Lok Sabha Question No. 2975 (UNSTARRED), answered on 2024-12-12
Subject: MSMEs and FPO Schemes
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Darshan Singh Choudhary

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK  SABHA UNSTARRED QUESTION No. 2975 TO BE ANSWERED ON 12.12.2024

## MSMEs AND FPO SCHEMES

## 2975. SHRI DARSHAN SINGH CHOUDHARY:

Will  the  Minister  of  MICRO,  SMALL  AND  MEDIUM  ENTERPRISES  be  pleased  to  state:

- (a) the  number  of  women  and  marginalized  communities  benefitted  by  Micro,  Small  and Medium  Enterprises  (  MSMEs)  and  Farmer  Producer  Organisation  (FPO)  schemes  and  the special initiatives taken to support them;
- (b) the progress made in establishing a strong supply chain connectivity between MSME and FPO ensuring fair prices and sustainable business models; and
- (c) the  measures taken by the Government to attract FDI in  FPO along with the total FDI received by FPO during the last two years?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

- (a): The number of women and marginalized communities benefitted by the schemes of the Ministry of Micro, Small and Medium Enterprises (M/oMSME) and the Ministry of  Agriculture and  Farmers  Welfare,  for  Farmer  Producer  Organizations  (FPOs)    and  the  special  initiatives taken to support them is provided in Annexure I.
- (b): The  Ministry  of  Agriculture  and  Farmers  Welfare  supports  FPOs  in  getting  seed, pesticides  and fertilizer licenses,  and helps in providing dealership through Agri Input companies.    With  this  assistance,  FPOs  are  able  to  work  as  dealers/distributors  and  generate income.  The Ministry also supports FPOs by linking them to Institutional buyers and through ecommerce platforms like ONDC, e-NAM etc.
- (c): There  has  been  no  FDI  received  in  FPOs  formed  under  'Formation  and  Promotion  of 10,000 FPOs scheme'.

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## Annexure referred to in reply to part (a) of the Lok Sabha Unstarred Question No. 2975 for answer on 12.12.2024.

The  Ministry  of  MSME  implements  many  schemes  for  promoting  entrepreneurship among  women  and  marginalized  communities.      The  Ministry's  flagship  programme  'Prime Minister's Employment Generation Programme (PMEGP) provides assistance to entrepreneurs for  setting  up  new  enterprises  in  the  non-farm  sector.  It  aims  at  providing  employment opportunities  to  traditional  artisans/  rural  and  urban  unemployed  youth  at  their  doorstep  by providing  margin  money  subsidy  of  25%  of  project  cost  in  rural  areas  and  15%  in  urban areas(max  project  cost  is  Rs.  50  lakhs  in  manufacturing  sector  and  Rs.  20  lakhs  in  service sector).  However, for beneficiaries belonging to categories such as Scheduled Caste, Scheduled Tribes, OBCs, Minorities and women, ex-servicemen, physically handicapped, transgender, NER and Hilly and border areas, and aspiration districts, the margin money subsidy is higher at 35% in rural areas and 25% in urban areas.

The  Ministry  of  MSME  also  implements  the  Credit  Guarantee  Scheme  for  Micro  and Small  Enterprises  through  the  Credit  Guarantee  Fund  Trust  for  Micro  and  Small  Enterprises (CGTMSE). Credit Guarantee is provided to the member lending institutions for credit facilities extended  by  them  to  MSEs  without  any  collateral  security  and  third-party  guarantee  for  all eligible activities.

The number of enterprises owned by women and marginalized communities benefited by these schemes is given below:

| Scheme   | Year       | Number of entrepreneurs benefitted   | Number of entrepreneurs benefitted   | Number of entrepreneurs benefitted   |
|----------|------------|--------------------------------------|--------------------------------------|--------------------------------------|
|          |            | Women                                | SC                                   | ST                                   |
| PMEGP    | FY 2022-23 | 3,2626                               | 9,142                                | 4,850                                |
|          | FY 2023-24 | 36,806                               | 10,364                               | 4,681                                |
|          | FY 2024-25 | 10,703                               | 5,001                                | 2,798                                |
| CGTMSE   | FY 2022-23 | 3,65,582                             | 70,812                               | 21,849                               |
|          | FY 2023-24 | 4,25,865                             | 1,01,863                             | 27,926                               |
|          | FY 2024-25 | 3,01,164                             | 68,198                               | 19,936                               |

Under  the  Scheme  'Formation  and  Promotion  of  10,000  FPOs'  of  the  Ministry  of Agriculture  and  Farmers  Welfare,  9,411  FPOs  have  been  formed  which  involve  26.17  lakh beneficiary farmers. Of these, 9.72 lakh are women farmers, 3.72 lakh are ST farmers, 2.89 lakh are SC farmers and 11.79 are OBC farmers. The FPOs get access to funds in the form of FPO management  cost,  equity  grant  and  credit  guarantee  facility  apart  from  capacity  building trainings, marked and credit linkages.