Episode 14 of 19Chapter 3 · Money and Support
ForFPO directors, CEOs and CBBO staffLevelIntermediate

The 10K FPO scheme pays for forming and running an FPO, not for its warehouses, machines or processing units. For those, the guidelines tell implementing agencies and states to combine it with other schemes. This part lists the schemes and the state support the guidelines name.

The short version

  1. The scheme does not fund infrastructure itself; the FPO uses its own funds, loans or other schemes.
  2. Schemes named in the guidelines include RKVY, MIDH, NFSM, PM-SAMPADA, DAY-NRLM, PM-FME and TRIFED.
  3. For market and storage infrastructure: the AMI sub-scheme of ISAM, and the Agri-Market Infrastructure Fund with NABARD.
  4. States can help with land, MSP procurement and e-NAM, and can add their own funds.
Test yourself

Why Combine Schemes

The management cost covers running costs only; machines, storage and processing need other money.

"Any expenditure of operations, management, working capital requirement and infrastructure development etc., over and above this, will be met by the FPOs from their financial resources." (Operational Guidelines 10.1)

That is why the guidelines ask implementing agencies to use other government schemes alongside this one, to raise productivity and to pay for infrastructure such as custom hiring centres, common facility centres, value addition, farm-level processing and storage (17(ii)). The credit guarantee in Part 13 helps with the rest.

Did you know?The guidelines ask states to let FPOs sell on e-NAM from their own premises, without bringing the produce physically to the APMC market yard.

Schemes Named in the Guidelines

Seven central schemes are named for production, value addition and infrastructure.

Short nameFull name
RKVYRashtriya Krishi Vikas Yojana
MIDHMission for Integrated Development of Horticulture
NFSMNational Food Security Mission
PM-SAMPADAPradhan Mantri Kisan Sampada Yojana
DAY-NRLMDeendayal Antyodaya Yojana – National Rural Livelihoods Mission
PM-FMEThe Ministry of Food Processing Industries' scheme for micro food processing enterprises
TRIFEDTribal Cooperative Marketing Development Federation of India

Each scheme has its own guidelines, eligibility and application process. Check the current guidelines of the scheme before planning around it.

Source: Operational Guidelines 17(ii)

Market Infrastructure: AMI and AMIF

Two funds are named for post-harvest and market infrastructure: AMI under ISAM, and AMIF with NABARD.

AMI sub-scheme of ISAM

Agricultural Marketing Infrastructure under the Integrated Scheme for Agricultural Marketing. An FPO building post-harvest and marketing infrastructure can apply.

Agri-Market Infrastructure Fund

Created in NABARD. States and UTs can use it for marketing and value-addition infrastructure for FPOs in Gramin Agricultural Markets, including custom hiring and common facility centres.

Source: Operational Guidelines 17(iii) and 17(iv)

What States Can Do

States can add funds, give land, prioritise FPOs for MSP procurement and help them sell on e-NAM.

Support to ask the state and district committees for

  • Top-up funds for activities not covered by central schemes
  • Land for a common facility centre or custom hiring centre, at a low rent or lease, or free
  • Priority for the FPO in procurement at Minimum Support Price
  • Selling on e-NAM, including its FPO module, from the FPO's own premises
  • Licences for selling inputs, and shops or space in mandis
  • Inclusion of the FPO in all farmer-focused government schemes

The State Level Consultative Committee is asked to coordinate licences, mandi space, land and infrastructure for FPOs, and to link common facility centres with e-NAM (14.2.2).

Source: Operational Guidelines 17(v) to (viii) and 14.2.2

Check yourself

Tap an answer to see whether you are right, and why.

Does the ₹18 lakh management cost pay for a cold store?

  1. Yes
  2. No, infrastructure must come from the FPO's own funds, loans or other schemes
  3. Only in the North-East

Clause 10.1 limits the management cost to running costs.

Which fund created in NABARD supports market infrastructure in Gramin Agricultural Markets?

  1. CGF
  2. AMIF
  3. ODOP

The Agri-Market Infrastructure Fund (clause 17(iv)).

Which of these can states offer FPOs under the guidelines?

  1. Exemption from audit
  2. Priority in MSP procurement
  3. Free electricity for life

Clause 17(vii) asks the government to prioritise FPOs for MSP procurement.

Remember these things

  • The scheme pays running costs, not infrastructure.
  • Combine it with RKVY, MIDH, NFSM, PM-SAMPADA, DAY-NRLM, PM-FME or TRIFED.
  • AMI and AMIF support market infrastructure.
  • States can add funds, land, MSP priority and e-NAM links.

Part 15 starts Chapter 4 with training for directors and CEOs. For FPOs whose members are also certified under PGS-India, KrushiFlow submits farmer records to the PGS-India portal in bulk.

Up next · Episode 15FPO Training: BIRD, LINAC and Twice a Year
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