e-technology in the aid of farmers Issues related to direct and indirect farm subsidies and minimum support prices;

GS-3

FORMATION & PROMOTION OF 10,000 FARMER PRODUCER ORGANIZATIONS (FPOS)

First anniversary of the Central Sector Scheme on Formation & Promotion of 10,000 Farmer Producer Organizations (FPOs).

Important points:

  • The scheme was launched by Prime Minister in February 2020 at Chitrakoot (Uttar Pradesh) with a budgetary provision of Rs 6865 crore.
  • Implementing Agencies (IAs) are engaging Cluster-Based Business Organizations (CBBOs) to aggregate, register & provide professional handholding support to each FPO for a period of 5 years.
  • CBBOs will be the platform for an end to end knowledge for all issues related to FPO promotion.
  • FPOs will be provided financial assistance up to Rs 18 lakh per FPO for a period of 3 years.
  • In addition to this, provision has been made for matching equity grant 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 crores of project loan per FPO from the eligible lending institution to ensure institutional credit accessibility to FPOs.
  • At the National level, the National Project Management Agency (NPMA) as a professional organization has been engaged for providing overall project guidance, coordination, compilation of information relating to FPOs, maintenance of MIS and monitoring purpose

Significance:

  • FPOs are to be developed in produce clusters, wherein agricultural and horticultural produces are grown/cultivated for leveraging economies of scale and improving market access for members.
  • “One District One Product” cluster will promote specialization and better processing, marketing, branding & export.
  • Further, agriculture value chain organizations are forming FPOs and are facilitating 60% of market linkages for members’ produce.

Benefits:

  • This formation of 10,000 FPOs scheme will promote the selling of farmers produce from the farm gate of farmers thereby enhanced farmers’ income.
  • This will shorten the supply chain and accordingly marketing cost will get reduced resulting in better income for farmers.
  • It will accelerate more investment in marketing and value addition infrastructure near to farm gate creating more employment opportunities for rural youth.

 

SOURCE:PIB,THE ECONOMICS TIMES

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