During the inaugural session of the National Conference of Cluster-Based Business Organizations (CBBOs) Union Agriculture Minister Narendra Singh Tomar mentioned that increasingly more farmers have to be a part of Farmer Producer Organizations (FPOs).












He mentioned that earlier round 7,000 Farmer Producer Organizations have been made however they may not final and a brand new scheme of FPOs was launched by the Prime Minister with an outlay of Rs. 6865 crore. At a time when the nation is observing Azadi ka Amrit Mahotsav, the federal government is making each effort for the prosperity of farmers.

Kailash Chaudhary, Union Minister of State for Agriculture mentioned that farmers ought to be captivated with becoming a member of FPOs. At the convention Union Agriculture Minister additionally launched the emblem for the ten,000 FPOs Scheme.

Indian agriculture is dominated by small and marginal farmers with common land holdings dimension of lower than 1.1 ha. These small and marginal farmers constituting greater than 86 % of the full land holdings are dealing with great challenges each in manufacturing and post-production situations corresponding to entry to manufacturing expertise, high quality inputs at cheap costs, seed manufacturing, customized hiring, worth addition, processing, credit score, investments & most necessary markets. 












Thus, collectivization of such producers by means of the formation of FPOs is essential to deal with such challenges and improve their incomes.

Realizing the necessity to type and promote FPOs throughout the nation, the Government created a devoted Central Sector Scheme “Formation & Promotion of 10,000 Farmer Producer Organizations (FPOs), and the identical was launched by PM Modi on 29 Feb 2020 at Chitrakoot (UP) for implementation.

The scheme is predicated on the produce cluster method to boost manufacturing, productiveness, market entry, promote diversification, worth addition, processing and export and in addition to create agri-based employment alternatives with the intention to economically empower farmers.

The FPOs to be eligible underneath the scheme for monetary profit and technical handholding have to be registered both underneath the Companies Act, 2013 or States’ Co-operative Societies Act with a minimal variety of 300 farmers in plain areas and 100 farmers in hilly and NER. 












Under the scheme, there’s a provision for monetary assist of max Rs.18.00 lakh / FPO for 3 years as administration price to make them sustainable and economically viable . 

To strengthen the monetary base of FPOs and entail them to avail collateral-free mortgage, there’s a provision for matching fairness grant of max Rs. 2000/- per member with ceiling of Rs, 15 lakh per FPO and  Credit Guarantee facility upto bankable venture mortgage of Rs. 2.00 crore respectively.

Under the scheme, the CBBOs have been provisioned because the skilled company with a significant function to play as they’re to have interaction themselves all alongside the worth chain beginning proper from the mobilization of farmers, baseline survey, identification of manufacturing clusters, formation of teams, registration and capability constructing to the preparation of the marketing strategy, execution thereof with assurance to supply market to the FPOs. They are additionally to arrange cardinal hyperlink with Implementing Agencies & FPOs.












Progress to this point

  • Over 5.87 lakh farmers have been mobilized underneath the Scheme.

  • Around 3 lakh farmers have been registered as shareholders of the FPOs.

  • Equity contribution by farmer members quantities to Rs. 36.82 crores.

  • Total fairness base of the FPOs, together with the Equity Grant launched, quantities to INR 50 crores.

  • 201 girls centered FPOs have been registered.

  • 481 FPOs registered in tribal districts.

  • FPOs have began enterprise transactions:

  • 84 FPOs of 14 CBBOs of SFAC have made transactions price INR 928.28 lakhs

  • 12 FPOs of three CBBOs of NAFED have made transactions price INR 48.35 lakhs.

Source – PIB







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