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Agri Ministry Approves Setting up 100 Fodder-Centric Farmer Producer Organizations in 2022-23

There is a need to provide improved technology, credit, better input, and more markets to Indian farmers in order to incentivize them to produce higher-quality commodities. Because more than 86% of farmers in India are small, marginal, and landless, grouping them into FPOs will help them improve their economic strength and market linkages, thereby increasing their income.

Shivam Dwivedi
Agriculture Ministry allow the establishment of fodder-centric FPOs
Agriculture Ministry allow the establishment of fodder-centric FPOs

The government has finally designated the National Dairy Development Board (NDDB) as the implementing agency for the establishment of 100 fodder-centric Farmer Producer Organizations (FPOs)in the current fiscal year to address the country's fodder deficit.

In 2020, the Ministry of Fisheries, Animal Husbandry, and Dairy requested that the Agriculture Ministry allow the establishment of fodder-centric FPOs under the central scheme "Formation and Promotion of 10,000 new FPOs." The proposal was carefully considered, and on November 4th, the Agriculture Ministry issued an order.

"The competent authority in the Department of Agriculture & Farmers Welfare has approved to designate NDDB as the implementing agency under the scheme of formation and promotion of 10,000 Farmer Producer Organizations (FPOs) to form and promote FPOs, primarily fodder centric, with animal husbandry activities as a secondary activity (fodder plus model)," according to the order.

According to the scheme guidelines, NDDB has been assigned to form 100 FPOs during 2022-23. Following a review meeting on the fodder crisis last month, a senior ministry official stated that in a normal year, the country has a fodder deficit of 12-15 percent, 25-26 percent, and 36% for green fodder, dry fodder, and concentrated fodder, respectively.

Seasonal and regional factors are primarily to blame for the deficits. However, the current inflationary trend in fodder is due to a decline in wheat crops and an increase in input costs such as diesel, according to the official.

The total area under fodder is limited to approximately 4.6% of cropped area, and this has remained constant over the last four decades. The primary goal of such FPOs is to increase producer income because small producers lack the volume to benefit from economies of scale. As a result, FPOs increase farmers' competitiveness.

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