Lok Sabha Question No. 1268 (UNSTARRED), answered on 2021-02-09
Subject: Setting up of FPOs
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Hanuman Beniwal

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

## LOK  SABHA UNSTARRED QUESTION NO. 1268

TO BE ANSWERED ON THE 9 TH  FEBRUARY, 2021

## SETTING UP OF FPOS

1268.  SHRI HANUMAN BENIWAL:

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

- (a) whether  the  Government  has  formulated  any  new  policy  for  setting  up  of  Farmer Producer Organisations (FPOs), if so, the details thereof;
- (b) whether State-wise targets have been fixed for setting up FPOs and if so, the details of target fixed State-wisea nd progress made thereunder so far;
- (c) the  details  of  the  financial  and  other  assistance  provided  by  the  Government  to the concerned FPO along with the medium through which it is likely to be provided including the amounts released so far, Statewise; and
- (d) whether a person or farmer can become a member or officer of FPO if no land is on his  name  but  his  work  is  related  to  agriculture,  if  so,  the  details  of  fixed  rules  etc.  in  this regard?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

(a) to (c): Government of India has launched a new Central Sector Scheme (CSS) titled 'Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)' in 2020. As per the aforesaid scheme, FPOs are to be promoted in produce clusters, wherein agricultural and horticultural produce is grown / cultivated, for leveraging economies of scale and improving market access for members of FPOs.

Formation & Promotion of FPOs are to be done through Implementing Agencies (IAs), which will further engage Cluster Based Business Organizations (CBBOs) to form & provide professional handholding support to FPOs for a period of 5 years. Under the scheme, 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.

Under  the  aforesaid  scheme,  there  is  no  State-wise  target  fixed.  However,  during 2020-21, a total number of 2200 FPO produce clusters have been allocated for formation of FPOs. Training & skill development modules have been developed to further strengthen the FPOs. The details of allocation of FPO produce clusters is given at Annexure - I. National Agricultural  Cooperative  Marketing  Federation  of  India  (NAFED)  has  already  formed  and registered 05 honey FPOs from Uttar Pradesh, Madhya Pradesh, Rajasthan, Bihar and West Bengal.

As per the aforesaid scheme guidelines, Department of Agriculture, Cooperation and Farmers' Welfare, Government of India, makes the advance releases to the Implementing Agencies  (IAs)  based  on  the  recommendation  of  National  level  Project  Management Advisory and Fund Sanctioning Committee (N-PMAFSC). So far, Rs. 101.75 crore have been released to the IAs.

(d): Yes  Sir.  Small,  marginal  and  landless  farmers  can  become  a  member  of  the  FPO under the new scheme  on 'Formation and Promotion of 10000 Farmer Producer Organizations (FPOs)'. A member of FPO with requisite qualification can also become the officer  of  FPO.The  requisite  qualifications  for  CEO/Manager  and  Accountant  are  given  in section 10.3 of the Operational Guidelines of the scheme details of which are followed. The CEO/Manager is to be appointed by the executive body of the FPO who should be either graduate  in  agriculture/  agriculture  marketing  /  agri-business  management  or  BBA  or equivalent. Locally available professionals with 10+2 and preferably diploma in agriculture / agriculture  marketing  /  agri-business  management  or    in  such  other  related  areas  may be preferable. The accountant should have educational qualification of 10+2 with Mathematics as a compulsory subject or alternatively with Commerce or Accountancy background. If any members  of  the  FPO  meet  the  above  criteria,  they  may  be  considered  preferably  in  the selection process.

## Agency-wise List of allocated FPOs for 2020-21:

| Sl. No     | Name of the Agency                                                                             | No. of FPO Producer Clusters allocated   |
|------------|------------------------------------------------------------------------------------------------|------------------------------------------|
| 1          | National Bank for Agriculture and Rural Development (NABARD)                                   | 600                                      |
| 2          | Small Farmers Agri-Business Consortium (SFAC)                                                  | 500                                      |
| 3          | National Cooperative Development Corporation (NCDC)                                            | 500                                      |
| 4          | Integrated Nutrient Management (INM), DAC&FW through NAFED, NABARD, SFAC & NCDC                | 100 specialized FPOs                     |
| 5          | Oil Seeds Div. , DAC&FW through NAFED, NABARD & SFAC                                           | 100 specialized FPOs                     |
| 6          | Foundation for Development of Rural Value Chains (FDRVC)- Ministry of Rural Development (MoRD) | 100                                      |
| 7          | Watershed Development Department (WDD)- Karnataka                                              | 100                                      |
| 8          | National Agricultural Cooperative Marketing Federation of India (NAFED)                        | 50 specialized FPOs                      |
| 9          | Small Farmers Agri-Business Consortium Haryana (SFACH),                                        | 50                                       |
| 10         | Tamil Nadu-Small Farmers Agri-Business Consortium (TN-SFAC),                                   | 50                                       |
| 11         | North Eastern Regional Agricultural Marketing Corporation Limited (NERAMAC)                    | 50                                       |
| Total 2200 | Total 2200                                                                                     | Total 2200                               |

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## Annexure-I