“We recognize the role of cooperatives and Farmer Producer Organizations (FPOs) can play in ensuring better market linkages and opportunities in the agricultural sector and we are committed to support and strengthen them.” — Promise in 2019 BJP Manifesto
An evaluation of the research below indicates that:
1. To evaluate performance towards supporting and strengthening FPOs: In 2020, the Government launched a goal for “Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs).” By Dec 2023, 7476 FPOs FPOs have been registered under the Central Sector Scheme of “Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)”; 7476/10000 = 74.76%
2. To evaluate performance towards supporting and strengthening cooperatives: Strengthening of PACS through Computerization is a key initiative for upgradation of the cooperative sector across the country; it is the first point of discussion in a starred Sansad question for the Minister of Cooperation when asked about details of schemes being implemented by the Government for the upgradation of the cooperative sector.
a. A total of 62,318 PACS from 28 States/ UTs have been sanctioned under the project. Software is ready and ERP onboarding has already started in 15,783 PACS in 27 States/ UTs so far; 15,783/62,318 = 25.32%
It can therefore be concluded that:
The Government’s objectively verifiable performance is approximately 25% to 75% lower than the promised objective; approximately 25% of the 2020 goal towards “Formation and Promotion of 10,000 Farmer Producer Organisations” has not yet been achieved, and approximately 75% of Primary Agricultural Credit Societies (PACS) have not yet been strengthened through computerization.
Research
- Question No. 526 (Unstarred), Lok Sabha 17, Session 15, Ministry of Agriculture and Farmers’ Welfare, Feb 6, 2024, The Government of India has launched the Central Sector Scheme for “Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)” in the year 2020 to form & promote 10,000 FPOs in the country with a total budgetary outlay of Rs.6865 Crores which will enable farmers to enhance their bargaining power, leverage economies of scale, reduction in cost of production and enhancing farmers’ incomes through aggregation of their agricultural produce, thus playing a major role towards sustainable incomes.
2. Question No. 400 (Unstarred), Lok Sabha 17, Session 14, Ministry of Agriculture and Farmers’ Welfare, Dec 5, 2023, as on 31.10.2023, under the said scheme (“Formation and Promotion of 10,000 Farmer Producer Organizations”) so far, 7476 FPOs have been registered.
3. Question No. 45 (Starred), Lok Sabha 17, Session 15, Minster of Cooperation, Feb 6, 2024, “The Government has taken various initiatives for upgradation of the cooperative sector across the country including the aspirational districts and the tribal areas, such as Computerization of Primary Agricultural Credit Societies (PACS) including Large Area Multipurpose Societies (LAMPS) which entails bringing 63,000 functional PACS/ LAMPS onto an ERP (Enterprise Resource Planning) based common national software which will help in improving their operational efficiency, ensuring speedy disbursal of loans, lowering of transaction costs and increasing transparency; Strengthening of PACS through Computerization: In order to strengthen PACS, project for Computerization of 63,000 functional PACS with a total financial outlay of ₹2,516 Crore has been approved by the Government of India, which entails bringing all functional PACS in the Country onto a common ERP based national software, linking them with NABARD through StCBs and DCCBs. A total of 62,318 PACS from 28 States/ UTs have been sanctioned under the project. Software is ready and ERP onboarding has already started in 15,783 PACS in 27 States/ UTs so far.”
Links
- https://sansad.in/getFile/loksabhaquestions/annex/1715/AU526.pdf?source=pqals
2. https://sansad.in/getFile/loksabhaquestions/annex/1714/AU400.pdf?source=pqals
3. https://sansad.in/getFile/loksabhaquestions/annex/1715/AS45.pdf?source=pqals
4. https://www.loksatta.com/desh-videsh/bjp-to-set-up-1000-farmer-producer-organizations-in-bihar-modis-announcement-at-the-campaign-rally-aau-85-2317034/
5. https://indianexpress.com/article/cities/mumbai/maharashtra-long-road-ahead-farmers-experts-cautious-hopeful-about-farm-produce-marketing-reforms-6462501/
6. https://sansad.in/getFile/loksabhaquestions/qhindi/1714/AU400.pdf?source=pqals
7. https://www.thehindubusinessline.com/opinion/scaling-up-fpos/article67773443.ece
8. https://www.thehindubusinessline.com/economy/agri-business/how-women-led-fpos-are-transforming-indias-agriculture/article67882348.ece
9. https://online.visual-paradigm.com/share/book/sofpo-report-2023-1eoezm63kf
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