Government to set up 2,500 Farmer Producer Organisations; set to cost Rs 700 crore


NEW DELHI: The government is planning to spend Rs 700 crore on setting up 2,500 farmer producer organisations (FPOs) in 2021-22. This will help the government reach out to 60,000 farmers and provide them with a better farming ecosystem.

A group of small and marginal farmers as FPOs will have better bargaining power and financial strength to cultivate high value crops, said officials. This is part of the government’s endeavour to create 10,000 FPOs with a provision of Rs 6,865 crore in five years, they said.

“FPOs will play a key role in successful implementation of the new farm laws which, the government claims, will enhance income of farmers. Whether it’s selling produce directly to traders and companies or contract farming, FPOs will play a critical role in bringing a large number of farmers and huge chunks of land together,” a senior agriculture ministry official, who is directly dealing with FPOs and agriculture marketing, told ET.


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