Farmers in India are now facing new challenges in the context of globalization. Withdrawal of state support are creating space for playing ground of private companies. Linking farmers to market now requires special attention. Traditional cooperatives in Indian agriculture have so far failed to be a self-sustaining farmers institutions. Therefore, in order to give farmers' collectivization a competitive edge, Govt. of India constituted a high powered committee in 2009 (?) under the chairmanship of Prof. Y.K. Alagh to recommend a suitable institution of farmers' collectivization which can withstand and/or can come into terms with the private players in the field of farming business. Alagh committee suggested the formation of Farmers Producers Organization as an entity to be accommodated under the Company's Act. Now, the question is, it needs to seen how the farmers are benefitting from this new institution all over India. It also calls for analysis, as to which particular ground traditional cooperatives fail? And finally, it calls for looking into the impacts of FPO on rural development issues particularly man-days / livelihood creation through flourishing rural non-farm activities, public/private sector investment and govt. policies.