Applauding NABARD’s initiatives in promotion of farmer producer organisations (FPOs) in line with Centre’s call for doubling farm income by 2022, Union Finance Minister Arun Jaitley expressed optimism that the apex development bank would achieve the milestone of promoting 5000 FPOs in the next couple of years.
Applauding NABARD’s initiatives in promotion of farmer producer organisations (FPOs) in line with Centre’s call for doubling farm income by 2022, Union Finance Minister Arun Jaitley expressed optimism that the apex development bank would achieve the milestone of promoting 5000 FPOs in the next couple of years.
Speaking on 37th Foundation Day commemoration seminar on “Collectivisation and Market Linkages: Farmer Producer Organisations”, Jaitley said that NABARD’s activities and its influence on Indian agriculture have been immense.
Speaking through video conferencing facility, Jaitley explained the recent decision of the government to enhance MSP for agri produce. He advised that there is a need to work for a federal structure involving both Central and State Governments for effective marketing of agricultural produce.
The Minister said small and marginal farmers benefit from economies of scale when they come together as collectives.
“Majority of land holdings belong to small and marginal farmers. Being unorganised, they are unable to realised desired value from their produce. Organising them into FPOs will benefit them from economies of scale in purchase of inputs, processing and marketing of their produce,” he said.
Referring to the announcement made in the latest Union Budget allowing tax exemption to FPOs with a turnover up to Rs 100 crore, the Minister reiterated the government’s commitment to extend support to FPOs for their promotion, upscaling and growth.
NABARD has supported around 4000 FPOs across the country at the end of FY’18 of which over 2000 are registered entities actively doing business in agricultural activities. As many as 507 FPOs are engaged in bulk input procurement and distribution while 223 FPOs are involved in aggregation and marketing of fruits and vegetables. Agro processing, government procurement scheme, dairy, organic farming, seed production and marketing, fishery and other allied activities are also undertaken the FPOs.
Speaking on 37th Foundation Day commemoration seminar on “Collectivisation and Market Linkages: Farmer Producer Organisations”, Jaitley said that NABARD’s activities and its influence on Indian agriculture have been immense.
Speaking through video conferencing facility, Jaitley explained the recent decision of the government to enhance MSP for agri produce. He advised that there is a need to work for a federal structure involving both Central and State Governments for effective marketing of agricultural produce.
The Minister said small and marginal farmers benefit from economies of scale when they come together as collectives.
“Majority of land holdings belong to small and marginal farmers. Being unorganised, they are unable to realised desired value from their produce. Organising them into FPOs will benefit them from economies of scale in purchase of inputs, processing and marketing of their produce,” he said.
Referring to the announcement made in the latest Union Budget allowing tax exemption to FPOs with a turnover up to Rs 100 crore, the Minister reiterated the government’s commitment to extend support to FPOs for their promotion, upscaling and growth.
NABARD has supported around 4000 FPOs across the country at the end of FY’18 of which over 2000 are registered entities actively doing business in agricultural activities. As many as 507 FPOs are engaged in bulk input procurement and distribution while 223 FPOs are involved in aggregation and marketing of fruits and vegetables. Agro processing, government procurement scheme, dairy, organic farming, seed production and marketing, fishery and other allied activities are also undertaken the FPOs.