The government aims to meet the target of forming 10,000 farmer new producer organisations (FPOs) over the next couple of weeks, five years after the launch of the central sector scheme.
Sources told FE that over 9,912 FPOs have been registered as cooperatives and producers’ companies under a central sector scheme — formation and promotion of 10,000 FPO – launched in 2020 with a budgetary provision of Rs 6,865 crore. Registration of 88 such collectives are awaited.
Over 33 lakh farmers have taken equity in these farmers collectives across states. These FPOS have a combined turnover of over Rs 1,300 crore and the government has infused R 450 crore as matching equity in these collectives so far.
Officials said that formation of these farmers’ collectives aimed at boosting farmers’ income through aggregation of their agricultural produce, improving market access and bulk suppliers of various agri-inputs thus reducing cost of cultivation.
Under the agriculture ministry’s scheme, the farmers’ collectives are provided financial assistance up to Rs 18 lakh per FPO for a period of three years. In addition, provision has been made for matching equity grants up to Rs 2,000 per farmer member of an FPO with a limit of Rs 15 lakh per FPO.