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Digital Revolution: Over 5,000 Farmer Producer Organizations Embrace Online Commerce for Better Market Access

Digital Revolution: Over 5,000 Farmer Producer Organizations Embrace Online Commerce for Better Market Access


New Delhi:   In a significant stride towards transforming the agricultural landscape of the country, more than 5,000 out of the targeted 8,000 registered Farmer Producer Organizations (FPOs) have successfully joined the Open Network for Digital Commerce (ONDC) portal. This move is aligned with the Central government’s vision of empowering farmers by providing them with enhanced market access through digital platforms.

The initiative, part of the Central Sector Scheme titled “Formation and Promotion of 10,000 Farmer Produce Organizations (FPOs),” launched in 2020 with a budgetary provision of Rs 6,865 crore, aims to enable FPOs with direct access to digital marketing, online payment systems, and seamless business-to-business and business-to-consumer transactions. The overarching goal is to strengthen the economic position of small, marginal, and landless farmers by aggregating them into FPOs.

Under this scheme, financial assistance of up to Rs 18.00 lakh per FPO is provided for a three-year period. Additionally, a matching equity grant of up to Rs. 2,000 per farmer member, with a limit of Rs. 15.00 lakh per FPO, has been introduced. Moreover, a credit guarantee facility up to Rs. 2 crore of project loans per FPO from eligible lending institutions ensures institutional credit accessibility to FPOs.

As part of this initiative, 1,101 FPOs have received Credit Guarantee, covering a guaranteed amount of Rs 246.0 crore and benefiting more than 10.2 lakh farmers. Matching equity grants totaling Rs 145.1 crore have been directly transferred to the bank accounts of 3,187 eligible FPOs.

The formation and promotion of FPOs are integral steps in the journey towards ‘Atmanirbhar Krishi’ (self-reliant agriculture). By encouraging cost-effective production, improving productivity, and generating higher net incomes for FPO members, this initiative not only uplifts the rural economy but also creates job opportunities for youths in villages.

FPOs are strategically developed in produce clusters, focusing on agricultural and horticultural products to leverage economies of scale and improve market access for members. The “One District One Product” cluster model promotes specialization, fostering better processing, marketing, branding, and export opportunities. Moreover, Agriculture value chain organizations play a vital role in forming FPOs and facilitating 60% of market linkages for members’ produce.

This monumental step signifies a digital revolution in the agricultural sector, fostering growth, sustainability, and economic prosperity for farmers across the nation.

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