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Formation & Promotion of 10,000 FPOs – Key Points

‘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.

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