Farmers as producers are unable to realize the right value of their produce. The defragmentation of land, lack of awareness, distrust in scientific practices, less inclination towards technology adoption leads to under production against the optimal potential. The absence of adequate marketing infrastructure, presence of middle man, lack of collectivization effort leads to grabbing less marketing opportunities and earnings.
Collectivization of producers, especially small and marginal farmers, into producer organisations is emerging as one of the most effective pathways to address the many challenges of agriculture and most importantly, improved access to investments, technology and inputs and markets. Department of Agriculture and Cooperation, Ministry of Agriculture, Govt. of India has also identified farmer producer organisation (FPO) registered under the special provisions of the Companies Act, 1956 as the most appropriate institutional form around which to mobilize farmers and build their capacity to collectively leverage their production and marketing strength. Vision of the FPO is to build a prosperous and sustainable member-owned producer organizations that enable farmers to enhance productivity through efficient, cost-effective and sustainable resource use and realize higher returns for their produce, through collective action.
Sadguru is working on to promote 24 FPOs covering about 9000 farmers of more than 100 villages in Dahod and Mahisagar districts with the support of NABARD. Sadguru is aiming to ensure end-to-end support in terms of providing access to on-time quality inputs such as seed, fertilizer and machinery; strengthening extension services, building farmer capacities and facilitating access to fair and remunerative markets including linking producer groups to marketing opportunities by market aggregators.