A significant step toward expanding farmer's market access and digital outreach has been taken with the successful enrollment of nearly 5,000 Farmer Producer Organizations (FPOs) on the Open Network for Digital Commerce (ONDC) platform, out of the 8,000 registered enterprises. This initiative, aligned with the Central government's agenda of enhancing market accessibility for growers, aims to revolutionize the way FPOs connect with consumers nationwide.
The integration of FPOs into the ONDC platform underlines the government's commitment to empowering farmers with seamless digital marketing channels, online payment facilities, and streamlined business transactions. This strategic move is part of the Central Sector Scheme, "Formation and Promotion of 10,000 Farmer Produce Organizations (FPOs)," launched in 2020 with a budget allocation of Rs 6,865 crore.
Strengthening Market Linkages
By aggregating small, marginal, and landless farmers into FPOs, the initiative aims to boost the economic resilience and market connectivity of farmers, thereby augmenting their income streams. FPOs play a crucial role in providing farmers access to advanced technology, credit facilities, superior inputs, and expanded markets, incentivizing them to produce high-quality commodities.
Financial Support & Credit Accessibility
Under the scheme, FPOs receive financial assistance of up to Rs 18.00 lakh per entity over a three-year period. Additionally, provisions have been made for matching equity grants of up to Rs. 2,000 per farmer member and a credit guarantee facility of up to Rs. 2 crore per FPO from eligible lending institutions. This initiative ensures enhanced institutional credit accessibility for FPOs, with over 1,100 FPOs already benefiting from credit guarantees totaling Rs 246.0 crore.
The formation and promotion of FPOs serve as the cornerstone for fostering self-reliant agriculture (Atmanirbhar Krishi). By promoting cost-effective production practices, enhancing productivity, and generating higher net incomes, FPOs contribute significantly to rural economic development and create employment opportunities for rural youth.
FPO development is strategically mapped within produce clusters, emphasizing agricultural and horticultural specialization. Initiatives like "One District One Product" aim to promote specialization, improve processing capabilities, enhance marketing strategies, and facilitate exports, thereby maximizing value chain efficiencies and market access for member produce.
Key Objectives of the Scheme
The overarching goals of the scheme include providing a supportive ecosystem for the establishment of 10,000 new FPOs, enhancing productivity through sustainable farming practices, ensuring better liquidity and market linkages, offering comprehensive support and capacity building for FPOs, and nurturing entrepreneurship skills among agricultural communities. Cooperative Societies or Part IXA of the Companies Act are the two registration categories for FPOs.
Through concerted efforts and collaborative initiatives, the government hopes to chart a path towards a more inclusive, resilient, and sustainable agricultural future for India.
