Want to start a Farmer Producer Organisation with my village farmers, what is the process and minimum members needed.
How to form an FPO in India step by step?
RRamesh Patil1yr ago · 519 views
4 Answers
🌾Farmer.in Krishi TeamExpert ✓1yr ago
An FPO is usually registered as a Producer Company under the Companies Act with a minimum of 10 primary producer members (often 300 plus members are mobilised for viability). Steps: form a group of farmers, identify a common business activity, pick at least 5 directors, get Director Identification Numbers and Digital Signatures, reserve a name on the MCA portal, then file SPICe+ with MoA and AoA. Under the central 10,000 FPO scheme, a Cluster Based Business Organisation (CBBO) handholds you for 5 years, prepares the business plan and helps with registration and compliance. Approach your district implementing agency (NABARD, SFAC or NCDC) to be linked to a CBBO. Keep KYC, land records and a clear business idea ready. Confirm current rules on the MCA and SFAC portals.
SSukhwinder Singh1yr ago
We registered our Producer Company through a CBBO under NABARD. The handholding helped a lot with paperwork. Took about 3 months. Start with farmers who actually trust each other, that matters more than numbers.
AAnil Deshmukh1yr ago
You can register either as a Producer Company or as a cooperative. We chose the Producer Company route because compliance felt more professional and banks took us more seriously for loans. The flip side is annual filings and audit, so keep a small budget for a part time accountant from year one.
MMeena Rathod1yr ago
One caution from our experience: do not register just to chase the equity grant. If members do not actually sell their produce through the FPO, it stays a paper company and the directors end up doing all the work for nothing. Decide your first business activity, say bulk input purchase or one crop aggregation, before you even file the name.