Farmer Producer Organizations (FPOs) emerge as the near gateways for the small and marginal farmers of India. A Farmer Producer Organization represents the power of aggregation; many small farmers come together and form an organization that collectively purchases inputs required by them and/or sell their produce. Initially, only small informal groups of farmers are formed and gradually such farmer interest groups or FIGs are, then registered under the Company Act or Cooperative Societies and which ultimately turn or form into FPOs. A study on the dynamics of farmer Producer Organization in Manipur shows that the FPOs have been reformed from the various Farmer Interest Groups (FIGs), Self Help Groups (SHGs), Joint Liabilities Groups (JLGs) and Farmers’ Clubs (FCs) that was formed by the KVK and other rural development agencies in to formal organizations which are ultimately registered under the Company Act, 2013. Altogether, 195 groups from SHGs, JLGs and FCs are categorized into 3 clusters, pooled and formed the 3 FPOs as the Dairy-based, Poultry-based and Piggery-based Agro-Farmers Producer Company Limited by the Krishi Vigyan Kendra, Imphal West and taken under the formation, promotion and handholding mechanism of clustering small, marginal and landless farmers of the district. The group dynamics and governance of FPOs shows that the companies have elected Board of Directors (BODs) including 5 women BODs. Director Identification Number (DIN), Tax Deduction and Collection Account Numbers (TAN) and Permanent Account Number (PAN) for the BODs and the companies are created and they conduct regular board meeting and annual general body meeting too. It is also found that the 3 AFPC Ltd. conduct share mobilization, capacity building programmes of BODs and shareholders, financial literacy programmes and even the statuary company compliances too. Investigation on the Good/Best FPOs Practices followed by the Producer Organization Promoting Institute (POPI) shows that the promoting institute i.e the ICAR-Krishi Vigyan Kendra, Imphal west is also best in its business. Practices such as the innovation in mobilization of members, convergence, governance and business development along with share & care technique are followed by the POPI. A thorough investigation and analysis of the various problems and constraints perceived by FPOs stakeholders also some challenges such as the “Promotion & Handholding, Sustainability and Institutional issues in the formation, promotion and handholding of farmer Producer Organization in Manipur.