Farmer Producer Organisations (FPOs)

The Government of India has approved and launched the Central Sector Scheme of “Formation and Promotion of 10,000 Farmer Producer Organizations(FPOs)” to form and promote 10,000 new FPOs till 2027-28 with a total budgetary outlay of Rs.6865 Cr.

Under the scheme, the formation and promotion of FPO is based on Produce Cluster Area approach and specialized commodity based approach. While adopting cluster based approach, formation of FPOs will be focussed on “One District One Product” for development of product specialization.

Initially one FPO is allocated per block. So far, a total of 4465 new FPOs produce clusters have been allocated to Implementing Agencies for formation of FPOs, of which a total of 632 no. of FPOs have been registered.

As per the Evaluation Report of PricewaterhouseCoopers (PwC) on FPO component titled “Impact Study 7- Enhanced realization of agriculture produce marketed through PCs/FCSCs  under Maharashtra Agricultural Competitiveness Project (MACP)” brings out the following major points : (i) sale through Farmer Producers Companies (FPCs) has resulted in increased price realization by members by 22%, (ii) Incidence of cost of marketing is 31% lower than other channels (iii) 28 percent of members have purchased inputs from PCs and it has resulted into net savings of Rs.1384 per acre.

As informed by the Government of Andhra Pradesh, a total of 852 FPOs have been formed till 2020 in Andhra Pradesh.

Under the Central Sector Scheme for formation and promotion of FPOs, the Farmer Producer Organizations(FPOs), provision has been made for financial assistance upto Rs 18.00 lakh per FPO for a period of 03 years for meeting the FPO management cost. Under the new FPO scheme, the Department of Agriculture & Farmers Welfare(DA&FW) makes advance release to the Implementing Agencies for formation and promotion of FPOs. So far, Rs.249.08 Cr. has been released to all IAs.

As informed by Small Farmers’ Agri-Business Consortium (SFAC), Equity Grant of Rs.31.22 lakh was extended to 4 FPCs in Andhra Pradesh during 2020-21.

Detail of Producer Companies for the year 2020, Statewise