India looks to set up 10,000 FPOs till 2023-24
‘Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs) Scheme’
The Indian government’s Ministry of Agriculture & Farmers’ Welfare has started the ‘Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs) Scheme’, mainly to help small, marginal and landless farmers of the country. Under this scheme, the ministry aims to set up 10,000 FPOs across the country by 2023-24.
The budgetary support for the scheme is Rs 4,496 crore. Since financial support except the management cost is to be extended for five years, therefore, FPOs formed will be required to be financially supported till 2027-28, with the additional committed liability for the period from 2024-25 till 2027-28 of Rs 2,369 crore. Thus, the total budgetary requirement up to 2027-28 would be Rs 6,866 crore.
The budget requirement is to be met from overall allocations of the Ministry of Agriculture’s department of agriculture, cooperation and farmers’ welfare (DAC&FW).
Aims and objectives of the scheme
- To provide a holistic and broad-based supportive ecosystem to form new 10,000 FPOs to facilitate development of vibrant and sustainable income-oriented farming and for overall socio-economic development and well-being of agrarian communities.
- To enhance productivity through efficient, cost-effective and sustainable resource use and realize higher returns through better liquidity and market linkages for their produce and become sustainable through collective action.
- To provide handholding and support to new FPOs up to five years from the year of creation in all aspects of management of FPO, inputs, production, processing and value addition, market linkages, credit linkages and use of technology etc.
- To provide effective capacity building to FPOs to develop agriculture-entrepreneurship skills to become economically viable and self-sustaining beyond the period of support from government.
To form and promote FPOs in a uniform and an effective manner and make these economically sustainable, three implementing agencies — Small Farmers’ Agri-Business Consortium (SFAC), New Delhi, National Cooperative Development Corporation (NCDC), New Delhi, and National Bank for Agriculture & Rural Development, (NABARD), Mumbai — shall be responsible.
- SFAC will form and promote the FPOs to be incorporated under Part IX A of the Companies Act.
- NCDC will form and promote the FPOs to be registered under any Cooperative Societies Act of the states.
- NABARD will form and promote the FPOs which are registered either under Part IX A of the Companies Act or registered under any Cooperative Societies Act of the states.
In addition to these three implementing agencies, if any state/union territory desires to have its own implementing agency, it may approach the ministry with details about the agency and its activities and experience. The ministry will consider the proposal on experiences and existing manpower required for formation and promotion of FPOs in the region.
So far, SFAC has promoted 897 FPOs across India with a maximum of 146 in Madhya Pradesh followed by Karnataka (125), Maharashtra (105) and West Bengal (89). The agency is promoting the FPOs under both two-year and three-year programmes.
For details on support being provided for setting up FPOs in India, please visit the SFAC website http://sfacindia.com
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