- Definition: FPOs can be a company, cooperative society, or Trust.
- They provide for sharing of profits/benefits among farmers.
- Ownership control is always with the members/farmers.
- Empowerment of Small and Marginal Farmers:
- Enable farmers to reap benefits of economies of scale in input purchase.
- Help in processing and marketing of their produce.
- Provide access to timely and adequate credit facilities.
- Establish linkages to markets.
- Overcome disadvantages of small scale and uneconomic lots.
- Improve bargaining power in input and output markets.