Samunnati launches FPO Partnership Model aimed at increasing farmers’ incomes
Agri value chain enabler Samunnati has introduced a new FPO Partnership Model designed to improve how Farmer Producer Organisations (FPOs) connect with markets, build their capabilities, and create lasting value. This model moves beyond traditional credit-based support by making FPOs equal partners in every stage of the agriculture value chain.
The model was first launched with Maathota Tribal Farming and Marketing Producer Company Limited, a tribal FPO in Visakhapatnam district, Andhra Pradesh. This FPO works with crops like coffee, turmeric, and black pepper. Under the new model, they now handle everything from direct procurement to processing, storage, and sales.
Thanks to this partnership, the FPO achieved procurement and sales worth ₹4 to ₹4.5 crore, resulting in 10–15% higher average profits per acre for tribal farmers. These gains came from better prices, less distress selling, and fast, transparent payments.
Samunnati helped the FPO by arranging daily payments to farmers, providing working capital for buying and processing crops, and joining in marketing efforts. After covering costs, profits were shared based on a pre-decided ratio—creating a collaborative rather than just a transactional relationship.
Market Access
“This model is about changing how we work with FPOs,” said Anil Kumar SG, Founder & CEO of Samunnati. “We’re not just giving them loans—we’re helping them access better markets, build their own brands, and grow in a sustainable way. FPOs are no longer just producers, but key partners with access, identity, and a voice in the national market.”
Beyond financial benefits, the model also builds trust, ensures traceability, and strengthens FPOs as institutions—helping them operate more professionally and negotiate better with buyers. Also Read | Ayekart and Grameen Foundation India sign strategic partnership for FPOs
Samunnati’s integrated approach—combining finance, market access, and expert advice—has made the FPO’s operations more secure and helped generate 2–3 times more value than traditional loan-based systems. This new way of supporting FPOs could bring big advantages to farmer groups all across India.
After the success in Andhra Pradesh, Samunnati is now expanding this model to FPOs in other key agricultural regions. Each partnership will be tailored based on the crop, region, and maturity of the FPO. Samunnati will bring in its network, digital tools, and market connections to support better results. Currently, Samunnati is connected to over 30,000 FPOs across the country.
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