**Summary:**
The Government of India is actively promoting direct linkages between Farmer Producer Organizations (FPOs) and industries to reduce reliance on middlemen and enhance farmer income. Key initiatives include the Formation and Promotion of 10,000 FPOs scheme, which organizes farmers into collectives for direct marketing and improved negotiation, and the National Agriculture Market (eNAM), facilitating transparent online trading between farmers/FPOs and traders.
To facilitate these linkages, the government is implementing several measures: Cluster-Based Business Organizations (CBBOs) are tasked with connecting FPOs with relevant industries. Regular Buyer-Seller Meets (BSMs) are organized to foster direct procurement opportunities. FPOs are encouraged to utilize digital platforms like Open Network for Digital Commerce (ONDC), eNAM, and Government eMarketplace (GeM) to engage with buyers. Furthermore, FPOs are being assisted in obtaining input licenses to supply inputs and build relationships with agri-input industries.
As of June 30, 2025, over 9000 FPOs have been onboarded onto the ONDC platform, and 216 FPOs on GeM, enabling digital sales. FPOs have established backward linkages with agri-input suppliers such as Bayer Crop Science, Syngenta, Godrej Agrovet, National Seeds Corporation (NSC), and Hindustan Insecticides Limited (HIL), and forward linkages with ITC, Reliance, Big Basket, Farmart, AgriBazaar, Patanjali, Mother Dairy, Olam, and National Cooperative Consumers Federation of India Limited (NCCF). 171 Industries/Business Organizations have partnered with 430 FPOs of Small Farmers Agri-Business Consortium (SFAC) for raw material procurement, finished agri-product sales, agri-commodities trading, and farm input supply.
This information was provided by the Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur, in a written reply in Rajya Sabha.
Key Entities Referenced
Ministry of Agriculture Farmers Welfare: The Indian governmental ministry responsible for agriculture and farmers' welfare.
Farmer Producer Organisations FPOs: Collectives of farmers organized to promote direct marketing and improve negotiation power.
Central Sector Scheme for Formation and Promotion of 10,000 FPOs: A government scheme to organize farmers into collectives for direct marketing.
National Agriculture Market eNAM: An electronic platform for online trading of agricultural commodities.
ClusterBased Business Organizations CBBOs: Organizations tasked with facilitating market linkages between FPOs and industries.
Open Network for Digital Commerce ONDC: A digital platform used by FPOs to list their produce and interact with buyers.
Government eMarketplace GEM: A digital platform used by FPOs to list their produce and interact with buyers.
Small Farmers AgriBusiness Consortium SFAC: An organisation involved in tying up industries with FPOs for procurement and supply.
Ministry of Agriculture & Farmers Welfare
LINKAGE OF FPOs WITH INDUSTRIES
Posted On: 25 JUL 2025 6:27PM by PIB Delhi
Government of India has taken several proactive initiatives to promote direct marketing of farmers’ produce,
thereby aiming to reduce dependency on middlemen and enhance farmers’ income. The key initiatives
undertaken include:
i. Implementation of Formation & Promotion of 10,000 Farmer Producer Organisations (FPOs) scheme:
Through the Central Sector Scheme for Formation and Promotion of 10,000 FPOs, farmers are organized
into collectives, enabling them to engage in direct marketing and negotiate better terms with buyers.
ii. National Agriculture Market (e-NAM): The electronic National Agriculture Market (e-NAM) facilitates
transparent and competitive online trading, allowing farmers and FPOs to directly connect with traders.
The Government has taken several initiatives to facilitate direct linkages between industries and Farmer
Producer Organizations (FPOs) to ensure better market access, fair price realization, and integrated value
chain development. Key steps include:
i. Cluster-Based Business Organizations (CBBOs): Under the Central Sector Scheme for Formation and
Promotion of 10,000 FPOs, CBBOs are tasked to facilitate market linkages by identifying and
connecting FPOs with relevant industries, processors, and institutional buyers.
ii. Buyer-Seller Meets (BSMs): Regular BSMs are organized at the state and national level to bring
together industries and FPOs, allowing them to explore direct procurement opportunities.
iii. Digital Market Platforms: FPOs are encouraged to use digital platforms such as Open Network for
Digital Commerce (ONDC), e-NAM, Government e-Marketplace (GEM), etc. to list their produce and
directly interact with buyers from agri-processing, retail, and export sectors.
iv. FPOs are being facilitated for issuance of input licenses (seed, fertilizer, pesticide, etc.), enabling them
to supply inputs and establish business relations with agri-input industries.
These initiatives have resulted in increased formal linkages between FPOs and industries across various
th
sectors such as food processing, retail, agri-export, and input supply. Till 30 June, 2025, more than 9000
FPOs have been onboarded on ONDC platform, and 216 FPOs on the GeM, enabling them to list and sell
agri-products digitally.
FPOs have established backward market linkages with Agri input suppliers like Bayer crop science, Syngenta,
Godrej agrovet, National Seeds Corporation (NSC), Hindustan Insecticides Limited (HIL) etc. and forward
linkages with ITC, Reliance, Big Basket, Farmart, Agri-Bazaar, Patanjali, Mother dairy, Olam, National
Cooperative Consumers’ Federation of India Limited (NCCF) etc. 171 Industries/ Business Organizations
have tied up with 430 FPOs of Small Farmers’ Agri‑Business Consortium (SFAC) for procurement of raw
materials, finished agri-products, agri-commodities, etc. and supply of farm inputs.
This information was given by Minister of State for Agriculture and Farmers Welfare, shri Shri Ramnath
Thakur in a written reply in Rajya Sabha today.
******
RC/ KSR/AR(Release ID: 2148519)