Agri & allied sector contribution to GDP can further rise by strengthening marketing; FPOs are key: Amit Shah

Coop. Min. Shah urges FPOs, PACS to work in hybrid model to enhance GDP, create jobs. FPOs can link to PACs to provide services to members, share info, marketing & profit. Modi govt. has increased budget, MSP & strengthened procurement ops. to boost farmers' income.

Cooperation Minister Amit Shah on Friday said the contribution of agriculture and allied sectors to the country's GDP can further be enhanced by strengthening marketing, for which farmer producer organisations (FPOs) are the key.

Addressing a conclave here, the Minister said agriculture can become a profitable venture if modern technology and marketing methods are adopted. Primary Agricultural Credit Societies (PACS) and FPOs can help in this endeavour.

He urged both FPOs and PACS to operate in a "hybrid model" under which around 11,770 FPOs that have already been set up can link themselves with PACS through an agreement to provide services to cooperative members. Existing 65,000-odd PACS can begin operating as FPOs. Stressing the need to work in a hybrid model, Mr. Shah said, "GDP (Gross Domestic Produce) is very important for any country. If you increase GDP through manufacturing, the job creation will not be much. If you strengthen agriculture and allied sector through cooperatives, not only GDP but job opportunities will also increase."

Although agriculture and allied sectors are contributing about 17.5-18 per cent to the country's GDP, higher than other sectors, the situation of farmers is not as good as the people engaged in the services sector, he said.

To improve the farmers' living conditions as good as those engaged in the service sector, "we need to accept FPOs," he said.

FPO is an organisation of farmer producers that provides support to small farmers with end-to-end services covering almost all aspects of cultivation from inputs, technical services to processing and marketing.

In addition to existing FPOs, the government has set a target to set up 10,000 FPOs by 2027-28 under the aegis of the agriculture ministry. Of which, the cooperative ministry has been given the mandate to set up 750 FPO and recently another 1,100 FPOs.