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The central government has recently announced the Farmer Producer Organization (FPO) scheme, the main objective of which is to strengthen the economic condition of farmers. As per the scheme, the PM Modi-led government has set a target of creating 10,000 FPOs over a period of five years, from 2019–20 to 2024–25. In this article, we will discuss the importance of this scheme and its effects in depth.
FPO, i.e., Farmer Producer Organization, is an organization that works in the interest of farmers and is registered under the Companies Act.
The benefit under the FPO scheme until 2024 will cost Rs 6865 crore. The government will provide government support to every FPO farmer for 5 years. The central government will give an assistance of Rs 15 lakh after looking at the work of the organization, which will be provided in 3 years. This will benefit 30 lakh farmers.
Under the FPO scheme, farmers get the benefit of forming an organized agricultural company with at least 11 people. This company facilitates the better marketing and sale of agricultural products to them, thereby strengthening their economic position. Creation of new organizations Through this scheme, an organization of 10,000 new farmers in the country will be created, which will help them better market their products and get financial assistance.
Calculation of the organization: As per the land area-wise plan, the organization will have to engage with at least 300 farmers if they work in the plain area. Similarly, 100 farmers will have to be associated with the organization in the hilly area.
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To promote agricultural production: One of the government schemes for farmers is this highly important PM Kisan FPO Yojana 2023–2024. Under this scheme, farmers will get a golden opportunity to sell their produce at a better rate. Along with this, they will get the facility to get agricultural equipment, fertilizers, seeds, and medicines at the right and affordable price.
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