Content:
- 10,000 FPOs Achieved under Government’s Flagship Scheme
- National Waterways (Construction of Jetties/Terminals) Regulations, 2025
10,000 FPOs Achieved under Government’s Flagship Scheme
Introduction
- The Central Sector Scheme for “Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)” was launched by Prime Minister Narendra Modi on 29th February 2020.
- Budget outlay of ₹6,865 Crore till 2027-28.
- ₹254.4 Crore in equity grants released to 4,761 FPOs.
- ₹453 Crore credit guarantee cover issued to 1,900 FPOs.
- 10,000th FPO launched in Khagaria district, Bihar, focusing on maize, banana, and paddy.
- Over 30 lakh farmers connected to FPOs, with 40% women participation.
Relevance : GS 2(Governance ),GS 3(Agriculture)
What are FPOs?
- Definition: Collectives of farmers registered under the Companies Act or Co-operative Societies Act.
- Purpose: Achieve economies of scale in production, marketing, and access to institutional support.
- Implementing Agency: Small Farmers’ Agribusiness Consortium (SFAC), under the Ministry of Agriculture & Farmers Welfare.
Need for FPOs
- Small and marginal farmers face challenges in:
- Access to technology, quality inputs (seeds, fertilizers, pesticides), and credit.
- Market linkages and fair pricing due to low bargaining power.
- FPOs strengthen farmers’ economic capacity by facilitating:
- Collective purchase and sales.
- Direct market access, reducing dependency on middlemen.
- Value addition and processing capabilities.
Objectives of the Scheme
- Form 10,000 FPOs to create a sustainable farming ecosystem.
- Improve productivity, market linkages, and access to institutional finance.
- Provide handholding support for 5 years, including₹18 lakh financial assistance per FPO.
- Enable FPOs to become self-sustaining through entrepreneurship training.
Convergence of Ministries for FPO Development
- Ministry of Agriculture & Farmers Welfare: Provides input licenses, dealership support, and market linkage via ONDC, e-NAM.
- Ministry of Food Processing: Offers 35% capital subsidy, 50% branding/marketing grants.
- Ministry of MSMEs: Provides credit guarantees, equity grants, and capacity-building programs.
- Ministry of Fisheries, Animal Husbandry & Dairying: Funds dairy cooperatives and fodder FPOs.
- APEDA: Supports export-oriented FPOs.
- Spices Board: Aids in export promotion and value addition for spices.
Key Services and Activities of FPOs
- Input Supply: Seeds, fertilizers, pesticides at wholesale rates.
- Machinery Rental: Custom hiring of farm equipment.
- Value Addition: Cleaning, grading, sorting, and packaging.
- Market Aggregation: Collective marketing for better price realization.
- Logistics Support: Storage, transportation, and loading/unloading services.
- Higher-Income Activities: Seed production, beekeeping, mushroom cultivation, etc.
Major Initiatives under the Scheme
Credit Guarantee Fund (CGF):
- Dedicated CGF created to facilitate bank loans for FPOs.
- Ensures better access to credit from financial institutions.
ONDC Registration:
- 5,000 FPOs onboarded on ONDC to enable digital marketing and online sales.
- Strengthens B2B and B2C transactions, reducing dependence on intermediaries.
MoU for Converting FPOs into CSCs:
- Collaboration between CSC SPV & Ministry of Agriculture.
- 10,000 FPOs to be converted into CSCs for digital service delivery.
Inclusivity and Social Impact
- Special focus on marginal farmers, women SHGs, SC/ST farmers.
- Ensuring financial and social empowerment of weaker sections.
- Promotion of sustainable and climate–resilient farming practices.
National Waterways (Construction of Jetties/Terminals) Regulations, 2025
Context and Significance
- Inland waterways have been underutilized in India despite their potential for cost-effective, fuel-efficient, and environmentally friendly cargo transport.
- The new regulations aim to unlock private sector investments, enhance logistics efficiency, and reduce transportation costs.
- This move aligns with the broader infrastructure development goals of the government, fostering Ease of Doing Business (EODB) and promoting the inland waterways sector as a growth engine.
Relevance : GS 3(Infrastructure)
Key Features of the Regulations
Permission and Approval Process
- Any public, private, or joint venture entity must obtain a No Objection Certificate (NoC) from the Inland Waterways Authority of India (IWAI) before developing a terminal.
- Both new and existing jetties/terminals fall under the purview of these regulations.
- Classification of terminals:
- Permanent terminals: Can be operated throughout their lifetime.
- Temporary terminals: Initially granted for five years, extendable based on performance and compliance.
Role of the Terminal Developer and Operator
- The technical design and construction responsibility lies with the developer, ensuring compliance with business and environmental standards.
- Adequate connectivity and access must be provided to facilitate efficient cargo movement.
Digital Portal for Transparency and Efficiency
- IWAI is developing an online portal for:
- Application submission for jetties/terminals.
- Tracking the approval process in real time.
- Ensuring transparency, efficiency, and ease of access in regulatory procedures.
Impact on Infrastructure and Economic Growth
Private Sector Involvement and Investment
- Encourages public-private partnerships (PPPs), leading to greater capital inflow into inland waterways infrastructure.
- Reduces government expenditure burden while leveraging private sector efficiency.
Boost to Cargo Movement and Trade
- Cargo transport on national waterways increased from 18 million tonnes to 133 million tonnes in FY 2023-24.
- Enhanced infrastructure will further increase freight movement, making waterways a competitive alternative to road and rail transport.
- Expected to lower logistics costs and reduce congestion on highways and rail networks.
Environmental and Cost Benefits
- Inland water transport is cheaper and has a lower carbon footprint compared to road and rail.
- Aligns with India’s sustainability goals by reducing fossil fuel consumption in logistics.
Government Initiatives Strengthening the Waterways Sector
Jalvahak Scheme
- Aims to shift 17% of cargo transport to national waterways, reducing reliance on road and rail networks.
- Provides financial and operational incentives to promote water-based logistics.
Digitalization and Process Simplification
- Online portals and streamlined regulatory frameworks reduce bureaucratic delays, ensuring a seamless investment climate.
Alignment with PM Gati Shakti and Maritime Vision 2030
- Supports the broader PM Gati Shakti initiative, which focuses on multi-modal connectivity and integrated infrastructure planning.
- Complements Maritime Vision 2030, which aims to establish India as a global maritime power.
Challenges and Way Forward
Infrastructure Bottlenecks
- Need for modernizing existing jetties and developing last-mile connectivity to integrate waterways with road and rail.
Regulatory and Compliance Issues
- Ensuring fast approvals and clear policy guidelines for private investors.
- Need for a robust dispute resolution mechanism to build investor confidence.
Awareness and Adoption Challenges
- Limited awareness among businesses about the cost benefits of inland waterways.
- The government must undertake capacity-building initiatives and provide financial incentives for faster adoption.
