The National Bank for Agriculture and Rural Development (NABARD) has dedicated Rs 1000 crores fund to provide credit guarantees to around 10,000 farmer producer organisations (FPOs).

Key Points

• This dedicated fund will be housed under the “Credit Guarantee Fund Trust for FPOs” (CGFTFPO), under the trusteeship of NABSanrakshan Trustee Private Limited (NTPL).
• CGFTFPO Trust has been signed by officials of Ministry of Agriculture & farmers welfare and NABSanrakshan of NABARD and has been registered at Mumbai.
• NTPL is a subsidiary and is wholly owned by NABARD.

Formation and Promotion of FPOs Scheme

Central government had launched a new central sector scheme called “Formation and promotion of 10000 FPOs” in February 2021. This scheme was launched with a clear strategy and committed resources for promoting 10000 new FPOs in India. Rs 6865 has been allocated to this scheme.