Lok Sabha Question No. 850 (UNSTARRED), answered on 2023-07-25
Subject: Constitution of FPOs
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Ramesh Chandra Majhi

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

## LOK SABHA UNSTARRED QUESTION NO. 850

TO BE ANSWERED ON THE 25 TH  JULY,2023

## CONSTITUTION OF FPOS

## 850. SHRI RAMESH CHANDRA MAJHI:

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

- (a) whether any scheme regarding constitution of Farmers Producer Committees/Organisations (FPOs) has been implemented by the Government;
- (b) if  so,  whether  the  Government  has  formulated  any  plan  to  link  the  same  with  the agriculture departments or agriculture based programmers of theStates; and
- (c) if  so,  the number of FPOs constituted so far in the country including their numbers in Odisha along with the details of work done by them district-wise?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ षि एवं ककसान कल्याण मंत्री

(SHRI NARENDRA SINGH TOMAR)

- (a) & (b): Yes Sir. 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.

Considering the significance and strategic role of the State Government and its machinery down the line in synergizing the efforts in mobilizing the farmers, offering various services relating to production and post-production and also periodically reviewing the development and functioning of FPOs, the Government has made provisions  in  Operational  Guidelines  of  the  10,000  Farmer  Producer  Organizations  (FPOs) scheme  wherein  a  State  Level  Consultative  Committee  called  SLCC  is  constituted  with

Additional  Chief  Secretary/Secretary,  In-charge  of  Agriculture/  Agriculture  Marketing  as  its Chairperson.

In  addition  to  above,  under  10,000  FPOs  scheme,  at  district  level,  a  District  Level Monitoring  Committee  (D-MC)  is  constituted  under  the  Chairmanship  of  District  Collector/ CEO/  Zilla  Parishad  with  representatives  of  different  line  departments  and  experts  which provides approval for potential produce clusters in the block and also responsible for overall coordination,  monitoring  and  implementation  of  the  scheme  at  the  district  level.  Provisions have also been made in Government of India schemes for availing benefits by FPOs.

(c): As  on  30 th   June,  2023,  10,000  FPOs  have  been  allocated  to  various  Implementing Agencies (IAs) out of which 6319 FPOs have been registered across the country. The Districtwise number of FPOs registered in Odisha is at Annexure.

FPOs  started  business  transactions,  the  details  of  work  carried  by  FPOs  are  as follows:

- i. Supply of quality inputs like seed, fertilizer, pesticides, etc;
- ii. Undertaking aggregation of farmer-members' agri produce for marketing/selling.;
- iii. Making available machinery and equipment on custom hiring basis for members;
- iv. Undertaking value addition like cleaning, assaying, sorting, grading and processing of agri produce.

## District-wise FPOs registered in Odisha

| District       |   No. of FPOs registered |
|----------------|--------------------------|
| ANUGUL         |                       12 |
| BALANGIR       |                       15 |
| BALESHWAR      |                       12 |
| BARGARH        |                       14 |
| BHADRAK        |                        8 |
| BIRBHUM        |                        1 |
| BOUDH          |                        2 |
| CUTTACK        |                       15 |
| DEOGARH        |                        4 |
| DHENKANAL      |                       16 |
| GAJAPATI       |                        7 |
| GANJAM         |                       21 |
| GARHWA         |                        1 |
| JAGATSINGHAPUR |                        8 |
| JAJAPUR        |                        8 |
| JHARSUGUDA     |                        3 |
| KALAHANDI      |                       15 |
| KANDHAMAL      |                       19 |
| KENDRAPARA     |                       10 |
| KENDUJHAR      |                       16 |
| KHORDHA        |                       13 |
| KORAPUT        |                       21 |
| MALKANGIRI     |                        7 |
| MAYURBHANJ     |                       27 |
| NABARANGPUR    |                       10 |
| NAYAGARH       |                        9 |
| NUAPADA        |                        6 |
| PURI           |                       18 |
| RAYAGADA       |                       13 |
| SAMBALPUR      |                       20 |
| SONEPUR        |                        6 |
| SUNDARGARH     |                       16 |
| Grand Total    |                      373 |

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Annexure-I