In an initiative that ensures, farmers receive fair prices for their yields by providing them the necessary market linkages, the Centre agreed on Wednesday to establish 1,100 new Farmer Producer Organizations (FPOs) in the cooperative sector.
Each FPO is given financial support under the FPO Scheme in the amount of Rs 33 lakhs. Furthermore, the Cluster-Based Business Organisations (CBBO) receive financial assistance in the range of Rs 25 lakhs for each FPO.
According to a statement from the Cooperation Ministry, steps have been taken to realize Prime Minister Narendra Modi's perspective of "Sahkar se Samriddhi" with the assistance of the Union Home Minister and Minister of Cooperation, Amit Shah.
The Statement also targeted that out of these 1,100 additional FPOs has been assigned to National Cooperative Development Corporation (NCDC) by the Ministry of Agriculture and Farmers’ Welfare under its ‘Formation and Promotion of 10,000 FPOs’ scheme.
Further, the statement disclosed that the Primary Agricultural Credit Societies (PACS), which have a member base of approximately 13 crore farmers and are involved in short-term credit and disbursement of fertilizers and seeds will now be able to undertake other economic activities as well.
The incorporation of PACS into the FPO scheme will allow them to grow their business in the supply of production inputs, agricultural machineries like tillers, cultivators, and harvesters, as well as processing, which includes cleaning, assaying, sorting, grading, packing, and transportation.
The announcement also claims that PACS will also be allowed to engage in high-income-producing enterprises like mushroom and beekeeping.
The Statement also read that this initiative will ensure remunerative prices to farmers for their yield by offering them required market linkages. It will also result in the diversification of the economic activities of PACS, hence, encouraging them to produce new and stable sources of income.
Also, the statement added that along with several other initiatives affirmed by the Ministry of Cooperation under the leadership of Amit Shah for strengthening the cooperative movement in the country, will sanction the cooperative sector in general and PACS in particular, to produce alternative sources of revenues for their members, hence modifying themselves into viable, dynamic and financially sustainable economic entities.
