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The Punjab government has initiated the process for customisation of the Farmer Producer Organisation (FPO) scheme and set up ‘Kheti Kosh’ to receive funding from corporates to strengthen the agricultural sector. Punjab Agricultural University (PAU) has been roped in to constitute a committee for formulating a customised FPO policy. A dedicated fund, ‘Kheti Kosh’, is also being set up to receive funds from corporates wishing to donate under the Corporate Social Responsibility (CSR).
A sum of Rs 50 crore has been approved for the PAU to set up an incubation facility for young farmers and graduates in agriculture, who form their FPOs. The university will train them and help in their capacity building to run collective farmer companies. Since FPOs having a turnover of up to Rs 100 crore have a five-year tax holiday, it is a good business model to be pursued in Punjab. The idea for having a customised FPO policy, based on broad guidelines of the Ministry of Agriculture, germinated during a meeting on agriculture sustainability held in Amritsar recently. Farmer groups, PHD Chamber of Commerce and Industry and other stakeholders felt that the FPO policy, which was announced in the year 2008, was not suitable for the state. It was felt that the policy was made according to the needs and the agricultural eco system of Baramati in Maharashtra.
About FPOs: Farmer Producer Organisation (FPO) is an institutional form to mobilise farmers who build their capacities to collectively leverage their production and marketing strength. The state has 68 FPOs engaged in agro-processing, dairy and vegetable cultivation.
By: Dr. Vivek Rana ProfileResourcesReport error
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