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Yogi’s New Scheme to Benefit 27 Lakh Farmers Associated With FPOs

Ayushi Raina
Ayushi Raina
Uttar Pradesh Chief Minister Yogi Adityanath

Uttar Pradesh Chief Minister Yogi Adityanath has launched the Self-Reliant Farmer Integrated Development Scheme as part of his ongoing mission to empower farmers in the state.

Over 27 lakh farmers associated with Farmer Producer Organizations (FPOs) would benefit from the Rs.722.85 crore scheme, which will significantly increase their income over the next five years.

The money will also be used to provide facilities and resources to farmers at all levels, from the farm to the market.

The state government has earmarked Rs.100 crore for this scheme in the current financial year. This scheme would result in the formation of 2,725 FPOs, which will directly benefit 27.25 lakh shareholder farmers.

According to a senior Agriculture Department official the state government has agreed to establish at least one FPO in each block to help farmers earn more income in the state.

FPOs have been established in 408 of the state's total 824 blocks. On  average, FPO has 500 to 1,000 farmers connected with it. FPOs give small and marginal farmers negotiating power when it comes to selling their crops. As a result, the Yogi government has planned to establish 2,725 FPOs under the Self-Reliant Farmers Integrated Development Scheme during the next five years.

The FPOs, according to the official, would assist farmers increase their revenue by allowing them to sell their produce directly to traders, companies, and contract farmers.

Farmers will be able to receive the best price for their goods through the FPO. Farmers affiliated with FPOs operating in the state would receive a 4% subsidy on a loan of Rs.5 lakh under the scheme. By building agricultural infrastructure, institutions involved in agricultural development will be able to lower the cost of farming and boost farmer income.

The agricultural department also stated that for the next five years, the government will establish 625 FPOs every year. Apart from the Central government's institutions, the UP Diversified Agriculture Support Project (DASP), the Horticulture Federation, qualified FPOs, and non-profit organisations will collaborate to create FPOs.

According to the plan, cluster-based business organisations would be provided a loan of Rs.5 lakh per year for five years to create FPOs, and Rs.6 lakh for three years to newly formed FPOs. 

FPOs will be given 3% loans to build post-harvest infrastructure facilities, which will help at least 500 to 1,000 farmers and result in the creation of 3,000 jobs every year.

Each FPO is expected to invest Rs.1.5 crore on an average. Due to a lack of margin money, PACS that provide fertilisers, seeds, and other services in the state have been unable to take advantage of Agricultural Infrastructure Fund (AIF) scheme. Through this scheme, the state's 1,500 PACs will be able to benefit farmers.

Furthermore, each PACS in the state would be able to start a project worth Rs.20 lakh thanks to the availability of cheap loans. The state government would provide Rs.4 lakh as margin money to a PACS project, while the AIF will provide Rs.16 lakh. It will have a one percent interest rate.

The PACS will be able to build godowns with this money, which will aid farmers in storing their produce for a long period of time.

In addition, a plan for the development of post-harvest storage and management infrastructure in 27 mandis of Krishi Utpadan Mandi Parishad has been prepared at a cost of Rs.140 crore. The Mandi Parishad will also be able to enhance its resources by availing loans from AIF at a 3% interest rate.

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