**Executive Summary**
This document provides an overview of the Government’s Central Sector Scheme on Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs). The scheme aims to support and integrate FPOs into national agricultural value chains. As of October 31, 2025, significant progress has been made in linking FPOs with various platforms and providing financial assistance.
**Key Points / Main Content**
* **FPO Scheme and Support:**
* The Government scheme supports the formation and promotion of 10,000 FPOs.
* Each FPO receives ₹18 lakh for 3 years for management costs.
* Matching equity grants up to ₹15 lakh and credit guarantees up to ₹2 crore are available.
* Support includes training, market linkages, and scheme convergence.
* FPOs are supported for input licenses and mandi licenses.
* Weekly webinars are conducted for FPOs to strengthen integration into value chains.
* Credit linkage and e-commerce enablement are supported.
* **Integration and Access:**
* 4,642 FPOs are linked with the National Agriculture Market (e-NAM) platform as of 31.10.2025.
* Credit-linked subsidy has been sanctioned to 236 FPOs under the PM Formalisation of Micro Food Processing Enterprises (PM-FME) Scheme.
* 1,590 FPOs have benefited under the Agriculture Infrastructure Fund (AIF).
* Under PM-KISAN, benefits are extended to individual eligible farmers.
* FPOs are encouraged to avail collateral-free credit under the Credit Guarantee Fund (CGF) of the 10,000 FPO Scheme.
* 2,583 FPOs have obtained credit guarantee cover.
* **Marketing and Exposure:**
* Exposure is provided to marketing platforms like ONDC, e-NAM, and GeM.
* FPOs are connected with industry and Agri-business organizations.
* Facilitation of participation in Expos/Exhibitions.
* Webinars are organized where industry experts guide FPOs.
**Impact Analysis**
**Farmer Producer Organizations (FPOs)**
* **Impact:** Access to financial support, training, credit guarantees, and integration with national agricultural markets and various e-commerce platforms. Improved bargaining power and market access.
* **Action Required:** To engage with the provided schemes and platforms, participate in training and webinars, and explore opportunities for B2B linkages with industries.
**Industries, Associations, and Government Departments:**
* **Impact:** Opportunity to connect with FPOs for B2B linkages, participate in Expos/Exhibitions, and guide FPOs through webinars.
* **Action Required:** Engage with FPOs through organized events and provide guidance on business practices.
**Eligible Farmers (Under PM-KISAN):**
* **Impact:** Extended benefits as individual eligible farmers, which contributes to individual growth and support.
* **Action Required:** None specified.
Key Entities Referenced
Central Sector Scheme on Formation and Promotion of 10,000 FPOs (Farmer Producer Organizations): The primary scheme aiming to register and support 10,000 Farmer Producer Organizations.
Ministry of Agriculture & Farmers Welfare: The ministry responsible for organizing webinars and supporting FPOs.
National Agriculture Market (e-NAM): An e-commerce platform to link FPOs.
PM Formalisation of Micro Food Processing Enterprises (PM-FME) Scheme: A scheme under which FPOs have benefitted.
Agriculture Infrastructure Fund (AIF): A fund under which FPOs have availed benefits.
Ministry of Agriculture & Farmers Welfare
Integration of FPOs with National Agricultural
Value Chains
प्रव तथ: 05 DEC 2025 6:59PM by PIB Delhi
Government is implementing the Central Sector Scheme on Formation and Promotion of 10,000
FPOs (Farmer Producer Organizations), under which 10,000 FPOs have been registered. The scheme
provides ₹18 lakh per FPO for 3 years as management cost, matching equity grant up to ₹15 lakh, and
credit guarantee up to ₹2 crore from eligible lending institutions, along with support for training, market
linkages and convergence with other schemes.
Further, FPOs are supported for availing input licences (seed, fertilizer & pesticide) & mandi licences for
marketing of produce. To strengthen integration of FPOs in value chains, weekly webinars are being
conducted for FPOs. Credit linkage and e-commerce enablement has also been supported.
As on 31.10.2025, 4,642 FPOs are linked with the National Agriculture Market (e-NAM) platform,
credit-linked subsidy has been sanctioned to 236 FPOs under the PM Formalisation of Micro Food
Processing Enterprises (PM-FME) Scheme and 1590 FPOs have availed benefit under the Agriculture
Infrastructure Fund (AIF). Under PM-KISAN, benefits are extended to individual eligible farmers and not
to FPOs.
To improve credit access, FPOs are encouraged to avail collateral-free credit under the Credit Guarantee
Fund (CGF) of the 10,000 FPO Scheme, under which 2,583 FPOs have obtained credit guarantee cover.
Efforts are made to provide exposure to FPOs to different marketing platforms like Open Network for
Digital Commerce (ONDC), e-NAM and Government e-Marketplace (GEM) to access wider geographies
and fetch better prices through these platforms. FPOs are connected with the industry and Agri-business
organizations for better bargaining and improved market access through Melas/ Exhibitions etc. where
industries are invited for B2B linkages with FPOs. Besides, FPOs are also facilitated in participating
various Expos/ Exhibitions conducted by Industries, Associations, other Departments of Central
Government, State governments etc. Webinars are also being organized for FPOs by this Ministry where
industry experts guide FPOs on doing business with their organizations.
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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