Transforming Cooperative Sector – Formation of 1100 New FPOs (Farmer Producer Organizations)

Fulfilling PM Modi’s Vision: “Sahkar se Samriddhi”

To realize Prime Minister Narendra Modi’s vision of “Sahkar se Samriddhi,” a significant decision has been made to establish 1100 new Farmer Producer Organizations (FPOs) in the cooperative sector. This initiative is a result of the collaborative efforts of Union Home Minister and Minister of Cooperation, Shri Amit Shah.

Allocation of 1100 New FPOs under the ‘Formation and Promotion of 10,000 FPOs’ Scheme

The Ministry of Agriculture and Farmers’ Welfare has entrusted the National Cooperative Development Corporation (NCDC) with the responsibility of forming these 1100 additional FPOs. This allocation is part of the broader ‘Formation and Promotion of 10,000 FPOs’ scheme.

Financial Assistance for FPOs and Cluster Based Business Organizations (CBBO)

Under the FPO Scheme, each FPO will receive financial assistance of Rs. 33 lakhs. Additionally, Cluster Based Business Organizations (CBBO) will be eligible for financial support of Rs. 25 lakhs per FPO.

Integration of PACS for Diversification and Economic Expansion

Primary Agricultural Credit Societies (PACS), which currently serve around 13 crore farmers primarily in short-term credit and distribution of agricultural inputs, will now have the opportunity to engage in other economic activities. By integrating PACS into the FPO scheme, they can expand their operations to include the supply of production inputs, agricultural equipment, and processing activities such as cleaning, sorting, and packaging. PACS can also venture into high-income generating activities like bee-keeping and mushroom cultivation.

Ensuring Remunerative Prices and Market Linkages for Farmers

This initiative aims to secure remunerative prices for farmers by providing them with necessary market linkages through the FPOs. By strengthening the connection between farmers and markets, it will enable them to receive fair value for their produce. Moreover, the inclusion of PACS in the FPO scheme will lead to diversification in their economic activities, creating new and stable sources of income.

Strengthening the Cooperative Movement and Generating Alternative Revenues

In addition to this initiative, the Ministry of Cooperation, under the leadership of Shri Amit Shah, has undertaken various efforts to strengthen the cooperative movement in the country. These measures aim to transform the cooperative sector, including PACS, into viable, dynamic, and financially sustainable economic entities. By generating alternative sources of revenues for their members, the cooperative sector can become more resilient and contribute to the overall economic development of the nation.

1100 New FPOs – FAQs

Q1: What is the objective behind the formation of 1100 new FPOs in the cooperative sector?

Ans: The goal is to make Prime Minister Shri Narendra Modi’s vision of “Sahkar se Samriddhi” a reality and to strengthen the cooperative sector’s contribution to farmer empowerment and economic growth.

Q2: Which organization has been allocated the target of establishing these additional FPOs?

Ans: Under the “Formation and Promotion of 10,000 FPOs” initiative of the Ministry of Agriculture and Farmers’ Welfare, the goal of developing these 1100 new FPOs has been assigned to the National Cooperative Development Corporation (NCDC).

Q3: How will the integration of Primary Agricultural Credit Societies (PACS) benefit the cooperative sector?

Ans: With over 13 crore farmers as members, PACS would now be able to diversify their economic activities beyond distribution and short-term lending. They can take part in the provision of production inputs, the manufacture of agricultural machinery, processing, and high-profit ventures like mushroom and beekeeping.


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    Priti Palit, an accomplished edtech writer, boasts a wealth of experience in preparing candidates for multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti's expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.

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