Hyderabad: The Union Ministry of Agriculture and Farmers Welfare has detailed several key initiatives aimed at integrating Farmer-Producer Organisations (FPOs) into national agricultural value chains, thereby enhancing their capabilities in procurement, processing, storage, and marketing systems. Responding to a query from K Laxman in the Rajya Sabha, Union Minister of State Ramnath Thakur highlighted the progress under the Central Sector Scheme on Formation and Promotion of 10,000 FPOs.

Under this pivotal scheme, 10,000 FPOs have been formally registered. Each FPO is eligible for up to Rs 18 lakh over three years as management support, equity grants of up to Rs 15 lakh, and credit guarantees of up to Rs 2 crore. The scheme also provides vital support through training, market linkages, and convergence with other government programmes. FPOs are further being supported with input and ‘mandi’ licences, while weekly webinars and e-commerce enablement are strengthening their integration into agricultural value chains.

As of 31st October 2025, a total of 4,642 FPOs are successfully linked with the National Agriculture Market (e-NAM) platform. Furthermore, 236 FPOs have received credit-linked subsidies under the PM Formalisation of Micro Food Processing Enterprises (PM-FME) Scheme, while 1,590 FPOs have availed benefits under the Agriculture Infrastructure Fund (AIF). The PM-KISAN scheme continues to benefit individual farmers rather than FPOs themselves.

To improve credit accessibility, 2,583 FPOs have obtained collateral-free loans under the Credit Guarantee Fund of the 10,000 FPO Scheme. The government is also proactively promoting digital infrastructure by linking FPOs with crucial platforms such as ONDC, e-NAM, and Government e-Marketplace (GeM), enabling wider market reach and better price realisation, the Minister added.

FPOs are additionally being connected with private sector entities, agri-business organisations, and startups through exhibitions, ‘melas’, and Business-to-Business (B2B) linkages. Industry experts are regularly engaging with FPOs via webinars to guide them on sustainable partnerships and effective market strategies. Thakur emphasised that these comprehensive measures are designed to boost farmer incomes, ensure sustainable value chain integration, and empower FPOs as key drivers of rural economic growth.