Question

 

 Explain the role of SFAC in the promotion of FPOs.

10 Jan 2026
Answer :
Word Count : 477
The Small Farmers’ Agribusiness Consortium (SFAC) plays a pivotal role in the promotion and development of Farmers Producers Organizations (FPOs) in India, serving as a catalyst for empowering small and marginal farmers through collective action and market access. Recognizing that individual small farmers often lack bargaining power, access to credit, and technical expertise, SFAC facilitates the creation of FPOs to enhance farmers’ income and sustainability. SFAC primarily acts as a promoter, financier, and capacity-building agency for FPOs. As a promoter, it identifies potential groups of farmers who can benefit from collective organization and supports the formation of legal entities under the cooperative or company model. This includes assisting in registration, guiding governance structures, and ensuring compliance with legal and regulatory requirements. By formalizing farmers into FPOs, SFAC enables them to function as credible business organizations capable of negotiating with buyers, input suppliers, and financial institutions. Financial support is a significant component of SFAC’s role. It provides seed capital and matching grants to newly formed FPOs, ensuring they have the necessary resources to start operations and build infrastructure. This financial assistance can cover costs related to procurement, storage, processing, and marketing, allowing
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