Central Committee Interacts with Tamil Nadu FPOs to Assess Performance, Sustainability and Challenges
4 July 2026, Tiruchirappalli, Tamil Nadu
A seven-member committee constituted by the Union Minister for Agriculture and Farmers’ Welfare, Shri Shivraj Singh Chouhan, interacted with Farmer Producer Organizations (FPOs) in Tamil Nadu to assess their performance, sustainability, key challenges, and future prospects. The initiative was undertaken in accordance with the Ministry of Agriculture and Farmers’ Welfare circular to examine issues affecting FPOs in the State and recommend suitable remedial measures.
As part of the initiative, the ICAR–National Research Centre for Banana, Tiruchirappalli, organized a brainstorming session on “Farmer Producer Organizations in Tamil Nadu: Performance, Sustainability, Challenges and Future Prospects” today. The programme brought together 135 officials representing 62 FPOs from across Tamil Nadu, providing a platform for direct interaction between the committee, FPO representatives, government agencies, and other stakeholders. The programme was chaired by Shri Chinmay P. Gotmare, IAS, Joint Secretary (Marketing), Ministry of Agriculture and Farmers’ Welfare, and co-chaired by Dr R. Selvarajan, Director, ICAR-NRCB.
In his inaugural address, Dr R. Selvarajan highlighted the growing role of FPOs in strengthening farmers’ collective action and improving market access. He noted that nearly 45,000 FPOs are currently functioning across the country, with about 85% engaged in agriculture, including field and horticultural crops, and the remaining 15% operating in livestock and allied sectors. He also highlighted the gender composition of FPO leadership, noting that approximately 85% are male-led and 15% are women-led.
Referring to the NAAS policy report, Dr Selvarajan observed that only 4,009 FPOs had remained profitable even after five years of establishment. He identified inadequate training and capacity-building, limited access to capital, and weak marketing networks as major constraints affecting the long-term sustainability of FPOs.
Shri G. K. Nagaraj, Director, Agri Innovate India Limited (ICAR), highlighted examples of farmers effectively leveraging Central and State Government schemes to improve farm incomes and livelihoods. He cited the experience of farmers in Varanasi who have utilized initiatives such as PM-KISAN Samman Nidhi, State Government schemes, and the Minimum Support Price (MSP) for millets to strengthen their economic position.
The discussions also highlighted the significant role of NABARD in promoting and supporting FPOs through credit and institutional assistance. It was informed that nearly 400 NABARD-promoted FPOs have been established in Tamil Nadu, of which around 250 are functioning successfully.
With approximately 10 lakh farmers currently associated with FPOs in the State, strengthening these organizations could enable farmers to capture a larger share of the estimated ₹44,000 crore agricultural value currently retained by intermediaries. The annual turnover of FPOs in Tamil Nadu was reported to be around ₹2,200 crore.
During the interactive session, FPO representatives shared their experiences and highlighted key operational and institutional challenges. They sought timely release of equity grants, financial support for CEO remuneration, relaxation of ROC audit provisions, direct procurement by NAFED, infrastructure and input support, and a dedicated governance mechanism for strengthening FPOs and ensuring effective implementation of the FPO programme.
The brainstorming session provided an important platform for understanding the ground-level realities faced by FPOs and identifying practical measures to enhance their financial viability, institutional capacity, market linkages, and long-term sustainability.
(Source: ICAR–National Research Centre for Banana, Tiruchirappalli, Tamil Nadu)
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