Lok Sabha Question No. 1443 (UNSTARRED), answered on 2021-12-07
Subject: Scheme for FPOs
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Pritam Gopinath Munde, Girish Bhalchandra Bapat, Chandra Sekhar Sahu, Rahul Ramesh Shewale

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

## LOK SABHA UNSTARRED QUESTION NO. 1443

TO BE ANSWERED ON THE 7 th  DECEMBER, 2021

## SCHEME FOR FPOs

1443.  DR. PRITAM GOPINATHRAO MUNDE: SHRI GIRISH BHALCHANDRA BAPAT: SHRI CHANDRA SEKHAR SAHU: SHRI RAHUL RAMESH SHEWALE:

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

- (a) whether agriculture plays a very important role in both economic development and nation building;
- (b) if so, the details in this regard;
- (c) whether  the  Union  Government  has  launched  a  Central  sector  scheme  titled 'Formation and Promotion of 10,000 Farmer Produce Organizations (FPOs)' in the country;
- (d) if so, the salient features of the said scheme;
- (e) whether  the  Union  Government  has  set  up  dedicated  fund  for  providing  credit guarantees to FPOs under the scheme; and
- (f) if so, the details thereof along with the details of funds allocated for implementation of said scheme?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA SINGH TOMAR)

- (a) to (b): The  share  of  Agriculture  and  allied  sectors  at  Gross  Value  Added(GVA)  at current  prices  has  increased  from  33.94  lakh  crores  in  2019-20  to  36.16  lakh  crores  in 2020-21 which is an increase from 18.4% to 20.2% (Source: NSO, MOSPI, May 2021)

As per 3 rd advance estimates for 2020-21, total food grain production in the country is estimated at record 305.44 million tonnes which is higher by 7.94 million tonnes than the production of food grain during 2019-20. Similarly, total horticulture production in 2020-21 is estimated  to  a  record  331.05  million  tonnes  which  is  an  increase  of  about  10.6  million tonnes over that achieved in 2019-20.

(c) to (d): 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. The scheme has a total budgetary outlay of Rs.6865 Crores.

Under this scheme, there is a provision for handholding support for a period of five years to each new FPO formed, and financial assistance to the tune of Rs.18 lakhs to each FPO under the scheme towards management cost for 3 years  and also 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 institutions to ensure institutional credit accessibility to FPOs.

(e) to (f): Yes  Sir.  In  order  to  ensure  access  to  credit  from  Banks  and  Financial Institutions,  a  dedicated  Fund  of  up  to  Rs.  1,500.00  crore  will  be  created  as  Credit Guarantee  Fund  (CGF).  Out  of  Rs.  1,500.00  crore,  Rs.  1,000.00  crore  will  be  created, maintained  and  managed  by  National  Bank  for  Agriculture  and  Rural  Development (NABARD)  and  the rest Rs. 500.00 crore by National Cooperative Development Corporation (NCDC).

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