Fodder-Centric Farmer Producer Organisations

November 10, 2022

The Indian Government designated National Dairy Development Board (NDDB) as the implementing agency for setting up fodder-centric FPOs.

What are fodder-centric Farmer Producer Organisations?

Ministry of Fisheries, Animal Husbandry and Dairying proposed the setting up of fodder-centric FPOs in 2020 to address the fodder deficit situation in India. It requested the Union Agriculture Ministry to permit the establishment of fodder-centric FPOs under the central scheme “Formation and Promotion of 10,000 new FPOs”. National Dairy Development Board (NDDB) has been designated as the implementing agency for this scheme.

During 2020-23, 100 of these FPOs will be set up by NDDB under this scheme. These will be mainly fodder-centric, with animal husbandry activates as a secondary activity (fodder plus model).

Why is this scheme needed?

The Wholesale Price Index-based fodder inflation has surged to a nine-year high of 25.5 per cent in August this year. The prices of dry fodder have remained high in 2022 when compared with the previous year’s prices. This has adversely affected the lives of rural families whose livelihoods rely on livestock sector.

According to the ‘Situation Assessment of Agricultural Households and Land and Livestock Holdings of Households in Rural India, 2019’ report released by the National Statistical Office (NSO), 48.5 per cent of the total 17.24 crore rural households own cattle “in milk”, young cattle and cattle in “others” category in 2018. Of the total 9.3 crore agricultural households, 42.8 per cent used green fodder, 52.4 per cent of agricultural households used dry fodder, 30.4 per cent used concentrated fodder and 12.5 per cent other animal feed during the same period.

Currently, fodder deficit in India is 12 to 15 per cent for green fodder, 25-26 percent for dry fodder and 36 per cent for concentrated fodder. The deficit is caused by seasonal and regional factors. The high WPI-based fodder inflation is caused by the decline in wheat crops and the surge in input cost like diesel.

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