Over 5 Million Farmers Turn Shareholders in FPOs Across India

Bhubaneswar : An increasing number of farmers are joining farmer-producer organisations (FPOs), with more than 5 million farmers taking equity in over 10,000 FPOs formed in the last five years, according to government data.

Economies of scale reduce production costs

The surge in shareholding has enabled local aggregation and lower production costs, as farmers collectively access affordable fertilisers, crop protection products, and equipment. This collectivisation of small and marginal farmers is improving input availability and market competitiveness.

Women farmers hold 38% share in FPOs

Government officials highlighted that women farmers account for 38% of shareholders, reflecting their rising participation in agriculture collectives. The FPO model enhances farmers’ bargaining power and direct market access, boosting income potential.

Key states dominate shareholding

Telangana leads with 0.67 million shareholders, followed by Uttar Pradesh (0.59 million), Andhra Pradesh (0.57 million), Madhya Pradesh (0.32 million), and Maharashtra (0.3 million). Together, these five states contribute to half of total shareholders.

Government support and funding

Launched in February 2020, the initiative to form 10,000 FPOs came with a Rs 6,865 crore budget. To sustain the model, the government provides a matching grant of up to Rs 2,000 per farmer member (capped at Rs 15 lakh per FPO).

Expanding agri-business ecosystem

As of FY25, FPOs collectively crossed Rs 15,282 crore in turnover. Over 5,880 FPOs hold seed licenses, 5,500 distribute fertilisers, and 400 operate agrochemical dealerships, passing on dealer discounts to farmers.

Digital and retail market presence

More than 200 collectives sell products on GeM, while several others have expanded into Amazon and Flipkart platforms. Notably, over 1,100 FPOs have crossed Rs 1 crore turnover, according to Agriculture Ministry data.