Pointing to the disparity between wholesale and retail prices, state Food Processing Industries and Horticulture Minister Abdur Rezzak Molla said the FPOs will act as mediator and quality controller between the food processing company and farmers.
"It is the state government's commitment to ensure that farmers get remunerative price. That is why 17 FPOs have been set up that will work towards eliminating middlemen and facilitate coordination between the farmers and the processing companies," said Molla.
"The food processing companies needing raw materials will provide the technology according to their need while the raw materials will be sold to them at a predetermined price.
"This will ensure good quality to the processing company and fair price to the farmer," he added.
Molla also lamented the central government stopping subsidies to the food processing industry and has asked the state government to provide for the same.
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