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IMDR’s Journal of Management Development & Research 2023-24

on the characteristics of the group, the administrative structure, the network with external entities, the
availability of capital and technology, the contribution of member producers to commercial and financial

decisions.

5.6 Current Status of FPOS in Our Country:

Little farmers Agribusiness Alliance is a nodal body in India which upholds Farmer Producer Organizations

nominated by Ministry of Agriculture, Cooperation and Farmers Welfare and Ministry of Agriculture and
Farmers Welfare. Since 2011, when the idea of farmer businesses was implemented by the government, they

must be encouraged through various central and state government schemes across the country.

Currently 7059 farmer organizations are supported in India are formed under various Central Governments,
State Government, NABARD and various Private Corporate Social Responsibility programs and are formed

under various Central and State Government schemes. The Government of India has accepted and
launched a Central Segment Scheme “10,000 Farmer Producer Organizations (FPOs)” with a total budget of

more than Six Thousand and Eight Hundred Crores to form and promote 10,000 new FPOs by 2027-2028.

The system's approach to FPO formation and promotion focuses on a creation region approach and a custom-
made product-based approach. Utilizing a group-based approach, the development of on developing product

specialization "One District One Product".

Experience shows that FPOs have been inconsistent over the past decade. Lack of farmers' awareness of the
potential benefits of collectivization and the lack of a competent authority to provide support leads to a decline

of farmers in FPOs. Banks are not used to manage substances like FPOs and are don't know of their reliability.
FPOs are laid out and overseen exclusively by farmers; they have almost no administration abilities and are

restricted in business venture, so they can't get areas of strength for ready intends to dazzle farmers. Monetary
help from Government and NABARD to FPOs under different plans just for the initial three years.

Notwithstanding, to develop and create, FPOs need support for somewhere around five to seven years. SFAC's

credit guarantee for unsecured loans is only available to manufacturing companies with at least 500
shareholders. Accordingly, FPOs enrolled under other authoritative documents and with less investors are

barred from the SFAC framework.

5.7 Supports for Promotion of Farmer Producer Organizations:
National and State Governments and their agencies actively encourage and support the formation and

development of FPOs using funds from centrally sponsored and government sponsored schemes of various

agricultural sector agencies.
This goal was accomplished by making an alliance of accomplices. The initiator of the undertaking in trouble,

which incorporates common society establishments, research foundations, advisors, confidential area