Source: BL
Context:
Farmer Producer Organizations (FPOs) are increasingly being recognised as vital platforms to accelerate the adoption of agricultural technologies (agtech) among small and marginal farmers in rural India. By consolidating farmers, FPOs help address key structural and financial challenges, enabling technology-driven productivity improvements.
Key Highlights:
- Collective Bargaining and Affordability:
- FPOs allow farmers to pool resources, making modern inputs, machinery, and digital agtech tools more affordable and accessible.
- Knowledge and Training:
- FPOs function as knowledge hubs, facilitating demonstrations, workshops, and training programs on precision agriculture, crop monitoring, and climate-resilient practices.
- Access to Finance and Credit:
- Through FPOs, farmers gain better access to credit, subsidies, and financial products necessary for technology adoption. FPOs also help engage with banks, NBFCs, and government schemes.
- Shared Infrastructure Development:
- FPOs invest in common assets like storage facilities, processing units, and transport logistics, which are critical for implementing agtech effectively across the supply chain.
- Data-Driven Decision Making:
- Aggregated data from member farmers allows FPOs to implement precision farming, monitor soil health, and optimise crop planning.
- Policy Advocacy:
- FPOs represent collective farmer interests, advocating for supportive policies, regulatory frameworks, and government programs promoting agtech.
Challenges:
- Low digital literacy among rural farmers.
- Infrastructure gaps such as poor internet and power supply.
- High initial investment costs for new technologies.
- Fragmented land holdings limiting large-scale agtech adoption.
