Question : Setting up of Farmer Producer Organization

(a) whether the Government has set up Farmers Producer Organizations (FPOs) for the benefit of farmers across the country, State/UT-wise including Gujarat;
(b) if so, the number of FPOs set up/proposed to be set up in the country along with the manner in which the Government is working through FPOs for the benefit of farmers, State/UT wise;
(c) the details of initiatives taken for promoting FPOs in the country, State/UT- wise;
(d) the funds allocated for the same along with type of assistance being provided to FPOs in the country; and
(e) the number of farmers benefited under the said scheme, State/UT-wise?

MINISTER OF AGRICULTURE AND FARMERS WELFARE
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(a)to(e): Farmer Producer Organisations(FPOs) were being set up and promoted by Small Farmers’ Agribusiness Consortium (SFAC), National Bank for Agriculture and Rural Development (NABARD), Deendayal Antyodaya Yojana- National Rural Livelihood Mission (DAY-NRLM). Govt. of Maharashtra through Maharashtra Agricultural Competitiveness Project (MACP) had been promoting Farmer Producer Organizations (FPOs) for the benefit of farmers. A State/Union Territory (UT)- wise no. of FPOs promoted respectively by each of the agency is at Annexure – I.

Further, the Government of India has launched the Central Sector Scheme for “Formation and Promotion of 10,000 Farmer Producer Organizations(FPOs)” in the year 2020 with the main focus on leveraging economies of scale in production and marketing with a view to enhance productivity through efficient, cost effective and sustainable resource use for ensuring sustainable income oriented farming, thus helping in reduction of cost of farm production and increase in farmers’ income.
Under the said Central Sector Scheme, provision has been made to form 10,000 new FPOs. Implementing Agencies (IAs) have been finalized for formation and promotion of FPOs viz. Small Farmers Agri-Business Consortium (SFAC), National Cooperative Development Corporation (NCDC), National Bank for Agriculture and Rural Development (NABARD), National Agricultural Cooperative Marketing Federation of India (NAFED), North Eastern Regional Agricultural Marketing Corporation Limited (NERAMAC), Tamil Nadu-Small Farmers Agri-Business Consortium (TN-SFAC), Small Farmers Agri-Business Consortium Haryana (SFACH), Watershed Development Department (WDD)-Karnataka & Foundation for Development of Rural Value Chains (FDRVC)-Ministry of Rural Development (MoRD).

The scheme has a total budgetary outlay of Rs.6865 Crores. Under this scheme, provision is made for professional handholding support for a period of five years to each of new FPOs formed. Provision of financial assistance to the tune of Rs.18 lakhs to each FPOs under the scheme towards management cost for 3 years has been made.
In addition to this, provision has been made for matching equity grant upto Rs. 2,000 per farmer member of FPO with a limit of Rs. 15.00 lakh per FPO and a credit guarantee facility upto Rs. 2 crore of project loan per FPO from eligible lending institutions to ensure institutional credit accessibility to FPOs. So far, a total of 4465 FPO produce clusters have been allocated to Implementing Agencies for formation of FPOs, out of which 2345 FPOs have been allotted blocks in the States in the country. The details of FPO allocated by various Implementing Agencies along with number of farmers mobilized State/Union Territories (UTs) wise is at Annexure - II. So far, under the aforesaid new Central Sector Scheme, 713 FPOs have been registered.