Five sets of people make the scheme work: the Ministry, a national committee, the implementing agencies, a national project agency and the CBBOs. Knowing who does what tells an FPO where to go for money, advice and complaints.
The short version
- The Department of Agriculture and Farmers Welfare owns the scheme; a national committee chaired by its Secretary allocates work and funds.
- Implementing agencies such as SFAC, NCDC and NABARD empanel CBBOs and release money to FPOs.
- CBBOs do the field work: they mobilise farmers, register the FPO and support it for five years.
- The National Project Management Agency (NPMA) guides the programme and keeps the national data.
The Chain from Delhi to the Village
Funds and instructions flow from the Ministry to the implementing agencies, then through CBBOs to each FPO.
| Body | Who it is | Main job |
|---|---|---|
| DA&FW | Department of Agriculture and Farmers Welfare, Ministry of Agriculture | Owns the scheme; releases funds to implementing agencies every six months (8.2.1) |
| N-PMAFSC | National committee chaired by the Secretary, DA&FW | Allocates clusters and targets, scrutinises action plans, recommends fund releases (14.1) |
| Implementing agency (IA) | SFAC, NCDC and NABARD at the start; states may propose their own; DA&FW may add more | Empanels and pays CBBOs; releases management cost and equity grant (6.1 to 6.6) |
| NPMA | National Project Management Agency, set up by SFAC | Programme design, monitoring of CBBOs, national data portal (5.1 to 5.3) |
| CBBO | Cluster Based Business Organisation, empanelled by the IA | Forms the FPO and supports it for five years (7.3) |
Which agency forms which FPO: SFAC forms producer companies, NCDC forms cooperatives, and NABARD can form either (clause 6.1). Older documents call the Department "DAC&FW"; it is the same Department.
Implementing Agencies
The IA is the FPO's main source of scheme money; it works through the CBBO and answers to the national committee.
- Works closely with CBBOs and makes sure they enter each FPO's data on the national portal.
- Releases the management cost to the FPO's account on the CBBO's recommendation, and transfers the equity grant.
- NABARD and NCDC manage the Credit Guarantee Fund.
- Develops rating tools for FPOs with DA&FW.
- Prepares an Annual Action Plan and submits utilisation certificates to receive the next release.
SFAC and NCDC receive supervision charges of 3% of estimated annual spending, plus up to 2% more based on performance. NABARD charges no supervision fee for this scheme.
Source: Operational Guidelines 6.6, 8.2.1 and 8.2.2
The National Project Management Agency
The NPMA designs the programme, checks CBBO performance and keeps every FPO's records on one national portal.
Programme design
Draws up the value chains, clusters and standard procedures for CBBOs.
CBBO selection and monitoring
Helps IAs select CBBOs and tracks their performance against indicators every month.
National data
Maintains the integrated portal: membership, activities, business and annual accounts of FPOs.
Advice
Advises existing FPOs that ask, and supports areas short of experts, such as the North-East.
Its team covers five fields: agriculture and horticulture, marketing and processing, incubation, IT and MIS, and law and accounting. The Addendum also gives the NPMA a role in empanelling CBBOs and in hearing grievances.
Source: Operational Guidelines 5.1 to 5.3; Addendum items 8 and 21
Where You Fit
Each person deals mainly with one or two bodies; pick your role.
If you are a farmer
You join through a farmer group and become a shareholder of the FPO. Your questions go to the FPO's board and CEO. If a grievance is not settled, the Addendum sets three stages: the implementing agency, then the NPMA, then the Ministry.
If you are a director or CEO
The CBBO is your daily guide. Management cost and the equity grant come from the implementing agency after the CBBO verifies your papers. Bank loans come from a lender, with the credit guarantee behind them.
If you work for a CBBO
You answer to the implementing agency that empanelled you; it checks your milestones before paying. Your progress reports go to the NPMA. Grievances go first to the NPMA, then to DA&FW.
Check yourself
Tap an answer to see whether you are right, and why.
Which body chairs fund-sanctioning for the scheme at national level?
- The N-PMAFSC, chaired by the Secretary, DA&FW
- The CBBO
- The District Collector
The N-PMAFSC allocates targets and recommends releases to the implementing agencies.
Who does the field work of forming an FPO?
- The NPMA
- The CBBO
- The bank
CBBOs mobilise farmers, register the FPO and support it for five years.
Which agencies manage the Credit Guarantee Fund?
- SFAC and APEDA
- NABARD and NCDC
- The NPMA alone
NABARD and NCDC each maintain a part of the fund (clause 12.3).
Remember these things
- DA&FW owns the scheme; the N-PMAFSC allocates and sanctions.
- Implementing agencies empanel CBBOs and release FPO money.
- The NPMA designs, monitors and keeps the national data.
- CBBOs work in the field for five years per FPO.
Part 4 starts Chapter 2: how the produce cluster for a new FPO is chosen. For FPOs whose members are also certified under PGS-India, KrushiFlow submits farmer records to the PGS-India portal in bulk.