Nabard promotes 6,215 FPOs: FM Sitharaman

New Delhi: National Bank for Agriculture and Rural Development (Nabard) has promoted the formation of 6,215 FPOs till date under various schemes, Parliament was informed on Monday.

The major support provided Farmer Producer Organisations (FPOs) includes formation of FPOs, capacity building, credit facilitation and market linkage support, financial literacy, etc, Finance Minister Nirmala Sitharaman said in Lok Sabha.

In addition, she said, Nabard, in partnership with Small Farmers’ Agri-Business Consortium (SFAC) and Open Network for Digital Commerce (ONDC), has conducted FPO Melas (TARANG-celebrating Collectivisation) at 50 locations across 24 states/UTs to demonstrate the products of FPOs/OFPOs to enable the marketing & branding of FPO products.

She further said Nabard extends loan assistance to state governments for the creation of rural infrastructure through various funds, that is, Rural Infrastructure Development Fund (RIDF), Nabard Infrastructure Development Assistance (NIDA), Rural Infrastructure Assistance to State Governments (RIAS), Long Term Irrigation Fund (LTIF), Micro Irrigation Fund (MIF), Food Processing Fund (FPF), Warehouse Infrastructure Fund (WIF) and Fisheries and Aquaculture Infrastructure Development Fund (FIDF).

State/UT wise yearly allocation is made under RIDF on the basis of funds allocated by Reserve Bank of India (RBI) from Priority Sector Lending (PSL) shortfall, she said.

Other than RIDF, the support through various funds is provided to States/UTs on the basis of proposals received from the respective State/UT Governments, and no yearly allocation is made, she said.

The reduction in the Priority Sector Lending (PSL) shortfall fund in the financial year 2024-25 resulted in a consequent reduction in RIDF fund allocation to the States/UTs, she said.

NABARD’s funding support through the above-mentioned funds enhances rural infrastructure, including roads, irrigation, and storage facilities, which leads to increased productivity and better market access in rural areas, she said.

This, in turn, improves the ability of rural borrowers to absorb and utilise credit effectively, she said, adding, Nabard also provides short-term & long-term refinance to Cooperative Banks and Regional Rural Banks (RRBs) for agricultural loans at concessional rates.

Sharing data of sanction and disbursement under RIDF during the past three years, 2022-23 to 2024-25, to various states, she said, against sanctions of Rs 1,40,789 crore, Rs 1,22,595 crore disburement was done.

For funds other than RIDF, she said, disbursement of Rs 36,439.63 crore was done against sanctions of Rs 47,617.63 crore during the financial years 2022-23 to 2024-25. PTI