State Level Consortium of Farmer Producer Organizations
Aggregating producers into collectives is universally accepted as one of the most effective means of reducing the risk in agriculture and improving the access of small and marginal producers to investments, technology and markets.
Several thousand Farmer Producer Organisations (FPOs) exist across the country, registered under various statutes such as the Cooperative Laws, Trusts, and Federations and lately under the Companies Act as Producer Companies. However, the vast majority of FPOs continue to struggle to establish viable and sustainable business models and achieve significant revenues and returns to their members.
As part of SFAC’s mission to link small farmers to technology as well as to the markets in association with private, corporate or cooperative sector and if necessary, by providing backward and forward linkages, an initiative has been taken to establish State Level Federations of FPOs to create a State level umbrella support for the member FPOs.
These federations exists under the statutes of Companies Act as Producer Companies and are seen as an effective solution to the challenge of:
a. Achieving better coordination among FPOs,
b. Enable them to enter into policy dialogue with the State and Central agencies,
c. Access services and inputs from Government and private agencies,
d. Increase capacity in cost effective manner,
e. Seek credit from financial institutions.
f. leverage opportunities in agribusiness.
In the first phase, 8 such State Level Producer Companies (SLPCs) are supported in the States of Madhya Pradesh, Rajasthan, Maharashtra, Gujarat, Tamil Nadu, Uttar Pradesh, Telangana and West Bengal.