Lok Sabha Question No. 211 (STARRED), answered on 2021-03-09
Subject: Facilities to Farmers through FPOs
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Vijay Kumar Dubey, C.N. Annadurai

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

## LOK  SABHA STARRED QUESTION NO. 211

TO BE ANSWERED ON THE  9 TH  MARCH, 2021

## FACILITIES TO FARMERS THROUGH FPOs

*211.  SHRI VIJAY KUMAR DUBEY: SHRI C.N. ANNADURAI:

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

- (a) whether Farmers Produce Organisations (FPOs) will help small and marginal farmers to get facilities of improved technology, better input, credit and more market to produce better quality crops/yield;
- (b) if  so,  the  details  thereof  along  with  the  steps  taken  in  this  direction  and  the achievements thereof; and
- (c) the other steps taken by the Government to develop agriculture sector in the country and also double its agriculture export by 2022?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA  SINGH TOMAR)

- (a) to (c): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF  LOK  SABHA STARRED QUESTION NO. 211     DUE FOR REPLY ON 9 TH  MARCH, 2021.

(a) to (b): Yes, Sir. The Government of India has launched a Central Sector Scheme of 'Formation and Promotion of 10,000 Farmers Producer Organization (FPOs)' under which FPOs  formed  and  promoted  with  participation  of  farmers  including  small  and  marginal farmers will  get  various  facilities  including  that  of  improved  technology,  better  input,  credit and more markets to produce better quality crops/ yield.

Formation & Promotion of FPOs are to be done through Implementing Agencies (IAs), which  will  further  engage  professional  Cluster  Based  Business  Organizations  (CBBOs)  to form & provide professional handholding support to FPOs for a period of 5 years including preparation  and  execution  of  Business  Plan  for  the  concerned  FPOs  for  ensuring  better marketing and market linkages on sustainable basis.

FPOs will be 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.  Suitable  provisions  have  been  made  for training and skill development of FPOs followed by its implementation through well defined training  structures  in  the  scheme  and  the  institutions  like  Bankers  Institute  of  Rural Development (BIRD), Lucknow and Laxmanrao Inamdar National Academy for Co-operative Research  &  Development  (LINAC),  Gurugram  have  been  chosen  as  the  lead  training institutes for capacity development & trainings of FPOs. Ongoing Schemes of Government will  be  used  in  convergence  to  enhance  the  cost  effectiveness  of FPOs  in production and raising productivity.

-2-

Under  new  Central  Sector  Scheme  (CSS)  of  'Formation  and  Promotion  of  10,000 Farmers Producer Organization (FPOs)', following Implementing Agencies (IAs) have been allocated more than 2200 FPOs produce clusters during 2020-21 viz. Small Farmers AgriBusiness  Consortium  (SFAC),  National  Cooperative  Development  Corporation  (NCDC), National  Bank  for  Agriculture  and  Rural  Development  (NABARD),  National  Agricultural Cooperative  Marketing  Federation  of  India  (NAFED),  North  Eastern  Regional  Agricultural Marketing  Corporation  Limited  (NERAMAC),  Tamil  Nadu-Small  Farmers  Agri-Business Consortium  (TN-SFAC),  Small  Farmers  Agri-Business  Consortium  Haryana  (SFACH), Watershed Development Department (WDD)- Karnataka & Foundation for Development of Rural  Value  Chains  (FDRVC)-  Ministry  of  Rural  Development  (MoRD).  The  process  of empanelment  of  CBBOs  by  the  Implementing  Agencies(IAs)  are  at  varied  stages.  The process of registration of FPOs is already initiated.

(c): The  Government  has  taken  several  steps  for  developing  agriculture  sector  in  the Country  by  reducing  input  cost,  ensuring  fair  price,  reducing  wastage  and  creating  better marketing opportunities through various schemes such as Pradhan Mantri Krishi Sinchayee Yojana  (PMKSY),  Soil  Health  Card  (SHC)  Scheme,  Pradhan  Mantri  Fasal  Bima  Yojana (PMFBY),  National  Agriculture  Market  (e-NAM),  Agricultural  Marketing  Infrastructure  (AMI) scheme of the Integrated Scheme for Agricultural Marketing (ISAM), Rashtriya Krishi Vikas Yojana-Remunerative  Approaches  for  Agriculture  and  Allied  Sector  Rejuvenation  (RKVYRAFTAAR),  Sub  Mission  on  Seed  and  Planting  Material  (SMSP),  National  Horticulture Mission (NHM), Paramparagat Krishi Vikas Yojana (PKVY) and Mission Organic Value Chain Development for North Eastern Region (MOVCDNER). Further schemes such as Pradhan Mantri   Kisan Samman Nidhi   (PM-KISAN)    are aimed to supplement the financial needs of

-3- farmers  by  provide  a  payment  of  Rs.  6000/-  per  year  to  be  transferred  in  three  equal installments of Rs. 2000/- each every four months directly into the bank accounts of eligible landholding farmer families.

Under  the  umbrella  scheme  of  Pradhan  Mantri  Annadata  Aay  Sanrakshan  Abhiyan (PM-AASHA),  this  Department  is  implementing  a  Price  Support  Scheme  (PSS),  Price Deficiency Payment Scheme (PDPS), and pilot Private Procurement and Stockist Scheme (PPSS). Under this, States / UTs are to choose either PSS or PDPS in a given procurement season  with  respect  to  particular  oilseeds  crop  for  the  entire  State.  Pulses  and  copra  are procured under PSS.

In addition to above and with respect to doubling of Agriculture Export, the Agriculture Export Policy (AEP), 2018 has been unveiled to focus on growth of export of agro products from the country. The said Policy provides for cluster based approach whereby clusters for specific agri products are identified across the country and focused interventions are carried out  in  these  clusters  for  enhancing  production  and  export  of  these  agri-commodities. Besides, the AEP, 2018 seeks to double agricultural export from 30 billion US$ to 60 billion US$ by 2022.

Further as per the Scheme Component for Development of Export Infrastructure by Agricultural  and  Processed  Food  Products  Export  Development  Authority  (APEDA),  the development of an adequate infrastructure  is  critical  for  the  growth  of  agro  industries  and export  of  agricultural  products.  The  scheme  covers  fresh  produce  and  processed  food products. The emphasis is primarily on setting up of post harvest handling facilities so as to reduce losses caused due to spoilage and to ensure quality production of agro products.

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