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



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


  • 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.


  • 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.



About sree nivas

Check Also

What to do with spent nuclear fuel?

Syllabus:  Alternate fuel Context: Japan has started releasing treated radioactive water from the beleaguered Fukushima …

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Free Updates to Crack the Exam!
Subscribe to our Newsletter for free daily updates