Three special cases appear in the guidelines: federations of FPOs, FPOs formed before the scheme, and FPOs promoted directly by agribusiness or processing firms. This part explains what each can receive under the scheme.
The short version
- FPOs can federate at district, state and national level for processing, branding and trade.
- Federations can use NPMA advice and the credit guarantee for infrastructure and supply chains.
- FPOs formed before the scheme can use the credit guarantee and NPMA advice if they have not had these from another central scheme.
- Agribusiness firms can promote FPOs without a CBBO if at least 60% of members' produce gets assured processing and marketing.
Federations of FPOs
FPOs can join together at district, state and national level, and the federation can borrow with the guarantee and take NPMA advice.
FPOs can federate at district and state level for processing, branding, marketing and trade, and, as they grow, at national level for packaging, branding and domestic or international trade. A federation may take advice from the NPMA and is eligible for the credit guarantee, to build infrastructure and supply chains for value addition and marketing (4.6).
Where a district has a One District One Product crop, FPOs can federate around that product (4.7). Helping FPOs federate is one of the CBBO's duties (7.3).
FPOs Formed Before the Scheme
Older FPOs can use the credit guarantee and NPMA advice, if they have not already received these benefits under another central scheme.
FPOs that existed before the scheme may use its relevant benefits, such as the credit guarantee and NPMA advice, if they have not already received them under any Government of India scheme. The Addendum confirms that clause 12 governs the credit guarantee for them. FPOs that are registered but have received no funds under other schemes and have not yet started business are also covered by the scheme (4.9).
What an older FPO can receive depends on its history with other schemes. Confirm with the implementing agency before applying.
Source: Operational Guidelines 4.9; Addendum item 5
FPOs Promoted by Agribusiness Firms
Processing, export and value-chain companies can form FPOs directly, if most of the members' produce has assured processing and marketing.
- The condition. At least 60% of the members' produce must have appropriate processing and assured marketing links, on a sustainable basis, at remunerative prices.
- Proposal. The firm submits its proposal and a year-wise action plan to DA&FW and the national committee in advance.
- Support. Its new FPOs can receive management cost and the equity grant on the same terms, through one assigned implementing agency that verifies the claims; they can also take NPMA advice.
- Credit. For the credit guarantee, the firm approaches the fund with the bank credit details.
Source: Operational Guidelines 17(i), moved to clause 4.10 by the Addendum; 6.6(vii)
Check yourself
Tap an answer to see whether you are right, and why.
At which levels can FPOs federate?
- Only district
- District, state and national
- Only national
Clause 4.6 allows all three.
What must an agribusiness firm ensure to promote FPOs under the scheme without a CBBO?
- 10% of produce bought
- At least 60% of members' produce with assured processing and marketing
- A guaranteed MSP
Clause 17(i), now 4.10, sets the 60% condition.
Which benefits can an FPO formed before the scheme usually use?
- Only management cost
- The credit guarantee and NPMA advice, if not received under another central scheme
- Nothing at all
Clause 4.9 names these benefits.
Remember these things
- Federations can borrow with the guarantee and take NPMA advice.
- Older FPOs can use the guarantee and advice if not already received elsewhere.
- Agribusiness firms can promote FPOs directly with 60% assured offtake.
- Always confirm eligibility with the implementing agency.
Part 19 brings the whole scheme together in a five-year roadmap, with a glossary and a final self-test. For FPOs whose members are also certified under PGS-India, KrushiFlow submits farmer records to the PGS-India portal in bulk.