Lok Sabha Question No. 4880 (UNSTARRED), answered on 2025-04-01
Subject: Promotion of Farmers Producer Organizations
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Thiru Dr. S Jagathratchakan

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

## LOK SABHA

## UNSTARRED QUESTION NO. 4880

TO BE ANSWERED ON THE 1 ST  APRIL, 2025

## PROMOTION OF FARMERS PRODUCER ORGANIZATIONS

4880. SHRI S JAGATHRATCHAKAN:

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

- (a) the  total  number  of  Farmers  Producer  Organizations  (FPOs)  formed  under  the Central  Sector  Scheme  for  Formation  and  Promotion  of  10,000  FPOs  and  the  current status of the scheme's implementation;
- (b) the impact of these FPOs on the income and market access of small and marginal farmers, with specific data on price realization and input savings;
- (c) the challenges faced by FPOs in terms of market competition, infrastructure and financial constraints and the steps taken to address these issues;
- (d) the role of FPOs in integrating small farmers into food processing supply chains with data on the increase in farmers' participation in such supply chains; and
- (e) the measures taken by the Ministry to further incentivize and promote FPOs in rural areas, particularly in Tamil Nadu and other agricultural States?

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण राǛ मंũी (SHRI RAMNATH THAKUR)

- (a) & (b): 10,000 Farmer Producer Organizations (FPOs) have been registered under the  scheme  for  formation  and  promotion  of  10,000  FPOs.  Rs.590.8  crore  has  been released as FPO management cost and Rs.280.3 crore as matching equity grant under the scheme till 28.02.2025. Credit guarantees for Rs.483.58 crore have been issued to 2094 FPOs. Impact evaluation study of the scheme is yet be under taken.
- (c) to (e): Challenges faced  by  FPOs are of capacity  building  &  access  to  markets which are being addressed by the scheme. Under the 10,000 FPOs scheme, the Cluster Based Business Organizations (CBBOs) are providing support for market linkages with buyers/ processors etc. to ensure long-term sustainability of FPOs. FPOs are exposed to the different marketing opportunities available outside local markets to access the wider geographies. FPOs have been supported to onboard Open Network for Digital Commerce (ONDC) and Government e-Marketplace (GeM) platforms. So far, 7901 FPOs are boarded on ONDC and 216 FPOs on GeM portal. 4392 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.

FPOs can avail financial assistance from various schemes of Government of India for development of agricultural marketing infrastructure facilities 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).

2698 FPOs have commissioned processing infrastructure. 465 FPOs are registered in the State of Tamil Nadu.  To incentivize and promote FPOs, there is focus on financial support, infrastructure and market access.

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