PM Modi Formation & Promotion of Farmer Producer Organizations (FPO) Scheme

PM Modi Formation & Promotion of Farmer Producer Organizations (FPO) Scheme

Central government has launched Formation and Promotion of Farmer Producer Organizations (FPO) Scheme 2020-21. In this scheme, PM Modi led govt. will form 10,000 FPOs in five years period from 2019-20 to 2023-24 to ensure economies of scale for farmers. The Union govt. will continue support to each FPO for 5 years from its year of inception. All the Farmer Produce Organisations (FPOs) are aimed to provide small farmers platform. This would enable farmers to collectively tackle their challenges such as accessing agricultural inputs and marketing of produce.

Prime Minister Narendra Modi started country-wide launch of Farmer Producer Organizations in Chitrakoot, Uttar Pradesh on 29 February 2020. These FPOs cooperative platforms will turn farmers into businessman as 86% of farmers falls in small and marginal category having less than 1.1 hectare of landholding. FPOs would work to raise farmers income, empower farmers to realize vision of Doubling Farmers Income by 2022.

Till date farmers were only producer of crops but now through PM Modi FPO Scheme, they would be able to negotiate prices of their produce with traders and do business.

PM Modi Farmer Producer Organisations (FPO) Scheme

The central govt. has launched central sector scheme namely Formation and Promotion of Farmer Producer Organizations (FPOs). The official government order (GO) released on 29 February can be accessed here:-

FPOs will usher in farmer’s lives and enable farmers to create wonders through FPOs in their state. PM Modi had earlier started various initiative like raised minimum support price (MSP) of crops, soil health card scheme, neem coating of urea, completion of pending irrigation projects for welfare of farmers. Central govt. has worked at every level for the betterment of farmers lives and to raise their income.

Previously, CCEA approves scheme for “Formation and Promotion of Farmer Producer Organizations (FPOs)” to form and promote 10,000 new FPOs. The official approval notification can be accessed through the link:-

Strategy Paper on Promotion of 10K FPOs

The Strategy Paper on promotion of 10,000 FPOs can be accessed using the link below:-

Central Govt. is making efforts to ensure that farmers capital cost comes down, productivity goes up and farmers gets fair price for their produce. The govt. also makes efforts to bring agricultural markets closer to farming fields. In the next few years, grameen haat (village markets) will become new centres of agriculture economy. FPOs would impart collective bargaining power to farmers and help them secure a fair price for their produce. These FPOs would be spread to block levels especially in tribal regions and 100 aspirational districts.

To benefit farmers, PM-KISAN Samman Nidhi Yojana was also launched in 2019. In PM-KISAN, around 8.5 crore farmers families have already availed Rs. 50,000 cr directly in their bank accounts. In UP itself, more than Rs. 12000 crore has been deposited in bank accounts of over 2 crore farmers families. Even PM-KISAN beneficiaries are now linked to PM Jeevan Jyoti Bima Yojana and the PM Suraksha Bima Yojana. Moreover, govt. has also started Saturation Campaign to link PM Kisan beneficiaries with Kisan Credit Card. PM also said that 16 point programme is announced in Union Budget 2020-21 to raise farmer’s income.

For more details, visit the official website of Small Farmers Agri-Business Consortium at