Over 1,100 FPOs Cross Rs 1 Crore Turnover Under Centre's Agri Reform Drive
- 1,100+ FPOs Achieve Rs 1 Crore Turnover under the Centre’s 10,000 FPO scheme, empowering over 30 lakh farmers, 40% of them women.
- Rs 254.4 crore in equity grants and Rs 453 crore in credit guarantees disbursed to thousands of FPOs.
- Initiatives like SPICED by the Spices Board enhance value-chain support and promote export-oriented spice farming.
In a major boost to rural agribusiness, over 1,100 Farmer Producer Organisations (FPOs) have crossed the milestone of Rs 1 crore in business turnover, according to recent data released by the Ministry of Agriculture and Farmers Welfare. These FPOs are part of the Central Government’s ambitious scheme aimed at forming and promoting 10,000 FPOs across the country to empower farmers through collective strength.
The scheme, launched by Prime Minister Narendra Modi on February 29, 2020, has already brought over 30 lakh farmers under its fold of which nearly 40% are women. FPOs are now conducting business worth thousands of crores, reflecting a growing wave of rural entrepreneurship and economic empowerment in agriculture.
FPOs are legally registered collectives of farmers that leverage economies of scale to improve access to markets, strengthen bargaining power, and reduce the cost of production. The core objective is to enable small and marginal farmers to engage in value-added, income-oriented farming while improving efficiency and sustainability.
Under the scheme, each newly formed FPO receives handholding support for five years and financial assistance of up to Rs 18 lakh for management expenses for three years. Additionally, a matching equity grant of up to Rs 2,000 per farmer member is offered, with a ceiling of Rs 15 lakh per FPO. A credit guarantee facility of up to Rs 2 crore per FPO is also provided to ensure easier access to institutional credit from eligible lenders.
With a total outlay of Rs 6,865 crore until 2027–28, the scheme has already disbursed equity grants worth Rs 254.4 crore to 4,761 FPOs and provided credit guarantee coverage worth Rs 453 crore to 1,900 FPOs.
The Small Farmers’ Agribusiness Consortium (SFAC) has been mandated by the Department of Agriculture and Cooperation to facilitate the formation of these organisations in coordination with state governments. The goal is to foster efficient, cost-effective, and sustainable resource use while enhancing farmers' incomes and market participation.
Further amplifying these efforts, other ministries have also stepped in with supportive initiatives. Notably, the Spices Board has introduced the 'SPICED' scheme Sustainability in Spice Sector through Progressive, Innovative and Collaborative Interventions for Export Development for FY 2025–26. This scheme provides financial assistance to spice farmers and FPOs across the value chain to enhance productivity, quality, and export readiness.
The SPICED scheme focuses on improving yields of crops like small and large cardamom, strengthening post-harvest quality, and encouraging the export of organic, GI-tagged, and value-added spices. It also supports compliance with international food safety and phytosanitary standards and builds capacity among stakeholders across the spice ecosystem.
The growing success of the FPO model, backed by strong policy support and multi-agency coordination, marks a transformative shift in Indian agriculture. With rising business performance, increased participation of women, and expanding market linkages, FPOs are emerging as key instruments in building a more resilient and profitable farming landscape across the country.
