Agriculture plays a vital role in economies of developing nations. About 54.6% of the manpower is engaged in agriculture or related activities (census 2011) and it contributes 17.4% to the country’s Gross Value Added (GVA) for the year 2016-17 (at current prices).The small and marginal holdings taken together constituted 86.21% in 2015-16 against 84.97% in 2010-11 while their share in the operated area stood 47.34% in the current census as against 44.31% in 2010-11.The small farmers with weak bargaining powers suffer from greater dependency in the cultivation and monopolistic exploitation under formal contracts (Bachke, 2009). The concept of Farmer Producer Organizations (FPOs) consists of combination of producers especially small and marginal farmers in order to form an effective institution to collectively tackle many challenges of agriculture such as improved access to investment, technology, inputs and effective market approach. Department of Agriculture and Co-operation under Ministry of Agriculture (MoA), Govt. of India has identified 'FPOs' registered under the special provisions of the Companies Act, 1956 as the most appropriate institutional form around which the mobilization of farmers is to be made for building their capacity to collectively leverage their production and marketing strength. Farmers Producer Organizations (FPOs) are a legal form of the company and according to 2002 Act passed in parliament, only farmer producer can become member of FPOs. In the Indian context, the role of these type of farmer organizations is to help smallholder farmers specifically, improve their position in the emerging value chains. FPO helps the farmers in production, harvesting, processing, procurement, grading, pooling, handling, marketing, selling and export of primary produce of the members or import of goods as well as services for their mutual benefit. FPO renders technical services, consultancy services, training, education, R & D for the promotion of the interests of its members. Thus, FPO’s need financial and technical support for entering into take off stage to kick off agricultural economy.