The turnover of farmer producer organisations (FPOs) has increased considerably from B2B business compared with B2C, after the government started the weekly webinar last year, wherein farmer representatives get to connect with corporates to establish a marketing linkage. So far, ₹1,100 crore has been transacted by FPOs under B2B arrangement, in which maximum ₹662 crore has been earned by them in delivering their produce over futures trading platform NCDEX.
On the other hand, the online transactions over the government’s GeM portal and ONDC platform were close to ₹5 crore. There is a negligible presence of FPOs on other e-commerce platforms, Amazon and Flipkart.
There are as many as 1,131 FPOs out of 10,000 created under the Centre’s equity participation scheme, which have more than Rs 1 crore turnover, each. Encouraged by the response of FPOs in expanding their business, the government has decided to increase these ‘crorepati’ FPOs to at least 5,000 during next fiscal, sources said.
Export potential
Biprojyoti Bhowmik, MD of New Agriverse FPO in West Bengal’s Coochbehar district, said currently the share of B2B in its total turnover is 70 per cent whereas 30 per cent comes from direct retailing through online platforms as well as from orders received through its own website.
“We expect our turnover to cross ₹5 crore this year, from ₹3 crore in 2024-25,” Bhowmik said, adding New Agriverse achieved ₹1 crore turnover in 2023-24, though started operation in 2022.
Having 2,600 farmer shareholders, the FPO primarily deals with mushroom, honey and millets by a host of value-added products. Bhowmik said that there is potential to increase export for which the government needs to support FPOs with necessary certification.
Prohibitive commissions
Sources said that there are nearly 6,000 FPOs registered over ONDC platform, where they have so far sold goods worth ₹1.25 crore in the past 10 months. On the other hand, only 37 FPOs on Flipkart and 6 FPOs on Amazon have been registered.
“The commission on big platforms are prohibitive for us as we cannot part 30-40 per cent when we do not have a branding, nor we can differently write the MRP only for these platforms,” said a Kashmir-based FPO’s representative. On ONDC platform, he uses India Post for delivering the products within and outside the state, he said.
After the weekly webinar started, the government has collated the business transacted by these FPOs and has found that they have been able to sell worth ₹205 crore to NCCF and ₹111 crore to Nafed, though these are mostly for the official procurement of wheat and paddy.
Among private companies, Mother Dairy has purchased products worth₹1.62 crore, Farmart ₹80 crore, Olam India ₹32 crore and Kisaan Say ₹7.5 crore, sources said.
Published on January 30, 2026
