The government has achieved the target of establishing 10,000 farmer producer organisations (FPOs) under a flagship central scheme. The central scheme for “Formation and Promotion of 10,000 FPOs” was launched on February 29th 2020 with a budget outlay of Rs 6,865 crore till 2027-28. This achievement not only boosts agricultural productivity and income but also contributes to rural job creation and economic resilience.
Since the launch, Rs 254.4 crore in equity grants has been released to 4,761 FPOs and credit guarantee cover worth Rs 453 crore has been issued to 1,900 FPOs. Additionally, the FPOs were provided with a matching equity grant up to Rs 2,000 per farmer member of FPO with a limit of Rs 15 lakh per FPO and a credit guarantee facility up to Rs 2 crore of project loan per FPO from eligible lending institutions to ensure institutional credit accessibility to FPOs.
Presentation -Dibyabharati Nayak