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| Farmer Producer Organisation tree farming |
The Farmer Producer Organisation (FPO) Tree Farming Business Model in India is a sustainable, collective-based approach that enables small and marginal farmers to earn long-term income through fruit, timber, medicinal, and agroforestry tree cultivation. Under this model, farmers become shareholders of a registered FPO and jointly manage activities such as nursery development, plantation, input procurement, processing, storage, and marketing.
By operating as a collective, the FPO reduces cultivation costs through bulk purchase of saplings, fertilizers, irrigation systems, and farm machinery, while also enabling access to institutional finance, equity grants, and credit guarantees through agencies like NABARD and SFAC. The model is ideal for apple, walnut, almond, poplar, bamboo, paulownia, amla, neem, and moringa plantations, especially in hilly and semi-arid regions.
The FPO further strengthens farmer income through value addition, grading, cold storage, processing, branding, and direct market linkages, with additional support available from Ministry of Food Processing Industries. This ensures better price realization, export opportunities, and reduced dependence on middlemen.
Overall, the FPO Tree Farming Model promotes climate-resilient farming, rural employment, resource conservation, and steady long-term profits, making it one of the most reliable agribusiness models for India’s future.
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