Amit Shah to inaugurate conclave on Primary Agricultural Credit Societies on July 14

New Delhi: Union Home and Cooperation Minister Amit Shah will inaugurate a day-long conclave to discuss ways to strengthen Primary Agricultural Credit Societies (PACS) through Farmer Producer Organisations (FPOs) in the national capital on Friday.

Currently, there are more than 95,000 PACS, of which only about 63,000 PACS are functional.

The PACS have a huge member base of around 13 crore farmers, out of which more than 86 percent of farmers in the country are small and marginal.

There is a need to facilitate these farmers with access to improved technology, credit, better input and markets. "The conclave is aimed at discussing ways to strengthen PACS through FPOs," the ministry said in a statement.

The conclave will witness participation of experts from the sector as well as members from the FPOs across the country. The mega conclave is being organised by the National Cooperative Development Corporation (NCDC) in collaboration with the Union Ministry of Cooperation, it said.

Being collective entities formed by farmers, enabling them to pool resources and enhance their bargaining power, the FPOs are one of the major vehicles for agricultural transformation. The cooperation ministry has recently taken a decision to form 1,100 new FPOs in the cooperative sector.

The government has been pushing for integration of the PACS in the FPO scheme to enable the farmers to expand their business range of activities such as supply of production inputs; agricultural equipment like cultivator, tiller, harvester, etc. and processing and value addition, including cleaning, grading, packing, transportation, etc.

Under the FPOs scheme, a financial assistance of Rs 33 lakh is provided to each FPO. Further, financial assistance of Rs 25 lakh per FPO is given to the Cluster-Based Business Organizations (CBBOs) for promoting and handholding the FPOs.

FPOs are being touted as playing a crucial role in making farming sustainable and in promoting livelihoods and improving overall quality of life of those dependent on agriculture. They help small and marginal farmers/producers access better prices, reduce transportation cost, and enhance overall productivity, the statement added.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)