Lok Sabha Question No. 2570 (UNSTARRED), answered on 2021-12-14
Subject: Compliance Norms related to FPCs
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Poonam (Mahajan) Vajendla Rao, Debasree Chaudhuri

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

## LOK SABHA UNSTARRED QUESTION NO. 2570

TO BE ANSWERED ON THE 14 TH  DECEMBER, 2021

## COMPLIANCE NORMS RELATED TO FPCs

2570:   SHRIMATI POONAM MAHAJAN: MS. DEBASREE CHAUDHURI:

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

- (a) the  details  regarding  the  policies  being  formulated  to  relax  compliance  norms related to Farmers Producing Companies (FPCs)?
- (b) whether it is a fact that the Government is going to expand the FPCs beyond six States and if so, by what time it is likely to happen and in which States;
- (c) whether it is also a fact that the Government is contemplating some measures to ensure promotion of FPCs in unreserved States; and
- (d) if so, the details thereof and if not, the reasons therefor?

## 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,  a  new  Chapter  XXIA  was incorporated in the Companies Act, 2013 (CA-13) relating to Producer Companies vide the Companies (Amendment) Act, 2020 which got commenced on 11.02.2021. Earlier, the provisions relating to Producer Companies were part of the Companies Act, 1956.

As per Section 378 C(5) of the CA-13, a Producer Company is deemed to be a private company  under  the  CA-13.  Relaxations have  been  provided to private companies  under  CA-13  which  are  also  applicable  to  the  Producer  Companies.  In addition to this, other relaxations offered to companies from time to time like extension of AGMs, relaxation on timelines for annual fillings, etc. are also applicable to Producer Companies.

Section  446B  of  the  Companies  Act,  2013  amended  vide  the  Companies (Amendment)  Act,  2020  provides  for  lesser  penalties  for  certain  class  of  companies which inter-alia includes Producer Companies.

(b) to (d): 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,  reduction  of cost of production and enhancing farmers' incomes 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.

Under the said Central Sector Scheme, Implementing Agencies (IAs) have been allocated a total of 4965 FPO produce clusters so far, out of which a total of 1762 no. of FPOs have been registered from 30 States/ UTs. The State-wise FPOs registered is Annexed.

Annexure-I

State-wise FPOs registered under the new Central Sector Scheme of Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs).

(as on 10th December, 2021)

| Sr. No.     | State Name        |   Grand Total |
|-------------|-------------------|---------------|
| 1           | Andhra Pradesh    |            60 |
| 2           | Arunachal Pradesh |             3 |
| 3           | Assam             |            73 |
| 4           | Bihar             |            96 |
| 5           | Chhattisgarh      |            45 |
| 7           | Gujarat           |            56 |
| 8           | Haryana           |            72 |
| 9           | Himachal Pradesh  |            46 |
| 10          | Jammu & Kashmir   |            43 |
| 11          | Jharkhand         |            74 |
| 12          | Karnataka         |           145 |
| 13          | Kerala            |            31 |
| 14          | Ladakh            |             2 |
| 15          | Madhya Pradesh    |           136 |
| 16          | Maharashtra       |           136 |
| 17          | Manipur           |             7 |
| 18          | Meghalaya         |             4 |
| 19          | Mizoram           |             7 |
| 20          | Nagaland          |             8 |
| 21          | Odisha            |           118 |
| 22          | Puducherry        |             1 |
| 23          | Punjab            |            17 |
| 24          | Rajasthan         |           114 |
| 25          | Sikkim            |             1 |
| 26          | Tamil Nadu        |           125 |
| 27          | Telangana         |            82 |
| 28          | Tripura           |            13 |
| 29          | Uttar Pradesh     |           188 |
| 30          | Uttarakhand       |            50 |
| 31          | West Bengal       |             9 |
| Grand Total | Grand Total       |          1762 |

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