Ministry of Agriculture & Farmers Welfare

Promotion of FPOs

Posted On: 17 MAR 2021 5:21PM by PIB Delhi

Based on felt need, the Government of India has launched a Central Sector Scheme of “Formation and Promotion of 10,000 Farmers Produce Organization (FPOs)” for raising the income of farmers in the country including that in Jharkhand, under which professional handholding support is to be provided for a period of five years to the new FPOs formed under the scheme. Provision of financial assistance to the tune of Rs.18 lakhs to each FPOs under the scheme towards establishment cost for 3 years has been made. No state-wise target for financial assistance is provided under the scheme as the scheme is FPO centric.

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. Suitable provision for skill buildings of the FPOs has been made. 

Already a target 2200 FPOs during the Financial year 2020-21 has been allocated to the Implementing Agencies and Rs. 101.75 Crores has been released under the new scheme. So far, 32 FPOs already registered under new FPO scheme. Farmers are enthusiastically participating under the scheme for formation of FPOs. The process of registration of FPOs is already initiated.

Earlier also various organizations viz. SFAC, NABARD & DAY-NRLM have been promoting FPOs. Government of India through Small Farmers’ Agribusiness Consortium (SFAC), a registered society under Department of Agriculture, Cooperation & Farmers Welfare, Government of India, had been promoting Farmer Producer Organizations (FPOs) by mobilizing the farmers, helping them in registering as companies and giving them training for improvement of their income and sustainability. SFAC has promoted 910 FPOs in the country out of which 10 FPOs are promoted in Jharkhand and 41 FPOs in Odisha.

In addition to above, under Deendayal Antyodaya Yojana- National Rural Livelihood Mission (DAY-NRLM), Ministry of Rural Development, Government of India, had been promoting FPOs by mobilizing farmers, building market linkages through a value chain development approach for farm based livelihood is an important strategy under this mission. DAY-NRLM has promoted 177 FPOs in the country out of which 15 FPOs are promoted in Jharkhand and 20 FPOs in Odisha.

Furthermore, National Bank for Agriculture and Rural Development (NABARD) had been also promoting FPOs in the States. NABARD has promoted 4251 FPOs in the country out of which 176 FPOs are promoted in Jharkhand and 260 FPOs in Odisha.

This information was given in a written reply by the Union Minister of Agriculture and Farmers Welfare Shri Narendra Singh Tomar in Lok Sabha.

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