5,000 Farmers Producers Organisations (FPOs) registered on ONDC portal platform: Ministry of Agriculture and Farmers' Welfare

Posted 02 Mar 2024

Updated 27 Mar 2024

2 min read

The registration of FPOs on Open Network for Digital Commerce (ONDC) has helped them to reach out to buyers in different part of the country.
- ONDC aimed at creating a unified digital commerce infrastructure that connects buyers and sellers across different platforms.
  - ONDC is an initiative of the Department of Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce.
ONDC is empowering FPOs with direct access to digital marketing, online payment, business-to-business and business-to-consumer transactions.

About FPO
- FPO is one type of Producer Organisation (PO) where the members are farmers.
  - PO is a legal entity formed by primary producers, viz. farmers, milk producers, craftsmen etc.
  - A PO can be a producer company, a cooperative society or any other legal form which provides for sharing of profits among the members.
  - The ownership of the PO is with its members.
FPOs are mainly registered under the Multi-State Cooperative Society Act, 2002, Cooperative Societies Act of the respective State, Indian Companies Act, 1956, etc.
Role of FPOs in Promoting Interest of Farmers: Improves bargaining power, access to resources, improves post-harvest management mitigating risk etc.

Formation and Promotion of 10,000 new FPOs, a Central Sector Scheme
- Over 8000 FPOs have been registered under it.
Supported by Small Farmers’ Agribusiness Consortium (SFAC), NABARD, National Cooperative Development Corporation (NCDC) etc.
FPOs registered as producer companies are exempt from income tax upto Rs.100 crore , whereas FPOs registered as cooperative societies are exempted from income tax.

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