Government integrates 5,000 FPOs into digital commerce portal for sales

The government announced that nearly 5,000 out of 8,000 registered Farmer Producer Organizations (FPOs) have been integrated into the Open Network for Digital Commerce (ONDC) portal. This initiative allows FPOs to sell their produce online nationwide. 

According to the agriculture ministry, approximately 8,000 FPOs have been registered, nearing the target of 10,000 set under a scheme launched in 2020 with a budget allocation of Rs 6,865 crore. FPOs play a crucial role in providing farmers with technology, credit, and access to markets to improve the quality of their produce.

The ministry stated, “Almost 5,000 out of 8,000 registered FPOs have been registered on the ONDC portal.” This move aligns with the government’s objective of enhancing market access for growers. 

The integration of FPOs onto ONDC facilitates digital marketing, online payments, and business-to-business and business-to-consumer transactions. 

The formation and promotion of FPOs are integral steps toward achieving self-reliance in agriculture. This initiative aims to boost production, productivity, and income for FPO members, while also stimulating the rural economy and generating employment opportunities for rural youth.

Under the central scheme, FPOs receive financial assistance of up to Rs 18 lakh per FPO over three years, along with matching equity grants of up to Rs 2,000 per farmer member. Additionally, credit guarantee facilities of up to Rs 2 crore per FPO are provided to ensure access to institutional credit.

The ministry reported that credit guarantees have been issued to 1,101 FPOs, covering over 10.2 lakh farmers, while matching equity grants totaling Rs 145.1 crore have been disbursed to 3,187 eligible FPOs.