**Policy Summary: Formation and Promotion of Farmer Producer Organizations (FPOs)**
As of August 8, 2025, the Ministry of Agriculture & Farmers Welfare announced the registration of 10,000 Farmer Producer Organizations (FPOs) under the central sector scheme aimed at their formation and promotion. The scheme provides financial assistance to each FPO, including Rs. 18 lakh for management costs over three years, a matching equity grant of up to Rs. 15 lakh (Rs. 2000 per farmer), and a credit guarantee facility of up to Rs. 2 crore for project loans from eligible lending institutions.
The government, in coordination with state governments, is assisting FPOs in obtaining necessary licenses for inputs such as seeds, fertilizers, pesticides, and market access (mandi) to facilitate their operation as agribusiness enterprises. To enhance market access, FPOs are being integrated into digital platforms like eNAM (Electronic National Agriculture Market), ONDC (Open Network for Digital Commerce), and GeM (Government eMarketplace).
The scheme incorporates digital training modules for stakeholders to improve their skills. Weekly webinars are also conducted to raise awareness about government schemes and promote market linkages. The initiatives have resulted in a cumulative turnover of Rs. 5,035.5 crore as of June 30, 2025.
This information was provided by the Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur, in a written reply in Rajya Sabha.
Key Entities Referenced
Ministry of Agriculture Farmers Welfare: The Indian government ministry responsible for agriculture and farmers' welfare.
10,000 Farmers Producer Organization FPOs: A central sector scheme by the Ministry of Agriculture and Farmers Welfare for the formation and promotion of 10,000 Farmer Producer Organizations.
eNAM Electronic National Agriculture Market: A digital platform to provide access to digital market for FPOs.
ONDC Open Network for Digital Commerce: A digital platform to provide access to digital market for FPOs.
GeM Government eMarketplace: A digital platform to provide access to digital market for FPOs.
Shri Ramnath Thakur: Minister of State for Agriculture and Farmers Welfare.
Rajya Sabha: The Upper House of the Parliament of India, where a written reply regarding the FPO scheme was presented.
Central Sector Scheme for Formation and Promotion of 10,000 Farmer Producer Organizations: A government initiative to promote and support Farmer Producer Organizations (FPOs) by providing financial assistance and facilitating their access to markets.
Ministry of Agriculture & Farmers Welfare
FORMATION AND PROMOTION OF FPOs
Posted On: 08 AUG 2025 4:57PM by PIB Delhi
10,000 Farmers Producer Organization (FPOs) have been registered under the Central Sector Scheme for
“Formation and Promotion of 10,000 Farmer Producer Organizations”.
Each FPO registered under the Scheme is provided Rs.18 lakh as management cost over 3 years, matching
equity grant of upto Rs.15 lakh per FPO (@Rs.2000/- per farmer) and credit guarantee facility upto Rs.2 crore
for project loan from eligible lending institutions. Government, in coordination is with States is facilitating
these FPOs in obtaining input licenses including for seed, fertilizer, pesticide, mandi, etc. to enable them to
function as agri-business enterprises. The FPOs have been onboarded on digital platform like e-NAM
(Electronic National Agriculture Market), ONDC (Open Network for Digital Commerce) and GeM
(Government e-Marketplace) to provide access to digital markets. The Scheme has provision for training of all
the stakeholders through digital mode to, enhance their skills at their own pace.
Besides, weekly webinars are organized to create awareness of government schemes and promote market
linkages.
The various initiatives undertaken under the scheme to support the FPOs have resulted in cumulative turnover
th
of ₹5,035.5 crore as on 30 June, 2025.
This information was given by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur
in a written reply in Rajya Sabha today.
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RC/ KSR/AR
(Release ID: 2154174)