Published: 6 February 2026PIBEconomy
India Completes Formation of 10,000 Farmer Producer Organisations (FPOs) Under Central Scheme; 21.96 Lakh Women Farmers Enrolled
The Government of India completed the formation of 10,000 Farmer Producer Organisations (FPOs) under the Central Sector Scheme launched in 2020 — achieving a major institutional target in farmer collectivisation as reported around February 7, 2026. The scheme was jointly implemented by three implementing agencies: NABARD (National Bank for Agriculture and Rural Development), SFAC (Small Farmers' Agribusiness Consortium), and NCDC (National Cooperative Development Corporation).
Of the 10,000 FPOs formed, 21.96 lakh women farmers have been enrolled, reflecting a conscious effort to mainstream women in agricultural value chains. FPOs are collectives of small and marginal farmers that aggregate production, improve bargaining power against middlemen, enable bulk procurement of inputs at lower cost, and facilitate market access for farm produce.
The scheme provides equity grant support of up to ₹18 lakh per FPO and a credit guarantee fund to improve access to institutional credit. Rajasthan, with its large population of small and marginal farmers — particularly in Shekhawati, Hadoti, and Marwar regions — has been an active participant in the scheme. FPOs in Rajasthan have been particularly active in oilseeds, pulses, cumin, coriander, and horticulture clusters, aligning with the state's agricultural diversification goals.
0Mains angle
Q: Discuss the significance of India's completion of 10,000 Farmer Producer Organisations (FPOs) under the 2020 Central Sector Scheme for small and marginal farmers, highlighting implications for Rajasthan.
Answer (50 words):
India completed 10,000 Farmer Producer Organisations by February 2026 under the 2020 Central Sector Scheme, implemented by NABARD, SFAC and NCDC with ₹18 lakh equity grant per FPO. Enrolment of 21.96 lakh women farmers mainstreams gender. Rajasthan FPOs aggregate oilseeds, pulses, cumin and coriander, strengthening small-farmer bargaining power.
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Practice MCQ from this story
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How many Farmer Producer Organisations (FPOs) have been formed under the Central FPO Scheme?
Explanation · Correct answer CIndia completed the formation of 10,000 Farmer Producer Organisations under the Central Scheme, enrolling 21.96 lakh women farmers.
Frequently asked questions
What is a Farmer Producer Organisation (FPO) and how is it legally structured?
An FPO is a collective formed by farmers — especially small and marginal farmers — to pool resources, reduce input costs, and improve market access. FPOs are registered as companies under the Companies Act and operate on cooperative-style principles, giving farmer-members equity stakes and a share of profits.
Which three agencies implement the Central Sector Scheme for 10,000 FPOs?
The Central Sector Scheme for forming 10,000 FPOs (launched in 2020) is implemented by three agencies: NABARD (National Bank for Agriculture and Rural Development), SFAC (Small Farmers' Agribusiness Consortium), and NCDC (National Cooperative Development Corporation).
What financial support does each FPO receive under the scheme?
Under the Central Sector Scheme, each FPO is eligible for an equity grant support of up to ₹18 lakh. This grant strengthens the FPO's share capital and enables it to access further credit for aggregating produce, purchasing inputs, and building processing infrastructure.
How many women farmers are enrolled in FPOs under this scheme, and why is this significant?
21.96 lakh (approximately 2.2 million) women farmers are enrolled across FPOs nationwide under this scheme. This is significant because it directly empowers women in agriculture, giving them formal market linkages, financial access, and decision-making power within registered organisations.
In which commodity clusters are Rajasthan's FPOs particularly active?
Rajasthan's FPOs are particularly active in spices, oilseeds, and pulses commodity clusters. These are key agricultural sectors in Rajasthan, and FPO aggregation helps farmers in these clusters negotiate better prices, reduce intermediary costs, and access organised markets.
