Lok Sabha Question No. 1379 (UNSTARRED), answered on 2021-07-27
Subject: Role of FPOs in Doubling the Farmers Income
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Devji Mansingram Patel, Sumedhanand Saraswati

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

## LOK SABHA UNSTARRED QUESTION NO. 1379

TO BE ANSWERED ON THE 27 TH  JULY, 2021

## ROLE OF FPOs IN DOUBLING THE FARMERS INCOME

1379. SHRI DEVJI M. PATEL: SHRI SUMEDHANAND SARASWATI:

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

- (a) whether  the  Farmers  Produce  Organisation  (FPOs)  also  has  an  important role to play in doubling the income of the farmers;
- (b) if so, the details of steps being undertaken by the FPOs to double the income of the farmers; and
- (c) the number of the FPOs proposed to be constituted by the Government and the number of the said organisations which have been set up at present and details thereof?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA SINGH TOMAR)

(a) & (b): Yes  Sir,  The  Government  of  India  has  launched  the  Central  Sector Scheme  of  'Formation  and  Promotion  of  10,000  Farmer  Producer  Organisations (FPOs)'  to form and promote 10,000 new FPOs which will leverage economies of scale  in  production  and  marketing  with  a  view  to  enhance  productivity  through efficient, cost effective and sustainable resource use for ensuring sustainable income oriented farming, thus helping in reduction of cost of farm production and enhancing farmers' earning thus playing a major role towards doubling the income of farmers. Under  this  scheme,  provision  is  made  for  professional  handholding  support  for  a period of five years to new FPOs formed.

The Scheme is intended to provide and undertake following relevant major services and activities for their development which would cater to increasing farmers income:-

- (i) Supply quality production inputs like seed, fertilizer,  pesticides  and such other inputs at reasonably lower wholesale rates.
- (ii) Make available need based production and post-production machinery and equipment like cultivator, tiller, sprinkler set, combine harvester and such other machinery and equipment on custom hiring basis for members to reduce the per unit production cost.
- (iii) Make  available  value addition like cleaning, assaying, sorting, grading,  packing  and  also  farm  level  processing  facilities  at  user charge basis on reasonably cheaper rate. Storage and transportation facilities may also be made available.
- (iv) Undertake higher income generating activities like seed production, bee keeping, mushroom cultivation etc.
- (v) Undertake aggregation of smaller lots of farmer-members' produce; add value to make them more marketable.
- (vi) Facilitate market information about the produce for judicious decision in production and marketing.
- (vii) Facilitate logistics services such as storage, transportation, loading/unloading etc. on shared cost basis.
- (viii) Market  the  aggregated  produce  with  better  negotiation  strength  to the  buyers  and  in  the  marketing  channels  offering  better  and remunerative prices.

(c): Under the  said  Central  Sector  Scheme,  provision  has  been  made  to form  10,000  new  FPOs.  Implementing  Agencies  (IAs)  have  been  finalized  for formation  and  promotion  of  FPOs  viz.  Small  Farmers  Agri-Business  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  AgriBusiness 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).    So  far,  a  total  of  4465  FPO  produce  clusters  have  been allocated to Implementing Agencies for formation of FPOs, out of which a total of 632 no. of FPOs have been registered so far.

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