In order to implement the Union Budget 2019-20 announcement, Department of Agriculture Cooperation and Farmers Welfare (DAC&FW) has approved a new Central scheme “Formation and Promotion of Farmer Produce Organizations (FPOs)” to form and promote 10,000 new FPOs with a total budgetary provision of Rs 4,496 crore for five years, 2019-20 to 2023-24, with a further committed liability of Rs 2,369 crore for the period from 2024-25 to 2027-28 towards handholding of each FPO for five years from its aggregation and formation, Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs, said in the Rajya Sabha Wednesday.
In Union Budget 2019-20, Union Finance Minister, Nirmala Sitharaman had announced formation of 10,000 new FPOs to ensure economies of scale for farmers over the next five years.
Speaking in the upper house of the parliament, Thakur further said, “National Bank for Agriculture and Rural Development (NABARD) has reported that currently there are around 6,000 FPOs operating in the country, which have been promoted by the Government, NABARD, state government departments and civil society organisations. Out of these FPOs, NABARD has promoted 4,317 FPOs, which include 2,154 FPOs supported out of Producers Organization Development and Upliftment Corpus (PRODUCE) Fund. During 2014-15, the Government had created PRODUCE Fund with a corpus of Rs 200 crore in NABARD for the promotion of 2,000 FPOs in the country. Against the target of 2,000 FPOs, NABARD has sanctioned 2,154 FPOs as on 31.10.2019.”