{"id":34648,"date":"2022-11-09T11:15:55","date_gmt":"2022-11-09T05:45:55","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=34648"},"modified":"2025-04-20T15:55:45","modified_gmt":"2025-04-20T10:25:45","slug":"govt-moves-to-set-up-fodder-centric-farmer-producer-organisations","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/govt-moves-to-set-up-fodder-centric-farmer-producer-organisations\/","title":{"rendered":"Govt Moves to Set Up Fodder-Centric Farmer Producer Organisations"},"content":{"rendered":"<h3><strong>What\u2019s in today\u2019s article:<\/strong><\/h3>\n<ul>\n<li><strong>About FPOs<\/strong><\/li>\n<li><strong>News Summary<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><strong>Why in news?<\/strong><\/h3>\n<ul>\n<li>The National Dairy Development Board (NDDB) was recently designated by the Government of India as the implementing agency for the establishment of 100 fodder-centric Farmer Producer Organizations (FPOs) in 2022-23.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>The Farmer Producer Organizations (FPOs):<\/strong><\/h2>\n<ul>\n<li><strong>Background:<\/strong>\n<ul>\n<li>There is a need to facilitate Indian farmers with access to improved technology, credit, better input and more markets to incentivize themto produce better quality commodities<strong>.<\/strong><\/li>\n<li>Because more than 86% of farmers in India are small, marginal and landless, aggregating these farmers into FPOs will assist farmers improve their economic strength and market linkages, hence increasing their income<strong>.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>About FPOs:<\/strong>\n<ul>\n<li>FPO is a type of voluntary Producer Organisation (PO) registered under the Companies Act, 2013and\u00a0controlled by farmer-members\u00a0who actively participate in making decisions and setting policies.\n<ul>\n<li>The PO is a producer-led organisation that aggregates any produce, such as non-farm products, agricultural products, artisan products, etc.<\/li>\n<\/ul>\n<\/li>\n<li>Supported by the Small Farmers&#8217; Agribusiness Consortium (<strong>SFAC<\/strong>), the\u00a0<strong>primary operations<\/strong>\u00a0of the FPOs include the supply of seed, market linkages and fertiliser, machinery, training, financial, networking and technical advice.<\/li>\n<li>The main aim of the FPOs is\u00a0to increase the income for the producers\u00a0as a small producer does not have the volume to take advantage of economies of scale. Thus, FPOs boost farmers\u2019 competitiveness.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Benefits of FPOs:<\/strong>\n<ul>\n<li>The FPOs can engage farmers in\u00a0<strong>addressing productivity issues<\/strong>, emanating from small farm sizes.<\/li>\n<li>It may also result in\u00a0<strong>additional employment generation<\/strong>\u00a0because of the increased intensity of farming.<\/li>\n<li>It allows farmer members\u00a0<strong>to negotiate with corporates as a group<\/strong>\u00a0and help small farmers in both output and input markets.<\/li>\n<li>The FPOs can provide\u00a0<strong>quality and low-cost inputs<\/strong>\u00a0to member farmers, enable them to save time, avoid distress sales, reduce transaction costs, isolate themselves from price fluctuations, etc.<\/li>\n<li><strong>Social capital will develop in FPOs<\/strong>,\u00a0improving women farmers\u2019 decision-making and gender relations in the FPOs. It will ensure\u00a0<strong>food-nutritional security<\/strong>\u00a0and reduce social conflicts.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Government initiatives to promote FPOs:<\/strong>\n<ul>\n<li><strong>Since 2011<\/strong>, the government has intensively promoted the FPOs under the NABARD, SFAC, NGOs and state governments.<\/li>\n<li>The Ministry of Agriculture and Farmers Welfare stated that the FPOs are developed under \u2018<strong>One District One Product<\/strong>\u2019 scheme, where the agricultural\/horticultural produce are grown to improve market access for members and leverage economies of scale.<\/li>\n<li>The ongoing support for the FPOs is mainly in the form ofcash infusion(up to Rs.10 lakh to registered FPOs) and providing credit guarantee cover to lending institutions.<\/li>\n<li>The\u00a0<strong>Union Budget 2019-20<\/strong>\u00a0talked of setting up additional 10,000 FPOs in the next five years.<\/li>\n<li>As a result, the\u00a0Central Sector Scheme\u00a0of \u201c<strong>Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)<\/strong>\u201d till 2027-28 was launched in 2021.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>News Summary:<\/strong><\/h2>\n<ul>\n<li>According to the National Statistical Office report, titled &#8211;\u00a0<strong>Situation Assessment of Agricultural Households and Land and Livestock Holdings of Households in Rural India, 2019<\/strong>:\n<ul>\n<li>48.5% (8.37 crore) of the total 17.24 crore rural households reported owning cattle \u2018in milk\u2019, young cattle and cattle in \u2018others\u2019 category during July-December 2018.<\/li>\n<li>Further, 43.8% of the total 9.3 crore agricultural households used green fodder, and 52.4% dry fodder during the period.<\/li>\n<\/ul>\n<\/li>\n<li>The idea of establishing fodder-centric FPOs was first proposed by the Union Ministry of Fisheries, Animal Husbandry and Dairying in 2020, with the goal of addressing the country&#8217;s fodder deficit.<\/li>\n<li>The Department of Agriculture &amp; Farmers Welfare has recently approved to\u00a0designate NDDB as implementing agency under the scheme\u00a0of formation and promotion of 10,000 FPOs to form and promote FPOs.<\/li>\n<li>Under this, NDDB has been assigned to form 100 FPOs during 2022-23, which will be primarily fodder centric and animal husbandry activities as a secondary activity.<\/li>\n<li>This comes just a month after a report revealed that\u00a0wholesale price index-based fodder inflation\u00a0reached a 9-year high of 25.5% in August 2022, emphasising the difficulties faced by rural families whose livelihoods rely on livestock.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The National Dairy Development Board is a statutory body set up by an Act of the Parliament of India.<\/p>\n","protected":false},"author":5,"featured_media":34649,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-34648","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/34648","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=34648"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/34648\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/34649"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=34648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=34648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=34648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}