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Mahesh

22/04/22 13:28 PM IST

National Conference of Cluster Based Business Organisations (CBBOs)

In News 
  • National Conference of Cluster Based Business Organisations (CBBOs) under Central Sector Scheme of Formation and Promotion of 10,000 FPOs held.
  • At the conference Union Agriculture Minister also launched the logo for 10,000 FPOs Scheme.
Challenges 
  • Indian agriculture is dominated by small and marginal farmers with average land holdings size of less than 1.1 ha.
  • These small and marginal farmers constituting more than 86 % of the total land holdings are facing tremendous challenges both in production and post-production scenarios like access to production technology, quality inputs at reasonable prices, seed production, custom hiring, value addition, processing, credit, investments and most importantly  markets.
  • Hence, collectivization of such producers through formation of FPOs is very important to address such challenges and enhance their incomes.
Farmer Producer Organisations (FPOs)
  • A new scheme of FPOs was launched by the Prime Minister with an outlay of Rs. 6865 crore.
  • Government formulated a dedicated Central Sector Scheme “Formation & Promotion of 10,000 Farmer Producer Organizations (FPOs) and the same was launched by Hon'ble Prime Minister on 29.02.2020 at Chitrakoot (UP) for implementation.
  • The scheme is based on produce cluster approach to enhance production, productivity, market access, promote diversification, value addition, processing and export and also to create agri based employment opportunities with the aim to economically empower farmers.
  • Under the scheme, there is provision for financial support of maximum Rs.18.00 lakh per FPO for 3 years as management cost to make them sustainable and economically  viable .
  • To strengthen the financial base of FPOs and entail them to avail  collateral  free loan, there is also provision for  matching equity grant of maximum Rs. 2000/- per member  with ceiling of Rs, 15 lakh /FPO and  Credit Guarantee facility upto bankable project loan of Rs. 2.00 crore respectively. 
Role of CBBOs
  • CBBOs have been provisioned as the professional agency with a critical role to play as they are to engage themselves all along the value chain starting right from mobilization of farmers, baseline survey, identification of produce clusters, formation of groups, registration and capacity building to preparation of business plan, execution thereof with assurance to provide the market to the FPOs.
Source-PIB 

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