FARMER PRODUCER ORGANISATIONS (FPOS)

NEWS: India has successfully established 10,000 Farmer Producer Organizations (FPOs) under a central sector scheme.

ABOUT

• A central sector scheme to form and nurture 10,000 new FPOs across India
• Enables small and marginal farmers to collectivise production, processing, and marketing for better incomes and market power.
• Launched in February 2020
• Aims to build a sustainable, income-oriented farming ecosystem by strengthening farmer collectives, improving access to inputs, credit, technology, value chains, and markets, and enhancing farmers’ bargaining power.

KEY FEATURES

• Produce-cluster-based formation aligned with One District One Product (ODOP).
• Up to ₹18 lakh/FPO (3 years) for handholding
• Credit guarantee up to ₹2 crore project loan per FPO
• NAFED-led forward linkages and value-chain integration.

Implementing Agencies (IAs):

• Small Farmers’ Agribusiness Consortium (SFAC)
• National Bank for Agriculture and Rural Development (NABARD)
• National Cooperative Development Corporation (NCDC)
• National Agricultural Cooperative Marketing Federation of India (NAFED)