Why is it in the news?
CCEA approved a Central Sector Scheme for "Formation and Promotion of Farmer Producer Organizations (FPOs) " to form and promote 10,000 new FPOs.
Background:
What is the aim of this scheme?
Scheme envisages 10,000 FPOs to be formed in a Five Year Period from 2019-20 to 2023-24 to ensure Economies of Scale for Farmers. Support for each FPO will be continued for 5 years.
What are the Benefits of FPOs?
Small and Marginal Farmers do not have the economic strength to apply Production Technology, Services and Marketing including Value Addition. Through the formation of FPOs, farmers will have a better collective strength for better access to Quality Input, Technology, Credit and better Marketing access through Economies of Scale for better realization of income.
What are the salient features of this scheme?