New Delhi: Farmer Producer Organizations (FPOs), launched by Prime Minister Narendra Modi, in 2020 has turned out to be a huge success. Moving ahead with the aim of Atmnirbhar Krishi, 10,000 FPOs have been launched Achieved under Government’s Flagship Scheme.
Some FPOs have achieved high growth and boosted their profiles by making good use of government platforms like Open Network for Digital Commerce (ONDC), electronic national agriculture market (e-NAM), and the government e-marketplace (GeM), the Financial Express reported.
The report quoted the Union agriculture ministry and mentioned that of over 10,000 FPOs, more than 340 have grown to report annual sales turnover of over Rs 10 crore, while 1100 have business in excess of Rs 1 crore.
The Farmer Producer Organizations was launched with a budget outlay of Rs 6,865 crore till 2027-28. As per a government release in May 2025, Rs 254.4 crore has been released in equity grants to 4,761 FPOs and credit guarantee cover worth Rs 453 crore has been issued to 1,900 FPOs.
In February 2025, the Union Ministry of Agriculture & Farmers Welfare stated that around 30 lakh farmers in the country are connected to FPOs many of these are now conducting business worth thousands of crores in the agricultural sector.
“Under this scheme, there is a provision for handholding support for a period of five years to each new FPO formed, and financial assistance to the tune of Rs 18 lakhs to each FPO under the scheme towards management cost for 3 years. Additionally, matching equity grant upto Rs 2,000 per farmer member of FPO with a limit of Rs. 15.00 lakh per FPO and a credit guarantee facility upto Rs. 2 crore of project loan per FPO from eligible lending institutions to ensure institutional credit accessibility to FPOs,” the ministry stated.