Last Updated: 16 Oct 2025

Formation And Promotion Of 10,000 New Farmer Producer Organizations

The Formation and Promotion of 10,000 New FPOs is a Central Sector Scheme aiming to establish farmer producer organizations to enhance economies of scale and market access by 2027–28.

Quick facts 

  • Type: Central Sector Scheme
  • Purpose: Leveraging economies of scale and improving market access for members
  • Beneficiaries: FPO with a minimum farmer-members' size of 300 (in plains) and 100 in (North-Eastern and Hilly areas) 
  • Implementing Agencies (IAs): 9 IAs will help forming FPOs

 

Objectives

  • To form and promote 10,000 new FPOs till 2027-28.

 

Salient features

  • FPO Definition: Includes entities registered under the Companies Act or State Co-operative Societies Act, formed to leverage economies of scale in agricultural production and marketing. 
  • Approach: Focuses on produce cluster areas, commodity-specific strategies, and "One District One Product" for specialization. 
Infographic showing three-tier financial support for Farmer Producer Organizations: operational grant of ₹18 lakh per FPO for 3 years, matching equity grant of ₹2,000 per farmer (up to ₹15 lakh per FPO), and credit guarantee for loans up to ₹2 crore per FPO.
  • Price Realization: FPOs onboarded on e-NAM for transparent trading and better prices. 
  • Training: Institutes like BIRD, Lucknow, and LINAC, Gurugram provide capacity-building programs.
  • Institutional Framework: 
    • National Project Management Agency (NPMA): Guides, monitors, and manages MIS. 
    • District Monitoring Committee (D-MC): Oversees district-level implementation, led by the District Collector/CEO/Zila Parishad.
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