Government nears 10,000 FPO target, 33 lakh farmers onboard

The government is set to achieve its target of forming 10,000 Farmer Producer Organizations (FPOs) within the next few weeks, nearly five years after launching the central sector scheme in 2020. So far, 9,912 FPOs have been registered as cooperatives and producer companies, while 88 more await registration under the scheme, which was introduced with a budgetary allocation of ₹6,865 crore.

Over 33 lakh farmers have invested equity in these collectives, which now have a combined turnover exceeding ₹1,300 crore. The government has infused ₹450 crore as matching equity into these FPOs, strengthening their financial base.

The primary goal of the FPO scheme is to enhance farmers’ income by enabling collective aggregation of agricultural produce, improving access to markets, and reducing cultivation costs through bulk procurement of agri-inputs. By organizing farmers into structured groups, the initiative aims to empower small and marginal farmers and increase their bargaining power in the supply chain.

Under the scheme, each FPO is eligible for financial assistance of up to ₹18 lakh over three years. Additionally, the government provides a matching equity grant of up to ₹2,000 per farmer-member, with a maximum limit of ₹15 lakh per FPO.

Officials believe that strengthening these farmer collectives will help stabilize rural incomes, improve agricultural productivity, and create a more sustainable and organized farming ecosystem across the country.