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DAILY NEWS ANALYSIS

  • 28 July, 2021

  • 3 Min Read

Farmer Producer Organizations(FPOs)

Farmer Producer Organizations(FPOs)

  • Government of India has approved and launched the Central Sector Scheme of “Formation and Promotion of 10,000 Farmer Producer Organizations(FPOs)” to form and promote 10,000 new FPOs till 2027-28 with a total budgetary outlay of Rs.6865 Cr.
  • Under the scheme, the formation and promotion of FPO is based on Produce Cluster Area approach and specialized commodity based approach.
  • While adopting cluster based approach, formation of FPOs will be focussed on “One District One Product” for development of product specialization.
  • Initially one FPO is allocated per block. So far, a total of 4465 new FPOs produce clusters have been allocated to Implementing Agencies for formation of FPOs, of which a total of 632 no. of FPOs have been registered.
  • Critical Analysis:
    1. Sale through Farmer Producers Companies (FPCs) has resulted in increased price realization by members by 22%,
    2. Incidence of cost of marketing is 31% lower than other channel.
    3. 28 percent of members have purchased inputs from PCs and it has resulted into net savings of Rs.1384 per acre.
  • Under the Central Sector Scheme for formation and promotion of FPOs, the Farmer Producer Organizations (FPOs), provision has been made for financial assistance upto Rs 18.00 lakh per FPO for a period of 03 years for meeting the FPO management cost. Under the new FPO scheme, the Department of Agriculture & Farmers Welfare(DA&FW) makes advance release to the Implementing Agencies for formation and promotion of FPOs.

Source: PIB


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