Cluster-Based Business Organizations (CBBOs) – Strengthening Farmer Institutions for Sustainable Growth
Cluster-Based Business Organizations (CBBOs) serve as a critical institutional mechanism under the Central Sector Scheme for the Formation and Promotion of Farmers’ Producer Organizations (FPOs) introduced by the Government of India. Appointed at the State and Cluster levels by apex institutions such as the National Bank for Agriculture and Rural Development (NABARD) and the National Cooperative Development Corporation (NCDC), CBBOs play a pivotal role in nurturing, guiding, and strengthening FPOs across the country.
The core mandate of CBBOs is to provide comprehensive and continuous handholding support to FPOs throughout their life cycle. This includes mobilization of farmers, facilitation of FPO formation and registration, development of robust governance systems, statutory compliance, and structured capacity building of Board of Directors and members. Through systematic mentoring and institutional strengthening, CBBOs ensure that FPOs operate in a transparent, democratic, and professionally managed manner.
CBBOs further enhance the technical, operational, and business capabilities of FPOs by promoting best agricultural practices, efficient input management, and access to advisory and extension services across agriculture and allied sectors. By enabling aggregation, value addition, processing, and collective marketing, CBBOs help FPOs achieve economies of scale, improve market access, and secure better price realization for farmer members.
In addition, CBBOs facilitate strategic market and financial linkages for FPOs by connecting them with traders, processors, institutional buyers, financial institutions, and government support mechanisms. They assist FPOs in accessing credit, equity grants, and relevant schemes, while continuously monitoring performance to guide them towards financial viability and long-term sustainability.
Anchored in a farmer-centric and inclusive approach, CBBOs promote collaboration, innovation, and grassroots entrepreneurship. As catalysts of rural transformation, CBBOs play a vital role in building resilient farmer institutions that empower rural communities, enhance livelihoods, and contribute meaningfully to sustainable agricultural and rural development.
