Ministry of Agriculture &
Farmers Welfare
SUPPORT FOR FARMER PRODUCER ORGANISATION
MainsGS2GS3GovernanceEconomyGovernment SchemesAgriculture
Source-grounded summary
The Ministry of Agriculture & Farmers Welfare is executing the Central Sector Scheme for the formation and promotion of 10,000 Farmer Producer Organizations (FPOs). Since 2020‑21, 10,000 FPOs have been created, with 6,964 having turnover up to Rs 50 Lakh, 862 between Rs 50 Lakh‑1 Crore, and 1,135 above Rs 1 Crore (2024‑25 audited data). The scheme provides up to ₹18 lakh per FPO for management and hand‑holding costs, a matching equity grant of up to ₹15 lakh, and credit guarantee facilities up to ₹2 crore. To date, ₹827.81 crore (management) and ₹631.98 crore (equity) have been released, benefitting over 65 lakh small‑holder shareholders, with many FPOs obtaining seed, pesticide and fertilizer licences and establishing processing units.