Samunnati unveils new FPO partnership model that helps boosts farmers’ incomes
Members of Mathota Tribal Farming and marketing producer company at a recent event
Agri value chain enabler Samunnati has launched a new FPO Partnership Model aimed at transforming Farmer Producer Organisations (FPOs) engagement with markets, build capacity, and generate long-term value. The model improves traditional credit-led approaches with a shared value creation framework that positions FPOs as equal partners across the agri value chain.
The new initiative kicked off with Maathota Tribal Farming and Marketing Producer Company Limited, a tribal FPO based in Andhra Pradesh’s Visakhapatnam district. Specializing in coffee, turmeric, and black pepper, Maathota FPC became the first to adopt the new model—which spans direct procurement, processing, storage, and sales.
The initiative has enabled procurement and sales worth ₹4-4.5 crore leading to a 10-15 per cent higher average profit per acre for the tribal farmers, Samunnati said. Gains were driven by improved pricing, reduced distress selling, and transparent, timely payments.
In this model, Samunnati facilitated daily payments to farmers through the FPC, enabled working capital for procurement and processing, and co-participated in downstream marketing. After recovering costs, profits were shared in a pre-agreed ratio, reinforcing a collaborative rather than transactional relationship.
“The FPO Partnership Model is about rewriting the rules of engagement,” said Anil Kumar SG, Founder & CEO, Samunnati. “We are moving from simply financing FPOs to co-creating value with them-helping them access better markets, build brands, and grow sustainably. This is the future of agri-enablement. This new model signals a powerful shift in India’s agri-sector, one where FPOs are not just producers but partners in progress-with access, identity, and agency across the national market.”
Beyond economic returns, the model focuses on trust, traceability, and institutional strengthening; building the FPC’s capacity to operate professionally and gain leverage in negotiations with buyers, Samunnati said.
Samunnati’s integrated approach, which combines finance, market access, and advisory, helped de-risk the FPC’s operations and enabled two to three times greater value creation compared to conventional revolving credit structures. This reimagining of agri-finance is expected to unlock significant benefits for farmer collectives across India, Anil Kumar said.
Following the success in Andhra Pradesh, Samunnati is now opening up partnerships with FPOs across key agri-geographies across agri value chains. Each partnership will be customized to the crop, region, and FPO maturity, with Samunnati bringing in its network, digital tools, and market linkages to strengthen outcomes, Kumar said. Samunnati’s outreach extends to oveer 30,000 FPOs across the country.
Published on April 23, 2025
