Government to Review Farmer Producer Organizations as Support Period Ends

Agriculture Minister Shivraj Singh Chauhan announced a comprehensive review of Farmer Producer Organizations (FPOs) as their three-year support period concludes. Launched in 2020, the FPO Scheme aimed to form 10,000 FPOs by 2024 with a budget of Rs 6,865 crore. A review will assess progress and identify areas needing further support.


Devdiscourse News Desk | New Delhi | Updated: 08-07-2024 19:24 IST | Created: 08-07-2024 19:24 IST
Government to Review Farmer Producer Organizations as Support Period Ends
AI Generated Representative Image
  • Country:
  • India

Agriculture Minister Shivraj Singh Chauhan declared on Monday that the government will conduct a comprehensive review of Farmer Producer Organizations (FPOs) as their three-year support period comes to a close.

The announcement followed Chauhan's visit to a fair at Dilli Haat INA, where 55 FPOs showcased their products.

Launched in 2020, the FPO Scheme aims to create 10,000 new FPOs by 2024, backed by a budget of Rs 6,865 crore. Each FPO received Rs 18 lakh in financial assistance for three years, along with a matching equity grant and credit guarantee facility.

However, outcomes have varied; some FPOs have thrived, while others continue to struggle.

"Some FPOs have become self-sustaining in three years, while others are still facing challenges. We will review all FPOs to understand their progress and identify gaps where they need additional support," Chauhan told reporters.

Government-appointed implementing agencies, providing support for up to five years, will play a key role in the review process. "Our goal is to ensure that all FPOs become self-sustaining and contribute to farmers' empowerment," Chauhan emphasized.

So far, 8,875 FPOs have been established, against a target of 10,000. Some FPOs have achieved a turnover of up to Rs 1 crore and are securing online orders.

Chauhan highlighted the essential role of FPOs in revolutionizing agriculture and increasing farmers' income, despite the marketing challenges they face compared to larger private players.

He noted the superior quality of FPO products but stressed the need for better marketing platforms to reach consumers.

The Open Network for Digital Commerce (ONDC) helps FPOs access digital markets, integrating over 5,000 registered FPOs into its portal.

The Small Farmers Agribusiness Consortium (SFAC) is crucial in supporting, promoting, and building the capacity of FPOs to become sustainable agribusiness enterprises. SFAC plans to hold 22 fairs this financial year to promote FPO products, with the next fair set for Ambala, Haryana later this month.

(Disclaimer: With inputs from agencies.)

Give Feedback