Executive Summary:
The Ministry of Agriculture and Farmers Welfare is implementing a Central Sector Scheme to promote 10,000 Farmer Producer Organizations (FPOs) across the country. The scheme provides financial assistance, capacity building support, and market linkages to FPOs, including those in the DewasShajapur region of Madhya Pradesh. As of June 2025, significant financial assistance has been disbursed, and credit guarantees have been issued to support these organizations.
Key Points / Main Content:
* **Scheme Overview:**
* Central Sector Scheme for Formation and Promotion of 10,000 FPOs is under implementation.
* 10,000 FPOs have been registered across the country under this scheme.
* **Financial Assistance:**
* FPO management cost of Rs. 18 lakh is available to each FPO over 3 years.
* Matching equity grant up to Rs. 15 lakh per FPO is available against Rs. 2,000 contribution per farmer.
* Credit guarantee facility up to Rs. 2 crore is available from eligible lending institutions.
* Rs. 617.2 crore released as FPO management cost as of June 2025.
* Rs. 361.5 crore released as matching equity grant as of June 2025.
* 3,212 credit guarantees issued, covering 2,360 FPOs with a sanctioned loan amount of 708.26 crore and guarantee cover of 593.75 crore till 30.06.2025.
* **DewasShajapur Implementation:**
* The Scheme is also implemented in DewasShajapur region of Madhya Pradesh.
* 30 FPOs registered in DewasShajapur under the scheme as of July 2025.
* FPOs in this region have been provided with financial assistance, capacity-building support, and other necessary facilitation.
* Equity Grant of 126.41 lakh and FPO management cost of 202.36 lakh have been released in Dewas Shajapur.
* **Support and Market Linkages:**
* FPOs are assisted through trainings conducted via Cluster Based Business Organizations (CBBOs).
* FPOs have been onboarded on digital platforms like eNAM and ONDC to access digital markets.
* **Addressing Challenges:**
* Deployment of CBBOs to provide handholding support for 5 years.
* 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.
* Credit Guarantee Facility to improve access to institutional credit.
* Facilitating the issuance of input licenses to FPOs, including for seed, fertilizer, pesticide, mandi, etc. to enable them to function as agribusiness enterprises, in coordination with State Governments.
* Dedicated FPO MIS Portal for transparency and accountability.
* Weekly webinars and capacity-building programs to promote market linkages, and awareness of government schemes are conducted.
Impact Analysis:
* **FPOs:**
* Impact: Benefit from financial assistance, capacity building, market access, and operational support to enhance their viability and sustainability.
* Action Required: Utilize the provided resources, participate in training programs, and comply with scheme guidelines.
* **Farmers:**
* Impact: Enhanced income opportunities, access to better markets, and improved bargaining power through FPO membership.
* Action Required: Contribute Rs. 2,000 to their FPO to unlock the matching equity grant.
* **Government (Ministry of Agriculture and Farmers Welfare):**
* Impact: Achieving the goal of promoting and strengthening FPOs across the country.
* Action Required: Continue monitoring the scheme's implementation, disbursing funds, and providing necessary support to FPOs.
* **CBBOs (Cluster Based Business Organizations):**
* Impact: Opportunity to provide handholding support and training to FPOs, contributing to their success.
* Action Required: Deliver effective training and support services to FPOs as per the scheme guidelines.
* **Lending Institutions:**
* Impact: Opportunity to extend credit to FPOs with a credit guarantee cover, reducing their risk.
* Action Required: Participate in the credit guarantee scheme and provide loans to eligible FPOs.
Key Entities Referenced
Farmer Producer Organisations FPOs: A type of organization of farmers, promoted by the Government through dedicated schemes.
Central Sector Scheme for Formation and Promotion of 10,000 Farmer Producer Organisations: A government scheme focused on creating and supporting 10,000 FPOs across the country.
SHRI MAHENDRA SINGH SOLANKY: A Member of Parliament who raised a question regarding the scheme to promote FPOs.
SHRI VISHWESHWAR HEGDE KAGERI: A Member of Parliament who raised a question regarding the scheme to promote FPOs.
SHRI ARUN GOVIL: A Member of Parliament who raised a question regarding the scheme to promote FPOs.
SHRI RAMNATH THAKUR: The Minister of State for Agriculture and Farmers Welfare who provided the answer to the parliamentary question.
DewasShajapur, Madhya Pradesh: A region in Madhya Pradesh where a special scheme for the promotion and support of FPOs is being implemented.
Cluster Based Business Organizations CBBOs: Organizations that provide handholding support to FPOs for 5 years.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 4201
TO BE ANSWERED ON THE 19TH AUGUST, 2025
SCHEME TO PROMOTE FPOs
4201. SHRI MAHENDRA SINGH SOLANKY:
SHRI VISHWESHWAR HEGDE KAGERI:
SHRI ARUN GOVIL:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी
be pleased to state:
(a) whether the Government has launched any dedicated scheme to promote Farmer
Producer Organisations (FPOs), if so, the number of FPOs proposed to be formed across
the country under the said scheme;
(b) whether any financial assistance is being provided to such organisations by the
Government, if so, the details of total financial assistance provided to FPOs during the last
five years;
(c) whether the Government is implementing a special scheme for the promotion and
support of Farmer Producer Organisations (FPOs) in Dewas-Shajapur, MPs;
(d) the number of FPOs registered in Dewas-Shajapur under the scheme as of July 2025;
(e) whether these FPOs have been provided with financial assistance, capacity-building
support, market linkages and agri-infrastructure; and
(f) the major challenges identified in promoting FPOs in the region and steps taken
to overcome them?
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): The Government is implementing a Central Sector Scheme for “Formation and
Promotion of 10,000 Farmer Producer Organisations (FPOs)”. Under this scheme, 10,000
FPOs have been registered across the country.
(b): Under the scheme, FPO management cost of Rs.18 lakh over 3 years, is available
to each FPO. FPO can also avail matching equity grant of upto Rs.15 lakh per FPO (as
against Rs.2000 contribution per farmer). Additionally, the scheme provides for credit
guarantee facility upto Rs.2 crore, from eligible lending institutions. As on June, 2025,
Rs.617.2 crore has been released as FPO management cost and Rs.361.5 crore as
matching equity grant under the scheme. 3,212 credit guarantees have been issued,
covering 2,360 FPOs till 30.06.2025 with sanctioned loan amount of ₹708.26 crore and
guarantee cover of ₹593.75 crore.
(c) to (e): The Scheme is also implemented in Dewas–Shajapur region of Madhya Pradesh.
As of July, 2025, 30 FPOs have been registered under the scheme in Dewas–Shajapur.
FPOs have been provided with financial assistance, capacity-building support, and other
necessary facilitation under the scheme. As on July 2025, ₹126.41 lakh have been released
as Equity Grant and FPO management cost of ₹ 202.36 lakh have been released in Dewas
& Shajapur. In addition to financial support, these FPOs are also being assisted through
trainings conducted via Cluster Based Business Organizations (CBBOs). The FPOs have
been onboarded by digital platform like e-NAM (Electronic National Agriculture Market),
ONDC (Open Network for Digital Commerce) etc. to access digital markets.(f): FPOs being community-based institutions, face operational, institutional, and
financial challenges in their formative business stages. To address these, the scheme
provides:
i. Deployment of 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.
*****