Sunday, July 5, 2020

Centre to create 10,000 FPOs to help small and marginal farmers

These Farmers Produce Organisation (FPOs) would mainly help farmers involved in the Horticulture sector, where small and marginal farmers hardly get a good price of their produce.

BY Vijay Thakur, Special Representative, The Statesman, vijaythakurx@gmail.com

Centre plans to create 10,000 Farmer’s Producer Organisation (FPOs) to help small and marginal farmers to sell their produce at a better price directly.

These FPOs would not only help in the agriculture process, but also create new avenues for the development of the country said the Union Agriculture Minister Narendra Singh Tomar . He said nearly 86%  of the farmers in the country are small and marginal. The FPOs would help them in reducing the cost of marketing, improve production in the agricultural and horticultural sectors and generate employment opportunities in the rural sector.


In the Budget 2020-21, Centre government has proposed to adopt a cluster approach for horticultural produce through “One district – One Product” scheme so as to give a fillip to value addition, marketing and exports. The scheme has a budget is Rs. 6,865 crores and all FPOs would be provided professional support and handholding for 5 years.


The Minister said 15% of the FPOs are to be constituted in aspirational districts, and ould be formed on priority basis in scheduled tribal areas. This is a Produce cluster-based scheme. The FPOs will also boost organic and natural farming. The scheme would be implemented through agencies like NABARD, SFAC and NCDC. They would be provided with the facility of equity grant up to Rs. 15 lakh on matching equity basis for financial stability. There would also be a credit guarantee fund with NABARD and NCDC, under which suitable credit guarantee up to Rs.2 crores per FPO will be provided.


Vijay Thakur, Special Representative, The statesman 

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