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GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 253
TO BE ANSWERED ON THE 21ST JULY, 2026
FINANCIAL ASSISTANCE TO FARMER PRODUCER ORGNIZATIONS IN PUNJAB
253. DR. AMAR SINGH:
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 Farmer Producer Organisations (FPOs) formed and supported in Punjab
under the Central Sector Scheme for Formation and Promotion of 10,000 FPOs, district-
wise;
(b) the financial assistance, equity grants, credit guarantees and other support provided to
FPOs in Punjab during the last three years, year-wise;
(c) whether the Government has assessed the functioning and financial viability of FPOs in
Punjab and, if so, the details and outcome thereof;
(d) the challenges reported by FPOs in accessing institutional credit, markets and value
addition infrastructure, and the action taken thereon; and
(e) the steps taken to strengthen FPOs in Punjab to improve farmers' income, market access
and participation of small and marginal farmers?
ANSWER
THE 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): As on date, 151 Farmer Producer Organisations (FPOs) have been formed in State
of Punjab under the Central Sector Scheme for Formation and Promotion of 10,000 Farmer
Producer Organisations (FPOs). District-wise details of FPOs formed under the Scheme
are at Annexure.
(b): Year-wise details of financial assistance released to FPOs in Punjab during the last
three years, including Equity Grant and Credit Guarantee are at Annexure.
In addition, FPOs are provided continuous handholding support through Cluster
Based Business Organizations (CBBOs) and Implementing Agencies (IAs) for business
planning, market linkages, capacity building and facilitation in availing benefits under
various Government schemes.(c): An evaluation of the Scheme has been carried out by the Department in 2025-26
for all States including Punjab. The mid-term evaluation indicates that the Central Sector
Scheme for Formation and Promotion of 10,000 Farmer Producer Organizations has
created a substantial institutional base for farmer collectivisation. The assessment of 400
FPOs shows strong progress on formal institutional and compliance-related indicators.
Around 93.5% of assessed FPOs covered four or more Gram Panchayats; 92% achieved
full license /registration compliance; 89% completed LMS modules with the CEO and
accountant trained; and a large majority submitted audited financial statements. These
findings indicate that the scheme has made visible progress in creating formal FPO
structures, expanding member outreach and strengthening basic institutional readiness.
(d) & (e): FPOs formed under the Scheme including the FPOs in State of Punjab, are
provided both financial and other support through various interventions by the Government,
to strengthen them, improve farmers' income, enhance market access, facilitate access to
institutional credit and promote value addition. These include:
i. Management Cost up to ₹18 lakh per FPO over a period of three years to meet
managerial and operational expenses.
ii. Matching Equity Grant of up to ₹15 lakh per FPO, to strengthen the equity base
of FPOs.
iii. Credit Guarantee Facility for project loans of up to ₹2 crore per FPO to improve
access to institutional credit.
iv. Continuous handholding support for five years through Cluster Based Business
Organizations (CBBOs) for business planning, governance, market linkages and
capacity building.
v. Capacity-building, training and skill development programmes for Chief Executive
Officers (CEOs), Board of Directors (BoDs) and members of FPOs.
vi. Facilitation in obtaining input licences and dealerships. In Punjab, 86 FPOs have
seed licences, 80 FPOs fertilizer licences and 69 FPOs having pesticide licenses,
enabling them to supply agricultural inputs to their member farmers and augment
their revenue.
vii. Facilitation of market linkages through digital platforms. 22 FPOs from the State
of Punjab have been onboarded on National Agriculture Market (e-NAM) and
recorded trade worth Rs.2.83 Crore. In addition, 118 FPOs are onboarded on
Open Network for Digital Commerce (ONDC). Further, 63 weekly webinars have
been conducted to support market access and buyer-seller linkages.
viii. Seventy-four (74) FPOs have established processing infrastructure in the State of
Punjab, thereby promoting value addition, reducing post-harvest losses and
enhancing market competitiveness.Annexure
Punjab: District-wise details of FPOs formed under the 10,000 FPOs Scheme
Sr. No. District No. of FPO
1 Amritsar 8
2 Barnala 3
3 Bathinda 10
4 Faridkot 3
5 Fatehgarh Sahib 5
6 Fazilka 4
7 Ferozepur 5
8 Gurdaspur 8
9 Hoshiarpur 12
10 Jalandhar 11
11 Kapurthala 5
12 Ludhiana 12
13 Malerkotla 3
14 Mansa 5
15 Moga 6
16 Muktsar 4
17 Nawanshahr (Shahid Bhagat Singh Nagar) 5
18 Pathankot 5
19 Patiala 11
20 Rupnagar (Ropar) 7
21 Sahibzada Ajit Singh Nagar (Mohali) 4
22 Sangrur 8
23 Tarn Taran 7
Total 151
Financial assistance and other support proivded to FPOs in Punjab under 10,000
FPOs scheme
Credit guarantee
FPO Management Equity
Sl. Financial Sanctioned
Cost Grant No. of
No. Year Loan
(₹ in lakh) (₹ in lakh) FPOs
(₹ in Crore)
1 2023–24 414.39 63.77 3 0.15
2 2024–25 210.03 128.35 5 0.70
3 2025–26 213.63 329.84 7 1.09
Total 838.05 521.96 15 1.94
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