Key Challenges faced by the FPO

Key Challenges faced by the FPO


the member farmer mobilisation is an issue. Making the members as active and getting the produce from them is one of the major issues.

Input supply

Due to monsoon failure and also the farmers’ indebtedness to the private traders, is another issue. Due to this getting the raw material from the farm is found to be difficult.


The lands are scattered and the FPO finds it difficult to go to the respective farms and collect the produce. If, the FPO is late in reaching the farm, the private traders will procure at throw away price and move.


As the activities of the FPO is new, capturing the market for the vale added products is still difficult. The FPO’s USP is quality, right weighment and right price.

Development Activities

the FPO is trying to provide the members other facilities like rest room, weighment bridge, godown and other facilities needs to be created.

Sustainability of the Ramanar FPO

* Apart from procurement, The Black gram,Green Gram,Coriander were graded and value added and sold to the member home based on the need. This value addition and the sales created the new concept to launch the home product market shop within the company premises. On that basis, the company started Agri Business Centre in office premises and promoted a cluster level Agricultural Business Centres in five clusters in this financial year.

* FPO purchased 7500sq ft land for office building construction and Cattle feed processing centre at the cost of Rs.12 lakhs.

* Office building constructed in 1500 square feet with Rs.36.9 lakh with the financial assistance by Syndicate Bank,Aruppukkottai branch.

* Pulses processing unit machineries at a cost of Rs.21.8 lakh was approved by DD Marketing,Virudhunagar District.

* FPO sold cattle feed to the shareholders through ABCs.

* FPO approached to tie up with bulk milk procurement agencies.

Social support extended by the FPO to community and its impact

* The company connected and maintained good rapport with government departments especially with agribusiness (Marketing), horticulture and agro engineering to acquire the schemes to the eligible member farmer.

* It shows that 20 per cent of new members received farming equipments from government schemes.

* The Ramanar FPO has made more than 85 per cent of its member farmers take the PMJJY insurance. .

Grading by External agencies and Awards

The FPOs are graded based on certain parameters. One of the main criteria is its business performance and service to its members. The following are the agencies, normally grade the FPOs.

Hyderabad University Team