In News:

With the India Meteorological Department (IMD) forecasting a weaker southwest monsoon during 2026 due to El Niño conditions, the Union Ministry of Agriculture and Farmers' Welfare has initiated contingency measures to safeguard the kharif season. A key component of this strategy is leveraging the nationwide network of 10,000 Farmer Producer Organisations (FPOs) to disseminate climate-resilient farming practices, encourage cultivation of drought-resistant crops, and strengthen farmers' preparedness against rainfall deficits.

What are Farmer Producer Organisations (FPOs)?

Farmer Producer Organisations (FPOs) are collective institutions formed primarily by small and marginal farmers to improve their economic position through aggregation, collective marketing and better access to technology, finance and agricultural services. Registered either as Producer Companies under the Companies Act or Cooperative Societies under State Cooperative Acts, FPOs combine the professional management of corporate entities with the democratic governance of cooperatives. This enables farmers to pool resources, reduce production costs, negotiate better prices and participate more effectively in agricultural value chains.

Objectives of FPOs

The primary objective of FPOs is to overcome the limitations of fragmented landholdings by promoting collective action. They aggregate farmers' produce to improve market access, enhance bargaining power while purchasing inputs and selling produce, facilitate institutional credit and insurance, promote value addition and processing, provide technical guidance, and encourage adoption of modern and climate-resilient agricultural technologies. In doing so, FPOs improve both farm profitability and long-term sustainability.

Government Initiatives to Promote FPOs

• Recognising their importance, the Government launched the Central Sector Scheme for Formation and Promotion of 10,000 FPOs in 2020 with a financial outlay of ?6,865 crore. The scheme aims to establish and nurture 10,000 new FPOs by 2027-28.
• The scheme provides financial assistance of up to ?18 lakh over three years for management and capacity building, an Equity Grant of up to ?15 lakh, and a Credit Guarantee Facility up to ?2 crore to improve institutional credit access. It follows a Cluster-Based Business Organisation (CBBO) approach and is implemented through agencies such as NABARD, SFAC, NCDC and various State-level institutions.
• The scheme is complemented by initiatives like NABARD's Producer Organisation Development Fund (PODF), SFAC's Equity Grant and Credit Guarantee Scheme, the ?1 lakh crore Agricultural Infrastructure Fund (AIF), and support under the Mission for Integrated Development of Horticulture (MIDH).

Current Status

The FPO movement has expanded significantly in recent years. More than 10,000 FPOs have already been formed across the country, representing over 63 lakh farmer members. These organisations are engaged in crop cultivation, horticulture, dairy, fisheries, beekeeping and other allied agricultural activities, making them an important institutional pillar for rural development.

Monsoon Outlook and Need for Climate Resilience

The IMD has projected that the Southwest Monsoon (June–September) 2026 is likely to be 90% of the Long Period Average (LPA), with a model error of ±4%. The LPA for the country, calculated using the 1971–2020 dataset, is 87 cm.

More importantly, rainfall over the Monsoon Core Zone is expected to remain below normal (less than 94% of LPA). This zone includes major rain-fed agricultural states such as Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Chhattisgarh, Jharkhand, Karnataka, Telangana and Odisha, where crop production is highly dependent on timely monsoon rainfall.

Government's Strategy Through FPOs

To reduce the impact of a weak monsoon, the Ministry has prepared a comprehensive list of 10,000 FPOs already practising climate-resilient agriculture. These organisations are being used as demonstration centres to spread awareness and encourage adoption of sustainable farming practices.

The Ministry is organisingdaily state-wise webinars on natural farming and climate-smart agriculture while promoting mulching, drip irrigation, mixed cropping, and cultivation of drought-resistant crops, particularly millets and pulses. This institutional approach allows successful practices to be replicated rapidly across farming communities.

Climate-Resilient Practices Being Promoted

Among the various interventions, mulching has emerged as one of the most effective low-cost technologies. By covering the soil with crop residues or other organic material, mulching reduces evaporation losses, conserves soil moisture, suppresses weeds and improves soil fertility, enabling crops to withstand prolonged dry spells.

The Ministry is also encouraging farmers to diversify towards crops that require less water. Millets such as ragi, jowar and bajra, along with pulses like moong, urad and horse gram (kulthi), are naturally drought tolerant and better suited to uncertain rainfall conditions. Mixed cropping is being promoted simultaneously to reduce production risks and improve farm resilience.

Jharkhand: A Model for Climate-Resilient Farming

The government's strategy is already reflected in the work of several FPOs in Jharkhand. The Torpa Mahila Krishi Bagwani Swavlambi Sahkari Samiti Limited in Khunti district, comprising nearly 4,000 farmers, has adopted natural mulching using straw and gunny bags. Anticipating deficient rainfall, its members are shifting from water-intensive paddy cultivation to millets and pulses during the Kharif 2026 season while motivating neighbouring farmers to adopt similar practices.

Similarly, the Senem Nirem Farmer Producer Company Limited has successfully implemented natural mulching techniques that improve soil moisture retention through inexpensive interventions, helping crops survive extended dry periods.

Significance

Farmer Producer Organisations have evolved beyond being marketing institutions and are increasingly becoming vehicles for agricultural transformation. They empower small and marginal farmers, who constitute nearly 86% of India's farming population, by improving market access, reducing dependence on intermediaries, facilitating adoption of modern technology and ensuring effective delivery of government schemes.

The current strategy demonstrates that FPOs can also serve as critical institutions for climate adaptation, enabling rapid dissemination of climate advisories, promotion of sustainable farming practices and diversification towards resilient cropping systems. As climate variability becomes more frequent, strengthening FPOs will be essential for ensuring agricultural sustainability, improving farmer incomes and enhancing India's food security.

In News:

With the India Meteorological Department (IMD) projecting the 2026 Southwest Monsoon at 90% of the Long Period Average (LPA) and forecasting below-normal rainfall over the Monsoon Core Zone, concerns have emerged regarding kharif production and rural livelihoods. In response, the Union Ministry of Agriculture is leveraging the nationwide network of Farmer Producer Organisations (FPOs) to promote climate-resilient agriculture, drought-tolerant crops, and sustainable farming practices.

Weak Monsoon and Agricultural Vulnerability

The southwest monsoon remains the backbone of Indian agriculture, particularly in rain-fed regions. The IMD has projected below-normal rainfall across the Monsoon Core Zone comprising Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Chhattisgarh, Jharkhand, Karnataka, Telangana and Odisha. These states account for a substantial share of India's kharif production and remain highly dependent on monsoon rainfall.

Such rainfall deficits can adversely impact crop yields, farm incomes, food security, and rural employment, necessitating proactive adaptation strategies.

Farmer Producer Organisations (FPOs): Concept and Rationale

Farmer Producer Organisations are collective institutions formed primarily by small and marginal farmers to enhance productivity, profitability, and market access through collective action. Registered either as Producer Companies under the Companies Act or Cooperative Societies under state laws, FPOs combine the professional management of corporate entities with the democratic governance structure of cooperatives.

By aggregating produce, facilitating access to institutional finance, improving bargaining power, and promoting value addition, FPOs help smallholders overcome the disadvantages of fragmented landholdings and weak market linkages.

Government Support for FPOs

Recognising their transformative potential, the Government launched the Central Sector Scheme for Formation and Promotion of 10,000 FPOs in 2020 with an outlay of ?6,865 crore.

The scheme provides:

• Financial assistance of up to ?18 lakh per FPO over three years.
• Equity Grant of up to ?15 lakh.
• Credit Guarantee Facility up to ?2 crore.
• Cluster-based business organisation model.
• Implementation through agencies such as NABARD, NCDC, SFAC and state-level institutions.

Complementary support is also available through the Producer Organisation Development Fund (PODF), Agricultural Infrastructure Fund (AIF), and Mission for Integrated Development of Horticulture (MIDH).

Today, India has crossed the milestone of 10,000 FPOs, representing more than 63 lakh farmers engaged in agriculture, horticulture, dairy, fisheries and allied activities.

FPOs as Instruments of Climate Resilience

In view of the anticipated weak monsoon, the Ministry of Agriculture has identified thousands of FPOs already practising climate-smart agriculture and is using them as demonstration and knowledge-sharing platforms.

Promotion of Drought-Resistant Crops

The Ministry is encouraging farmers to shift towards crops requiring lower water inputs, particularly:

• Millets such as Bajra, Jowar and Ragi
• Pulses such as Moong, Urad and Horse Gram (Kulthi)

These crops possess inherent drought tolerance, perform well under rainfall variability, and contribute to nutritional security.

Moisture Conservation Through Mulching

Mulching is being promoted as a simple and cost-effective adaptation measure. By covering the soil surface with crop residues or organic materials, it reduces evaporation losses, suppresses weed growth, improves soil health, and enhances moisture retention during prolonged dry spells.

Adoption of Climate-Smart Practices

FPOs are also facilitating:

• Drip irrigation.
• Mixed cropping systems.
• Natural farming techniques.
• Water-efficient crop planning.

To scale these practices, the Ministry is conducting state-wise webinars and awareness campaigns ahead of the kharif season.

Significance of FPOs in Indian Agriculture

FPOs have emerged as a critical pillar of agricultural transformation in India. They enhance the economic empowerment of small and marginal farmers, who constitute nearly 86% of the country's farming population. By improving access to markets, credit, technology, storage infrastructure and government schemes, FPOs reduce dependence on intermediaries and increase farmers' share in the value chain.

More importantly, in the context of climate change, FPOs provide an effective institutional mechanism for disseminating climate-resilient technologies, promoting sustainable farming practices, and strengthening adaptive capacity at the community level.

Conclusion

As climate variability increasingly threatens agricultural productivity, Farmer Producer Organisations are evolving beyond market institutions into instruments of climate adaptation and rural resilience. The government's strategy of leveraging FPOs to promote drought-resistant crops, moisture conservation, and sustainable farming practices demonstrates a shift towards community-led climate resilience. Strengthening FPOs through greater financial support, technological integration, and market linkages can play a crucial role in ensuring sustainable agricultural growth and safeguarding farmer livelihoods in an era of growing climatic uncertainty.