Bhopal (Madhya Pradesh): Bharatiya Kisan Sangh (BKS) alleged that Cluster-Based Business Organisations (CBBOs) are involved in a scam worth crores of rupees because 70% of them have failed to promote Farmer Producer Organisations (FPOs).
National BKS president K Sai Reddy made the allegation during a media interaction in Bhopal on Monday. In 2021, the Central Government launched a central sector scheme called Formation and Promotion of 10,000 Farmers Producer Organisations (FPOs) with a total budgetary outlay of Rs 6,865 crore.
According to Reddy, FPOs are provided Rs 33 lakh for three years and CBBOs are provided Rs 25 lakh per FPO for five years to promote FPOs. There are 10,000 FPOs and 300 CBBOs in the country.
FPOs are provided financial assistance up to Rs 18 lakh per FPO for a period of three years.
In addition to this, provision has been made for a matching equity grant up to Rs 2,000 per farmer member of an FPO, with a limit of Rs 15 lakh per FPO, and a credit guarantee facility up to Rs 2 crore of project loan per FPO from eligible lending institutions to ensure institutional credit accessibility to FPOs.
Depends on state govt for moong procurement at MSP
BKS leader Reddy said the Central Government permitted state government to procure 25% of the moong crop, but everything depended on the state government.
All agricultural produce should be procured at the minimum support price (MSP), he said.
Demand for licensing FPOs to sell fertilisers & seeds
BKS suggested that the government should develop a fertiliser distribution system through FPOs and Primary Agricultural Credit Societies. To achieve this, FPOs should be granted licences for fertiliser and seed distribution.
