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What is Farmer's Franchise?


There are around 1800+ Farmer Franchises across India. The key person in a Farmer's Franchise is the Farmer Entrepreneur who is responsible for processing raw materials at the farm level. FF procures the raw material from the farmers of nearby villages and in terms he supports the farmers by reducing their cost of transportation.


OFPL facilitates the loan to FF for installing mini food processing units at farm gates. The location of the Farmer Franchise is selected based on various parameters such as availability of water, accessibility to the roadway, and electric facility. OFPL provides the market linkage by buying back all the processed material from FFs. Market linkages ensure improved incomes to the tune of Rs.15,000 - Rs.25,000 per month to the farmer entrepreneurs and a 20% increased price realization for the end smallholder farmers.


Benefits of Farmer Franchise

  • Early Value Addition at farm gate thereby reducing food waste and ensuring food security.

  • Higher Price Realization for farmers on par with market rates for processed agriculture produce by eliminating middlemen and providing direct market linkages.

  • Access to finance in the form of loans from banks to set up micro-processing unit

  • Farmers Becoming Microentrepreneurs thereby promoting rural manufacturing and employment.

  • Each farmer franchise provides direct employment to 2 individuals and indirect employment to 2 more individuals.

  • Indirect Income Generation from health-promoting and sustainable food by-products such as husk, bran, pods, etc. used as dairy and livestock feed.

Farmer Franchise Demographics








Age Group

Age Group & Gender Group Representation

Land Holding size






Marginal Farmers (<1 acres)

Small Farmers (1-2 acres)

Semi medium Farmers
(2-4 acres)

Medium Farmers (4-10 acres)

Large Farmers (>10 acres)

Annual Income






50,000 - 100,000



Land Holding size & Annual Income
Qualification & Previous Occupation


Previous Occupation

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