THIRUVANANTHAPURAM: The annual state budget has earmarked Rs 10 crore to the Kerala State Cooperative Bank (Kerala Bank) to form 100 new Farmer Producer Organisations (FPOs). Kerala Bank president Gopi Kottamurickal said the budget allocation would help in the betterment of small and marginal farmers.
The FPOs would be in the areas of agriculture, animal husbandry, aquaculture, poultry farming etc. A majority of farmers in the state fall under the category of small and marginal based on the extent of land. Kerala Bank has loan products up to Rs 60 lakh for FPOs, for their business operation as working capital or term loan. The bank’s aim is to form one FPO in every panchayat. One FPO should have 300 - 500 members from among the active farmers.
“The formation of FPO will help achieve sustainable growth of the rural economy. The budget allocation reveals the increased relevance of the bank in the state’s development initiatives. It is estimated that an FPO can create more than 500 direct and indirect job opportunities,” said an official release. “Group- based cultivation and business will help in maximum utilisation of opportunities including farm mechanisation, collection of planting materials, sale of crops and manufacturing of value-added products,” it said.