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Project Title: Central Sector Scheme of Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)

Background

Agriculture sector plays a very important role in both economic development and Nation building. India is globally in the forefront of development of agriculture. The goal is to achieve doubling of export by 2022. However, more than 86% of farmers in the country are small and marginal. There is a need to facilitate our farmers with access to improved technology, credit, better input and more markets to incentivize them to produce better quality commodity. For this, Aggregation of small, marginal and landless farmers into FPOs will help enhance economic strength & market linkages of farmers for enhancing their income

Keeping this in mind, 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 budgetary provision of Rs 6865 crores

Under this Central Sector Scheme with funding from Government of India, formation & Promotion of FPOs are to be done through the Implementing Agencies (IAs) which will further appoint ‘Cluster-Based Business Organisations’ to promote the FPOs across India

Project Implementor: Department of Agriculture, Co-operation & Farmers’ Welfare, Ministry of Agriculture and Farmers’ Welfare

Implementing Agencies


Aims and Objectives of the Program:

  • To provide holistic and broad-based supportive ecosystem to form new 10,000 FPOs to facilitate development of vibrant and sustainable income-oriented farming and for overall socio-economic development and wellbeing of agrarian communities
  • To enhance productivity through efficient, cost-effective and sustainable resource use and realize higher returns through better liquidity and market linkages for their produce and become sustainable through collective action
  • To provide handholding and support to new FPOs up to 5 years from the year of creation in all aspects of management of FPO, inputs, production, processing and value addition, market linkages, credit linkages and use of technology etc
  • To provide effective capacity building to FPOs to develop agriculture entrepreneurship skills to become economically viable and self-sustaining beyond the period of support from government

APMAS’s role: As Cluster-Based Business Organization, APMAS will work towards formation and promotion of Farmer Producer Organizations (FPOs) for a period of 05 years. The following are the key duties and responsibilities of APMAS:

  1. a) Assist in community mobilization - baseline survey, cluster finalization, value chain study, formation of groups and registration of FPO and assist in their periodic meetings
  2. b) Training and capacity buildings of FPOs/farmer groups- Training needs identification, develop training modules, conduct basic training workshops and exposure visits
  3. c) Preparation and execution of Business Plans for long-term sustainability of FPO
  4. d) Assist in regular interface with stakeholders like various Government Departments, Financial Institutions, Training, Research and Development Institutions at the cluster level
  5. e) Facilitate establishment of necessary common pool production, marketing and processing infrastructure facility by the FPO, as may be necessary, to develop the business for long-term viability
  6. f) Assist in compliance issues of FPO including their capacity building in the subject

Total FPOs to be promoted: APMAS has been empanelled by SFAC, NABARD and NCDC as CBBO to form and promote a total of 31 FPOs in 13 different districts spread across 03 different states. Under NCDC, 12 FPOs will be registered under the respective Co-operatives Act whereas the remaining 19 FPOs will be registered under the Companies Act

Timeline: 2021- 2026

Total budget: Rs. 7.75 crores (Rs. 25,00,000 per FPO)

The mapping of the FPOs is given below


Key Interventions

Enhancing Crop Production & Productivity:
  • 1.Giving training to farmers/FIGs on best practices
  • 2.FPOs providing high quality inputs from their shops
  • 3.APMAS helping in availing required linkages, permits, licenses, logistics etc.

Capacity Building:
Facilitating trainings & Exposure Visits on strengthening the capabilities of FPO BoDs and Staff on Governance, Management, Compliances, Marketing, Business Planning, Financial Planning, Member mobilisation, Audit, Accounting, Value addition etc.

Marketing and Credit Linkages:
  • 1.Tie-up with different players based on the need and requirement of the FPOs/farmers
  • 2.Availing benefits under Government schemes and programs.
  • 3.Setting up of basic infrastructure for marketing of aggregated produce.
  • 4.Focus on farmers from small and marginal, landless, tribal, women, and other indigenous communities

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