Through formation of FPOs, farmers will have better collective strength for better access to quality input, technology, credit and better marketing access through economies of scale for better realization of income.
In 2020, the Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, gave its approval for 10,000 FPOs to be formed in five years period from 2019-20 to 2023-24 to ensure economies of scale for farmers. Support to each FPO be continued for 5 years from its year of inception.
Scheme for formation and promotion of 10,000 new Farmer Produce Organizations
The GOI has launched a new Central Sector Scheme titled “Formation and Promotion of 10,000 Farmer Produce Organizations with a clear strategy to promote 10,000 new FPOs.
| 10 Feb 2021 11:36 AM GMT
NEW DELHI: There is a need to facilitate our farmers with access to improved technology, credit, better input, and more markets to incentivize them to produce a better quality commodity. For this, the Aggregation of small, marginal, and landless farmers into FPOs will help enhance the economic strength & market linkages of farmers for enhancing their income. Keeping this in mind, the Government of India has launched a new Central Sector Scheme titled Formation and Promotion of 10,000 Farmer Produce Organizations (FPOs) with a clear strategy and committed resources to form and promote 10,000 new FPOs in the country with a budgetary provision of Rs 6865 crore.