In 2020, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved for 10,000 FPOs to be formed in 5 years
In order to help the farmers of this country financially, the Central Government is constantly introducing new schemes. The centre is planning to introduce a new bill that will help increase the income of farmers.
While this bill takes time to come into motion, the government plans to give Rs 18 lakhs per year to the farmers.
Under the recently started PM Kisan FPO Scheme, Rs 18 lakhs will be given to the Farmers Producer Organization (FPO). For the unversed, FPO is an organisation, where the members are farmers themselves. Farmers Producers Organization provides end-to-end support and services to the small farmers and covers technical services, marketing, processing, and others aspects of cultivation inputs.
In 2020, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved for 10,000 FPOs to be formed in 5 years period from 2019 – 2024.
Farmers across the country will be given financial assistance to start a new agricultural business. For this, 11 farmers will have to come together and form a company together. This helps small and marginal farmers who do not have the economic strength to apply production technology, services and marketing including value addition. Through the FPOs, farmers will have better collective strength for better access to quality input, technology, credit and better marketing access through 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 FPOs with financial assistance upto Rs 18 lakhs per FPO for a minimum period of 3 years.