Atmanirbhar Kisan Integrated Development Scheme

• 01 Oct 2021

Why in News

On September 30, 2021, Chief Minister Yogi Adityanath launched the 'Atmanirbhar Kisan Integrated Development Scheme' under the mission of empowering the farmers of Uttar Pradesh. Under this scheme, 2,725 FPOs will be formed, which will directly benefit 27.25 lakh shareholder farmers.

Key Points

• The state government has decided to set up at least one FPO in every block to increase the income of farmers in the state. In the current financial year, the state government has earmarked Rs 100 crore for this scheme.
• Apart from central government institutions, Uttar Pradesh Diversified Agriculture Support Project (DASP), horticulture federations, qualified FPOs and voluntary organizations will work together for the formation of FPOs. An average investment of Rs 1.5 crore is planned from each FPO.
• This scheme of Rs 722.85 crore will significantly increase the income of more than 27 lakh farmers associated with Farmer Producer Organizations (FPOs) in the next five years.
• At present, out of a total 824 blocks of the state, a total of 693 FPOs have been formed in 408 blocks. On an average around 500 to 1,000 farmers are associated with FPOs.
• Through FPO, farmers will be able to get the right price for their produce. Under the scheme, farmers associated with FPOs working in the state will get a subsidy of four percent on loans of Rs 5 lakh. In this way the institutions associated with agricultural development will be able to reduce the cost of farming and increase the income of the farmers by developing the infrastructure of agriculture.
• Under the scheme, a loan of Rs 5 lakh will be given to cluster based business organizations to form FPOs for five years and Rs 6 lakhs annually for three years to newly formed FPOs.
• Loans will be provided at the rate of three percent to FPOs for creation of post-harvest infrastructure facilities, which will benefit at least 500 to 1,000 farmers associated with the FPOs and also create 3,000 jobs every year.
• Till now, Primary Agricultural Credit Societies (PACS) providing fertilizers, seeds and other facilities in the state were not able to take advantage of the scheme of Agricultural Infrastructure Fund (AIF) due to lack of margin money. Now 1,500 PS of the state will be able to benefit the farmers from this scheme.
• Also, with the availability of cheap loans, each PACS of the state will be able to start a project worth Rs 20 lakh. In such projects of PACS, the state government will give Rs 4 lakh as margin money, while AIF will give Rs 16 lakh. Its interest rate will be one percent.
• With this money, PACS will be able to build godowns, which will help farmers in storing their produce for a long time. In addition, a plan of Rs 140 crore has been prepared for the construction of post-harvest storage and management infrastructure in 27 mandis of Krishi Utpadan Mandi Parishad. Mandi Parishad will also be able to increase resources by taking a loan from AIF at an interest rate of just 3 per cent.