Export Potential of FPOs in Indian Agriculture
Mausumi Manjari Nayak and Anita Patra
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Abstract:
Farmer Producer Organizations (FPOs) have emerged in India as a transformative institutional mechanism designed to address the persistent challenges faced by small and marginal farmers, including limited market access, inadequate finance, and weak bargaining power against intermediaries. Introduced as an alternative to traditional cooperatives following the 2002 amendment of the Companies Act and the 2013 Policy and Process Guidelines for FPOs, these organizations aim to strengthen farmers’ collective participation in domestic and international markets. While India currently has more than 12,000 registered FPOs, only a small proportion are actively engaged in export activities, despite the country’s considerable agricultural export potential in commodities such as fruits, vegetables, spices, millets, and organic products.
This paper examines the present status of FPOs in export activities, the extent of government support extended to them, and the role of technology and digital platforms in connecting farmers with global buyers. It further identifies the emerging opportunities available to FPOs in export markets and the key challenges that continue to constrain their participation, including inadequate storage and cold-chain infrastructure, limited access to timely finance, weak technological adoption, climaterelated risks, and significant post-harvest losses. The study draws on a review of existing literature, government reports, and secondary data to build a structured understanding of these issues. Findings indicate that government initiatives such as the SFAC credit guarantee scheme, PM-KISAN, the 10,000 FPO Mission, and digital platforms including e-NAM, ONDC, and GeM have begun improving FPOs’ market linkages and export readiness, though structural barriers persist. The paper concludes by offering practical suggestions, including capacity building, infrastructure development, digital awareness, financial support, market linkages, branding and certification, and cluster development, to enhance the export performance of FPOs and strengthen their contribution to farmer income and sustainable rural development in India.
Keywords:
Agricultural cooperatives, APMC, FPO, Agri-business, Agri-export
Citation: Anita Patra and Mausumi Manjari Nayak (2026). Export Potential of FPOs in Indian Agriculture. Horizon J. Hum. Soc. Sci. Res. 8 (S), 105–116. https://doi.org/10.37534/bp.jhssr.2026.v8.nS.id1399.p105
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