Lok Sabha Question No. 1212 (UNSTARRED), answered on 2021-07-27
Subject: Farmer Producer Organisations
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Margani Bharat, Prabhubhai Nagarbhai Vasava

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 1212

TO BE ANSWERED ON THE 27 TH  JULY, 2021

## FARMER PRODUCER ORGANISATIONS

1212. SHRI MARGANI BHARAT: SHRI PARBHUBHAI NAGARBHAI VASAVA:

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

- (a) the  details  of  Farmer  Producer  Organiation  (FPOs)  set  up  in  the  country  in 2020, State-wise;
- (b) whether the target to set up 10,000 FPOs has been achieved;
- (c) if  so,  the  details  of  target  set for  each State and the status of achieving the same, State-wise;
- (d) the  manner  in  which  FPOs  have  proven  beneficial  to  small  and  medium farmers;
- (e) the details of number of FPOs in the State of Andhra Pradesh and whether it is not true that the Government provide Rs.18 lakhs to each FPO and, if so, details of financial assistance given to FPOs in Andhra Pradesh in 2020; and
- (f) the details of equity grant given to farmers registered under FPOs in Andhra Pradesh in 2020?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA SINGH TOMAR)

- (a): As  informed  by  Ministry  of  Corporate  Affairs,  Govt.  of  India,  the  number  of Producer  Companies  registered  in  India  in  2020,  State-wise,  is  at  Annexure-I. Farmer Producer Companies have not been separately defined or categorized under the Companies Act.
- (b) to (c): The  Government  of  India  has  approved  and  launched  the  Central Sector Scheme of 'Formation and Promotion of 10,000 Farmer Producer Organizations(FPOs)' to form and promote 10,000 new FPOs till 2027-28 with a total budgetary outlay of Rs.6865 Cr.

Under the scheme, the formation and promotion of FPO is based on Produce Cluster Area approach and specialized commodity based approach. While adopting cluster  based  approach,  formation  of  FPOs  will  be  focussed  on  'One  District  One Product' for development of product specialization.

Initially  one  FPO  is  allocated  per  block.  So  far,  a  total  of  4465  new  FPOs produce  clusters  have  been  allocated  to  Implementing  Agencies  for  formation  of FPOs, of which a total of 632 no. of FPOs have been registered.

(d): As  per  the  Evaluation  Report  of  PricewaterhouseCoopers  (PwC)  on  FPO component  titled  'Impact  Study  7-  Enhanced  realization  of  agriculture  produce marketed  through  PCs/FCSCs    under  Maharashtra  Agricultural  Competitiveness Project  (MACP)'  brings  out  the  following  major  points  :  (i)  sale  through  Farmer Producers  Companies  (FPCs)  has  resulted in increased price realization by members  by  22%,  (ii)  Incidence  of  cost  of  marketing  is  31%  lower  than  other channels (iii)  28  percent  of  members  have  purchased  inputs  from  PCs  and  it  has resulted into net savings of Rs.1384 per acre.

(e) & (f) As  informed  by  the  Government  of  Andhra  Pradesh,  a  total  of  852 FPOs have been formed till 2020 in Andhra Pradesh.

Under the Central Sector Scheme for formation and promotion of FPOs, the Farmer  Producer  Organizations(FPOs),  provision  has  been  made  for  financial assistance upto Rs 18.00 lakh per FPO for a period of 03 years for meeting the FPO management cost.  Under  the  new  FPO  scheme,  the  Department  of  Agriculture  & Farmers Welfare(DA&FW) makes advance release to the Implementing Agencies for formation  and  promotion  of  FPOs.  So  far,  Rs.249.08  Cr.  has  been  released  to  all IAs.

As  informed  by  Small  Farmers'  Agri-Business  Consortium  (SFAC),  Equity Grant of Rs.31.22 lakh was extended to 4 FPCs in Andhra Pradesh during 2020-21.

## Annexure-I

## Detail of Producer Companies for the year 2020, Statewise

| State             |   Number of Producer Companies |
|-------------------|--------------------------------|
| Andhra Pradesh    |                            147 |
| Arunachal Pradesh |                             15 |
| Assam             |                             87 |
| Bihar             |                            221 |
| Chandigarh        |                              1 |
| Chattisgarh       |                             32 |
| Delhi             |                              7 |
| Gujarat           |                            108 |
| Haryana           |                            257 |
| Himachal Pradesh  |                              7 |
| Jammu& Kashmir    |                             10 |
| Jharkhand         |                             70 |
| Karnataka         |                            195 |
| Kerala            |                             53 |
| Madhya Pradesh    |                            237 |
| Maharashtra       |                           1950 |
| Manipur           |                             26 |
| Meghalaya         |                              1 |
| Mizoram           |                              4 |
| Nagaland          |                              6 |
| Orissa            |                            177 |
| Puducherry        |                              1 |
| Punjab            |                             13 |
| Rajasthan         |                            114 |
| Tamil Nadu        |                            241 |
| Telangana         |                            119 |
| Tripura           |                              8 |
| Uttar Pradesh     |                            654 |
| Uttarakhand       |                             14 |
| West Bengal       |                            184 |
| Grand Total       |                           4959 |

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