‘Formation & Promotion of 10,000 Farmer Produce Organizations (FPOs):
The Ministry of Agriculture and Farmers Welfare celebrated the first anniversary of the Central Sector Scheme titled ‘Formation & Promotion of 10,000 Farmer Produce Organizations (FPOs)’.
- In February 2020, at Chitrakoot (Uttar Pradesh) with a budgetary provision of Rs. 6865 crore.
- More than 2200 FPOs produce clusters have been allocated for the formation of FPOs in 2020-21.
- Implementing Agencies (IAs) are engaging Cluster-Based Business Organizations (CBBOs) to aggregate, register & provide professional handholding support to each FPO for a period of 5 years.
- CBBOs will be the platform for an end to end knowledge for all issues related to FPO promotion.
- Financial Assistance:
- Up to Rs. 18.00 lakh per FPO for a period of 3 years.
- Provision has also been made for matching equity grants up to Rs. 2,000 per farmer member of FPO with a limit of Rs. 15.00 lakh per FPO.
- Provision of a credit guarantee facility up to Rs. 2 crores of project loan per FPO from the eligible lending institution to ensure institutional credit accessibility to FPOs.