Lok Sabha Question No. 182 (STARRED), answered on 2023-03-14
Subject: Constitution of FPOs
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Ganesh Singh

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

## LOK SABHA

## STARRED QUESTION NO. 182

TO BE ANSWERED ON THE 14 TH  MARCH, 2023

## CONSTITUTION OF FPOs

- *182.     SHRI GANESH SINGH:

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

- (a) whether  any  scheme  regarding  constitution  of  Farmer  Producer  Committees/ Organisations (FPOs)has been implemented by the Government;
- (b) if so, whether the Government has formulated any plan to link the same with the agricultural departments or agriculture based programmes of the States; and
- (c) if so, the number of FPOs constituted so far in the country including their districtwise numbers in Madhya Pradesh along with the details of workdone by them?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERSWELFARE कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR) (a) to (c):       A statement is laid on the Table of the House.

OIH

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF  LOK  SABHA STARRED QUESTION NO. 182 DUE FOR REPLY ON 14 TH  MARCH, 2023.

(a) to (c): Yes  Sir.  The  Government  of  India  has  launched  the  Central  Sector Scheme  for  'Formation  and  Promotion  of  10,000  Farmer  Producer  Organizations (FPOs)'  in  the  year  2020  with  a  total  budgetary  outlay  of  Rs.6865  Crores  which  will enable  farmers  to  enhance  their  bargaining  power,  leverage  economies  of  scale, reduction in cost of production and enhancing farmers' incomes through aggregation of their agricultural produce, thus playing a major role towards sustainable incomes. FPOs are  formed  based  on  the  area  based  approach  (One  Block  One  FPO)  and  special commodity  based  approach  which  includes  formation  of  organic  &  natural  farming FPOs, Oil seeds FPOs, Bamboo & Agro-forestry based FPOs, beekeepers FPOs etc. Under the said scheme, FPOs being provided financial assistance upto Rs 18.00 lakh per  FPO  for  a  period  of  03  years.  In  addition  to  this,  provision  has  been  made  for matching  equity  grant  upto  Rs.  2,000  per  farmer  member  of  FPO  with  a  limit  of  Rs. 15.00 lakh per FPO and a credit guarantee facility upto Rs. 2 crore of project loan per FPO from eligible lending institution to ensure institutional credit accessibility to FPOs. Further, Rs. 25 Lakhs are given to CBBOs for hand holding each FPO over a period of five years.

Formation & Promotion of FPOs are to be done through Implementing Agencies (IAs) which further engage Cluster Based Business Organizations (CBBOs) to form & provide professional handholding support to FPOs for a period of 5 years. So far, 15 IAs were approved for formation & promotion of FPOs which includes Small Farmers' AgriBusiness  Consortium  (SFAC),  National  Bank  for  Agriculture  and  Rural  Development (NABARD), National Cooperative Development Corporation (NCDC), National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) etc.

As on 1 st  March 2023, 10,000 FPOs have been allocated to various Implementing Agencies (IAs) out of which 4748 FPOs have been registered across the country which includes 130 Organic FPOs, 95 Oil seed FPOs, 87 Bee keepers FPOs, 49 Agro-forestry and Bamboo FPOs. 357 women centric FPOs have been registered. Further, 309 Agri. Value Chain Organizations FPOs have been registered to provide market linkages. In the State of Madhya Pradesh, 387 FPOs are registered in the aforesaid scheme (details as  per  Annexure-I).  Under  the  scheme,  matching  equity  grant  has  been  released  to eligible 1928 FPOs of 31 States/ UTs. Further, under the scheme, Credit Guarantees were issued to 627 FPOs. Bankers Institute for Rural Development (BIRD), Lucknow has  developed  &  launched  online  modules  for  professional  training  programmes  for capacity  &  skill  development  of  FPOs  and  CBBOs.  National  Institute  of  Agricultural Marketing (NIAM)  is  conducting  training  of  CBBOs.  As  on  1 st   March,  2023,  1,21,988 farmer shareholders have taken trainings and further representatives of various CBBOs have taken trainings. CBBOs are also providing training to their respective FPOs. 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  on  various  aspects  of  agriculture  and  allied  sectors  including  production technologies  and  value  addition  and  processing.  FPOs  started  business  transactions, the details of work carried by FPOs are as follows:

- i. Supply of quality inputs like seed, fertilizer, pesticides, etc;
- ii. Undertaking aggregation of farmer-members' agri produce for marketing/selling.;
- iii. Making available machinery and equipment on custom hiring basis for members;
- iv. Undertaking value addition like cleaning, assaying, sorting, grading and processing of agri produce.

Further,  Government  is  also  giving  priority  to  FPOs  in  various  schemes  viz., Mission  Organic  Value  Chain  Development  for  North  Eastern  Region  (MOVCDNER) and  Paramparagat  Krishi  Vikas  Yojana  (PKVY)  for  promotion  of  organic  farming  & natural farming through cluster/FPO, Sub-Mission on Agricultural Mechanization (SMAM), Agricultural Marketing Infrastructure (AMI) and Mission for Integrated Development of Horticulture (MIDH) Scheme, Agriculture Infrastructure Fund (AIF) and Rashtriya Krishi Vikas Yojana (RKVY).

Under MOVCDNER, 379 FPO/ FPCs were created covering 189039 farmers and 172966 ha area. 367 collection, aggregation, grading units, Custom Hiring Centres, 74 processing and pack house entities created under FPO/ FPCs and private ownership. Further  124  transportation  vehicles  provided  to  FPO/  FPCs.  Under  Sub-Mission  on Agricultural   Mechanization   (SMAM),   Farmers   Producer   Organizations (FPOs) are provided grants  @ 75% for purchase of drones for its demonstration on the farmers' fields.  In  order  to  provide  agricultural  services  through  drone  application,  financial assistance  @40%  of  the  basis  cost  of  drone  and  its  attachments  or  Rs  4  Lakhs, whichever less is also provided for drone purchase by existing and new Custom Hiring Centers (CHCs) under Cooperative Society of farmers, Farmers Producer Organizations (FPOs) and Rural entrepreneurs.

Considering  the  significance  and  strategic  role  of  the  State  Government  and its  machinery  down  the  line  in  synergizing  the  efforts  in  mobilizing  the  farmers, offering various services relating to production and post-production and also periodically reviewing the development and functioning of FPOs, the Government has made provisions in Operational Guidelines of the 10,000 Farmer Producer Organizations  (FPOs)  scheme  wherein  a  State  Level  Consultative  Committee  called SLCC is constituted with Additional Chief Secretary/Secretary, In-charge of Agriculture/ Agriculture Marketing as its Chairperson.

The following are the duties and responsibilities of the SLCC:

- i. It  will  regularly  monitor  and  review  the  progress  of  FPO  development  and functioning by holding its regular meetings.
- ii. It  will  work  out  a  strategy  for  all  stakeholders  including  the  Implementing Agencies  (SFAC,  NABARD and  NCDC),  institutions  engaged  in  formation  and promotion  of  FPOs  and  State  Government  machinery  engaged  in  agricultural and rural development to work synergistically to achieve the objective.
- iii. It  will  identify  the  constraints in implementation of scheme and communicate to the  Department  of  Agriculture  and  Farmers  Welfare(DA&FW)  and  National Project Management and Fund Sanctioning Committee (N-PMAFSC) for taking the appropriate policy decision, if so,required.
- iv. It will direct respective State Government departments to help in identification of produce clusters for recommendation to N-PMAFSC and assist in mobilization of farmers to form the FPOs.
- v. It  will  formulate  an  effective  extension  mechanism  to  be  undertaken  through existing State extension machinery down the line.
- vi. Most importantly, the committee will coordinate with respective State Government departments to facilitate FPOs in getting the license/registration for inputs,  shops/spaces  in  the  mandis  and  also availing the assistance  for development of various infrastructures relating to production and post-
7. production activities. The committee will also ensure that FPOs be associated/involved  in  all  the  farmers'  centric  schemes  of  the  Government  to the extent feasible.
- vii. It  will  facilitate in making available land at appropriate place for development of common facility center and also custom hiring center. It will also strategize and prioritize  for  linking  of  Common  Facility  Centre  (CFC)  with  e-NAM  or  with  any other e-trading platform.

In addition to above, under 10,000 FPOs scheme, at district level, a District Level Monitoring  Committee  (D-MC) is  constituted  under  the  Chairmanship  of  District Collector/  CEO/  Zilla  Parishad  with  representatives  of  different  line  departments  and experts  which  provides  approval  for  potential  produce  clusters  in  the  block  and  also responsible  for  overall  coordination,  monitoring  and  implementation  of  the  scheme  at the district level.

## District-wise FPOs registered in Madhya Pradesh

| District                   |   No of FPOs registered |
|----------------------------|-------------------------|
| Agar Malwa                 |                       3 |
| Alirajpur                  |                       4 |
| Anuppur                    |                       1 |
| Ashoknagar                 |                      10 |
| Balaghat                   |                      10 |
| Barwani                    |                      17 |
| Betul                      |                       9 |
| Bhind                      |                       3 |
| Bhopal                     |                       5 |
| Burhanpur                  |                       2 |
| Chhatarpur                 |                       4 |
| Chhindwara                 |                      15 |
| Damoh                      |                       6 |
| Datia                      |                       1 |
| Dewas                      |                      14 |
| Dhar                       |                      16 |
| Dindori                    |                       2 |
| Guna                       |                       8 |
| Gwalior                    |                       6 |
| Harda                      |                       2 |
| Hoshangabad (NARMADAPURAM) |                       8 |
| Indore                     |                       6 |
| Jabalpur                   |                       7 |
| Jhabua                     |                       6 |
| KATNI                      |                       2 |
| Khandwa                    |                      13 |
| Khargone                   |                      13 |
| Mandla                     |                       5 |
| Mandsaur                   |                      10 |
| Morena                     |                      11 |
| Narsinghpur                |                       9 |
| Neemuch                    |                       8 |
| Niwari                     |                       1 |
| Panna                      |                       3 |

## Annexure-I

| Raisen      |   13 |
|-------------|------|
| Rajgarh     |    4 |
| Ratlam      |   13 |
| Rewa        |    9 |
| Sagar       |   17 |
| Satna       |   10 |
| Sehore      |   16 |
| Seoni       |    3 |
| Shahdol     |    3 |
| Shajapur    |    4 |
| Sheopur     |    3 |
| Shivpuri    |   11 |
| Sidhi       |    1 |
| Singrauli   |    3 |
| Tikamgarh   |    4 |
| Ujjain      |   13 |
| Umaria      |    1 |
| Vidisha     |   19 |
| Grand Total |  387 |

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