Youth Empowerment Sphere
(YES Arunachal)
Formation & Promotion of Farmer Producer Organizations (FPOs)
Official scheme details, eligibility information and application guidance.
About the Scheme
Brief
It is a flagship Central Sector Scheme launched in February 2020 by the Government of India. The initiative aims to form 10,000 new FPOs to empower small and marginal farmers through collectivization
Objectives
The goal is to holistically support farmers via a "One District One Product" approach to improve economies of scale, enhance income by reducing production costs and improving market linkages through collective action, and provide FPOs with better access to technology, finance, and value-addition opportunities
Eligibility Criteria
- Minimum Age 18 years
- An FPO must consist of at least 300 farmers in plain areas and 100 farmers in Hilly and North-Eastern regions
- FPOs must be registered under the Companies Act, 2013 (as a Producer Company) or under the State Cooperative Societies Act
- Small, marginal, and landless farmers are given priority for membership
Benefits
- FPOs receive up to ₹18 lakh over three years to cover administrative costs like salaries and office rent
- FPOs receive a matching equity grant of up to ₹2,000 per member, capped at ₹15 lakh per FPO
- A dedicated Credit Guarantee Fund (maintained by NABARD and NCDC) provides cover for loans up to ₹2 crore to make FPOs "bankable"
- Lower production costs through bulk buying and higher profits via direct market linkages and the "One District One Product" (ODOP) approach
- Direct access to modern technology, quality seeds, and value-addition opportunities like processing and packaging