My FPO wants members to pool and sell together. Does collective selling through an FPO get a better deal than going alone to the mandi?
Is selling through an FPO better than the mandi?
IIranna Kammar5mo ago · 168 views
3 Answers
🌾Farmer.in Krishi TeamExpert ✓5mo ago
Selling through an FPO can get a better deal because pooled volume gives bargaining power, lower per unit costs and access to bulk buyers that a single small farmer cannot reach. By aggregating produce, an FPO can negotiate directly with traders, processors or exporters, share grading, packing and transport costs, and sometimes sell on platforms or under contracts that need large uniform lots. It can also arrange better input purchase. The benefit depends on the FPO being well run, transparent in weighment and payment, and selling graded produce. For very small individual quantities the FPO route usually beats going alone, but check the FPO charges and how quickly it pays members.
SShankar Hadimani5mo ago
Our FPO pools cotton and negotiates with bigger buyers. Together we get a better rate and split transport cost. Alone, none of us could reach those buyers.
FFakkiresh Angadi4mo ago
It works only if the FPO is honest about weighment and pays on time. Ours is well managed so collective selling has helped. Check that before pooling your produce.