The number of farmers on board the Centre’s scheme for the formation and promotion of Farmer Producer Organisations (FPOs) has touched the 30 lakh mark in the country, with around 40 per cent of them being women, according to a statement issued by the Ministry of Agriculture on Friday.
These FPOs are now conducting business worth thousands of crores in the agricultural sector, it said.
FPOs aim to increase farmers' income and provide small farmers with direct access to significant market benefits, bargaining power and improving market access.
Under this scheme, launched by Prime Minister Narendra Modi on February 29, 2020, there is a provision for handholding support for a period of five years to each new FPO that is formed, and financial assistance to the tune of Rs.18 lakh to each FPO for meeting management costs for 3 years.
Additionally, matching equity grants up to Rs. 2,000 per farmer member of FPO with a limit of Rs 15 lakh per FPO and a credit guarantee facility up to Rs 2 crore of project loan per FPO from eligible lending institutions to ensure institutional credit accessibility to FPOs is also extended under the scheme, the statement said.