The Department of Agriculture & Farmers Welfare has barred Farmer Producer Companies (FPCs) and Farmer Producer Organisations (FPOs) from acting as nodal agencies for government procurement, media reports say.
In a letter to all chief secretaries, the Centre outlined measures to ensure efficient and transparent procurement. While FPCs and FPOs can be involved alongside Primary Agricultural Cooperative Societies (PACS), preference must be given to PACS.
Each FPC/FPO may open only one procurement center, operate in areas where members are present, and must have a registered office in the same block with a minimum average turnover of Rs 1 crore over three years.
