India's FPO Initiative Reaches 8,875 Registrations, Promising Agricultural Reform

The Government of India has registered 8,875 Farmer Producer Organisations (FPOs) under the Central Sector Scheme by June 30, 2024, with Rs 630.3 crore in paid-up capital and loans worth Rs 50.4 crore issued. The initiative aims to revolutionize the agricultural sector through financial support, specialization, and strategic management.

The Government of India has made significant strides under the Central Sector Scheme (CSS) for the 'Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs).' A press release from the Ministry of Agriculture and Farmers Welfare revealed that as of June 30, 2024, 8,875 FPOs have been registered nationwide. This milestone marks a critical step towards transforming the agricultural landscape.

These 8,875 FPOs collectively boast a paid-up capital of Rs 630.3 crore. The scheme has released Rs 210.1 crore as a matching equity grant to eligible FPOs, underscoring the government's dedication to strengthening financial support for farmer collectives. Adopting a cluster-based approach, the scheme focuses on produce or produce mix specific to regions.

The 'One District One Product' strategy, integral to the scheme, promotes product specialization. This encourages FPOs to target processing, branding, marketing, and exporting specific agricultural products designated to their districts, aiming to enhance farmers' value realization and advocate for sustainable agricultural practices.

Further aiding these FPOs, a credit guarantee fund provision has facilitated loans totaling Rs. 50.4 crore, providing essential financial resources for expanding operations and boosting productivity. By June 30, 2024, 19,68,868 shareholder farmers had registered in the promoted FPOs.

An appointment of 6,374 CEOs in the registered FPOs ensures professional management and strategic alignment. Clause 4.7 of the scheme highlights product and service diversification, ensuring year-round member engagement.

The scheme also encourages FPOs to federate at different levels to streamline processing, branding, and marketing for identified products. This was confirmed by Union Minister of State for Agriculture & Farmers' Welfare, Ramnath Thakur, in a written Rajya Sabha reply.

The Minister emphasized the government's commitment to the agricultural sector through initiatives like the FPO scheme, aimed at improving farmers' socio-economic conditions and fostering sustainable agricultural growth. (ANI)

(With inputs from agencies.)