In 2021-22, the government aims to spend Rs 700 crore on setting up 2,500 farmers' producer organisations (FPOs). This would help the government step out to create a healthier agriculture environment for 60,000 farmers.
In order to grow high value crops, a group of small and marginal farmers such as FPOs would have greater negotiating power and financial ability, officials said. This is part of the government's initiative to build 10,000 FPOs in five years, they said, with an allocation of Rs 6,865 crore.
FPOs will play a key role in the effective adoption of the current farm laws that will raise farmers' income, the government says.
FPOs will play a critical role in bringing together a large number of farmers and huge chunks of land, whether it is selling produce directly to traders and businesses or contract farming, said a senior agriculture ministry official, who directly deals with FPOs and agricultural marketing.
