Executive Summary:
This document is a response to Lok Sabha Unstarred Question No. 432 regarding financial assistance to Farmer Producer Organizations (FPOs). As of June 30, 2025, 224 FPOs in Andhra Pradesh have received Equity Grant assistance, and 140 FPOs have been sanctioned Credit Guarantee Cover under the Central Sector Scheme for Formation and Promotion of 10,000 FPOs. The government is addressing challenges faced by FPOs through various support mechanisms, including technical and digital assistance.
Key Points / Main Content:
Financial Assistance to FPOs in Andhra Pradesh:
* 224 FPOs have received Equity Grant assistance.
* 140 FPOs have been sanctioned Credit Guarantee Cover.
Challenges and Government Support:
* FPOs face operational, institutional, and financial challenges.
* The Central Sector Scheme for Formation and Promotion of 10,000 FPOs addresses these challenges.
* Cluster-Based Business Organizations (CBBOs) provide handholding support for 5 years.
* Up to ₹18 lakh per FPO is provided as management cost.
* Equity Grant of ₹2,000 per farmer member, up to ₹15 lakh per FPO, is available.
* Credit Guarantee Facility improves access to institutional credit.
* Input licenses for seed, fertilizer, pesticide, etc., are being facilitated in coordination with State Governments.
* A dedicated FPO MIS Portal promotes transparency and accountability.
* Weekly webinars and capacity-building programs promote market linkages and awareness of government schemes.
Institutional Framework and Digital Access:
* A National Project Management Agency (NPMA) at the central level coordinates and supports the scheme's implementation.
* CBBOs provide field-level capacity building, business planning, technical support, and digital facilitation.
* FPOs are onboarded on digital platforms like eNAM, ONDC, and GeM for digital market access.
* An LMS portal facilitates capacity building of stakeholders through digital means.
* A dedicated FPO MIS portal tracks FPO progress, enabling digital reporting and analytics.
Impact Analysis:
FPOs:
* Impact: Benefit from equity grants, credit guarantees, management cost assistance, technical support, and digital access to markets.
* Action Required: Utilize available resources and platforms (CBBOs, MIS portal, eNAM, ONDC, GeM) to enhance business operations and market linkages.
Farmers:
* Impact: Potential increase in income and access to resources through FPO membership.
* Action Required: Engage with FPOs and participate in capacity-building programs.
State Governments:
* Impact: Required to coordinate with the central government to facilitate the issuance of input licenses to FPOs.
* Action Required: Streamline the process for issuing input licenses to FPOs to enable them to function as agribusiness enterprises.
CBBOs:
* Impact: Responsible for providing field-level capacity building, business planning, technical support, and digital facilitation to FPOs.
* Action Required: Deliver effective support services to FPOs for a period of 5 years, focusing on business planning, technical assistance, and digital adoption.
Key Entities Referenced
Ministry of Agriculture and Farmers Welfare: The Indian government ministry responsible for agriculture and farmers' welfare.
Lok Sabha: The lower house of the Indian Parliament.
Shri P. V. Midhun Reddy: A member of parliament who raised a question about FPOs.
Andhra Pradesh: A state in India where FPOs have received assistance.
Central Sector Scheme for Formation and Promotion of 10,000 FPOs: A government scheme focused on forming and promoting 10,000 Farmer Producer Organizations (FPOs).
Farmer Producer Organizations (FPOs): Organizations of farmers aimed at improving their income and market access.
Cluster Based Business Organizations (CBBOs): Organizations that provide handholding support to FPOs.
National Project Management Agency (NPMA): The agency at the central level responsible for coordinating and supporting the implementation of the Scheme for Formation and Promotion of 10,000 FPOs.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 432
TO BE ANSWERED ON THE 22ND JULY, 2025
FINANCIAL ASSISTANCE TO FPOs
432. SHRI P. V. MIDHUN REDDY:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ(cid:874)ष एव ं(cid:873)कसान क(cid:227)याण
म(cid:287)ं ी be pleased to state:
(a) the number of FPOs in Andhra Pradesh that have received equity grants or
credit guarantees under the Centre’s scheme;
(b) the challenges observed in the implementation of these schemes in southern
regions;
(c) whether the Government plants to establish a national-level support cell for
technical training and digital access for FPOs; and
(d) if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ(cid:874)ष एव ं (cid:873)कसान क(cid:227)याण रा(cid:207)य म(cid:287)ं ी (SHRI RAMNATH THAKUR)
(a): As on 30th June, 2025, 224 Farmer Producer Organizations (FPOs) have
received Equity Grant assistance, and 140 FPOs have been sanctioned Credit
Guarantee Cover under the Central Sector Scheme for Formation and Promotion of
10,000 FPOs in Andhra Pradesh.
(b): FPOs being community-based institutions, face operational, institutional, and
financial challenges in their formative business stages. To address these, the
Government is implementing the Central Sector Scheme for Formation and Promotion
of 10,000 FPOs with the following features:
i. Deployment of Cluster-Based Business Organizations (CBBOs) to provide
handholding support for 5 years.
ii. Provision of up to ₹18 lakh per FPO as management cost, and Equity Grant of
₹2,000 per farmer member up to ₹15 lakh per FPO.
iii. Credit Guarantee Facility to improve access to institutional credit.
iv. In coordination with State Governments, facilitating the issuance of input
licenses to FPOs, including for seed, fertilizer, pesticide, mandi, etc. to enable
them to function as agri-business enterprises.v. Dedicated FPO MIS Portal for transparency and accountability.
vi. Weekly webinars and capacity-building programs to promote market linkages,
and awareness of government schemes are conducted.
(c) & (d): Under the Scheme for Formation and Promotion of 10,000 FPOs, a robust
institutional framework has already been put in place, which includes:
i. National Project Management Agency (NPMA) at the central level to coordinate
and support the implementation of the scheme.
ii. CBBOs to provide field-level capacity building, business planning, technical
support, and digital facilitation to FPOs for a period of 5 years.
iii. 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 digital market access.
iv. LMS (Learning Management System) portal is provisioned under the said
scheme to facilitates capacity building of all the stakeholders (FPOs/ CBBOS/
Farmers) through digital means.
v. Dedicated FPO Monitoring Information System (MIS) portal for tracking FPO
progress, enabling digital reporting and analytics.
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