BackECONOMY
NAAS policy paper urges prioritised procurement of FPOs by institutional buyers
The National Academy of Agricultural Sciences released a policy paper noting that many Farmer Producer Organisations (FPOs) struggle to achieve economic viability despite government efforts. It recommends institutional buyers, including the Railways, the Military, and the Food Corporation of India (FCI), prioritise FPOs in procurement of both food and non-food commodities. NAAS is headed by Mangi Lal Jat, Director General of ICAR.
Why It Matters
If implemented, the policy could bolster FPO viability and potentially reduce transaction costs in sourcing, affecting large-scale procurement and agri-supply chains.
Timeline
1 Event
Policy paper by NAAS recommends prioritising FPO procurement by institutional buyers
April 25, 2026
The National Academy of Agricultural Sciences (NAAS) released a policy paper noting that many Farm Producer Organisations (FPOs) are struggling to achieve economic viability and recommending that institutional buyers—including the Railways, the Military, and the Food Corporation of India (FCI)—prioritise FPOs in the procurement of both food and non-food commodities. The paper argues this prioritisation would help ensure the consistent delivery of high-quality goods and reduce transaction costs from market searches. NAAS is headed by Mangi Lal Jat, Director General of ICAR.