ZT WEB DESK
New Delhi: The Centre has finalised a plan to create 30,000 farmer producers’ organisations (FPOs) in next 10 years and the incentives announced for 10,000 FPOs in February may be extended to all such new ventures.
Earlier, in February, the Centre had approved a Rs 6,865-crore scheme for setting up of 10,000 new FPOs and ensuring their growth by FY28. While budgetary support of Rs 4,496 crore will be spent by FY24, an additional Rs 2,369 crore has been estimated for hand-holding of these FPOs until 2027-28.
The finance minister had allocated `500 crore for FY21 to launch the scheme on FPOs.
There are three implementing agencies to form and promote these FPOs — Small Farmers Agri-business Consortium (SFAC), National Cooperative Development Corporation (NCDC) and National Bank for Agriculture and Rural Development (NABARD).
The Centre has also allowed states to nominate their own implementing agency in consultation with agriculture ministry. Initially, the minimum number of members in FPO will be 300 in plain areas and 100 in north-east and hilly areas. However, the minimum number of membership can be revised with approval of the Centre.
There will be a credit guarantee fund of up to Rs 1,000 crore in NABARD in which both the Centre and Nabard will have equal contribution of Rs 500 crore each.
Similarly, a Credit Guarantee Fund of Rs 500 crore in NCDC has been provided with equal contribution of Rs 250 crore each by the government and NCDC.