Have Over 1,100 FPOs Under the Centre’s Scheme Surpassed Rs 1 Crore in Turnover?
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Synopsis
Discover how over 1,100 Farmer Producer Organisations have crossed the Rs 1 crore turnover mark under the Centre's special incentive scheme, transforming the agricultural landscape. With increased participation and support, these FPOs are enhancing farmers' incomes and market access, showcasing a promising future for smallholder agriculture.
Key Takeaways
- 1,100+ FPOs have surpassed Rs 1 crore turnover.
- Over 30 lakh farmers are involved in the FPO scheme.
- 40% of participants in FPOs are women.
- Financial aid of Rs 18 lakhs is provided for management costs.
- The scheme aims to enhance farmers' income and market access.
New Delhi, July 21 (NationPress) More than 1,100 farmer producer organisations (FPOs), out of the total 10,000 initiated under the Centre’s special incentive scheme, have achieved a remarkable milestone by exceeding a business turnover of Rs 1 crore, as per data compiled by the Ministry of Agriculture and Farmers Welfare.
The participation in the FPO initiative has risen to over 30 lakh farmers, with approximately 40 percent being women. These FPOs are now engaging in business transactions amounting to thousands of crores in the agricultural domain, stated a senior official.
The primary objective of FPOs is to enhance farmers' income and grant small farmers direct access to substantial market benefits, improved bargaining power, and better market accessibility.
Launched by Prime Minister Narendra Modi on February 29, 2020, this scheme offers five years of handholding support for each newly formed FPO, along with financial assistance of Rs 18 lakhs for meeting management costs over three years.
Moreover, the scheme includes a matching equity grant of up to Rs 2,000 per farmer member of the FPO, capped at Rs 15 lakh per FPO, along with a credit guarantee facility of up to Rs 2 crore per FPO from qualified lending institutions to ensure accessibility to institutional credit.
This initiative was launched with a budget allocation of Rs 6,865 crore until 2027-28. Since its inception, Rs 254.4 crore in equity grants has been distributed to 4,761 FPOs, and a credit guarantee cover of Rs 453 crore has been issued to 1,900 FPOs.
Farmer Producer Organisations (FPOs) are registered entities created to capitalize on collectives through economies of scale in the production and marketing of agricultural and allied sectors.
The idea behind FPOs is that farmers, who produce agricultural goods, can collaborate in groups. To assist this effort, the Small Farmers’ Agribusiness Consortium (SFAC) was designated by the Department of Agriculture and Cooperation, Ministry of Agriculture, to aid state governments in establishing FPOs.
The “Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs)” scheme focuses on leveraging economies of scale in production and marketing to enhance productivity through efficient, cost-effective, and sustainable resource use, aiming for income-oriented farming that reduces production costs and boosts farmers’ earnings.
Officials noted that various ministries are collaborating to enhance farmers’ incomes via FPOs. For example, the Spices Board has initiated the “Sustainability in Spice Sector through Progressive, Innovative and Collaborative Interventions for Export Development (SPICED)” scheme for the fiscal year 2025–26, providing financial aid across the value chain to farmers and farmer producer organisations to improve the production, quality, and export of spices.
This initiative seeks to increase the productivity of both small and large cardamom, enhance the quality of post-harvest processes, and promote the production and export of value-added, GI-tagged, and organic spices. It also facilitates compliance with global food safety and phytosanitary standards while enhancing stakeholder capacity across the value chain.
Point of View
The success of the Farmer Producer Organisations under the Centre's scheme reflects a significant advancement in agricultural policy aimed at empowering small farmers. With a notable inclusion of women in these initiatives, the program not only enhances income but also promotes sustainable practices in the agricultural sector. As more ministries join this effort, the potential for growth and development in farmer communities is vast, indicating a positive trajectory for India's agricultural economy.
NationPress
21/07/2025
Frequently Asked Questions
What are Farmer Producer Organisations (FPOs)?
FPOs are registered entities formed by farmers to leverage collective strength in production and marketing, aiming to improve their economic standing.
How many FPOs have surpassed Rs 1 crore turnover?
Over 1,100 FPOs have successfully crossed the Rs 1 crore turnover mark under the Centre's special incentive scheme.
What support does the Centre provide to FPOs?
The Centre provides handholding support for five years and financial assistance of Rs 18 lakhs for management costs, along with equity grants and credit guarantees.
When was the FPO scheme launched?
The FPO scheme was launched by Prime Minister Narendra Modi on February 29, 2020.
What is the main goal of the FPO scheme?
The primary goal is to enhance farmers' income and provide them with better market access and bargaining power.
