Home India Ministry of Agriculture and Farmers Welfare Parliament Question: Financial Assistance for FPOs...
Date: 2025-08-19 Category: Not Applicable State: Union Government Country: India

Parliament Question: Financial Assistance for FPOs

Issued by Ministry of Agriculture and Farmers Welfare · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: The Ministry of Agriculture and Farmers Welfare addressed Lok Sabha Unstarred Question No. 4358 on August 19, 2025, regarding financial assistance for Farmer Producer Organizations (FPOs) in Uttar Pradesh. The response details the number of FPOs formed and financially assisted under the Central Sector Scheme for Formation and Promotion of 10,000 FPOs from 2022-23 to 2024-25. It also clarifies assistance provided under other schemes like PMKSY and PMFME. Key Points / Main Content: FPO Formation and Assistance: * 108 FPOs were formed in Etah, Kasganj, Etawah, Auraiya, Mainpuri, Kannauj, Jaunpur (Machhlishahr block), and Chandauli districts of Uttar Pradesh from FY 2022-23 to 2024-25 under the Central Sector Scheme for Formation and Promotion of 10,000 FPOs. * Data on FPOs formed under State Schemes or other initiatives is not maintained centrally. Financial Assistance Details: * Financial assistance was provided in the form of FPO Management Cost, Equity Grant, and Credit Guarantee Fund (CGF). * The annexure provides a year-wise and district-wise breakdown of FPOs that availed Equity Grant and Management Cost. * The annexure provides a district-wise breakdown of FPOs that availed Credit Guarantee Fund (CGF) Other Schemes: * The Ministry of Food Processing Industries (MoFPI) incentivizes infrastructure development through schemes like PMKSY, PLISFPI, and PMFME, which FPOs, SHGs, and cooperatives can utilize. * Details of schemes under which Credit Guarantee is extended is not maintained centrally. Current Status and Future Plans: * All 108 FPOs are currently active. * No FPOs in the mentioned districts have established units related to processing of agricultural products. * The target of forming 10,000 FPOs across the country has been achieved, and mobilization of new member farmers is ongoing. Impact Analysis: FPOs: * Impact: Benefit from financial assistance through Equity Grants, Management Costs, and Credit Guarantee Funds, promoting their establishment and operation. * Action Required: Utilize the provided financial assistance effectively for management, equity, and credit guarantees. Farmers: * Impact: Potential to become members of FPOs and benefit from collective farming and market access. * Action Required: Engage with existing FPOs to explore membership and participation opportunities. Ministry of Agriculture and Farmers Welfare: * Impact: Responsible for the implementation and monitoring of the Central Sector Scheme for Formation and Promotion of 10,000 FPOs. * Action Required: Continue supporting and monitoring the formed FPOs and encourage new member enrollment. Ministry of Food Processing Industries (MoFPI): * Impact: Their schemes (PMKSY, PLISFPI, and PMFME) can provide further incentives for FPOs to develop food processing infrastructure. * Action Required: Ensure FPOs are aware of and can access the benefits offered by these schemes.

Key Entities Referenced

Farmer Producer Organisations: An organization of farmers that aims to improve their income and livelihoods through collective action. Commonly referred to as FPOs. Etah, Kasganj, Etawah, Auraiya, Mainpuri, Kannauj, Jaunpur, Chandauli districts of Uttar Pradesh: Specific districts in the state of Uttar Pradesh, India, where FPOs were provided with assistance. Central Sector Scheme for Formation and Promotion of 10,000 FPOs: A government scheme focused on creating and supporting 10,000 Farmer Producer Organizations across India. Ministry of Agriculture and Farmers Welfare: The Indian government ministry responsible for agriculture and farmers' welfare. Ministry of Food Processing Industries: The Indian government ministry responsible for food processing industries. Pradhan Mantri Kisan SAMPADA Yojana: A central sector scheme by the Ministry of Food Processing Industries to promote food processing in India. Production Linked Incentive Scheme for Food Processing Industry: A scheme to incentivize food processing industries by linking incentives to increased production. Pradhan Mantri Formalization of Micro Food Processing Enterprises: A centrally sponsored scheme for the formalization and support of micro food processing enterprises.
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O.I.H. GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE LOK SABHA UNSTARRED QUESTION NO. 4358 TO BE ANSWERED ON THE 19TH AUGUST, 2025 FINANCIAL ASSISTANCE FOR FPOs †4358. SHRI DEVESH SHAKYA: Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी be pleased to state: (a) the number of FPOs (Farmer Producer Organisations) provided with assistance/ funding in Etah, Kasganj, Etawah, Auraiya, Mainpuri, Kannauj, Machhlishahr and Chandauli districts of Uttar Pradesh during the last three years; (b) the number of FPOs provided with financial assistance in the above districts, year-wise; (c) whether this assistance was given under Central/State Government schemes like PMFME, operation Greens or any other scheme; (d) the number of FPOs actively working at present and the number of FPOs which have set up units related to processing of agricultural products; and (e) whether the Government has also any plan to form more FPOs in these districts or expand the existing FPOs? ANSWER MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण रा(cid:475) मं(cid:361)ी (SHRI RAMNATH THAKUR) (a): 108 Farmer Producer Organisations (FPOs) have been formed in the districts of Etah, Kasganj, Etawah, Auraiya, Mainpuri, Kannauj, Jaunpur (Machhlishahr block), and Chandauli in Uttar Pradesh during the financial years 2022-23 to 2024-25 under the Central Sector Scheme for Formation and Promotion of 10,000 FPOs. Data of FPOs formed under State Schemes or other initiatives is not maintained centrally. (b) & (c): Year-wise FPOs provided with financial assistance under the scheme in these districts (specifically in the form of FPO Management Cost & Equity Grant) and district wise no. of FPOs availed Credit Guarantee Fund (CGF) are at Annexure. In order to promote and ensure overall development of Food Processing Industries, Ministry of Food Processing Industries (MoFPI) has been incentivizing setting up/ expansion of related infrastructure through its Central Sector schemes namely Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) Scheme, Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) and Centrally Sponsored - Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme across the country. Farmer Producer Organisations (FPOs), Self-Help Groups (SHGs) and cooperatives are also eligible for availing grants under these schemes of MoFPI. Details of scheme under which Credit Guarantee is extended is not maintained centrally. (d): 108 FPOs in above mentioned districts under Uttar Pradesh are actively working at present. No FPO in above mentioned districts of Uttar Pradesh has set up unit related to processing. (e): As per the scheme target, 10,000 FPOs have already been formed across the country. Mobilization of new member farmers is an ongoing activity, as FPOs develop and grow.Annexure Year-wise and district-wise number of FPOs that have been provided with financial assistance under the scheme - specifically in the form of FPO Management Cost & Equity Grant S. No. Financial No. of FPOs availed No. of FPOs availed FPO Year Equity Grant* Management Cost* 1 2021-2022 1 5 2 2022-2023 13 13 3 2023-2024 10 51 4 2024-2025 39 36 5 2025-2026 6 0 Grand Total 69 105 * The no. indicated in the table is the no. of FPOs availing the above financial assistance for the first time in a particular year. District-wise no. of FPOs availed Credit Guarantee Fund S. No. No. of FPOs availed Credit Guarantee District Fund (CGF) 1 Auraiya 0 2 Chandauli 4 3 Etah 1 4 Etawah 1 5 Kannauj 2 6 Kasganj 0 7 Mainpuri 0 8 Jaunpur 2 Total 10 *****

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