FARMER PRODUCER OGANIZATIONS (FPOs)

FARMER PRODUCER OGANIZATIONS (FPOs)

TOPIC: Agriculture

Context- Prime Minister Narendra Modi has stated that the Un­ion government is resolved to mobilise small farmers in­ to farmer producer organisa­tions (FPOs) and make them influential market forces in the years to come to improve their incomes by developing agriculture value chain.

Concept-

What is an FPO?

• Farmers’ Producer Organisation (FPO), also known as farmers’ producer company (FPC), is an entity formed by primary producers including farmers, milk producers, fishermen, weavers, rural artisans, and craftsmen.
• An FPO can be a Producer Company, a Cooperative Society or any other legal form.
• FPOs are basically the hybrids of cooperatives and private companies.
  • The participation, organisation and membership pattern of these companies are more or less similar to the cooperatives.
  • But their day-to-day functioning and business models resemble those of the professionally-run private companies.
• The Companies Act was amended by incorporating Section-IX A in it to allow creation and registration of FPOs under it.

Formation and Promotion of 10,000 new FPOs Scheme

• Launched by Ministry of Agriculture& Farmers Welfare
• Implementing Agencies – Nine agencies including NABARD, SFAC, NAFED, etc.
• FPOs will be provided financial assistance uptoRs 18 lakh per FPO for a period of 3 years.
• A credit guarantee facility upto Rs. 2 crore of project loan per FPO can be availed Training & skill development modules have been developed to further strengthen the FPOs.
• At district level, a District Level Monitoring Committee (D-MC) is constituted for overall coordination & monitoring.
• At National level, National Project Management Agency (NPMA) has been engaged for providing overall project guidance and coordination.