: More than 50 percent of FPOs are Potentially Viable and Efficient: MD, SFAC #IndiaNEWS #Press Releases Small Farmers Agri-business Consortium (SFAC) has informed that more than 50% Farmers Producer

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More than 50 percent of FPOs are Potentially Viable and Efficient: MD, SFAC #IndiaNEWS #Press Releases
Small Farmers Agri-business Consortium (SFAC) has informed that more than 50% Farmers Producer Organisation (FPOs) promoted by SFAC under various government programs are potentially viable and efficient while some others are in nascent stages of development. It is expected that given the right eco-system support, specially infusion of capital in agri-infrastructure through credit mobilisation from banks and NBFCs, they could be a real game changer and contribute to increasing the income of member farmers substantially. Ms. Neelkamal Darbari (I. A. S), MD, SFAC, Ministry of Agriculture & Farmer Welfare, GoI at a workshop on Strengthening Ecosystem of Farmers Producer Organization along with other dignitariesSpeaking at a national workshop on Strengthening Ecosystem of Farmers Producer Organizations Ms. Neelkamal Darbari (I. A. S), Managing Director, SFAC, Ministry of Agriculture & Farmer Welfare, Government of India said, The Government has taken up the very challenging cause of creating financial and marketing linkages for aggregation of farmers through a Central Sector scheme for creation of 10,000 FPOs across the country. The scheme is under implementation through different Implementing Agencies, who have already created more than 1770 FPOs. These FPOs have the potential to be viable entities, but the biggest challenge they are confronted with is lack of finance from banks. Most banks do provide crop and tractor loans, but are reluctant to provide capital finance for asset formation and infrastructure development in the agriculture sector. This lack of capital support hinders the small and marginal farmers of FPOs from availing benefits of technological innovations like protected cultivation, micro-irrigation systems or next-gen mechanization etc. This approach of rural branches and banks must change in order for evolution of sustainable practices in the agriculture sector. The top management of banks are always favourably inclined towards enhancing credit support investment in agriculture, but somehow at the branch level in rural areas there are challenges for FPOs. As such SFAC is trying to engage with the banks for rural branches to improve credit flow to FPOs created under the new govt. scheme for promotion of 10000 FPOs, she said during the workshop held at India International Centre. Speaking at the event Mr. RG Agarwal, Group Chairman, Dhanuka Agritech Ltd. expressed concern about the spurious agriculture inputs. There is little difference in the area under cultivation between India and China, but Chinas agriculture GDP is three times higher than India mainly because of quality products used in China as against India wherein a large chunk of products are spurious in nature, resulting in lower production.

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