Government Achieves Formation of 10,000 FPOs
New Delhi, December 5 : Government of India has successfully registered 10,000 Farmer Producer Organizations (FPOs) under its Central Sector Scheme for Formation and Promotion of FPOs. The scheme provides each FPO with management cost support of ₹18 lakh for three years, matching equity grants of up to ₹15 lakh and credit guarantee coverage of up to ₹2 crore, along with assistance for training, market linkages and convergence with other government programmes.
FPOs are also being supported in obtaining input licences for seeds, fertilizers and pesticides, as well as mandi licences for marketing. Weekly webinars are being conducted to help integrate FPOs into agricultural value chains, while efforts to strengthen credit access and promote e-commerce enablement are underway.
As of 31 October 2025, 4,642 FPOs have been linked to the National Agriculture Market (e-NAM). Credit-linked subsidies have been sanctioned to 236 FPOs under the PM-FME scheme, and 1,590 FPOs have benefited from the Agriculture Infrastructure Fund (AIF). The government clarified that PM-KISAN benefits are provided only to individual farmers, not FPOs.
To improve financial access, 2,583 FPOs have availed collateral-free credit guarantee coverage under the Credit Guarantee Fund of the FPO Scheme. The government is also facilitating FPO participation on platforms such as ONDC, e-NAM and GeM to expand market access and secure better prices.
FPOs are being connected with industry and agribusiness companies through exhibitions, melas and B2B events. They are also encouraged to participate in expos organized by industry bodies and government departments. Regular webinars are being conducted where experts guide FPOs on business opportunities and market linkages.
The information was shared by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur, in a written reply in the Rajya Sabha today.
