FPOs should adopt two-level processing model, says co-op leader

Sahakar Bharati, an organisation that seeks to promote the cooperative motion, has advised a two-stage processing product — on the traces of milk cooperative unions — to promote farmer producers organisations (FPOs) in the region.

In an interaction with BusinessLine in this article, Satish Marathe, founder-member of Sahakar Bharati and RBI Central Board Director, explained the governing administration not long ago decided to allocate ₹6,865 crore to established up 10,000 FPOs about the following handful of years.

Terming the decision a positive development to get FPO formation forward, he explained the farmer is not going to benefit except if the develop, like fruits and greens, is processed. The shelf-life of the develop improves only when it is processed, and there is no requirement of distress sale, he additional.

Milk cooperative product

Stating that all FPOs can’t make the remaining product or service, he explained there would have to be two-stage processing. He cited the product adopted by milk cooperatives in rural spots, which accumulate milk, motivate farmers to boost the selection of milch animals, offer them with animal feed, and offer veterinary products and services. As a consequence, milk procurement improves in the region, he explained, introducing that the milk hence gathered goes to a district union, exactly where it receives processed.

“Likewise, we have to build a mechanism in the FPO company also, exactly where there is key processing and a remaining product or service that receives promoted. Originally, we must concentration on area sources and the area sector. We really do not have to build an all-India sector to get started with,” he explained.

Value fluctuations

Referring to the value fluctuations in thee commodities — tomato, potato and onion — he explained these are incredibly high priced at instances and incredibly cheap at other folks. There is a enormous wastage owing to different good reasons, he additional.

Getting the instance of tomatoes, he advised that the key FPOs convert them into puree. At the village stage, the FPOs may not be able to get the expected experience to convert puree into ketchup. A secondary FPO can get up the process, and sector the product or service as effectively, he additional.

“As Sahakar Bharati (member) I will compose to the governing administration that we are happy with the plan they have introduced, but we want to also contemplate what could be termed a secondary processing device, which would be larger and a little much better,” he explained, introducing that the entire action would be feasible, thriving and useful if executed this way.

Stressing the want to concentration on area sources and area markets for advertising and marketing FPOs, he explained at first the organisations must manufacture or produce sizeable portions to produce much better advertising and marketing and manufacturer creating.

Recalling that the coverage on FPOs was introduced long back, top to many of them finding formed, he explained some did not succeed owing to inadequate hand-keeping and dearth of experience in FPO management.

Terming the government’s recent plan for FPOs a good detail, he explained it will protect fiscal as effectively as non-fiscal guidance to the members.