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LATEST NEWS UPDATES | Guidelines for promoting FPOs a bureaucratic maze -T Nanda Kumar

Guidelines for promoting FPOs a bureaucratic maze -T Nanda Kumar

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published Published on Nov 2, 2020   modified Modified on Nov 5, 2020

-Financial Express

The current guidelines may not inspire confidence among farmers on entering into collective enterprises.

Prime minister Narendra Modi, in his address commemorating 75 years of the UN’s FAO, reiterated India’s commitment to enhance its farmers’ income. He also reiterated the resolve to create 10,000 additional Farmer Producer Organisations (FPOs), one of the main pillars in the proposed transformation of the agri-economy. Will his futuristic vision result in creation of successful farmer-owned enterprises like Amul?

The ministry of agriculture (MoA) responded quickly to this decision, with comprehensive Operational Guidelines (available on their website) on creating and supporting 10,000 FPOs by 2023-24. Will the approach outlined here help achieve the objective of setting up viable and vibrant business organisations of farmers?

Let me start with a brief history. The Companies Act 1956 was amended in 2002 to enable registration of producer companies (part IX A of the Act). The provision to register producer companies was retained in the new Act of 2013, with a caveat under Section 465 stating that Part IXA of the Act will remain till a special Act is enacted for producer companies. The message seemed to be ‘you are not in the same league, but you can exist ’, and therein lies a problem. The Small Farmers Agri-business Consortium (SFAC) was tasked with the formation of FPCs in 2010-11 under various schemes of MoA . NABARD was tasked with the formation of 2,000 FPOs in 2014-15 with a budgetary support of Rs 200 crore. These efforts started bearing fruit from 2014.

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Financial Express, 2 November, 2020, https://www.financialexpress.com/opinion/farmer-producer-organisations-sowing-a-stunted-crop/2118887/


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