National policy on Farmer Producer Organisations (FPOs) proposed by Ministry of Agriculture and Farmers Welfare

Posted 05 Jul 2024

2 min read

Key highlights of National Policy on FPOs

Aim: To scientifically and systematically consolidate existing FPOs, and establish 50,000 FPOs. Policy will directly benefit 2.50 crore farmers.
Guiding Principles:
- Assessment of all schemes: To promote FPOs, including 2021 Central sector scheme 'Formation and promotion of 10,000 FPOs'.
- End-to-end Value Chain: To boost farmers' income through a comprehensive value chain approach, from production to marketing.
- Emulating AMUL model: To develop FPOs on 3 tier AMUL model (Village Dairy Cooperative, District Milk Cooperative Union, State Cooperative Milk Federation) which emphasize collective business goals, capacity building, and professional management.
FPO eligibility:
- Minimum 300 members in areas other than North East/hilly/UTs (100 in North East/hilly/UTs).
- Registered as legal entity either under Companies Act 2013 or under any law relating to Cooperative Society for time being in force.
- Must register with FPO Registry Portal, maintained by Central Government.
Central Nodal Department (CND): Department of Agriculture and Farmers' Welfare (DA&FW).
Role of CND:
- Allocate funds for FPO development through convergence of central government schemes.
- Making institutional loan available to FPOs at cheaper interest rate.
Central Nodal Agency: Small Farmers’ Agribusiness Consortium, New Delhi (under DA&FW).

FPOs are formed for the purpose of leveraging collectives through economies of scale in production and marketing of agricultural and allied sector.
- Currently, 5000 FPOs have been registered on Open Network for Digital Commerce portal for selling the produce online.
Its objective is to ensure better income for the producers and enable farmer-producers and agrarian communities to enhance productivity through efficient, cost-effective and sustainable resource use.

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