- 10,000 FPOs would be formed in five years period from 2019-20 to 2023-24 to ensure economies of scale for farmers.
- Handholding support to each FPO would be continued for 5 years from its year of inception for which support will continue till 2027-28.
- Small and marginal farmers who do not have economic strength to apply production technology, services and marketing including value addition.
- It is a Central Sector Scheme under Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW)
- Implemented by- small Farmers Agri-business Consortium (SFAC), National Cooperative Development Corporation (NCDC) and National Bank for Agriculture and Rural Development (NABARD). Also, States can nominate their implementing Agency in consultation with DAC&FW.
- Cluster based business organisations (CBBOs) will be formed at cluster/state level. These CBBOs will consist of specialists and will serve as a platform for an end to end knowledge for all issues in FPO promotion.
- Minimum number of members in FPO will be 300 in plain area and 100 in North East & hilly areas.
- At least 15% of the targeted FPOs would be in aspirational districts with at least one FPO each block of aspirational districts.
- Credit guarantee facility up to Rs. 2 crore of project loan per FPO. Credit Guarantee Funds (CGF) will be created by NABARD and NCDC.
- FPOs will be promoted under “One District One Product” cluster to promote specialization and better processing, marketing, branding & export by FPOs.