FORMATION AND PROMOTION OF FARMER PRODUCER ORGANIZATIONS (FPOS)

Objectives

  • 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.

Intended Beneficiaries

  • Small and marginal farmers who do not have economic strength to apply production technology, services and marketing including value addition.

Salient features

  • 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.

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