Lok Sabha Question No. 30 (STARRED), answered on 2025-02-04
Subject: Farmer Producer Organisations
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Dushyant Singh

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

## LOK SABHA STARRED QUESTION NO. 30

TO BE ANSWERED ON THE 04 TH  FEBRUARY, 2025

## FARMER PRODUCER ORGANISATIONS

- *30.  SHRI DUSHYANT SINGH:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state:

(a) whether the Government is implementing any policy initiatives to support Farmer Producer Organizations (FPOs) throughout the country, if so, the details thereof including the agencies tasked with these initiatives and if not, the reasons therefor; (b) the details of specific programmes that are being put in place to strengthen market linkages for FPOs and assist them along with the work done under the same; (c) whether the Government is planning to increase financial assistance or subsidies for FPOs to enhance their operational capabilities, if so, the details thereof and if not, the reasons therefor; (d) the details of measures being considered to promote private sector investment in FPOs including potential partnerships and funding opportunities along with the agencies facilitating these efforts; and (e) the details of the FPOs registered in Jhalawar-Baran Constituency of Rajasthan along  with  the  subsidies  or  financial  assistance  being  provided  by  the  Government

- indicating the agencies responsible for these programmes?

## ANSWER

THE MINISTER OF AGRICULTURE AND FARMERS WELFARE

क ृ िष एवं िकसान कʞाण मंũी (SHRI SHIVRAJ SINGH CHOUHAN)

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

## STATEMENT IN RESPECT OF PARTS (a) TO (e) OF THE LOK SABHA STARRED QUESTION NO. 30 FOR 04 TH  FEBRUARY, 2025 REGARDING FARMER PRODUCER ORGANISATIONS.

(a): The Government of India is implementing Central Sector Scheme for 'Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)', to form and promote 10,000  new  FPOs  with  a  total  budgetary  outlay  of  Rs.6865  crores.  The  scheme  was launched in 2020. It aims to collective's farmers in order to enhance bargaining power, leverage economies of scale, reduce cost of production and enhancing farmers' incomes through aggregation of their agricultural produce.

Formation  and  Promotion  of  FPOs  is  being  done  through  14  Implementing Agencies (IAs) which have engaged Cluster Based Business Organizations (CBBOs) and Value Chain Organizations (VCOs) to form and provide professional handholding support to FPOs for a period of 5 years. As on 31.12.2024, 9268 FPOs have been registered.

FPOs are provided financial assistance upto Rs.18 lakh per FPO over 3 years. Matching equity grant upto Rs. 2,000 per farmer member of FPO upto a limit of Rs.15 lakh per  FPO  and  a  credit  guarantee  facility  upto  Rs.2  crore  of  project  loan  per  FPO  from eligible lending institution are also available under the scheme.

Government is also implementing Mission Organic Value Chain Development  for  North  Eastern  Region  (MOVCDNER)  scheme  for  development  of certified organic production clusters in value chain mode. As on 31.12.2024, 434 FPOs have been registered.

(b): Under  the  10,000  FPOs  scheme,  the  CBBOs  are  providing  support  for  market linkages  with  buyers/  processors  etc  as  may  be  necessary  to  ensure  long-term sustainability of FPOs. Further, FPOs are exposed to the different marketing opportunities available  outside traditional  mandi  system  or  local  markets  to  access  the  wider geographies and fetch remunerative prices through digital platforms. Open Network for Digital Commerce (ONDC) and Government e Marketplace (GeM) platforms are available to FPOs. So far, 7901 FPOs were on boarded on ONDC and 216 FPOs on GeM portal. Further, 4362 FPOs have been onboarded on e-NAM platform. FPOs are also facilitated to  participate in  melas  and  exhibitions  to  connect  directly  with  buyers  and  exhibit their produce and products.

(c): FPOs can also avail financial assistance from various schemes of Government of India viz., Agriculture Infrastructure Fund (AIF), Paramparagat Krishi Vikas Yojana (PKVY) for  promotion  of  organic  farming  and  natural  farming,  Sub-Mission  on  Agricultural Mechanization (SMAM), Agricultural Marketing Infrastructure (AMI), Mission for Integrated Development of Horticulture (MIDH) Scheme and Rashtriya Krishi Vikas Yojana (RKVY). (d): Industries  are  supporting  FPOs  in  input  dealerships,  procurement  of  whole-sale agro  produce  and  marketing  of  processed  commodities.  Under 10,000  FPOs  scheme, Value Chain organizations (VCOs) are forming and promoting FPOs without taking CBBO cost.  These  VCOs  are  ensuring  appropriate  processing  and  assured  market  linkage opportunities to FPOs.

(e): 43  FPOs  are  registered  under  10,000  FPOs  scheme  in  Jhalawar-  Baran Constituency of Rajasthan and so far, Rs 5.31 crores have been released to said FPOs. Implementing agency (IAs) wise details of FPOs formed and fund released to FPOs in Jhalawar-Baran  Constituency  of  Rajasthan  under  the  10,000  FPOs  scheme  is  at Annexure-I.

****

Annexure - I IAs  wise  details  of  FPOs  registered  and  fund  released  to  FPOs  in  Jhalawar-Baran

Constituency of Rajasthan under the 10,000 FPOs scheme

| Name of Implementing Agency (IA)                                     | Name of Block   |   No. of FPOs formed & promoted by IA |   Total Fund Released to FPO (In Rs Lakhs) |
|----------------------------------------------------------------------|-----------------|---------------------------------------|--------------------------------------------|
| Small Farmers Agri- Business Consortium (SFAC)                       | Anta            |                                     3 |                                     351.9  |
| Small Farmers Agri- Business Consortium (SFAC)                       | Baran           |                                     3 |                                     351.9  |
| Small Farmers Agri- Business Consortium (SFAC)                       | Chhabra         |                                     3 |                                     351.9  |
| Small Farmers Agri- Business Consortium (SFAC)                       | Chhipabarod     |                                     3 |                                     351.9  |
| Small Farmers Agri- Business Consortium (SFAC)                       | Mangrol         |                                     2 |                                     351.9  |
| Small Farmers Agri- Business Consortium (SFAC)                       | Kishanganj      |                                     3 |                                     351.9  |
| Small Farmers Agri- Business Consortium (SFAC)                       | Atru            |                                     1 |                                     351.9  |
| Small Farmers Agri- Business Consortium (SFAC)                       | Shahbad         |                                     2 |                                     351.9  |
| Small Farmers Agri- Business Consortium (SFAC)                       | Khanpur         |                                     1 |                                     351.9  |
| Small Farmers Agri- Business Consortium (SFAC)                       | Bakani          |                                     1 |                                     351.9  |
| Small Farmers Agri- Business Consortium (SFAC)                       | Aklera          |                                     1 |                                     351.9  |
| Small Farmers Agri- Business Consortium (SFAC)                       | Pirawa HQ Sunel |                                     1 |                                     351.9  |
| Small Farmers Agri- Business Consortium (SFAC)                       | Dag             |                                     1 |                                     351.9  |
| Small Farmers Agri- Business Consortium (SFAC)                       | Bhawanimandi    |                                     1 |                                     351.9  |
| Foundation for Development of Rural Value Chains (FDRVC (MoRD- NRLM) | Manoharthana    |                                     1 |                                      66.24 |
| Foundation for Development of Rural Value Chains (FDRVC (MoRD- NRLM) | Jhalarapatan    |                                     1 |                                      66.24 |
| Foundation for Development of Rural Value Chains (FDRVC (MoRD- NRLM) | Pirawa HQ Sunel |                                     2 |                                      66.24 |
| Foundation for Development of Rural Value Chains (FDRVC (MoRD- NRLM) | Shahbad         |                                     1 |                                      66.24 |
| Foundation for Development of Rural Value Chains (FDRVC (MoRD- NRLM) | Atru            |                                     1 |                                      66.24 |
| National Agricultural Cooperative Marketing                          | Kishanganj      |                                     1 |                                      71.64 |
| National Agricultural Cooperative Marketing                          |                 |                                     1 |                                      71.64 |
| Federation of India                                                  | Atru Shahbad    |                                     1 |                                      71.64 |
| (NAFED)                                                              | Bhawanimandi    |                                     1 |                                      71.64 |
| National Bank for Agriculture and Rural Development (NABARD)         | Bakani          |                                     1 |                                      41.7  |
|                                                                      | Dag             |                                     1 |                                      41.7  |
|                                                                      | Jhalarapatan    |                                     1 |                                      41.7  |
|                                                                      | Manoharthana    |                                     1 |                                      41.7  |
|                                                                      | Pirawa HQ Sunel |                                     1 |                                      41.7  |
|                                                                      | Aklera          |                                     1 |                                      41.7  |
| Total                                                                | Total           |                                    43 |                                     531.48 |