Centre, state push to convert PACS into FPOs for farmer financial support
Nizamabad: To strengthen the cooperative sector, the Central and state governments have introduced Farmer Producer Organisations (FPOs) in Telangana. Modelled on the concept of women's self-help groups, FPOs aim to provide financial assistance to farmers and professionals. Existing Primary Agriculture Cooperative Societies (PACS) in rural areas will be converted into FPOs.
The National Cooperative Development Corporation (NCDC) is coordinating with state-level cooperation departments and Nabard for the successful implementation of FPOs. Currently, cooperative societies are engaged in business activities such as paddy procurement. However, due to widespread irregularities in several societies, many farmers are unable to fully benefit from the cooperative sector.
In this context, the Central government has proposed the establishment of FPOs in villages to extend financial support to farmers. Central government teams have already visited various districts in Telangana and collected data on primary agriculture cooperative societies and their members. To implement Business Development Plans (BDPs), additional staff will soon be appointed in FPOs.
District cooperation officer Srinivas Rao said proposals have been submitted to the Central government for setting up FPOs. He added that Rs 18 lakh will be released to each FPO for initial operations. Of the 89 primary agriculture cooperative societies in Nizamabad district, 12 have been recognised as FPOs. Training programmes will be conducted, and Nabard officials will coordinate activities at the village level, he said.
In the first phase, 12 FPOs will be established at the PACS in Badsi, Indalwai, Nizamabad, Nallavelli, Makloor, Velpur, Talla Rampur, Mosra, Rudrur, Kotagiri, Jankampet, and Dupally. Following their formation, members will be eligible for hand loans for business and self-employment needs. Export opportunities and other business ventures will also be explored under the FPOs.
Speaking to Deccan Chronicle, Badsi PACS chairman Nimmala Mohan Reddy said that FPOs will significantly boost economic growth in rural areas. “We have opened joint bank accounts to receive funds from the central government for the FPOs,” he said. Financial support to individuals at the village level, similar to that provided to women self-help groups, will certainly improve livelihoods, he added. The entire process will be transparent and managed online, Mohan Reddy emphasised.
