NAFPO-VAF STRATEGIC FPO MANAGEMENT PROGRAM
NATIONAL ASSOCIATION FOR FARMER PRODUCER ORGANISATION and VIKASANVESH FOUNDATION are pleased to announce a series of capacity building programs exclusively for FPOs. The program unpacks how to build a high performance, highly effective producer organisation and scale sustainably.
The Government of India has announced that 10,000 FPOs will be set up aimed at helping the farmers of the country achieve the goal of doubling their farm incomes in near future. They have also announced sweeping reforms pertaining to marketing of agricultural produce, reforms which offer a new vista of opportunities to enterprising farmers and their organisations. The announcement regarding FPO has been followed up with formulation of guidelines and provision of enabling budgets. It is expected that administrative measures for giving shape to the agricultural reforms too will be occurring in near future.
To take advantage of these new developments and to benefit millions of poor farmers, farmer producer organisations need to perform well in competitive markets and hence must be managed well. There are significant challenges, both theoretically and in practical terms in this task. Unlike private or public limited companies which aim to maximise shareholder values, FPOs are member oriented firms and this introduces fundamental differences in the management task. There also are significant challenges in terms of adequate capitalisation of FPO businesses, accomplishing and flexibility and yet a highly reliable, cohesive management strategy
Possibly a critical factor in this regard would be the expected vesting of control of the FPOs in representatives of farmers themselves. While they would certainly be close to members and hence responsive to them, it is no secret that they would need much orientation and training in understanding complexities of finance, marketing and managing for guarding the long term interest of members. There also is a need for focused capacity building of management staff of FPO as well as a need to build perspectives among those who will promote the FPOs.