Govt planning a national brand for FPO products

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Even as a national policy for the Farmer Producer Organisations (FPOs) is being finalised, the Union government is thinking of creating a national brand for the products coming out of the FPO eco-system.

“We are thinking of national brand for FPOs. A brand which will signify the quality of the FPO products,” said Faiz Ahmad Kidwai, Additional Secretary, Ministry of Agriculture. “We want to build stories around that through which you connect with the consumer,” Kidwai said addressing Samunnati’s 4th FPO Conclave in Hyderabad on Tuesday. Further, the Government is also keen to help the FPOs to take their products to the overseas markets, he said.

Kidwai said a National FPO Conclave is being planned later this year where the FPO policy and the national brand would be unveiled.

Some 9,000 FPOs have been formed, so far, with a membership of some 20 lakh farmers under the Government’s program to create 10,000 FPOs launched in 2020, Kidwai said. “We have given them more than ₹210 crore in equity, which is matching contribution and more than ₹400 crore has been given as credit guarantee,” he said.

Over the next two years, the target under the 10,000 FPO programme is to increase the membership base under these FPOs to 50 lakh farmers as they expand and grow their operations, Kidwai said adding that equity infusion will be increased to more than ₹800 crore over the next 2-3 years.

Grading tool

Also, the government is expected to come out with a tool to grade the FPOs on various parameters. “SFAC (The Small Farmers Agribusiness Consortium) has made guidelines for grading FPOs. Similarly, Samunnati along with Crisil has made guidelines, while Nabard has also made guidelines. I am trying to collate all the three and come out with a uniform grading tool for the FPOs,” Kidwai added.

Further, in a bid to ease the access to finance for FPOs, the Agriculture Ministry is in talks with the Finance Ministry, Kidwai said. “The cost of capital is still higher for FPOs. We want to bring it down,” he said.

SG Anil Kumar, Founder and CEO of Samunnati, which completed 10 years of operations, said: “Nabard has played a significant role in shaping our thinking.” Stating that the FPO movement has been gaining strength across the country, Anil Kumar predicted that there would be some 100 FPOs with a turnover of over ₹100 crore over the next two years.