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Govt launches Central Sector Scheme for formation & promotion of 10,000 FPOs
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Saturday, 29 July, 2023, 15 : 00 PM [IST]
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Our Bureau, New Delhi
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Government of India has launched Central Sector Scheme for formation and promotion of 10,000 Farmer Producer Organisations (FPOs), in the year 2020 with a total budgetary outlay of Rs 6,865 crore which will enable farmers to enhance their bargaining power, leverage economies of scale, reduction in cost of production and enhancing farmers’ incomes through aggregation of their agricultural produce, thus playing a major role towards sustainable incomes.
Under the said scheme, FPOs being provided financial assistance upto Rs 18.00 lakh per FPO for a period of three years. In addition to this, provision has been made for matching equity grant upto Rs 2,000 per farmer member of FPO with a limit of Rs 15.00 lakh per FPO and a credit guarantee facility upto Rs 2 crore of project loan per FPO from eligible lending institution to ensure institutional credit accessibility to FPOs. Further, Rs 25 lakhs are given to CBBOs for hand holding each FPO over a period of five years.
Considering the significance and strategic role of State Government and its machinery down the line in synergising the efforts in mobilising the farmers, offering various services relating to production and post-production and also periodically reviewing the development and functioning of FPOs, Government has made provisions in operational guidelines of 10,000 Farmer Producer Organisations, scheme wherein a State level consultative committee called SLCC is constituted with additional chief secretary, secretary, In-charge of agriculture, agriculture marketing as its chairperson.
In addition to above, under 10,000 FPOs scheme, at district level, a District Level Monitoring Committee (D-MC) is constituted under the chairmanship of district collector, CEO, Zilla Parishad with representatives of different line departments and experts which provides approval for potential produce clusters in the block and also responsible for overall coordination, monitoring and implementation of the scheme at the district level. Provisions have also been made in Government of India schemes for availing benefits by FPOs.
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