Setting up of Farmer Producer Organizations (FPOs)

To support farmers in various aspects ranging from input procurement to market linkages, Government of India through Small Farmers’ Agribusiness Consortium (SFAC), a registered society under Department of Agriculture, Cooperation & Farmers Welfare, Government of India, is promoting Farmer Producer Organizations (FPOs) by mobilizing the farmers and helping them in registering as companies. As on 31.05.2019, SFAC has helped 816 FPOs in registering as companies.

In addition to above, National Bank for Agriculture and Rural Development (NABARD) is also promoting FPOs in the States and has so far promoted 2154 FPOs.

Further, under Deendayal Antyodaya Yojana- National Rural Livelihood Mission (DAY-NRLM), Ministry of Rural Development, Government of India, is promoting FPOs by mobilizing farmers.  So far, 131 registered FPOs have been promoted under the Mission. Building market linkages through a value chain development approach for farm based livelihood is an important strategy being pursued.

As per the report received from State of Karnataka, there are 371 FPOs in the States for which the district-wise details are annexed.

To encourage more farmers to set up FPOs, Government is providing various assistance to FPOs such as Equity Grant Scheme, Credit Guarantee Fund Scheme through SFAC. In addition, FPOs can also avail assistance under various schemes of the Government of India such as Agricultural Marketing Infrastructure (AMI), Venture Capital Assistance (VCA) and Mission for Integrated Development of Horticulture (MIDH) Scheme for promoting their agri-business activities.

SFAC and NABARD have facilitated training to Board of Directors, Chief Executives Officers of FPOs to enable them to function effectively. Further, Indian Council of Agricultural Research (ICAR) is providing technical support to FPOs through Krishi Vigyan Kendras of the respective districts in the form of capacity development of its members of various aspects of agriculture and allied sectors including production technologies and value addition and processing.

This information was given in a written reply by the Union Minister of Agriculture and Farmers Welfare Shri Narendra Singh Tomar in Lok Sabha today.