The Government of India has launched the Central Sector Scheme for “Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)” in the year 2020 with a total budgetary outlay of Rs.6865 Crores which will enable farmers to enhance their bargaining power, leverage economies of scale, reduction in cost of production and enhancing farmers’ incomes through aggregation of their agricultural produce, thus playing a major role towards sustainable incomes.Under the said scheme, FPOs being provided financial assistance upto Rs.18.00 lakh per FPO for a period of 03 years. In addition to this, provision has been made for matching equity grant upto Rs.2,000 per farmer member of FPO with a limit of Rs.15.00 lakh per FPO and a credit guarantee facility upto Rs.2 crore of project loan per FPO from eligible lending institution to ensure institutional credit accessibility to FPOs. Further, Rs.25 Lakhs are given to CBBOs for hand holding each FPO over a period of five years.
Considering the significance and strategic role of the State Government and its machinery down the line in synergizing the efforts in mobilizing the farmers, offering various services relating to production and post-production and also periodically reviewing the development and functioning of FPOs, the Government has made provisions in Operational Guidelines of the 10,000 Farmer Producer Organizations (FPOs) scheme wherein a State Level Consultative Committee called SLCC is constituted with Additional Chief Secretary/Secretary, In-charge of Agriculture/ Agriculture Marketing as its Chairperson.
In addition to above, under 10,000 FPOs scheme, at district level, a District Level Monitoring Committee (D-MC) is constituted under the Chairmanship of District Collector/ CEO/ Zilla Parishad with representatives of different line departments and experts which provides approval for potential produce clusters in the block and also responsible for overall coordination, monitoring and implementation of the scheme at the district level. Provisions have also been made in Government of India schemes for availing benefits by FPOs.
As on 30th June, 2023, 10,000 FPOs have been allocated to various Implementing Agencies (IAs) out of which 6319 FPOs have been registered across the country.
FPOs started business transactions, the details of work carried by FPOs are as follows:
- Supply of quality inputs like seed, fertilizer, pesticides, etc;
- Undertaking aggregation of farmer-members’ agri produce for marketing/selling.;
- Making available machinery and equipment on custom hiring basis for members;
- Undertaking value addition like cleaning, assaying, sorting, grading and processing of agri produce.
This information was given by the Union Minister of Agriculture and Farmers Welfare, Shri Narendra Singh Tomar in a written reply in Lok Sabha today.
