Kheti Kosh to strengthen farm sector

CHANDIGARH: The government has initiated the process for customisation of the Farmer Producer Organisation FPO scheme and set up Kheti Kosh to receive funding from corporates to strengthen the agricultural sector

Updated At : 07:50 AM May 11, 2018 IST

Ruchika M Khanna

Tribune News Service

Chandigarh, May 10

The government has initiated the process for customisation of the Farmer Producer Organisation (FPO) scheme and set up ‘Kheti Kosh’ to receive funding from corporates to strengthen the agricultural sector.

Punjab Agricultural University (PAU) has been roped in to constitute a committee for formulating a customised FPO policy. A dedicated fund, ‘Kheti Kosh’, is also being set up to receive funds from corporates wishing to donate under the Corporate Social Responsibility (CSR).

A sum of Rs 50 crore has been approved for the PAU to set up an incubation facility for young farmers and graduates in agriculture, who form their FPOs. The university will train them and help in their capacity building to run collective farmer companies.

Since FPOs having a turnover of up to Rs 100 crore have a five-year tax holiday, it is a good business model to be pursued in Punjab.

The idea for having a customised FPO policy, based on broad guidelines of the Ministry of Agriculture, germinated during a meeting on agriculture sustainability held in Amritsar recently. Farmer groups, PHD Chamber of Commerce and Industry and other stakeholders felt that the FPO policy, which was announced in the year 2008, was not suitable for the state. It was felt that the policy was made according to the needs and the agricultural eco system of Baramati in Maharashtra. The matter was again discussed in a meeting chaired by Governor VP Singh Badnore last Saturday.

“Since this collectivisation of small and marginal farmers into producer organisations is regarded as the most effective way to address the challenges of agriculture - improved access to investment, technology, inputs and markets, Punjab can lead young farmers and graduates in agriculture to set up their FPOs,” said Suresh Kumar, Chief Principal Secretary to the Chief Minister.

About FPOs

Farmer Producer Organisation (FPO) is an institutional form to mobilise farmers who build their capacities to collectively leverage their production and marketing strength. The state has 68 FPOs engaged in agro-processing, dairy and vegetable cultivation.