Palladium empowering Odisha’s Farmer Producer Organizations for Global Success

Feb 20, 2025 - 23:14
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Palladium empowering Odisha’s Farmer Producer Organizations for Global Success

Bhubaneswar (20/02/2025): Palladium, as the technical support unit under the Department of Agriculture and Farmers’ Empowerment, Government of Odisha,, is driving a remarkable transformation in the state’s agricultural export landscape through the Promotion and Stabilization of Farmer Producer Organizations (PSFPO) project.

This initiative has unlocked opportunities for Farmer Producer Organizations (FPOs) to scale their operations and tap into global markets, paving the way for Odisha to emerge as a significant horticultural export hub. In partnership with the Agricultural and Processed Food Products Export Development Authority (APEDA), Palladium facilitated Odisha’s first-ever commercial export of fresh produce from FPOs in 2024, marking a historic milestone.

Eighteen FPOs across Kalahandi, Rayagada, Bolangir, Dhenkanal, Khordha, and Mayurbhanj districts exported over 43.6 metric tons of fresh fruits and vegetables, including mangoes (Dussehri and Amrapali varieties), okra, long beans, pointed gourd, ivy gourd, and bitter gourd, to the Middle East, the UK, and the European Union.

This achievement was bolstered by a strategic move to double air cargo consignment limits to Dubai via Biju Patnaik International Airport, underscoring the growing global demand for Odisha’s fresh produce. Palladium has implemented a series of strategies to help FPOs meet international standards for quality and compliance.

These include identifying production clusters, capacity-building workshops, and providing hands-on training in storage, handling, packaging, and logistics.

Post-harvest management has been a cornerstone of the initiative, ensuring the produce retains its integrity and freshness during export.

Collaborative efforts with exporters, logistics providers, and CBBOs have further strengthened the export ecosystem, while partnerships with financial institutions and government agencies have enabled FPOs to access essential resources for scaling operations. The success of these exports has brought tangible benefits to smallholder farmers, who have seen their incomes rise significantly.

For example, the Mahila Pragati Farmer Producer Company Limited (MPFPCL), a women-led FPO in Rayagada, achieved a 40% price increase for its mango exports to Europe, driving its turnover from INR 76 lakhs in 2021-22 to INR 116 lakhs in 2022-23.

The FPO has provided consistent income streams for over 2,000 women farmers and aims to achieve INR 150 lakhs in turnover for 2024-25 while expanding its services to more women farmers. The introduction of international exports has also catalyzed operational shifts among FPOs.

Sensitization workshops have equipped them with knowledge about international quality standards, certifications, and proper post-harvest practices.

FPOs are adopting structured approaches to production, quality control, and logistics to align with global requirements.

This momentum has inspired more FPOs to explore international markets, with Palladium and its partners providing the necessary training and technical support to sustain this growth. The increased revenues from exports have bolstered the investment capacity of FPOs.

Many are reinvesting in infrastructure, such as cold storage facilities, value-addition units, and processing and packaging systems, to enhance their export capabilities.

The Government of Odisha has allocated INR 1,050 crores for schemes supporting FPOs, post-harvest management, and marketing, aiming to benefit over 3 lakh farmers across the state by 2027-28.

These initiatives are part of a broader Agriculture Export Policy that seeks to increase Odisha’s share in India’s exports from 1.16% to 2.5% by 2025. International exports have also provided resilience against domestic market volatility, offering farmers a safety net during periods of low domestic demand or price drops.

By diversifying market channels, farmers growing vegetables like okra, tomatoes, and brinjal have mitigated the risks of price crashes.

Despite challenges like inadequate storage and transportation infrastructure, the PSFPO project has streamlined supply chains, promoted value addition, and fostered collaborations to equip FPOs to meet export demands sustainably. Looking ahead, the potential for long-term growth through international exports is immense.

Investments in infrastructure, skill development, and public-private partnerships will be critical to scaling this momentum.

Policy support, such as reduced freight costs and tariff barriers, will further enhance the competitiveness of Odisha’s exports.

Diversifying into value-added products and expanding export markets will solidify Odisha’s position as a global horticultural hub. Palladium, in collaboration with APEDA, NABARD, ORMAS, and the Department of Agriculture, is committed to integrating technology, promoting crop diversification, and building capacity among FPOs.

These efforts not only boost exports but also uplift smallholder farmers, driving inclusive growth and fostering a more resilient agricultural ecosystem.

With a sustainable export framework in place, Odisha is poised to transform its agricultural landscape, increase export revenues, and secure a prosperous future for its farmers.