Lok Sabha Question No. 4201 (UNSTARRED), answered on 2025-08-19
Subject: Scheme to Promote FPOs
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Vishweshwar Hegde Kageri, Shri Mahendra Singh Solanky, Shri Arun Govil

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

## LOK SABHA UNSTARRED QUESTION NO. 4201

TO BE ANSWERED ON THE 19 TH  AUGUST, 2025

## SCHEME TO PROMOTE FPOs

4201.  SHRI MAHENDRA SINGH SOLANKY: SHRI VISHWESHWAR HEGDE KAGERI: SHRI ARUN GOVIL:

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

- (a)    whether the Government has launched any dedicated scheme to promote Farmer Producer Organisations (FPOs), if so, the number of FPOs proposed to be formed across the country under the said scheme;
- (b)      whether  any  financial  assistance  is  being  provided  to  such  organisations  by  the Government, if so, the details of total financial assistance provided to FPOs during the last five years;
- (c)   whether the Government is implementing a special scheme for the promotion and support of Farmer Producer Organisations (FPOs) in Dewas-Shajapur, MPs;
- (d)   the number of FPOs registered in Dewas-Shajapur under the scheme as of July 2025;
- (e)  whether these FPOs have been provided with financial assistance, capacity-building support, market linkages and agri-infrastructure; and
- (f)      the  major  challenges  identified  in  promoting  FPOs  in  the  region  and  steps  taken to overcome them?

## ANSWER

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

- (a): The  Government  is  implementing  a  Central  Sector  Scheme  for  'Formation  and Promotion of 10,000 Farmer Producer Organisations (FPOs)'. Under this scheme, 10,000 FPOs have been registered across the country.
- (b): Under the scheme, FPO management cost of Rs.18 lakh over 3 years, is available to each FPO. FPO can also avail matching equity grant of upto Rs.15 lakh per FPO (as against  Rs.2000  contribution  per  farmer).  Additionally,  the  scheme  provides  for  credit guarantee  facility  upto  Rs.2  crore,  from  eligible  lending  institutions.  As  on  June,  2025, Rs.617.2  crore  has  been  released  as  FPO  management  cost  and  Rs.361.5  crore  as matching  equity  grant  under  the  scheme.  3,212  credit  guarantees  have  been  issued, covering  2,360  FPOs till  30.06.2025  with  sanctioned  loan  amount  of  ₹708.26  crore  and guarantee cover of ₹593.75 crore.

(c) to (e):  The Scheme is also implemented in Dewas-Shajapur region of Madhya Pradesh. As of July, 2025, 30 FPOs have been registered under the scheme in Dewas-Shajapur. FPOs have been provided with financial assistance, capacity-building support, and other necessary facilitation under the scheme. As on July 2025, ₹126.41 lakh have been released as Equity Grant and FPO management cost of ₹ 202.36 lakh have been released in Dewas & Shajapur. In addition to financial support, these FPOs are also being assisted through trainings conducted via Cluster Based Business Organizations (CBBOs). The FPOs have been  onboarded  by  digital  platform  like  e-NAM  (Electronic  National  Agriculture  Market), ONDC (Open Network for Digital Commerce) etc. to access digital markets.

(f): FPOs  being  community-based  institutions,  face operational, institutional,  and financial  challenges  in  their  formative  business  stages.  To  address  these,  the  scheme provides:

- i. Deployment of CBBOs to provide handholding support for 5 years.
- ii. Provision of up to ₹18 lakh per FPO as management cost, and Equity Grant of ₹2,000 per farmer member up to ₹15 lakh per FPO.
- iii. Credit Guarantee Facility to improve access to institutional credit.
- iv. In coordination with State Governments, facilitating the issuance of input licenses to FPOs, including for seed, fertilizer, pesticide, mandi, etc. to enable them to function as agri-business enterprises.
- v. Dedicated FPO MIS Portal for transparency and accountability.
- vi. Weekly webinars and capacity-building programs to promote market linkages, and awareness of government schemes are conducted.

*****