Addressing a meeting of Sahakar Bharati and Laghu Udyog, Union Agriculture Minister Narendra Singh Tomar said a new dimension is going to be added to farmers’ groups with the creation of ten thousand new Farmers’ Producer Organizations (FPOs).
Tomar said 86% farmers in the country are small and marginal farmers, who will strengthen the rural economy through these FPOs, which will not only help in agricultural progress, but also create new avenues for the development of the country, says a press release from the govt.
Ministers of State for Agriculture & Farmers’ Welfare, Parshottam Rupala and Kailash Choudhary, and Union Minister of State for Water Resources Arjun Ram Meghwal were present on the occasion.
Tomar said in the beginning, the minimum number of members in the FPOs would be 300 in the plains and 100 in the North-East and hilly areas. The FPOs which are being formed for the benefit of small, marginal and landless farmers, will be managed in such a way that these farmers get access to technological inputs, finances, and better markets and prices for their crops.
According to the minister, in the Budget 2020-21, there is a proposal to adopt a cluster approach for horticultural produce through the “One district – One Product” scheme so as to give a fillip to value addition, marketing and exports. This is a central scheme; whose total budget is Rs. 6,865 crores.
All FPOs will be provided professional support and handholding for 5 years. 15% of the FPOs are to be constituted in aspirational districts, and will be formed on priority basis in scheduled tribal areas. This is a produce cluster-based scheme. The FPOs will also boost organic and natural farming.
The minister added that the scheme will be implemented through agencies like NABARD, SFAC and NCDC. They will be provided facilities of equity grant upto Rs 15 lakh on matching equity basis for financial stability.
There will be a credit guarantee fund with NABARD and NCDC, under which suitable credit guarantee up to Rs.2 crores per FPO will be provided. Understanding the importance of capacity building, training and skill development of the stakeholders, there is a provision to provide training in organizational management, resource planning, marketing and processing through national and regional level institutions, the Minister underlined.
