CCEA gives nod to establishing 10,000 new Farmer Producer Organisations

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi on Wednesday gave its approval for 10,000 Farmer Producer Organisations (FPOs) to be formed in five years period from 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 the handholding of each FPO for five years.

"It will ensure economies of scale for farmers. Support to each FPO to continued for 5 years from its year of inception from its aggregation and formation. Through formation of FPOs, farmers will have better collective strength for better access to quality input, technology, credit and better marketing access through economies of scale for better realization of income", said an official release.

FPOs will be formed and promoted through Cluster Based Business Organizations (CBBOs) engaged at the State/Cluster level by implementing agencies. Adequate training and handholding will be provided to FPOs. CBBOs will provide initial training.

The report of 'Doubling of Farmer's Income (DFI)' has emphasised this fact and recommended the formation of 7,000 FPOs by 2022 towards convergence of efforts for doubling the farmers' income. In the Union Budget 2019-20, Government has announced the creation of 10,000 new FPOs to ensure economies of scale for farmers over the next five years, for which a dedicated supporting and holistic scheme as Central Sector Scheme is proposed for the targeted development of FPOs and its sustainability.