Central Govtschemes

Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs)

Support of up to Rs 18 lakh per FPO plus equity grant and credit guarantee for farmer collectives.

About this scheme

This Central Sector Scheme, launched in February 2020 with an outlay of about Rs 6,865 crore, forms and nurtures 10,000 new FPOs. Each FPO is handheld for five years by a Cluster Based Business Organisation. Implementing agencies include SFAC, NAFED, NCDC and NABARD. FPOs help small and marginal farmers achieve scale in input purchase, aggregation, processing and marketing, and improve bargaining power.

Benefits

Financial assistance up to Rs 18 lakh per FPO over three years for management cost
Matching equity grant up to Rs 2,000 per farmer member, capped at Rs 15 lakh per FPO
Credit guarantee cover up to Rs 2 crore of project loan per FPO
Five years of professional handholding by a Cluster Based Business Organisation
Training in business planning, book-keeping and market linkage

Who can apply

Minimum 300 members in plain areas and 100 members in North Eastern, hilly and aspirational districts
Registered as a Producer Company under the Companies Act or as a Cooperative Society
At least 50% of members should be small, marginal or landless farmers
FPO must have a viable business plan

Documents required

Aadhaar of all member farmers
Land records of members
FPO registration certificate and PAN
Memorandum and Articles of Association
Bank account details of the FPO
Business plan document

How to apply

1Farmers form a group and approach the implementing agency or a CBBO
2CBBO conducts a baseline survey and helps prepare a business plan
3Register the FPO as a Producer Company or Cooperative Society
4Open a bank account and apply for the equity grant and management cost support
5Funds released in instalments against milestones

Important dates

Scheme period: 2019-20 onwards; formation targets completed in phases

Available in: All India

Visit the official portal