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Time of India
12 minutes ago
- Time of India
Empowering smallholder farmers & marginal farmers through formation & promotion of FPOs
Dr. Prashant Prabhakar Deshpande has post-graduated in Economics with a Gold Medal in 1976 and was awarded a Ph.D in Social Sciences from Nagpur University in 2007. Introduction The Central Sector Scheme for Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs) was launched by Prime Minister Narendra Modi on 29th of February, 2020. The scheme was launched with a budget outlay of Rs 6,865 crore till 2027-28. Since the launch of the scheme, Rs 254.4 crore in equity grants have been released to 4,761 FPOs and credit guarantee cover worth Rs 453 cr has been issued to 1,900 FPOs. Recently, FPOs were in the spotlight as India reached a transformative milestone by establishing 10,000 Farmer Producer Organisations (FPOs), ahead of the March 31, 2025, deadline, collectively bringing together nearly 30 lakh farmers across the country, 40% of whom are women. These FPOs are now conducting business worth thousands of crores of rupees, contributing immensely to the growth of the agricultural sector. On the occasion of the release of the 19th instalment of PM-KISAN in Bhagalpur, Bihar, the Prime Minister launched the 10,000th FPO, a milestone marking a significant leap in Farmer Welfare and inclusive agricultural development. The 10,000th FPO was registered in Khagaria district and focuses on maize, banana, and paddy. The concept behind the Farmer Producer Organisations Farmers who are the producers of agricultural products can form groups. To facilitate this process, the Small Farmers' Agribusiness Consortium (SFAC) was mandated by the department of agriculture and cooperation, ministry of agriculture, government of India, to support the state governments in the formation of FPOs. Objectives To provide a holistic and broad-based supportive ecosystem to form to facilitate the development of vibrant and sustainable income-oriented farming and overall socio-economic development and wellbeing of the agrarian communities. To enhance productivity through efficient, cost-effective, and sustainable resource use to realise higher returns through better liquidity and market linkages for their produce and become sustainable through collective action. To provide handholding and support to new FPOs up to five years from the year of their creation in all aspects of management of FPO, inputs, production, processing and value addition, market linkages, credit linkages, and use of technology etc. To provide effective capacity building to FPOs to develop agriculture entrepreneurship skills to become economically viable and self-sustaining beyond the period of support from the government. The Farmer Producer Organisations (FPOs) The FPOs are collectives formed by farmers to: Enhance productivity; Reduce costs, and; Improve market access through cooperation. The primary aim of an FPO is to enable farmers to benefit from the economies of scale, enhancing overall Farmer Welfare. The Small Farmers' Agribusiness Consortium (SFAC) under the Ministry of Agriculture plays a pivotal role in supporting the formation of the FPOs, which are registered under either: The Companies Act, or; The Co-operative Societies Act. Need for FPOs Small, marginal, and landless farmers face challenges during the agriculture production phase, such as: Access to technology; Quality seeds; Fertilisers and pesticides, and; Requisite finances. Challenges in marketing their produce due to a lack of economic strength. FPOs help in the collectivisation of such small, marginal, and landless farmers, giving them collective strength to deal with such issues. managing their activities together to get: Better access to technology; Inputs; Finance, and; Market for faster enhancement of their income. The way FPOs help Smallholder Farmers Achieving Economies of Scale FPOs help small and marginal farmers reduce input costs and secure better prices by aggregating purchases and sales. Enhanced Credit Access Access to institutional credit since long a barrier for smallholders, is improved through FPOs, aligning such support with ongoing government schemes for farmers aimed at financial inclusion. Accessing Global Markets FPOs enable smallholders to access international markets. Overcoming Shrinking Farm Sizes With average landholding size shrinking from 1.08 hectares in 2015–16 to just 0.74 hectares in 2021–22, FPOs help farmers aggregate resources and invest in modern equipment. This consolidation enables economies of scale: Allowing for bulk purchases; Shared services, and; Use of advanced machinery is improving productivity, a key enabler of agricultural sector growth. Supporting Value-Addition & Processing Through shared infrastructure like mini-mills and cold storage FPOs help farmers earn more by adding value to raw produce, strengthening Farmer Welfare through diversified income streams. Key Features of the Scheme Up to Rs 18 lakh financial aid over 3 years Matching equity grant of Rs 2,000 per farmer (max Rs 15 lakh) Credit Guarantee up to Rs 2 Crore in project loans Cluster-based handholding support for 5 years Challenges Faced by FPOs Many farmers joining FPOs have limited exposure to modern agricultural practices, quality standards, and market requirements. Most farmer-leaders lack formal training in business management, financial planning, human resources, and strategic planning. Most FPOs begin with minimal capital contributed by farmer members who themselves have limited financial resources, creating a precarious situation where the organisation struggles to invest in necessary infrastructure, working capital, or growth opportunities. Farmer members often expect immediate benefits from their FPO membership but are reluctant to make significant financial contributions. Traditional financial institutions often view these organisations as high-risk borrowers due to their agricultural focus, limited collateral, and perceived management weaknesses. Many FPOs lack the market intelligence necessary to make informed decisions about what to produce, when to sell, and at what prices, putting them at a disadvantage competing with established suppliers or negotiating with buyers. Epilogue By fostering collectivisation, enhancing market access, and providing financial and institutional support, the initiative has empowered millions of small and marginal farmers, including women and economically weaker sections, boosting agricultural productivity and income, contributing to rural job creation and economic resilience. As FPOs continue to evolve, they promise a more equitable and resilient future for India's agricultural landscape, it is opined. Critics however state that it is critical to move beyond numbers. They opine a target-oriented approach may work in the initial phase. As such, although reaching the target of 10,000 FPOs ahead of the March 31, 2025 deadline is commendable, there is now a need to focus on better outcomes. Facebook Twitter Linkedin Email Disclaimer Views expressed above are the author's own.
Economic Times
12 minutes ago
- Economic Times
India-UK FTA prescribes a booster dose for Indian pharma and medtech exports
Representational The India-UK free trade agreement (FTA) is expected to give a strong tailwind to India's pharmaceutical and medical devices sectors with tariff relief and smoother regulatory pathways acting as critical drivers, industry experts told ET. The agreement will boost exports giving an easier access to the UK market. It is expected to help Indian companies – especially those in generics and biosimilars - to scale their market presence, fast track product approvals, provide a push to cross-border R&D and innovation. The UK has committed to zero tariff on nearly 99% of Indian pharma exports. While Indian pharma exports to the UK were largely duty free even earlier, the latest agreement formalises the status which brings in long-term clarity to to industry estimates, the pharma market size of the UK stands at about $45 billion and is expected to shoot to $73 billion by 2033. The share of the Indian drugs can see a significant push from the UK's generics segment which is currently pegged at $5 billion. India's pharmaceutical exports to the UK crossed $910 million in FY24, according to estimates. "The agreement strengthens supply chains, enhances access to affordable medicines, and drives Foreign Direct Investment (FDI),' said Namit Joshi, Chairman of Pharmexcil. 'This partnership paves the way for collaborations in bulk drug imports, CDMO (contract manufacturing), and joint research, empowering India's competitive edge and promoting global partnerships.'The pact will open up trade and economic opportunities between the two countries. 'The pharma sector will have opportunities to supply quality medicines contributing to better patient care in the UK,' said Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance. 'The tariffs relief on generic medicines and key medical devices like surgical instruments and diagnostics under the FTA will enhance the affordability and appeal of Indian products in the UK market,' said Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat. The move significantly boosts the competitiveness of Indian generics and high-quality affordable healthcare solutions, positioning India to scale its footprint in one of Europe's most valuable healthcare markets, said Mishra. For the medical devices sector too the move is expected to open new opportunities, said experts. 'Previously, medical devices imported into the UK were duty-free, so tariff restrictions were not an issue but regulatory approval costs and time (delays) were a challenge,' said Rajiv Nath, forum coordinator, Association of Indian Medical Device Manufacturers (AiMeD), an umbrella organisation representing manufacturers of various medical devices in medical devices exports to the UK stood at Rs 1,015 crore in fiscal 2024, up 13% from a year ago. Imports of medical devices to India was at Rs 2,295 crore, up 36% from the previous are of the view that the FTA seeks to keep a balance between India's current IP regime with public health and the UK's preference of protecting various IP rights. Sandeep Rathod, Sr. VP (legal and compliance), Piramal Pharma, said: 'In context of geographical Indications, both sides will be bringing together a list of products that will be protected with equity and transparency as key principles.' 'Within patents, India's important safeguards such as S.3(d) and oppositions have not been tampered with. This should help India's status as the world's generic manufacturer and also protect access to medicines for domestic patients.' 'UK is an important market. The real value is the potential positive impact on our other trade deals coming up such as with the EU and US,' said Sujay Shetty, global health advisory leader at consulting firm PwC.
News18
18 minutes ago
- News18
Ujjivan Small Finance Bank Q1 net profit plummets 66 pc to Rs 103 cr
New Delhi, Jul 24 (PTI) Ujjivan Small Finance Bank on Thursday reported a 66 per cent drop in net profit to Rs 103 crore during the first quarter of this financial year as provisions doubled.. The lender had earned a net profit of Rs 301 crore in the same quarter of the previous fiscal year. The total income rose to Rs 1,868 crore during the June quarter of 2025-26, from Rs 1,774 crore in the same quarter of FY25, Ujjivan Small Finance Bank said in a regulatory filing. Interest earned by the bank improved to Rs 1,619 crore, as compared to Rs 1,577 crore in the June quarter of FY25. During the quarter, the gross non-performing assets (NPAs) remained flat at 2.52 per cent of gross advances. However, net NPAs, or bad loans, rose to 0.7 per cent, as against 0.4 per cent in the year-ago period. Provisions and contingencies doubled to Rs 225 crore during the first quarter as compared to Rs 110 crore in the same period a year ago. Capital adequacy ratio of the bank declined to 23 per cent, from 25 per cent in the same quarter of FY25. PTI DP MR Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
