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A Producer Organisation (PO) is a legal entity formed by primary producers, viz. farmers, milk producers, fishermen, weavers, rural artisans, craftsmen.
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A PO can be a production company, a cooperative society or any other legal form which provides for sharing of profits/benefits among the members.
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In some forms like producer companies, institutions of primary producers can also become a member of PO.
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The concept of ‘Farmer Producer Organizations, (FPO)’ consists of collectivization of producers especially small and marginal farmers so as to form an effective alliance to collectively address many challenges of agriculture such as improved access to investment, technology, inputs, and markets. FPO is one type of PO where the members are farmers.