October 18th 2021
To provide financial help to the farmers of this country, the Central Government is continuously bringing new schemes. The Center is planning to introduce a new bill, which will help in increasing the income of farmers. This scheme of the government is to give 18 lakh rupees per year to the farmers.
Under the recently started PM Kisan FPO Scheme, Rs 18 lakh will be given to the Farmer Producer Organization (FPO). For the unversed, an FPO is an organization whose members are farmers themselves. The Farmer Producer Organization provides end-to-end support and services to small farmers and covers technical services, marketing, processing, and other aspects of farming inputs.
In 2020, the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi approved the formation of 10,000 FPOs over a period of 5 years from 2019 – 2024. Farmers across the country will be given financial assistance to start a new agribusiness. For this, 11 farmers will have to come together and form a company. This helps small and marginal farmers.
Those who do not have the economic strength to implement production technology, services and marketing including value addition. Through FPOs, farmers will have better collective strength for better access to quality inputs, technology, credit and better marketing access through economies of scale, economies of scale for better realization of income.
Under this scheme, farmers will be paid in installments over three years. For this, by the year 2024, Rs 6885 crore will be spent by the government. The scheme promises to provide financial assistance to FPOs up to Rs 18 lakh per FPO for a minimum period of 3 years.
In addition, the Ministry of Agriculture and Farmers said that a provision has been made for matching equity grant of up to Rs 2,000 with a limit of Rs 18.00 lakh per farmer member of the FPO. There is also a credit guarantee facility up to Rs.2 crore per FPO project loan from the eligible lending institution to ensure availability of institutional credit to the FPOs. Suitable provision has also been made for skill buildings of FPOs.
Under the scheme, the formation and promotion of FPOs is based on product cluster sector approach and specialty commodity based approach. The central government said that by adopting a cluster-based approach, the formation of FPOs will focus on “one district one product” for development of product expertise.
PM Kisan Yojana FPO Scheme Registration
e-NAM welcomes all FPOs and registers for trading on e-NAM to benefit from the transparent system.
Farmers have to call on toll free number 1800 270 0224.
Small Farmers Agribusiness Association (SFAC) is the lead agency to implement eNAM under the aegis of Ministry of Agriculture and Farmers Welfare, Government of India.