AGRICULTURE remains the foremost source of livelihood for most Indian households. In this regard, credit offered to farmers under the PMKISAN Farmer Producer Organisations (PMKISAN FPO) scheme is a welcome step. Growth in this sector will directly uplift a vast section of Indians, besides building the base for a higher quality of living for all citizens.
As per the most recent guidelines issued by the Agriculture Ministry, FPOs will be given a maximum of Rs 18 lakh in the formative years, apart from an equity grant of up to Rs 15 lakh and a kitty for meeting administrative expenses, including salaries of key personnel.
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Why will it be useful?
We are all acutely aware that agriculture does not enjoy parity with other sectors. This means that farmers and others engaged in the sector often do not have the same capital resources that could act as a springboard for prosperity and growth.
Small and marginal land holdings taken together (0.00-2.00 hectares) constitute around 85 per cent of the total, while their share in the operated area stood at 47.34 per cent in 2015-16. The average size of land holding in 2015-16 was 1.08 hectares or less than 3 acres.
The agriculture sector is also declining, and not in the size of engagement alone; the share of the Gross Value Added (GVA) by the Agriculture and Allied Sector in overall GVA for 2018-19 (at 2011-12 prices) was 14.4 per cent and (16.14 per cent at current prices) according to data from the Economic Survey and other official estimates.
Eligibility criteria for FPOs
- An FPO has to be formed with a minimum membership of 300 farmers in plain areas and 100 in hilly areas and the Northeastern states.
- Only small and marginal farmers are eligible to form an FPO – the landholding of each farmer should be less than 2 hectares.
- All farmers must be residents of the same district or village
- They must cultivate similar, if not the same crops.
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Key features of FPOs
A new FPO will be eligible to get a loan of Rs 15 lakh to start its business or activity. This will make it easier for farmers to buy agricultural equipment or fertilisers, seeds and medicines. The central government plans to spend Rs 6,885 crore until 2024.
The scheme aims to provide a holistic and broad-based supportive ecosystem to form new 10,000 FPOs to facilitate the development of vibrant and sustainable income-oriented farming and for the overall socio-economic development and well-being of agricultural communities.
Here’s how to register your FPO
FPOs and FPCs (Farmer Producer Companies) can register on the e-NAM Portal via the official website – www.enam.gov.in – or mobile app or by providing the following details at the nearest e-NAM mandi:
- Name of FPO/FPC-
- Name, address, email ID and contact number of authorised person (MD/CEO /Manager )
- Bank account Details (Name of Bank, Branch, Account number and IFSC)
