Synopsis
The Centre's Farmer Producer Organisations (FPOs) scheme has engaged 30 lakh farmers, with 40% being women, enhancing income and market access. Launched by PM Modi in 2020, it offers financial support and resources for sustainable farming.Key Takeaways
- 30 lakh farmers are now part of the FPO initiative.
- 40% of participants are women.
- Business worth thousands of crores is being conducted.
- Financial aid of Rs. 18 lakh per FPO.
- Support lasts for five years.
New Delhi, Feb 28 (NationPress) The total number of farmers participating in the Centre’s initiative for the establishment and promotion of Farmer Producer Organisations (FPOs) has reached the significant milestone of 30 lakh across the nation, with approximately 40 percent of these being women, as stated by the Ministry of Agriculture on Friday.
These FPOs are now conducting business transactions worth thousands of crores within the agricultural sector, the statement added.
The primary goal of FPOs is to enhance farmers' income and provide small-scale farmers with direct access to substantial market advantages, improved bargaining power, and enhanced market access.
Launched by Prime Minister Narendra Modi on February 29, 2020, this initiative includes provisions for handholding support lasting five years for every newly formed FPO, alongside financial assistance amounting to Rs. 18 lakh for covering management costs over three years.
Furthermore, matching equity grants of up to Rs. 2,000 for each farmer member of the FPO are available, with a cap of Rs 15 lakh per FPO, as well as a credit guarantee facility of up to Rs 2 crore for project loans from eligible lending institutions, according to the announcement.
The scheme was launched with a total budget allocation of Rs 6,865 crore through 2027-28. Since its inception, Rs 254.4 crore in equity grants has been distributed to 4,761 FPOs, with credit guarantee coverage of Rs 453 crore issued to 1,900 FPOs.
Recently, during the release of the 19th installment of PM-KISAN in Bhagalpur, Bihar, Prime Minister Modi inaugurated the registration of the 10,000th FPO, located in Khagaria district, focusing on maize, banana, and paddy.
FPOs are officially registered entities established to harness collective strength through economies of scale in the production and marketing of agricultural and related sectors.
The underlying concept of FPOs is that farmers, who produce agricultural goods, can organize into groups. To assist in this process, the Small Farmers’ Agribusiness Consortium (SFAC) was designated by the Department of Agriculture and Cooperation within the Ministry of Agriculture to support state governments in their establishment.
The initiative titled “Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs)” was launched with the primary aim of leveraging economies of scale in production and marketing, thereby improving productivity through efficient, cost-effective, and sustainable resource utilization, which ensures sustainable income-oriented farming and reduces production costs while increasing farmers’ income.
