India Reaches Landmark with 10,000 Farmer Producer Organisations

Current Affairs National

Posted by newadmin on 2025-03-03 08:53:16 |

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The Government of India has successfully established 10,000 Farmer Producer Organisations (FPOs) under its flagship scheme, launched in February 2020. This initiative aims to enhance agricultural productivity and strengthen rural economies. The milestone was marked by the registration of the 10,000th FPO in Khagaria district, Bihar, which focuses on maize, banana, and paddy cultivation.

Farmer Producer Organisations are collective groups formed by farmers to improve their economic standing by pooling resources, sharing knowledge, and increasing their bargaining power in the market. These organisations can take legal forms such as producer companies or cooperative societies, ensuring better access to markets and improved financial stability for farmers.

The Small Farmers’ Agribusiness Consortium (SFAC) has played a key role in promoting FPOs across the country by providing guidance and support. This assistance helps farmers manage agribusiness complexities while leveraging collective strength for better market opportunities. The government has allocated significant financial resources to support these organisations, with Rs 254.4 crore in equity grants disbursed to 4,761 FPOs and a credit guarantee cover of Rs 453 crore issued to 1,900 FPOs. Each new FPO is eligible for Rs 18 lakh in financial assistance for management costs and matching equity grants, ensuring greater participation and long-term sustainability.

With around 30 lakh farmers now connected to FPOs, including a significant number of women, these organisations are conducting agricultural business worth thousands of crores. Beyond increasing agricultural output, FPOs have generated employment opportunities and improved economic resilience in rural communities.

These organisations operate under various legal frameworks, including the Companies Act, the Societies Registration Act, and the Public Trusts Act, ensuring structured governance and allowing member farmers to participate in decision-making. The future of FPOs looks promising as continued government support aims to enhance self-reliance and efficiency in India’s agricultural sector, further boosting rural livelihoods and economic growth.

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