NEW DELHI: The Government of India has made considerable progress under the Central Sector Scheme (CSS) for the “Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs).”
According to a press release by the Ministry of Agriculture and Farmers Welfare, as of June 30, 2024, a total of 8,875 FPOs have been registered across the country, marking a major milestone in the initiative aimed at transforming the agricultural landscape.
The cumulative paid-up capital for these 8,875 FPOs stands at Rs 630.3 crore. Under the scheme, a cumulative amount of Rs 210.1 crore has been released to eligible FPOs as a matching equity grant, demonstrating the government’s commitment to bolstering financial support for farmer collectives.
The CSS for the “Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs)” adopts a cluster-based approach for produce or produce mix.
Additionally, it emphasizes the “One District One Product” strategy, which aims to develop product specialization.
This approach encourages FPOs to focus on processing, branding, marketing, and exporting specific agricultural products declared for their respective districts.
This strategic focus is intended to enhance value realization for farmers and promote sustainable agricultural practices.
To further support these FPOs, the scheme includes provisions for a credit guarantee fund. Under this provision, loans worth Rs. 50.4 crore have been issued to FPOs, providing them with the necessary financial backing to expand their operations and enhance productivity.
As of June 30, 2024, a significant number of shareholder farmers, totalling 19,68,868, have been registered in FPOs formed and promoted under the scheme.
Additionally, 6,374 CEOs have been appointed in the 8,875 registered FPOs, ensuring professional management and strategic direction for these organizations.
The operational guidelines of the scheme, particularly clause 4.7, highlight the importance of product and service diversification to ensure year-round engagement with FPO members.
FPOs are encouraged to federate at district, state, and national levels to streamline processing, branding, and marketing efforts for identified products.
This information was provided by the Union Minister of State for Agriculture & Farmers’ Welfare, Ramnath Thakur, in a written reply in Rajya Sabha on Friday.