What are Fish Farmers Producers Organisations (FFPOs)?

• The Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairying (MoFAHD) under the flagship scheme namely Pradhan Mantri Matsya Sampada Yojana (PMMSY) provides financial assistance for setting up of Fish Farmers Producer Organisations (FFPOs) to economically empower the fishers and fish farmers and enhance their bargaining power.

• So far a total 1,990 Fish Farmers Producer Organisations (FFPOs) have been formed in the country.

• The financial support provided under the PMMSY to each FFPOs primarily includes cost of formation, management, training and skill development and equity grant. 

• The Department of Fisheries has approved projects worth Rs 544.86 crore for formation of FFPOs in the country during FY 2020-21 to FY 2024-25.

• This project is implemented through central agencies namely the National Fisheries Development Board (NFDB), Small Farmers Agri-business Consortium (SFAC), National Agricultural Cooperative Marketing Federation of India (NAFED) and National Cooperative Development Corporation (NCDC). 

The need for FFPOs

• India is the third largest fish producing country in the world. 

• The fisheries sector has been recognised as a powerful source of both income and employment as it not only provides affordable and nutritious food to the nation, but also stimulates the growth of a diverse range of subsidiary and allied industries. 

• The livelihood opportunities provided by this sector have been instrumental in sustaining incomes for over 28 million people in India, especially for marginalised and vulnerable communities, and have contributed towards  meaningful socio-economic development.

• Recognising the importance and potential of the fisheries sector, the government of India launched a flagship scheme, Pradhan Mantri Matsya Sampada Yojana (PMMSY), in May 2020 with a vision to bring about ‘Blue Revolution’ through sustainable and responsible development of the fisheries sector in India.

• Under PMMSY, key interventions will be undertaken with the aim of enhancing fish production and productivity, modernising and strengthening the value chain, developing robust fisheries management and regulatory frameworks and securing fisher’s welfare by driving higher returns to all stakeholders.

• However, a majority of fish farmers in the fisheries sector are small and marginal. 

• Due to low individual volumes, these farmers face a range of issues, such as limited investments for increasing the scale of production and corresponding credit facilities, lack of access to quality seed and feed and low access to markets, which thereby lead to lower profit margins. 

• Further, due to the presence of a number of intermediaries between produce to market, the primary producer may receive only a small part of the value that the ultimate consumer pays.

• Increasing fish farmers’ incomes primarily requires two kinds of interventions – first, organisation of fish farmer groups that are collectively able to enhance their bargaining power by achieving economies of scale, and second, through exploring alternate sources of revenue by diversification of produce.

• Collectivisation of producers, especially small and marginal farmers, into producer organisations like FPOs has emerged as one of the effective pathways to address various challenges in agriculture and allied sectors, while improving access to investments, technology, inputs, credit and markets.

• Formation and promotion of FFPOs will be taken up under the Central Sector Scheme component of PMMSY with 100 per cent central funding.