Farmer Producer Organisation (FPO) is the emerging paradigm for social engineering of farmers into organized groups. GOI launched a Central Sector Scheme (CSS) of “Formation and Promotion of 10,000 FPOs”. A Case study on Value Chain Analysis of Millets in Madurai district was carried out. The sample FPO carried out major activities which includes supply of inputs, procurement of maize, millets, production and marketing of cattle feed and value addition of millets. It has 300 shareholders with Rs.2000 per share. The authorised and paid up capital of the FPO is about Rs. 6.0 lakhs. The value added products such as flour are made from banyard millet, pearl millet and finger millet. Equity grant of Rs. 6.0 lakhs were provided under Central Sector Scheme for the formation of 10 k FPOs and a grant of 10.0 lakhs was provided by MSDA which was utilized for the purchase of machineries for cattle feed unit. The study suggested that the promoting agencies should conduct more capacity building programmes, training and field visit to the members for active participation of members.
FPO, Value chain, Value addition, Millets