Central Sector Scheme for Promotion of 10,000 FPOs: Mahashakti Foundation as Cluster-Based Business Organization (CBBO)
Department of Agriculture, Cooperation & Farmers’ Welfare -Ministry of Agriculture & Farmers’ Welfare, Government of India launched Central Sector Scheme (CSS) for the formation & promotion of 10,000 FPOs in the period between 2020-25 to be implemented by various Implementing Agencies (IAs) with the help of Cluster-Based Business Organizations (CBBOs).
Mahashakti Foundation has been appointed as a CBBO by NABARD to mobilize farmers and promote FPOs in 38 Blocks of 5 Districts of Odisha. Under this setup, Mahashakti works with farmers to enhance their existing capacities, impart training programs to let them understand the current best practices to overcome climate change-related stresses, and encourage them to take up business activities that coincide with their strengths areas.
Fragmented small farmer holdings pose major problems for on-farm productivity and farm income improvement. Farmer producers’ organizations have emerged as an effective mechanism to transform such small holding-based farming into a viable agri-business enterprise and to increase the net income of farmers. Through collectivization and aggregation, FPOs acquire better access to credit, inputs, technology, market, post-harvest management, value addition, etc.
HIGHLIGHTS
The NABARD DDMs have been instrumental in supporting the Mahashakti team in respective districts, and have attended meetings and training programs to spread the FPO message under the CSS.
Residential training programs are being organized for the FPO members to inculcate knowledge about the adoption of correct and fitting strategies to increase the business turnover, preparation of business plans, input supply licenses, regulatory compliance, and marketing aspects. Mahashakti organized such programs at Puri and Balangir and invited the respective FPO functionaries to attend the training program and gain knowledge about the above-mentioned aspects.
In the fiscal year 2022-23, the member base increased by 237%, and the share capital grew by 440%. Conversely, in 2023-24, there was a 31% increase in the member base and a 47% rise in share capital. Given the nascent stage of FPOs in 2021-22, the subsequent year witnessed significant growth. Sustaining the growth rate of 2023-24 is crucial to achieving economies of scale.
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1st Floor, Mahalaxmi Nagar, Lane No. 2, Bolangir - 767001, Odisha, India.