FPOs to transform rural economy: Tomar

Rural sector will be transformed by constitution of 10,000 Farmers' Producer Organizations (FPOs), which will not only help in agricultural progress, but also create new avenues of development, Agriculture Minister Narendra Singh Tomar said on Saturday.

Rural sector will be transformed by constitution of 10,000 Farmers' Producer Organizations (FPOs), which will not only help in agricultural progress, but also create new avenues of development, Agriculture Minister Narendra Singh Tomar said on Saturday. "86 per cent farmers in the country are small and marginal farmers, who will strengthen the rural economy through these FPOs, which will not only help in agricultural progress, but also create new avenues for the development of the country," Tomar said while  addressing a meeting of Laghu Udyog Bharati and Sahakar Bharati through video conference.

Ministers of State for Agriculture Purushottam Rupala and Kailash Choudhary, and Union Minister of State for Water Resources Arjun Ram Meghwal were also present. In the beginning, the minimum number of members in the FPOs would be 300 in the plains and 100 in the North-East and hilly areas, an official statement quoted Tomar having said in the conference.

The FPOs, which are being formed for the benefit of small, marginal and landless farmers, will be managed in such a way that these farmers get access to technological inputs, finances, and better markets and prices for their crops, so as to fulfil the target of doubling farmers' incomes by 2022 as envisaged by Prime Minister Narendra Modi, he added. Tomar further said that the FPOs will help to reduce the cost of production and marketing, and also help to improve output in the agricultural and horticultural sectors. This will also help to increase employment opportunities.

To boost food processing, the minister said in the Budget 2020-21, there was a proposal to adopt cluster approach for horticultural produce through "One district – One Product" scheme so as to give a fillip to value addition, marketing and exports. This is a central scheme, whose total budget is Rs 6,865 crores. All FPOs will be provided professional support and handholding for 5 years. About 15 per cent of the FPOs are to be constituted in aspirational districts, and will be formed on priority basis in scheduled tribal areas, he said, adding that this is a produce cluster based scheme. The FPOs will also boost organic and natural farming.

Further elaborating on the scheme, Tomar said it will be implemented through agencies like NABARD, SFAC and NCDC. They will be provided facility of equity grant up to Rs 15 lakh on matching equity basis for financial stability. There will be credit guarantee fund with NABARD and NCDC, under which suitable credit guarantee up to Rs 2 crore per FPO will be provided. Understanding the importance of capacity building, training and skill development of the stakeholders, the minister said that there is a provision to provide training in organisational management, resource planning, marketing and processing through national and regional level institutions.

A number of suggestions were received from the representatives of the participating organisations and discussion on various issues was held, the statement added..

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