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The cooperation ministry notified that 1,100 new farmer producer organisations will be established in the cooperative sector under a central scheme. Since February 2021, the agriculture ministry is implementing a central sector scheme titled ‘Formation and promotion of 10,000 Farmer Producer Organisations (FPOs) with a budgetary provision of Rs 6,865 crore. Under the scheme, a target of establishing 1,100 additional FPOs has been allocated to the National Cooperative Development Corporation (NCDC). A financial assistance of Rs 33 lakh is provided to each FPO under the scheme. Further, a financial assistance of Rs 25 lakhs per FPO is provided to the Cluster Based Business Organisations (CBBO). Primary Agricultural Credit Societies (PACS) — which have a member base of around 13 crore farmers and are primarily engaged in short-term credit and distribution of seeds and fertilisers — will now be able to undertake other economic activities as well.
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