Context:
Agri-value chain enabler Samunnati has launched a pioneering FPO Partnership Model to transform the way Farmer Producer Organisations (FPOs) engage with the market. Unlike conventional credit-centric approaches, the model fosters shared value creation, making FPOs equal partners in procurement, processing, and sales across the agri value chain.
First Implementation: Maathota Tribal FPC, Andhra Pradesh
- Location: Visakhapatnam district, Andhra Pradesh
- Key Crops: Coffee, turmeric, black pepper
- Economic Impact:
- Procurement and sales worth ₹4–4.5 crore
- Farmers witnessed 10–15% higher profit per acre
- Drivers of Value:
- Transparent pricing
- Reduced distress selling
- Daily, timely payments facilitated by Samunnati
Core Features of the FPO Partnership Model
- Joint Value Creation: Co-ownership of downstream marketing and profit-sharing based on pre-agreed ratios
- Working Capital Support: For procurement and processing via FPCs
- Market Access: Samunnati brings networks, tools, and digital market linkages
- Capacity Building: Institutional strengthening and operational professionalization of FPOs
Advantages Over Traditional Models
- Replaces transactional finance models with collaborative engagement
- Delivers 2–3x higher value creation than conventional revolving credit structures
- Focuses on trust, traceability, and transparency
- De-risks operations and promotes equitable profit distribution
Nationwide Expansion Plans
- The model is being scaled to FPOs across India’s key agricultural geographies
- Each partnership is customized by:
- Crop type
- Regional ecosystem
- FPO maturity level
- Samunnati’s outreach spans 30,000+ FPOs nationwide
The Samunnati FPO Partnership Model represents a significant shift in India’s agri-finance landscape—positioning FPOs not just as producers, but as empowered partners in the national market. By integrating finance, advisory, and market access, Samunnati is unlocking sustainable prosperity for India’s farmer collectives.
