Promotion of 10000 FPOs in next 5 years, 15% FPOs to be in aspirational districts and 1 FPO in each block of aspirational districts.
SFAC, NCDC and NABARD designated as Implementing Agencies. SFAC will cover FPOs registered under Company Act, NCDC covers FPO registered as cooperatives and NABARD covers both. Any state can approach DAC&FW to nominate any other agency as implementing agency/organization in concerned territory. DAC&FW will also identify other agencies in due course of time.
FPOs may provide following service(s) for farmer’s development as may be necessary: Input Supply, Machinery and Equipment, Processing, Storage and Transportation facilities, Higher Income generating activities like bee keeping, seed production, aggregation, facilitate market information, logistics services, marketing.
Minimum strength of 300 FPO members (100 in hilly areas) needed to avail benefits, encouraged to have around 500 members. Farmer Interest group of 15-20 federated to form FPO located within same cluster(called as Producer Cluster Area in guideline). Existing FPO can avail benefit if not taking any GOI assistance.
Three tier structure to be adopted involving Implementing Agency, National Program Management Agency(NPMA) and Cluster Based Business Organisations(CBBO). NPMA will be set up in SFAC office and will serve as control center of the entire project, covering even non-SFAC FPO projects.
Roles and Responsibilities
DAC&FW: Outcome based monitoring, guidance, coordination
Implementing Agency: Program Implementation, Selection of NPMA, CBBOs, Monitoring of CBBO
NPMA: (analogous to FDRVC) A consulting firm with expertise in promoting agri-business value chains. Major role in program management, identification of clusters, selection of CBBO, linkage with research institutes, technical assistance to implementing agency, maintaining data repository
Cluster Based Business Organisations: (analogous to TSA)Any organisation, trust, society, NGO having demonstrated capability in FPO promotion. Role involves major on the ground activities like mobilisation, training, business plan preparation and baseline survey, reporting. One state can have one or more than one CBBO. A CBBO can serve multiple state too. It should have 5 specialists: i) Crop husbandry ii)Agri marketing/Value Addition iii)Mobilisation iv)Law and Accounts v)IT/MIS. Intital period of engagement will be 3 yrs which can be extended later.
Year-wise indicative target to be assigned by Project Management Advisory and Fund Sanctioning Committee (N-PMAFSC) based on expertise.
Business plan and budget for 18 months to be submitted to avail benefits.
Equity Grant-Equity grant matching farmers contribution in share capital, limited upto Rs 15 lac per FPO.
Management Support-Max Rs 18 lac per FPO. Provision for each head also have individual limits e.g. provision for salary of CEO is Rs 25000 per month and accountant is Rs 10000 per month.
Credit Guarantee: An FPO borrowe can avail credit guarantee max twice over 5 yr period. For loan upto Rs 1cr, 80% cover will be provided. For Rs1-Rs2 Cr loan, 75% cover is provided. The fund is maintained by NABARD and NCDC
Supervision Charges for IAs: 3% of annual expenditure given upfront. 2% given later based on performance assessment, as supervision charges.