Agriculture Minister Narendra Singh Tomar has said that rural sector will be transformed by constitution of 10 thousand new Farmers’ Producer Organizations (FPOs). He said that 86 per cent farmers in the country are small and marginal farmers, who will strengthen the rural economy through these FPOs. Mr Tomar said, this will not only help in agricultural progress, but also create new avenues for the development of the country.

Addressing a meeting of Laghu Udyog Bharati and Sahakar Bharati through video conference, Mr Tomar said, in the beginning, the minimum number of members in the FPOs will be 300 in the plains and 100 in the North-East and hilly areas.

The Minister said, all FPOs will be provided professional support and handholding for five years. He said, 15 per cent of the FPOs are to be constituted in aspirational districts, and will be formed on priority basis in scheduled tribal areas.

There will be credit guarantee fund with NABARD and NCDC, under which suitable credit guarantee up to two crore rupees per FPO will be provided.