Govt to Establish 1,100 New Farmer Producer Organisations to Strengthen Cooperative Sector

The Ministry of Cooperation has announced plans to establish 1,100 new Farmer Producer Organisations (FPOs) under a central scheme aimed at boosting the cooperative sector. This initiative is part of the central sector scheme titled 'Formation and promotion of 10,000 Farmer Producer Organisations (FPOs),' which has been implemented by the Ministry of Agriculture since February 2021, with a budgetary allocation of Rs 6,865 crore.

The establishment of additional FPOs reflects the government's commitment to enhancing the agricultural sector's resilience, promoting sustainable farming practices, and ensuring the overall welfare of farmers. This initiative will contribute to the government's vision of a self-reliant and prosperous agricultural ecosystem in India.

The National Cooperative Development Corporation (NCDC) has been entrusted with the task of establishing the additional 1,100 FPOs, as per an official statement. Each FPO will receive financial assistance of Rs 33 lakh under the scheme, while Cluster-Based Business Organisations (CBBO) will receive Rs 25 lakh per FPO to support their activities.

Integrating Primary Agricultural Credit Societies (PACS) is a crucial aspect of this scheme. PACS, which currently serves approximately 13 crore farmers and primarily provides short-term credit, as well as the distribution of seeds and fertilizers, will now have the opportunity to undertake a broader range of economic activities. This expansion will enable PACS to venture into supply chains for production inputs, agricultural equipment such as cultivators, tillers, and harvesters, as well as processing activities.

Moreover, PACS will be empowered to engage in high-income-generating ventures such as beekeeping, mushroom cultivation, and other profitable agricultural practices. By diversifying their activities, PACS can enhance their revenue streams and contribute to the economic growth of farmers.

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The Ministry of Cooperation highlighted that the integration of PACS into the FPO scheme will facilitate improved market linkages for farmers, ensuring they receive remunerative prices for their agricultural produce. This move aims to address the challenge of price volatility and provide stability to farmers' income by establishing direct connections between farmers and the market.

By establishing new FPOs and enabling PACS to undertake diverse economic activities, the government is striving to strengthen the cooperative sector and empower farmers across the country. The scheme's financial assistance and support for FPOs and CBBOs will enable farmers to collaborate effectively, access modern agricultural technologies, and improve their productivity and income.

source-PTI

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