In its ongoing mission to empower the farmers of Uttar Pradesh, Chief Minister Yogi Adityanath launched the Self-Reliant Farmer Integrated Development Scheme.
The Rs 722.85-crore scheme will benefit more than 27 lakh farmers associated with Farmer Producer Organisations (FPOs) by increasing their income substantially in the next five years.
Also the government will spend the amount to provide facilities and resources to farmers at every level, from farm to market.
In the current financial year, the state government has earmarked Rs 100 crore for this scheme. Under this scheme, 2,725 FPOs will be formed benefiting 27.25 lakh shareholder farmers directly.
A senior Agriculture department official said that the state government had decided to set up at least one FPO in every block to increase farmers’ income in the state.
At present, a total of 693 FPOs have been formed in 408 blocks of the total 824 blocks of the state. About 500 to 1,000 farmers are associated with an FPO on an average. FPOs provide bargaining power to small and marginal farmers for selling their crops. Therefore, the Yogi government has decided to form 2,725 FPOs in the next five years under the Self-Reliant Farmers Integrated Development Scheme.
The official further said that the FPOs would help enhance income of farmers to sell their produce directly to traders, or companies and also those doing contract farming.
Through the FPO, farmers will be able to get the right price for their produce. As part of the scheme, farmers associated with FPOs working in the state, will get a subsidy of four per cent on the loan of Rs 5 lakh. Thus, institutions related to agricultural development will be able to reduce the cost of farming and increase the income of the farmers by developing agricultural infrastructure.
The agriculture department further said that the government would form 625 FPOs per year for the next five years. Apart from the institutions of the Central government, UP Diversified Agriculture Support Project (DASP), Horticulture Federation, qualified FPOs and voluntary organisations will work in tandem for the formation of FPOs.
As per plan, a loan of Rs 5 lakh per year will be given to cluster-based business organisations for five years for forming FPOs and Rs 6 lakh to the newly-formed FPOs for three years. Loans will be provided to FPOs for creation of post-harvest infrastructure facilities at the rate of three per cent, which will benefit at least 500 to 1,000 farmers associated with FPOs and also lead to creation of 3,000 jobs every year.
An average investment of Rs 1.5 crore is planned from each FPO. Till now, agricultural cooperative societies (PACS) providing fertilisers, seeds and other facilities in the state could not take advantage of the scheme of Agricultural Infrastructure Fund (AIF) due to lack of margin money. Now 1,500 PACs of the state will be able to benefit the farmers through this scheme.
Further, with the availability of cheap loans, each PACS of the state will be able to start a project of Rs 20 lakh. In such a project of PACS, the state government will give Rs 4 lakh as margin money while the AIF will provide Rs 16 lakh. Its interest rate will be one per cent.
With this money, the PACS will be able to make godowns, which will help farmers in storage of their produce for long periods.
Besides, a plan of Rs 140 crore has been prepared for the creation of post-harvest storage and management infrastructure in 27 mandis of Krishi Utpadan Mandi Parishad. The Mandi Parishad will also be able to increase resources by availing loans from AIF at an interest rate of only 3 per cent.