN) 

e. Tele Consultancy: Consultation with KVK  

Scientist & Tele PashuChkitsa 

f. Online Sale Platform: Sale of farmers  

produce through online platforms (CSC  

eGrameen Store)  

g. Soil Testing  

h. Purchase of Seeds and Fertilizers  

i. Advisory services for farmers  

2. Features of Farmers Producer’s Organization (FPO)  

∙ It is formed by a group of producers for either farm or non-farmactivities ∙ It is a registered body and a legal entity 

∙ Producers are shareholders in the organization 

∙ It deals with business activities related to the primaryproduce/product ∙ Common interest, It works for the benefit of the member producers 

∙ Both long and short term objectives and plan of action 

∙ Enrolment through membership fee 

∙ Democracy through regular elections 

∙ Capacity of the organization should be strong to ensure its long termstability and  sustainability 

∙ Linkages and network with other Farmer Producer Organizations

∙ Committed leadership 

∙ A part of the profit is shared amongst the producers, rest of thesurplus is added to its  owned funds for business expansion 

3. CSCs Kisan Kendras  

∙ CSCs are interacting with farmers on daily basis for their one or another need. CSCs  presence in the field can be utilized in the formation of FPOs. 

∙ CSCs can support the farmers and produces in the formation of FPOs at block level in the  form of CSC Kisan Kendras (CKK). 

∙ It is proposed to setup 6,000 CSC Kisan Kendras as FPO, one in every block. ∙ CSC Kisan Kendras can act as one stop solution for all the needs of farmers. ∙ The proposed services at CSC Kisan Kendras are; 

a. CSC Farmers Services (PMKMY, PMKISAN, PMFBY, KCC, Tele Consultation, Soil  Testing & others) 

b. Sale of various farmers produce (Online & offline) 

c. Branding & marketing strategy for farmer’s produce 

d. Agriculture input material atsubsidiary rates 

e. Fertilizer, pesticide, insecticide (Agro chemicals), subsidy seeds and other  requirements 

f. Agriequipment like sprayer, cultivators and others on rent & retailer rate g. Various online platform for FPOs (Digital Presence, Accountings and others) 

4. Envisaged Roles & Responsibility  

4.1 CSC SPV  

∙ CSC SPV will identify the CSC VLEs who will setup the CSC Kisan Kendras at block level. ∙ CSC SPV will do the training and capacity building of the CSC VLEs and farmers on the FPO  formation and its benefits. 

∙ CSC SPV will support CSC VLEs/Farmers in the necessary documentation and processing  for setting up of FPOs.  

∙ CSC SPV will create online platform to monitor and coordinate among FPOs. ∙ CSC SPV will bring all the FPOs on the same platform to support each other. ∙ CSC SPV will bring out the success stories to encourage the farmers in setting up of FPOs.

∙ CSC SPV will coordinate among all stake holders for the smooth implementation and  setting up of CSC Kisan Centres. 

∙ CSC SPV district teams will handhold the VLEs/farmers for setting up of CSC Kisan  Kenrdas. 

4.2 Common Services Centres (CSCs)  

∙ CSCs will do the advocacy and create awareness among farmers for this initiative. ∙ CSCs will take all farmers onboard in formation of FPOs or CSC Kisan Kendras. ∙ CSCs will setup the CSC Kisan Kendras and do all necessary documentation for register it  under companies act. 

∙ CSC will help in linkage of FPO with fertilizer another input suppliers.  

∙ CSCs will support FPO in training under Multi Commodity Exchange trading ∙ CSCs will help and support in establishing cold storage facilities 

∙ CSCs can work for the requirement of equipment leasing 

∙ CSCs will support in linkage of FPOs with banks and other credit providers at competitive  interest rates 

∙ CSCs will support for establishing Godown for storage 

∙ Soil testing facility can be extended through CSCs 

∙ Training and skilling of FPO members on various aspects and techniques of farming ∙ CSCs will provide all the DSP services to farmers. 

∙ CSCs will support in operatizing the CSC Kisan Kendras and its management. 5. Benefits of CSC Kisan Kendras as FPO  

1. CSC is a local person who can coordinate with farmers in explaining the benefits of the FPO  scheme. FPO formation at field will be much easier proposition through CSCs. 2. The existing CSC services can easily be extended through CSC Kisan Kendras. 3. CSC Kisan Kendras will be focused on farmers and will analyses and deal with all needs of  farmers. 

4. Market linkages: FPO’s Farmers can sell their produce directly through the portal “CSC  Kisan e Mart” by bidding process. “Kisan e Mart” is a online portal allows the  farmers and corporate customers to keep track of transactions, view  commodity procurement pipeline and make online orders along with auction  mechanism to our platform as well. CSCs online platform of e Grameen Store  can also play an important role.

5. Agri advisory &Agri solution – Agricultural advisory services through KVK scientists and will  link through Kisan Suvidha app. 

6. Animal tele consultation: Animal consultation through various universities and ICAR  veterinary doctors. 

7. Finance Services: Tractor & farm equipment loan through various banks or financial  institutions, insurances and KCC etc. 

8. Farm Machinery hiring center (CHC): FPO will be work as a custom hiring center for  farmers. 

9. Market linkage activities through CSCs  

∙ Identification of the farmers produce and linking with commercial and institutional  buyers. 

∙ CSCs can support in connecting the farmers organizations and the buyers to the  supply chain through the aggregation of service providers. 

∙ Facilitate the development and negotiation of contracts with buyers can easily be  managed at CSCs end. 

∙ Educating and creating value through development of packaging, branding and  exposing the farm output direct to the consumer market or commercial  establishments. 

∙ Promoting good agricultural  

practices for production of pesticide  

residue free, quality food and linking  

the same to premium buyers. 

∙ Enhancing farmer entrepreneurship  

through market linkages. 

4.3 Envisaged Structure of CSC Kisan Kendra

Farmers Produce  Organization Managing Director  (Farmer 1)

Member (CSC  VLE)Member  (Farmer) Member(Farmer) 

Executing Body  (Farmers)