Fairtrade NAPP trains 04 Producer Organisations in Madhya Pradesh for transformation from Contract production set up to Small Producer Organisations and effective governance
In February 2026, Fairtrade NAPP, in collaboration with Samunnati, organized a two-day training program in Indore for Contract Producer (CP) groups and Small Producer Organisation (SPO) members producing organic cotton, Ashwagandha, and other crops in Madhya Pradesh. Through classroom sessions and a hands-on exposure visit to a functioning Farmer Producer Company in Agar Malwa, participants gained practical knowledge on collectivization, FPC registration, governance, business planning, and available government schemes. The program strengthened participants' readiness to transition their groups into formally registered, Fairtrade-compliant Farmer Producer Companies, building a stronger foundation for fairer markets and long-term business sustainability.
For smallholder farmers producing organic cotton, Ashwagandha, and other crops in Madhya Pradesh, the idea of running a formal, farmer-owned institution is becoming a real and achievable goal. In February 2026, Fairtrade NAPP, in collaboration with Samunnati Agri Value Chain Solutions, organized a two-day training program in Indore that brought together Contract Producer (CP) groups and Small Producer Organisation (SPO) members from across the region. Participants left with clear, practical knowledge on how to structure, govern, and grow their collectives as Farmer Producer Companies (FPCs), strengthening their path toward Fairtrade certification compliance, fairer markets, and long-term business sustainability.
From Informal Groups to Formal Institutions
Producer group members from Pratibha-Vasudha Jaivik Krishi Kalyan Samiti, Harman Cottex, Holistic Organic Farmers Producer Company Limited, and Alirajpur Tribal Farmer Producer Company Limited came together over two days to understand what it takes to move beyond informal Internal Control System (ICS) structures and register as Farmer Producer Companies. The program combined classroom sessions with a hands-on exposure visit to a functioning FPC, ensuring that every concept covered in the classroom was grounded in real-world experience.
The training was delivered by Samunnati's representatives, Mr. Nihar Priyadarsi and Mr. Kamlesh Oal, and was anchored by Mr. Subba Reddy of Fairtrade NAPP.
What Farmers Learned and How
The two-day program covered a range of topics directly relevant to the challenges producer groups face when transitioning to more formal structures. Below are the key areas where participants built knowledge and skills.
- Understanding why coming together as a collective matters
Through structured discussions on the challenges faced by smallholder farmers, participants explored how collective action through an FPC can address barriers including limited market access, weak bargaining power, and difficulties meeting compliance requirements. Connecting everyday challenges to the practical benefits of formalizing their collectives gave participants a clear motivation for the transition ahead.
- Knowing the legal path to forming an FPC
Dedicated sessions covered the FPC model in depth, including the registration process, the Memorandum of Association (MOA), Articles of Association (AOA), and requirements from the Ministry of Corporate Affairs (MCA) and the Registrar of Companies (ROC). Participants came away with a clear understanding of the legal steps involved in converting their existing groups into a formally registered FPC.
“The CP model and SPO model were explained in simple terms, and the differences between them were clarified. We also learned in detail about MOA and AOA and their importance in FPO registration. The rules and procedures related to MCA and ROC were explained clearly, which helped in understanding the legal process of FPO registration.”
- Vipin Kumar Chouhan, Ploughman Agro Private Limited (Alirajpur Tribal Farmer Producer Company Limited)
- Understanding governance and the roles of directors
Sessions on governance and compliance helped participants understand what it means to be an FPC director, how to conduct board meetings and Annual General Meetings (AGMs), and what regulatory filings are required. Good governance is not only central to maintaining Fairtrade certification but also to building trust with buyers, financial institutions, and government bodies.
- Developing a business plan for the collective
In a hands-on group activity, participants worked through the key components of a business plan, including revenue models, cost assumptions, and strategic priorities. This practical exercise built skills that participants can apply directly as they move forward with formalizing and growing their organizations.
- Finding out what government support is available
Participants learned about government schemes accessible to FPCs, farmer collectives, and individual farmers, including equity grants, credit guarantees, and subsidies. Understanding these schemes opens pathways to financial and institutional support that can reduce the cost and complexity of building a formal collective.
- Seeing a working FPC up close
On the second day, participants visited Avantika Aatam Nirbhar Krashak Producer Company Limited (AANKPCL), a fully operational FPC in Agar Malwa, Madhya Pradesh, working with 4,582 households across 33 villages. In direct conversations with AANKPCL's directors, participants gained first-hand insight into how a farmer-owned enterprise manages farmer mobilization, governance, financial operations, and profit-sharing. Seeing this model in action made the transition feel achievable rather than distant.
In Their Own Words
“We were given a comprehensive and well-structured explanation regarding the formation of SPOs, especially the Farmer Producer Company. On the second day, we were taken on a visit to an already operational FPC, where we had the opportunity to meet with experienced Board of Directors and learn key aspects in management and operations of FPCs.”
- Ashwin Upadhyay, Pratibha-Vasudha Jaivik Krishi Kalyan Samiti
“During the training, we learned how to establish an FPO or SPO as well as how to operate them. The field visit to the existing FPO was also excellent, which gave detailed field-level aspects in operating an FPO. We look forward to continuing our work in this manner in the future.”
- Satish Gadge, Harman Cottex & Seeds Private Limited
“We learned about the entire process from the formation of a Farmer Producer Company to its proper operation and also understood different challenges in operation and possible solutions for mitigation.”
- Ganshyam Chaudhary, Holistic Organic Farmers Producer Company Limited
What Comes Next
The transition from Contract Producer groups to formally registered SPOs and FPCs is a meaningful step, and one that requires ongoing support. Fairtrade NAPP will continue to work alongside these producer groups through virtual follow-up training sessions on governance and Fairtrade compliance, with tailored support for each group's individual transition plan. A follow-up virtual meeting is planned for June 2026.
When smallholder farmers build stronger, well-governed institutions, they are in a better position to meet Fairtrade certification standards, access fairer markets, and ensure that the benefits of their collective work are shared equitably. This training program was one concrete step on that journey.
