We want our FPO to open an input shop so members get genuine seed and fertiliser at fair price. Can an FPO do this legally and what licences do we need?
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Yes, an FPO can run an input business, and it is one of the most reliable first activities because demand is steady. But each input needs its own licence, just like any dealer. For seed you need a seed licence under the Seeds Act/Control Order. For chemical fertiliser you need a fertiliser sale licence under the Fertiliser Control Order (FCO). For pesticides you need an insecticide licence under the Insecticides Act, and that one usually requires a person with the prescribed agriculture qualification on your staff. You will also need GST registration, a registered premises, and to buy only from authorised manufacturers/distributors. The licences are issued by the state agriculture department (and the application is now often online through your state agri portal). Two cautions: keep proper stock and sale records because input licences are inspected, and do not sell spurious or unbilled stock as it can cancel your licence and destroy member trust. Start with seed and fertiliser, add pesticide once you have qualified staff. Confirm the exact licence requirements with your district agriculture officer.
We started with a fertiliser and seed licence. The pesticide one needed a BSc Agri person, so we hired one part time. Now input sale is our steadiest income.
Buy only billed stock from authorised sources. One FPO near us lost its licence selling unbilled urea. Not worth the risk.