One District, One Product cluster for better processing, export

The concept of ‘‘ One District One Product’ cluster is aimed at promoting specialization and better processing, marketing, branding and export of agri products. Agriculture value chain organizations are forming FPOs and facilitating 60% of market linkages for members’ produce.

Under this central sector scheme with funding from Government of India, 9 implementing agencies have been finalized for formation and promotion of FPOs - Small Farmers Agri-Business Consortium (SFAC), National Cooperative Development Corporation (NCDC), National Bank for Agriculture and Rural Development (NABARD), National Agricultural Cooperative Marketing Federation of India (NAFED), North Eastern Regional Agricultural Marketing

Corporation Limited (NERAMAC), Tamil Nadu-Small Farmers Agri-Business Consortium (TN-SFAC), Small Farmers Agri-Business Consortium Haryana (SFACH), Watershed Development Department (WDD)- Karnataka & Foundation for Development of Rural Value Chains (FDRVC)- Ministry of Rural Development.

The implementing agencies will engage Cluster Based Business Organizations (CBBOs) to aggregate, register and provide professional handholding support to each FPO for a period of 5 years.

During 2020-21, a total of 2200 FPO produce clusters have been allocated, which also include specialized FPO produce clusters such as100 FPOs for organic, 100 FPOs for oil seeds etc. Of these, 369 FPOs are targeted during current year for f ormation i n 115 aspirational districts in the country.

NAFED will provide market and value chain linkages to the FPOs formed by other implementing agencies. NAFED has formed and registered 5 honey FPOs during the current year in Uttar Pradesh, Madhya Pradesh, Rajasthan, Bihar and West Bengal.

FPOs will be provided financial assistance up to `1.8 million per FPO for a period of 3 years. In addition to this, provision has been made for matching equity grant up to `2,000 per farmer member of FPO with a limit of `1.5 million per FPO and a credit guarantee facility up to `20 million of project loan per FPO from eligible lending institutions to ensure institutional credit accessibility to FPOs.