Lok Sabha Question No. 1660 (UNSTARRED), answered on 2018-03-06
Subject: Promotion of FPOs
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: HEMANT TUKARAM GODSE

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO. 1660

TO BE ANSWERED ON THE 6 TH   MARCH, 2018

## PROMOTION OF FPOS

1660.   SHRI GODSE HEMANT TUKARAM:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether  the  Government  has  taken  any  steps  to  attract  young  farmers  towards  the formation  and  promotion  of  the  Farmer  Producer  Organisations  (FPOs)  to  carry  out  agribusiness in the country;
- (b) if so, the details thereof along with the monetary support provided to the States for the promotion of FPOs during the last three years and the current year, State-wise;
- (c) whether  any  assistance/support  has  been  provided  to  FPOs  by  the  Indian  Council  of Agricultural Research (ICAR) through Krishi Vigyan Kendras in various districts in the country; and
- (d) if so, the details thereof and the steps taken/proposed to be taken by the Government to strengthen agriculture based livelihood through FPOs in the country?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI GAJENDRA SINGH SHEKHAWAT)

(a) to (d): Yes, Madam. Government of India through Small Farmers' Agribusiness Consortium  (SFAC),  a  registered  society  under  Department  of  Agriculture,  Cooperation  & Farmers  Welfare,  is  promoting  Farmer  Producer  Organizations  (FPOs)  by  mobilizing  the farmers  including  young  farmers,  helping  them  in  registering  as  company  and  giving  them training for their sustainability. So far, SFAC has helped 707 FPOs in registering as companies. Further to this, SFAC  provides matching equity grant subject to maximum of Rs. 10.00 lakh per Farmer  Producer  Company.  SFAC  also  supports  FPOs  through  Credit  Guarantee  Fund Scheme, which provides a Credit Guarantee cover to Eligible Lending Institutions to enable to provide collateral free credit. Under Venture Capital Assistance Scheme, an interest free loan is provided  to  FPCs/entrepreneurs  by  SFAC  to  meet  shortfall  in  the  capital  requirement  for implementation  of  the  agribusiness  project.  FPOs  can  also  avail  financial  assistance  under various schemes of the Government of India such as Agricultural Marketing Infrastructure (AMI) and Mission for Integrated Development of Horticulture (MIDH) Scheme. Under Rashtriya Krishi Vikas Yojana (RKVY), State Governments can also seek financial assistance for formation of FPOs.

In addition to above, National Bank for Agriculture and Rural Development (NABARD) is also  promoting  FPOs  in  the  States.  They  provide  grant  support  to  existing  FPOs  towards capacity building, market linkages etc. along with the Credit support of business development, under  support  of  NABARD,  so  far  2154  FPOs  have  been  formed  by  NABARD  during  last  3 years.

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.

Furthermore,  under  Deendayal  Antyodaya  Yojana-  National  Rural  Livelihood  Mission (DAY-NRLM) scheme of Ministry of Rural Development, promotion of 'Producers' Enterprises has been taken up for agriculture, dairy and Non-Timber Forest Product (NTFP) commodities.

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