NEW DELHI, 11 August 2025: The Government has achieved the milestone of registering 10,000 Farmer Producer Organisations (FPOs) under its Central Sector Scheme for the Formation and Promotion of 10,000 FPOs, aimed at strengthening collective farming and rural entrepreneurship.
Each FPO is eligible for INR 18 lakh in management cost support over three years, a matching equity grant of up to INR 15 lakh (INR 2,000 per farmer), and a credit guarantee facility of up to INR 2 crore for project loans from eligible institutions. The initiative also assists in securing mandatory licenses for seed, fertiliser, pesticide, and mandi operations, enabling FPOs to function as fully-fledged agri-business enterprises.
To expand market access, FPOs have been onboarded onto e-NAM (Electronic National Agriculture Market), ONDC (Open Network for Digital Commerce), and the GeM (Government e-Marketplace), integrating them into the country’s growing digital economy. Skill enhancement is facilitated through online training modules, enabling stakeholders to learn at their own pace, while weekly webinars are conducted to promote government schemes and market linkages.
As a result of these interventions, the registered FPOs have collectively achieved a cumulative turnover of INR 5,035.5 crore as of June 30, 2025.
Minister of State for Agriculture and Farmers Welfare Ramnath Thakur informed the Rajya Sabha that the scheme is not only improving farmers’ bargaining power but also fostering sustainable agri-business models in rural India.
