The study is an attempt to assess the role of Central
and State Government and Co-operative Societies in promoting
FPOs in Maharashtra, India. Study also explores Financial
Products and their development in order to meet financial needs
of FPOs. Finally, study provides measures for promotion and
development of FPOs so as to make Agri Finance viable option
even for poors’. Study follows descriptive research method based
on secondary data and information collected from reports of
government agencies, institutions and bodies. In order to ensure
the quality and authenticity of results, only reliable websites of
central and state government have been accessed. Initiatives have
been taken at both Central and Stale level for promotion of FPOs
and to develop financial products for financing FPOs. A lot has
been done still a long way to go so as to make environment
conducive for FPOs. Study concludes that FPOs play a positive
role and leads to enhanced income for farmers by providing them
with access to institutional credit, informed and better decisions,
access to better and improved inputs, effectiveness &efficiency in
farming operations and better marketing facilities; there still
remains challenges and policy gaps that are unaddressed. Few of
the major challenges faced by institutions and government
agencies in building strong and sustainable FPOs include
inadequacies related to professional management, access to
credit, risk mitigation mechanism, accessibility to market,
alongside weak financials and lack of technical skill and
awareness among users of FPOs.