Government's 10,000 FPO target achieved; 10,000th FPO registered in Khagaria, Bihar
The Ministry of Agriculture said on 28 February 2025 that the target of 10,000 Farmer Producer Organisations under the central sector scheme has been achieved, with the 10,000th FPO, in Khagaria district, Bihar, launched by PM Modi at Bhagalpur.
Summary
The Ministry of Agriculture and Farmers Welfare said on 28 February 2025 that the Central Sector Scheme for Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs) has met its target. The scheme was launched by PM Narendra Modi on 29 February 2020 with an outlay of ₹6,865 crore till 2027-28. PM Modi launched the 10,000th FPO, registered in Khagaria district, Bihar, and focused on maize, banana and paddy, at the release of the 19th PM-KISAN instalment in Bhagalpur. About 30 lakh farmers are linked to FPOs, around 40% of them women. Each new FPO gets five years of handholding, up to ₹18 lakh for management costs over three years, a matching equity grant of up to ₹2,000 per farmer member (capped at ₹15 lakh per FPO) and credit guarantee for project loans of up to ₹2 crore.
Key facts
- Announced
- 28 February 2025
- Scheme launched
- 29 February 2020
- Outlay
- ₹6,865 crore till 2027-28
- 10,000th FPO
- Khagaria, Bihar (maize, banana, paddy)
- Farmers linked
- About 30 lakh, ~40% women
- Support
- ₹18 lakh management cost; equity ₹2,000/member up to ₹15 lakh; credit guarantee up to ₹2 crore
Practice MCQs 3 questions
The 10,000th Farmer Producer Organisation under the central scheme, launched by PM Modi at Bhagalpur, is registered in which district?
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Correct answer: C — Khagaria
The 10,000th FPO is registered in Khagaria district, Bihar, and focuses on maize, banana and paddy.
What is the budget outlay of the Central Sector Scheme for Formation and Promotion of 10,000 FPOs, launched on 29 February 2020?
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Correct answer: D — ₹6,865 crore
The scheme was launched with an outlay of ₹6,865 crore till 2027-28.
Consider the following statements about the scheme for Formation and Promotion of 10,000 FPOs: 1. FPOs under it can be registered under Part IXA of the Companies Act or under a state's Co-operative Societies Act. 2. It provides a matching equity grant of up to ₹2,000 per farmer member, with a limit of ₹15 lakh per FPO. 3. It provides credit guarantee cover for project loans of up to ₹10 crore per FPO. Which of the statements given above is/are correct?
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Correct answer: B — 1 and 2 only
Statements 1 and 2 are correct. Statement 3 is wrong: the credit guarantee facility covers project loans of up to ₹2 crore per FPO.