NCDC ropes in ICAR institutes and KVKs to set up FPOs

The National Cooperative Development Corporation (NCDC), a cooperatives-focused organization under the Union Agriculture Ministry, has roped in ICAR’s institutes and Krishi Vigyan Kendras (KVKs) in 116 blocks for formation and promotion of Farmer Producer Organisations (FPOs) in the country under a central scheme.

NCDC ropes in ICAR institutes and KVKs to set up FPOs

The National Cooperative Development Corporation (NCDC), a cooperatives-focused organization under the Union Agriculture Ministry, has roped in ICAR’s institutes and Krishi Vigyan Kendras (KVKs) in 116 blocks for formation and promotion of Farmer Producer Organisations (FPOs) in the country under a central scheme.

Of the total 717 KVKs, which have a huge spread across India, 468 are under the administrative control of state agricultural universities, 65 under the Indian Council of Agricultural Research (ICAR) and 22 under central agricultural universities in the country.

As per the NCDC, ICAR Institutes and KVKs in 116 blocks will work as Cluster-Based Business Organizations (CBBOs) under the Central Scheme, which was launched by Prime Minister Narendra Modi last year with an aim to bring small and marginal farmers into production value chains and help them boost their income.

Union Minister of State for Agriculture and Farmers Welfare Parshottam Rupala at a virtual orientation workshop organized by the NCDC on March 5 said, “NCDC’s move to involve KVKs as CBBOs is commendable. CBBOs will be the platform for an end-to-end support system for different issues in FPO cooperative business helping farmers get various support, and be the game-changer in bringing about economic prosperity.

“KVKs play a significant role in providing technical guidance and reaching out to the farmers living in far-off regions in the country. I am sure that under the central scheme, the members of the FPOs will be able to get quality inputs like seed, fertilizer, pesticides and such other inputs at reasonably lower rates.”

He also pointed out that the FPOs can set up need-based production and post-production machinery and equipment like cultivator, tiller, sprinkler set, combine harvester and other such machinery and equipment on a custom hiring basis for members to reduce the per unit production cost.

Calling the scheme revolutionary, NCDC MD Sundeep Nayak said, “We are getting massive response from the farmers. Under this, we will be using the well-structured backbone of the ICAR which will help us meet the Prime Minister’s vision of Atmanirbhar Bharat achieved through FPOs under the Cooperative Societies Act.” 

For the current fiscal year 2020-21, NCDC has been given a target for the formation and promotion of 529 FPOs in 103 districts where the “one district one product’’ policy is being implemented.

The workshop, which was attended by representatives from the ICAR Institutes and KVKs across the country, aimed to make stakeholders aware of the scheme and of the role and responsibilities of CBBOs. The workshop was also attended by senior officials from ICAR besides NCDC.

Dr T Mohapatra, Secretary, Department of Agriculture Research and Education (DARE) and DG ICAR, talked about the challenges and opportunities of the formation of the FPOs as he said it was not only important to set up the farmers’ entity but also make them sustainable in the long run.

Dr AK Singh, DDG ICAR, while addressing the event, said that as small farmers have lots of problems at the ground level, FPOs will ensure them multiple benefits from farm to market within a legal framework. 

Under the Central Sector Scheme “Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)”, the Government has kept a total budgetary provision of Rs 4496 crore for five years with a further committed liability of Rs 2369 crore for the next five years towards handholding of each FPO from its aggregation and formation.