Lok Sabha Question No. 119 (STARRED), answered on 2021-02-09
Subject: Promotion of FPOs
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Meenakashi Lekhi, P.P. Chaudhary

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

## LOK  SABHA STARRED QUESTION NO. 119

TO BE ANSWERED ON THE  9 TH    FEBRUARY, 2021

## PROMOTION OF FPOS

- *119.     SHRIMATI MEENAKASHI LEKHI: SHRI P.P. CHAUDHARY:

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

- (a) the  measures  being  taken  by  the  Government  to  promote  Farmer  Producer Organisations (FPOs) in the country;
- (b) the number of new FPOs registered in the country during the current financial year;
- (c) the  details  of  support  and  financial  assistance  provided  by  the  Government  for formation and promotion of the FPOs;
- (d) the amount of funds released from the allocated funds till now, State-wise;
- (e) the number of FPOs benefitted or newly formed under the scheme and the details thereof; and
- (f) whether additional support through skill training is being provided to farmers and if so, the details thereof?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA  SINGH TOMAR)

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

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (f) OF LOK SABHA STARRED QUESTION NO. 119     DUE FOR REPLY ON 9 TH  FEBRUARY, 2021.

(a) to (f): Government of India has launched a Central Sector Scheme of 'Formation and Promotion  of  10,000  Farmers  Produce  Organization  (FPOs)'  during  2020  for  raising  the income of farmers.

FPOs are to be developed in produce clusters, wherein agricultural and horticultural produce is grown / cultivated for leveraging economies of scale and improving market access for  members.  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.

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  new  Central  Sector  Scheme  (CSS)  of  'Formation  and  Promotion  of  10,000 Farmers Produce Organization (FPOs)', following Implementing Agencies (IAs) have been allocated  2200  FPOs  produce  clusters  during  2020-21  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 Agri-Business Consortium

-2-

(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). NAFED has formed & registered 05 Honey FPOs in Uttar Pradesh, Madhya Pradesh, Rajasthan, Bihar and West Bengal.

As  per  the  scheme  guidelines,  Department  of  Agriculture,  Cooperation  &  Farmers' Welfare (DAC&FW) is making advance releases to the Implementing Agencies (IAs) based on  recommendation  of  National  Project  Management  Advisory  and  Fund  Sanctioning Committee(NPMAFSC).  So  far  Rs.  101.75  Crore  funds  released  to  the  Implementing Agencies. The financial assistance to FPOs will be provided after registration of respective FPOs.

There  are  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. Training & skill development modules have been developed to further strengthen the FPOs.

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