Formation And Promotion Of 10,000 Farmer Producer Organisations (FPOs)

The “Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs)” scheme was launched in 2020 by the Ministry of Agriculture and Farmer Welfare with the core objective of creating a supportive ecosystem for the formation of 10,000 new FPOs in India over a period of five years, from 2019-20 to 2023-24. The agricultural sector plays a crucial role in India’s economic development and the majority of farmers in the country are small and marginal. The scheme aims to improve the income and economic strength of these farmers by providing them with access to better technology, credit, input and markets through FPOs. Produce clusters will be used to help develop and promote the FPOs, utilizing economies of scale to increase member’s access to the market. The budgetary allocation for the project is Rs. 6865 crores and nine implementing organizations will be used by the government to carry it out.

Scheme Overview:

Scheme Name: Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs)

Scheme Fund Allocated: Rs. 6865 Crore

FY (Fiscal Year) 2019-20 to 2023-24: Rs. 4496 Crore

LFY (Last Fiscal Year) 2024-25 to 2027-28: Rs. 2369 Crore

Type of Government Scheme: Central Sector Scheme

Website to apply: https://pmkisan.gov.in/FPOApplication/

Helpline No.: 011-23381092

Features:

Feature	Details
Minimum no. of members in FPO	Plain Area-300, North-east Area – 100
Financial Assistance to FPOs	Up to Rs. 18.00 lakh for each FPO during a three-year period
Credit guarantee facility	Available up to Rs. 2 crores of project loans per FPO
Equity Grant for FPO	Rs. 2,000 per farmer member of FPO – maximum limit: Rs. 15 Lakh
FPOs will be promoted under	One District One Product cluster
Initial training to FPOs	Provided by Cluster Based Business Organization (CBBOs) for 5 years

 

Latest news about the scheme:

As per recent news from various sources, including from the official website of the Ministry of Agriculture and Farmers’ Welfare, it has been reported that a total of 4028 FPOs as of 30-11-2022 have been registered under the Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs) scheme. The scheme, which was launched in 2020, aims to create a supportive ecosystem for the formation of 10,000 new FPOs in five years. The registration of over 4000 FPOs is a significant achievement, as it will help small, marginal, and landless farmers to access better technology, credit, inputs, and markets. 

Benefits:

• A maximum of Rs. 18.00 lakh in financial support over a three-year period per FPO
• Up to Rs. 2 crores in project loans are eligible for the credit guarantee facility per FPO
• A maximum equity award of Rs. 2,000 can be given to each farmer member of an FPO up to a total of Rs. 15 lakh
• The “One District One Product” cluster will encourage FPOs, assuring greater resource use and improved market access for members
• FPOs receive their initial training from Cluster Based Business Organizations (CBBOs) for a period of five years, which helps them run their operations more effectively and create connections with the market
• Increased productivity and cost-effectiveness in production
• Youth employment opportunities in rural areas, supporting inclusive and sustainable economic growth

Drawback:

This scheme may not be useful if a farmer belongs to a certain segment that does not have the necessary skills to form an FPO or lacks the resources to meet the eligibility criteria.

How to Apply?

• Step 1: Open  https://pmkisan.gov.in/FPOApplication website
• Step 2: Choose “New Registration” on the home page.
• Step 3: Provide the necessary information regarding the concerned person and information about FPO.
• Step 4: Submit the application after uploading the required documents

After submission, the application will be verified by the concerned authorities, and if approved, the FPO will be registered under the scheme. It is essential to note that only eligible farmers, including small, marginal and landless farmers, are eligible to apply for the scheme.

Documents Required:

• Aadhaar card
• PAN card
• Bank account details
• Land records or lease agreement
• Certificate of registration of FPO

Conclusion:

In conclusion, the Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs) scheme is a commendable effort by the central government towards the betterment of Indian agriculture. The scheme offers a comprehensive package of financial assistance, credit guarantees, equity grants and training to FPOs, which will help small, marginal and landless farmers access better technology, credit, input and markets. By promoting FPOs under “One District One Product” clusters, the scheme aims to improve market access for members, enhance cost-effective production and productivity and create enormous job opportunities for rural youths in villages. The scheme’s successful implementation will enable Indian farmers to achieve global outreach and establish Atma Nirbhar Bharat. Therefore, it is a significant step towards converting Krishi into Atma Nirbhar Krishi and transforming agriculture into a sustainable enterprise through FPOs.