Government says 1,100 new FPOs will be set up in cooperative sector

New Delhi, May 17

The cooperation ministry on Wednesday said 1,100 new farmer producer organisations will be established in the cooperative sector under a central scheme.

Since February 2021, the agriculture ministry is implementing a central sector scheme titled ‘Formation and promotion of 10,000 Farmer Producer Organisations (FPOs) with a budgetary provision of Rs 6,865 crore.

Under the scheme, a target of establishing 1,100 additional FPOs has been allocated to the National Cooperative Development Corporation (NCDC), an official statement said.

A financial assistance of Rs 33 lakh is provided to each FPO under the scheme. Further, a financial assistance of Rs 25 lakhs per FPO is provided to the Cluster Based Business Organisations (CBBO).

According to the cooperation ministry, primary Agricultural Credit Societies (PACS) — which have a member base of around 13 crore farmers and are primarily engaged in short-term credit and distribution of seeds and fertilisers—will now be able to undertake other economic activities as well.

Integration of PACS in the FPO scheme will enable them to expand their business in the areas of supply of production inputs; agricultural equipment like cultivator, tiller and harvester, and processing, it said.

PACS will also be able to undertake high income generating activities like bee-keeping, mushroom cultivation, and others.

“This initiative will ensure remunerative prices to farmers for their produce by providing them necessary market linkages,” the ministry said.