Government is implementing the Central Sector Scheme on Formation and Promotion of 10,000 FPOs (Farmer Producer Organizations), under which 10,000 FPOs have been registered. The scheme provides ₹18 lakh per FPO for 3 years as management cost, matching equity grant up to ₹15 lakh, and credit guarantee up to ₹2 crore from eligible lending institutions, along with support for training, market linkages and convergence with other schemes.

Further, FPOs are supported for availing input licences (seed, fertilizer & pesticide) & mandi licences for marketing of produce. To strengthen integration of FPOs in value chains, weekly webinars are being conducted for FPOs. Credit linkage and e-commerce enablement has also been supported.  

            As on 31.10.2025, 4,642 FPOs are linked with the National Agriculture Market (e-NAM) platform, credit-linked subsidy has been sanctioned to 236 FPOs under the PM Formalisation of Micro Food Processing Enterprises (PM-FME) Scheme and 1590 FPOs have availed benefit under the Agriculture Infrastructure Fund (AIF).  Under PM-KISAN, benefits are extended to individual eligible farmers and not to FPOs.

To improve credit access, FPOs are encouraged to avail collateral-free credit under the Credit Guarantee Fund (CGF) of the 10,000 FPO Scheme, under which 2,583 FPOs have obtained credit guarantee cover. Efforts are made to provide exposure to FPOs to different marketing platforms like Open Network for Digital Commerce (ONDC), e-NAM and Government e-Marketplace (GEM) to access wider geographies and fetch better prices through these platforms. FPOs are connected with the industry and Agri-business organizations for better bargaining and improved market access through Melas/ Exhibitions etc. where industries are invited for B2B linkages with FPOs. Besides, FPOs are also facilitated in participating various Expos/ Exhibitions conducted by Industries, Associations, other Departments of Central Government, State governments etc. Webinars are also being organized for FPOs by this Ministry where industry experts guide FPOs on doing business with their organizations.

This information was given by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur in a written reply in Rajya Sabha today.

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RC/AR

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