Lauding the performance of FPOs, Union Agriculture Minister Narendra Singh Tomar said FPOs have started business transactions and are conference the Union Agriculture Minister launched the logo for the 10,000 FPOs Scheme.
Indian agriculture is dominated by small and marginal farmers with average land holdings size of less than 1.1 ha. These small and marginal farmers constituting more than 86 % of the total land holdings are facing tremendous challenges both in production and post-production scenarios.
Collectivization of such producers through formation of FPOs is very important to address such challenges and enhance their incomes. Realizing the need to form and promote FPOs across the country, the government formulated a dedicated Central Sector Scheme “Formation & Promotion of 10,000 Farmer Producer Organizations (FPOs) and the same was launched by the Prime Minister in 2020 at Chitrakoot (UP) for implementation, underlined Tomar.
Under the scheme, there is provision for financial support of maximum Rs.18.00 lakh per FPO for 3 years as management cost to make them sustainable and economically viable. To strengthen the financial base of FPOs and enable them to avail of collateral-free loans, there is also a provision for matching equity grants of maximum Rs. 2000/- per member with ceiling of Rs, 15 lakh /FPO and Credit Guarantee facility upto bankable project loan of Rs. 2.00 crore respectively, stated the Minister.
Giving details, the Minister said more than 5.87 lakh farmers have been mobilized under the Scheme. About 3 lakh farmers have been registered as shareholders of the FPOs. Equity contribution by farmer members amounts to INR 36.82 crores.Total equity base of the FPOs, including the Equity Grant released, amounts to INR 50 crores. 201 women focused FPOs have been registered. 481 FPOs registered in tribal districts.
Representatives of 265 CBBOs empanelled by 13 Implementing Agencies were invited in the conference. All the 13 Implementing Agencies, senior officers from State Governments dealing with FPOs were also invited.
The inaugural session of the conference was also addressed by Ms. Neelkamal Darbari, Managing Director, SFAC, Dr. G.R. Chintala, Chairman NABARD, Dr. Abhilaksh Likhi, Additional Secretary, Agriculture and Dr. Vijaya Lakshmi Nadendla, Joint Secretary (Policy & Marketing), Agriculture.