• Union Agriculture Minister announced that rural sector will be transformed by constitution of 10,000 new Farmers’ Producer Organisations (FPOs).

About:

• This is a produce cluster based scheme. The FPOs will be managed in such a way that these farmers get access to technological inputs, finances, and better markets and prices for their crops

• In the beginning, the minimum number of members in the FPOs will be 300 in the plains and 100 in the North-East and hilly areas. 15 % of the FPOs are to be constituted in aspirational districts, and will be formed on priority basis in scheduled tribal areas.

• All FPOs will be provided professional support and handholding for five years.

• This is a central scheme, whose total budget is Rs. 6,865 crores.

• It will be implemented through agencies like NABARD, SFAC and NCDC. There will be credit guarantee fund with NABARD and NCDC, under which suitable credit guarantee up to two crore rupees per FPO will be provided.

Background:

• In the Budget 2020-21, there is a proposal to adopt cluster approach for horticultural produce through “One district – One Product” scheme so as to give a fillip to value addition, marketing and exports.