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(The Gist of PIB) Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)

(THE GIST OF PIB) Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)

It is a Central Sector Scheme under Ministry of Agriculture and Farmers Welfare, with following objectives.
Formation of 10,000 FPOs in five years period from 2019-20 to 2023-24 to ensure economies of scale for farmers.
Handholding support to each FPO for 5 years.

Beneficiaries:

Small and marginal farmers who do not have economic strength to apply production technology, services and marketing including value addition.
Producer Organisation (PO).
Implemented by Small Farmers Agri-business Consortium, National Cooperative Development Corporation and NABARD.
National Project Management Agency provides guidance and coordination of the project at national level.

Benefits of FPOs:

FPOs are to be developed in produce clusters, where agricultural and horticultural produces are grown for leveraging economies of scale and improving market access for members.
Promote selling of farmers produce from farm gate of farmers thereby enhanced farmers’ income.
Shortened supply chain and reduced marketing cost.
Accelerate investment in marketing and value addition infrastructure, creating more employment opportunities for rural youth.
Also, recently India has got its first FPO registered under Cooperative Societies Act in Varanasi.