Lok Sabha Question No. 871 (UNSTARRED), answered on 2023-07-25
Subject: Strengthening of FPOs
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Rodmal Nagar

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

## LOK SABHA UNSTARRED QUESTION NO. 871

TO BE ANSWERED ON THE 25 TH JULY,2023

## STRENGTHENING OF FPOS

871. SHRI RODMAL NAGAR:

Will the Minister of AGRICULTURE AND FARMERSWELFARE कृ षि एवं ककसान कल्याण मंत्री be pleased to state:

(a) the efforts being made by the Government for strengthening the FPO's holding;

(b)  the  details  of  the  schemes  being  implemented  by  NABARD  for  the  welfare  of  the farmers in Madhya Pradesh;

(c) the schemes being implemented for the welfare of the farmers in tribal regions;

(d) the funds allocated to Madhya Pradesh under National Mission on Edible Oils (NMEO); and

(e)  the  details  of  the  funds  allocated  to  Madhya  Pradesh  under  Rashtriya  Krishi  Vikash Yojana, district-wise?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ षि एवं ककसान कल्याण मंत्री

(SHRI NARENDRA SINGH TOMAR)

(a): The Government of India has launched the Central Sector Scheme for 'Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)' in the year 2020 with a total  budgetary  outlay  of  Rs.6865  Crores  which  will  enable  farmers  to  enhance  their bargaining  power,  leverage  economies  of  scale,  reduction  in  cost  of  production  and enhancing farmers' incomes through aggregation of their agricultural produce, thus playing a major role towards sustainable incomes. Under the said scheme, FPOs being 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.  Further,  Rs.25  Lakhs  are  given  to  CBBOs  for  hand  holding  each FPO over a period of five years.

(b): The details of the schemes being implemented by NABARD for the welfare of the farmers in Madhya Pradesh is at Annexure-I .

(c): The schemes being implemented for the welfare of the farmers in tribal regions is at Annexure-II .

- (d): The year-wise funds allocated to Madhya Pradesh under National Mission on Edible Oils (NMEO):

| Year    |   Allocation(Rs In Lakh) |
|---------|--------------------------|
| 2022-23 |                  3574.77 |
| 2023-24 |                  4580    |

## (e): The year-wise funds allocated to Madhya Pradesh under Rashtriya Krishi Vikas Yojana (RKVY):-

| Year    | Year                             |   Allocation (In Rs crore) |   Release (In Rs crore) |
|---------|----------------------------------|----------------------------|-------------------------|
| 2018-19 | 2018-19                          |                     174.38 |                  219.17 |
| 2019-20 | 2019-20                          |                     182.53 |                  217.26 |
| 2020-21 | 2020-21                          |                     170.96 |                   43    |
| 2021-22 | 2021-22                          |                     197.46 |                   96.62 |
| 2022-23 | A. RKVY-DPR component            |                     180.5  |                   45.12 |
|         | B. Annual Action Plan Components |                     205    |                  135.55 |

## * No  district-wise  /  region-wise  allocation  or  release  of  funds  is  made  under  the  RKVY scheme.

The details of the schemes being implemented by NABARD for the welfare of the farmers in Madhya Pradesh is as follows:-

## 1.  Central Sector Scheme for 'Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)':

Under  CSS  on  10000  FPOs,  128  FPOs  have  been  promoted  by  NABARD  with membership  of  29505  farmers.    Similarly,  NABARD  has  promoted  124  FPOs  covering 56,622 farmers, with grant assistance of Rs.18.00 crore out  of  NABARD's  own programme.

## 2.  Watershed Development Fund (WDF):

Under WDF, NABARD has sanctioned 83 projects to take up soil and water conservation on watershed basis covering 76,522 farmers involving amount of Rs.53 crore.

## 3.  Tribal Development Fund:

NABARD  is  implementing  100  projects  in  tribal  areas  with  an  objective  of  promoting livelihoods  through  orchards  and  other  income  generation  activities  covering  75,176 families. Total amount sanctioned is Rs.306.30 crore.

## 4.  Farm Sector Promotion Fund:

NABARD has sanctioned 58 programmes on capacity building for adoption of technology and  various  seminars  and  workshops  on  agriculture  and  allied  sector  covering  2,903 farmers.

## 5.  Climate Change Fund:

For  awareness  building  and  concept  note  preparation,  13  programmes  have  been conducted by NABARD, involving a grant amount of Rs.0.25 crore under the fund.

## 6.  Adaptation Fund:

NABARD has been designated as National Implementing Entity (NIE) for implementation of  Adaptation  projects  under  Adaption  Fund  Board  by  Govt.  of  India.    NABARD  is implementing  2  projects  with  assistance  of  Rs.25.21  crore,  benefiting  7,609  farmers directly and 32,292 farmers indirectly.

## 7.  National Adaptation Fund for Climate Change:

Under National Adaptation Fund for Climate Change (NAFCC), NABARD has implemented 01 project of Rs.24.15 crore, benefiting 60 villages.

## 8.  PACS as MSC:

To develop PACS as Multi Service Centres (MSCs), NABARD has sanctioned Rs.56.80 crore to 21 DCCBs to promote 259 PACSs.

## 9.  Agricultural Marketing Infrastructure (AMI) sub Scheme of ISAM:

NABARD  is  the  implementing  agency  to  channelize  subsidy  for  the  AMI  scheme. NABARD has  sanctioned  3,475  projects  under  capital  linked  subsidy  scheme  covering amount of Rs.657.58 crore.

## 10. Micro Enterprise Development Programme (MEDP) & Livelihood and Enterprise Development Programme (LEDP) :

As part of livelihoods creation, 165 MEDP and 142 LEDP programmes were conducted in the  State  of  Madhya  Pradesh  for  members  of  matured  SHGs.  Total  number  of  women SHG members covered are 19,900.

## 11.    JLGPI:

Under the  scheme, 07  projects  are  under  implementation  for  formation  of  Joint  Liability Group (JLGs) in various banks / NGOs.  Total grant amount involved is Rs.4.48 crore.

## 12.    Rural Haat / Rural Mart:

NABARD has supported 12 Rural Haats and 31 Rural Marts to facilitate organized market for local growers. Total amount involved is Rs.3.03 crore.

The  schemes  being  implemented  for  the  welfare  of  the  farmers  in  tribal  regions  is  as follows: -

- 1)  NABARD created a dedicated fund, viz., Tribal Development Fund (TDF), in the year 2003-04,  out  of  its  own  profit,  for  providing  support  to  tribal  families  of  India  for generating sustainable livelihood opportunities.  First project from TDF was sanctioned in the year 2005-06 and since then, 968 projects have been sanctioned by NABARD, benefitting 6.08 lakh families covering 5.71 lakh acre area.  Grant support is provided for developing small orchard, agri-allied activities, microenterprise development, tribal handicraft promotion activities, etc. In addition to this, support is provided for promoting awareness about health and sanitation, women development activities and providing training and capacity building to the project beneficiaries.
- 2)  As informed by Ministry of Tribal Affairs, the scheme Pradhan Mantri Janjatiya Vikas Mission  (PMJVM),  which  is  being  implemented  through  The  Tribal  Cooperative Marketing Development Federation of India (TRIFED), an autonomous body under the Ministry,  provides  financial  assistance  to  the  State  Governments  for  procurement  of notified Minor Forest Produces (MFPs) at Minimum Support Price (MSP) to safeguard the  livelihood  of  tribal  MFP  gatherers.  It  also  provides  financial  support  for  value addition  activities  of  tribal  produce  through  setting  up  of  Van  Dhan  Vikas  Kendras (VDVKs) to scale up the income of the tribal people associated with these Kendras.  A typical  Van  Dhan  Kendra  will  cater  to  approximately  15  Self  Help  Groups  (SHGs) consisting of a total of 300 members. The SHGs would belong to a contiguous area, preferably in the same or nearby villages to reap the advantages of economics of scale in MFP related activities. Till date TRIFED has sanctioned 3555 VDVKs covering 10.63 lakhs tribal forest gatherers.
- 3)  Under  Central  Sector  Scheme  for  'Formation  and  Promotion  of  10,000  Farmer Producer Organizations (FPOs)', it was provisioned in the scheme guidelines that in order  to  promote  the  forest  and  minor  forest  produce  by  the  tribal  communities, intensive  efforts  will  be  made  by  the  implementing  agencies  to  prioritize  formation  & promotion  of  FPOs  in  the  notified  tribal  areas  in  the  country.  The  benefits  of  quality input,  technology,  credit  and  value  addition  and  processing  as  well  as  better  market access should reach the tribal community and North-East Region through the scheme in co-operation with Tribal Affairs Ministry, DONER and North Eastern Council (NEC).

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