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

Sahakar Bharati, an organisation that seeks to promote the cooperative movement, has recommended a two-amount processing design — on the lines of milk cooperative unions — to promote farmer producers organisations (FPOs) in the state.

In an interaction with BusinessLine listed here, Satish Marathe, founder-member of Sahakar Bharati and RBI Central Board Director, claimed the governing administration not long ago made a decision to allocate ₹6,865 crore to set up ten,000 FPOs in excess of the upcoming handful of decades.

Terming the choice a optimistic improvement to take FPO formation ahead, he claimed the farmer is not going to reward unless the produce, which include fruits and vegetables, is processed. The shelf-life of the produce increases only when it is processed, and there is no requirement of distress sale, he included.

Milk cooperative design

Stating that all FPOs are unable to make the ultimate merchandise, he claimed there would have to be two-amount processing. He cited the design adopted by milk cooperatives in rural places, which obtain milk, really encourage farmers to enhance the quantity of milch animals, provide them with animal feed, and supply veterinary services. As a consequence, milk procurement increases in the region, he claimed, introducing that the milk hence gathered goes to a district union, wherever it gets processed.

“Likewise, we have to create a system in the FPO enterprise also, wherever there is key processing and a ultimate merchandise that gets marketed. Initially, we should really concentration on community assets and the community market place. We really do not have to create an all-India market place to commence with,” he claimed.

Price fluctuations

Referring to the selling price fluctuations in thee commodities — tomato, potato and onion — he claimed these are quite high priced at times and quite low-priced at others. There is a substantial wastage because of to many good reasons, he included.

Using the case in point of tomatoes, he recommended that the key FPOs change them into puree. At the village amount, the FPOs may possibly not be equipped to get the necessary abilities to change puree into ketchup. A secondary FPO can take up the endeavor, and market place the merchandise as properly, he included.

“As Sahakar Bharati (member) I will create to the governing administration that we are content with the scheme they have declared, but we will need to also consider what could be termed a secondary processing device, which would be larger and a little better,” he claimed, introducing that the entire activity would be practical, prosperous and helpful if executed this way.

Stressing the will need to concentration on community assets and community markets for marketing FPOs, he claimed originally the organisations should really manufacture or produce sizeable quantities to produce better marketing and advertising and manufacturer building.

Recalling that the policy on FPOs was declared extended again, top to a number of of them having fashioned, he claimed some did not thrive because of to insufficient hand-holding and dearth of abilities in FPO administration.

Terming the government’s latest scheme for FPOs a superior issue, he claimed it will cover financial as properly as non-financial help to the associates.