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Problem

Producer organisations reach a small share of farmers, and most formed under the national scheme had not received equity support

  • National

The central scheme launched in February 2020 registered its 10,000th farmer producer organisation in February 2025, with about 30 lakh farmers connected, around 40 per cent of them women. By then ₹254.4 crore in equity grants had been released to 4,761 FPOs and credit guarantee cover of ₹453 crore issued to 1,900. For scale, the Agriculture Census 2015-16 counted about 146 million operational holdings; farmers and holdings are different units, so the comparison indicates order of magnitude only. Whether the FPOs formed under the scheme are commercially viable is not established here. Evidence confidence: Medium.

This is the most specific entry on this branch of the catalogue. The evidence behind it is below.

Who is responsible

  • Ministry of Agriculture and Farmers Welfare — Department of Agriculture and Farmers Welfare · Ministry or DepartmentRuns the scheme for formation and promotion of 10,000 FPOs.
  • Small Farmers' Agribusiness Consortium (SFAC) · Union Government

Evidence and sources

  • 10,000 FPOs Achieved under Government's Flagship Scheme · Official statementMinistry of Agriculture & Farmers Welfare, 28 February 2025. About 30 lakh farmers connected; equity grants released to 4,761 FPOs; credit guarantee cover issued to 1,900 FPOs.
  • Report of the Internal Working Group to Review Agricultural Credit · Government documentReserve Bank of India, 13 September 2019 (Chair: M. K. Jain). Uses NAFIS 2016-17 and Agriculture Census 2015-16. Covers non-institutional credit, tenant farmers, regional disparity, crop vs allied credit, Kisan Credit Card coverage, loan waivers and computerisation of land records by state.

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