With evolving export regulations, Internal Control Systems (ICS) and farmer clubs are now required to transition into legally recognized structures to meet compliance standards set by the Agricultural and Processed Food Products Export Development Authority (APEDA). This shift is not just about meeting legal requirements—it’s about unlocking new opportunities for farmers to access premium markets, strengthen governance, and build sustainable agri-businesses.

To support this transformation, Fairtrade NAPP organised a two-day FPO Governance Program in March in Haridwar, Uttarakhand, bringing together 8 farmer members from two Fairtrade-certified rice producer organisations.

The sessions were led by experts from Samunnati Foundation that equipped farmers to gain a comprehensive understanding of FPO formation, governance, compliance, and business planning—laying a strong foundation for transitioning into structured, legally compliant, and market-oriented producer organisations.

Recognising the Need for Legal Transition
Participants developed a clear understanding of the evolving regulatory environment and the importance of transitioning from informal systems such as Internal Control Systems (ICS) to legally registered FPOs. They recognised that this shift is critical for maintaining market access, enhancing credibility, and ensuring long-term sustainability, while also opening up new growth opportunities.

Strengthening Governance and Institutional Understanding
Farmers gained insights into the internal structure of FPOs, particularly the roles and responsibilities of the Board of Directors. The sessions highlighted how transparency, accountability, and collective decision-making form the foundation of effective and resilient farmer-owned institutions.

Demystifying Compliance and Registration Processes
A key outcome of the training was improved clarity on registration and compliance requirements under the Registrar of Companies (RoC). Complex legal processes were simplified, enabling participants to better understand the steps involved in establishing and maintaining a legally compliant FPO.

Building Practical Skills in Business Planning
Through hands-on exercises, participants developed business plans tailored to the rice value chain. This helped them connect production with market demand, explore pricing strategies, and understand the financial aspects required to build sustainable and profitable FPOs.

Leveraging Government Schemes and Support Systems
Participants increased their awareness of various government schemes and programmes designed to support FPOs. They learned how to identify relevant opportunities and leverage institutional support for financial assistance and organisational growth.

Understanding Contract Production Models
Discussions facilitated by Fairtrade NAPP provided clarity on contract production and its relevance for small producer organisations. By addressing participants’ queries, the session enabled them to better evaluate how such models could be applied within their own contexts.

Exposure Visit to Jivamrut FPO in Roorkee

On the second day, participants travelled to Roorkee for an exposure visit to Jivamrut Farmer Producer Company, a successful sugarcane-based Farmer Producer Organisation. This visit provided an opportunity to experience a functioning FPO in a real-world setting, effectively bringing classroom learning to life. Participants gained a clear understanding of how a producer company is established and how it evolves over time, offering a practical reference for their own transition into legally registered entities.

They also observed the day-to-day functioning of the Board of Directors, which helped them better understand leadership roles, governance systems, and decision-making processes within an FPO. In addition, the visit demonstrated how compliance requirements are managed in practice, including how activities related to the Registrar of Companies (RoC) are planned and implemented to maintain legal standing.

Participants further learned how business development efforts are aligned with government schemes and institutional support, highlighting the importance of leveraging available resources for growth. Exposure to innovative approaches in sugarcane processing and product development encouraged farmers to think beyond primary production and explore value addition opportunities within their own rice-based systems.

Overall, the visit provided a practical and motivating example of how a well-managed FPO operates, strengthening participants’ confidence to apply these learnings within their own organisations.

In Their Own Words

Next Steps

As a next step, trained participants will take these learnings back to their respective organisations and conduct field-level orientation sessions for staff, Board members, and Producer Executive Body members. Fairtrade NAPP will continue to provide follow-up support to guide this transition. This initiative reflects an important step towards ensuring that producer organisations are not only compliant with national regulations but are also well-positioned to operate, export, and grow as resilient, market-oriented enterprises.