Govt to extend FPO scheme for 5 years, address compliance & capital hurdles

• Government to extend the Farmer Producer Organisations (FPO) scheme for five years (2026-31) to address compliance and capital challenges.
• The scheme, launched in 2020, has formed 10,000 FPOs, achieving an estimated annual turnover of Rs 10,000 crore and reaching 52 lakh farmers.
• Key challenges include capacity building, access to capital, and compliance with the Companies Act, with current equity grants deemed inadequate.
• Proposed solutions include relaxed penalties for FPOs during formative years and increasing the equity grant limit from Rs 30 lakh to Rs 50 lakh-Rs 1 crore.
• APEDA is strengthening FPOs to ensure standardized, quality products for domestic and export markets, providing infrastructure, quality sensitization, and market connectivity.

Why It Matters: FPO scheme extension empowers farmers, improves income, and boosts agricultural growth.