झारखÖड गजट

असाधारण अंक

झारखÖड सरकार ɮवारा Ĥकाͧशत

30 वैशाख, 1946 (श०)

संÉ या – 285 राँची, सोमवार, 20 मई, 2024 (ई०)

कृͪष, पशुपालन एवं सहकाǐरता ͪवभाग

(कृͪष Ĥभाग)

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अͬधसूचना

16 माच[, 2024

पğांक-03/कृ०रा०यो०-22/2023-744-राÏय योजनाÛतग[त FPO को सहायता अनुदान योजना

कȧ Ĥचालन माग[Ǔनदȶͧशका अͬधसूͬचत कȧ जाती है। (Ĥचालन माग[Ǔनदȶͧशका संलÊन)

FPO को सहायता अनुदान योजना कȧ Ĥचालन माग[Ǔनदȶͧशका पर राÏय मंǒğपǐरषɮ कȧ

Ǒदनांक-16-03-2024 को संपÛन बैठक मɅ मद सं0-50 के Ǿप मɅ èवीकृǓत Ĥदान कȧ

गयी है ।

झारखÖड राÏयपाल के आदेश से,

अबुबÈकर ͧसɮदȣख पी.,

सरकार के सͬचव ।

झारखÖडगजट(असाधारण) सोमवार, 20 मई, 2024

Grant to Farmer Producer Organization (FPO) Scheme

Back Ground:

The Government of Jharkhand plans to create a conducive environment for Farmer Producer

Organizations by promoting the activities involved in the field of Agriculture and allied sector

through transformational interventions and participation of all stakeholders. Collectivisation of

producers, especially small and marginal farmers, into producer organisations has emerged as one

of the most effective pathways to address the challenges of agriculture but most importantly it will

lead to improved access to investments, technology, inputs, and markets. The development of FPOs

will be actively encouraged and supported by the Government of Jharkhand through convergence

with various ongoing central and state-funded schemes along with resources mobilized from the

financial institutions. As per an estimate more than 400 FPOs are functional in the state.

The Department of Agriculture, Animal Husbandry & Cooperative and other department of

State Government is already supporting FPOs in the state while engaging these institutions as

distribution point for seed distribution on subsidy to farmers, fertilizer dealership and also as

procurement centers of Paddy on MSP, Trader/ Seller on e-NAM platform, One district one product

etc.

Further, to make these FPOs as self-sustainable enterprise with active involvement of active

participation of shareholders, it is must that these FPOs should be supported by State Government.

In this connection, The Government of Jharkhand decided to extend financial support to FPOs which

are well performing in the state. The financial support will be given in the form of matching equity

grant and incentive for 5 years towards creating suitable business proposition and scale up the

business towards self-sustainability and profitability

This scheme shall act as a catalyst in the collective income and economic growth of farmers

of Jharkhand resulting in higher scale employment generation in rural areas through people, public

and private partnership and also help in development of cluster based approach and

entrepreneurship.

Farmer Producer Organization:

FPO is a generic name, which means and includes farmer- producers’ organization

incorporated/ registered either under the Companies (Amended) Act 2020 under Chapter XXIA

under part-1 or under Co-operative Societies Act of the Jharkhand state and formed for the purpose

of leveraging collectives through economies of scale in production and marketing of agricultural and

allied sector. However, FPOs registered under Co-operative Societies Act of the State (including

Mutually Aided or Self-reliant Cooperative Societies Act by whatever name it is called) for the

purpose of this Scheme, is to be insulated from all kinds of interference including in election process

and day today management through suitable provisioning in their Memorandum of Association and

Bye-laws with a view to encourage healthy growth and development of FPO.

Objectives of this scheme:

1. To extend financial support to FPOs in the form of one time matching equity grant to well

performing FPOs in Jharkhand state.

2. To provide performance based financial incentive to well performing FPO for next 4 years.

3. To enhance viability and sustainability of FPOs.

4. To increase and improve business activities and net worthiness of FPOs.

झारखÖडगजट(असाधारण) सोमवार, 20 मई, 2024

5. To facilitate FPOs to be leader on One district one product as Cluster based approach

enterprise.

6. To create conducive environment for establishment of new FPOs in untouched area.

Salient Features of Scheme:

1. The scheme will be implemented through online portal.

2. The FPOs registered in the state will be eligible.

3. The one time matching equity grant maximum up to Rs 15 lakhs will be provided to eligible

FPOs.

4. The FPO will also be incentivize for incremental sales turnover or profitability.

5. The FPO will also be given various other financial support & awards for certification of organic

produce, branding of produce of Jharkhand.

6. FPO will provided support for development of business through dedicated facilitation cell at

state level

7. Easy evaluation process for providing financial support to FPOs.

8. Regular & strict review of FPOs activities at district level and support through convergence of

various schemes.

Institutional Set up for implementation of Scheme:

There will be 2 levels of monitoring Committee for implementation of scheme as under:

1. State Level Monitoring Committee (SLMC)

2. District Level Monitoring Committee (DLMC)

A. State Level Monitoring Committee:

The SLMC will formed under chairmanship of Director Agriculture who will be State nodal officer of

this scheme. The composition of committee will be as under:

S.No.

Designation

Position

Director, Agriculture

Chairman

Director, Animal Husbandry

Member

Registrar Cooperative Societies

Member

Director, Horticulture

Member

Director, Dairy

Member

Managing Director, JSAMB

Member

Director, Fisheries

Member

Director, Soil Conservation

Member

CEO, JSLPS

Member

Representative of CGM, NABARD

Member

State Head, NAFED

Member

State Head, NCDC

Member

State Head, SFAC

Member

SIO, NIC, Ranchi/JAPIT/NICSI, Ranchi

Member

Special invitee with permission of Chairman

Member

झारखÖडगजट(असाधारण) सोमवार, 20 मई, 2024

Roles and Responsibilities of SLMC:

 The SLMC will be monitoring the progress of the scheme.

 The SLMC will take decision on operational matters of Scheme.

 The members of SLMC will coordinate each other for smooth implementation of scheme.

 The SLMC will organize review meeting of stakeholders in Second week of every quarter

immediately after DLMC review meeting.

 The SLMC will recommend Government for intervention in policy matters related to scheme.

B. District Level Monitoring Committee:

S.No.

Designation

Position

Deputy Commissioner

Chairman

District Agriculture Officer

Nodal Officer

District Horticulture Officer

Member

District Animal Husbandry Officer

Member

Director, Dairy Development Officer

Member

District Cooperative Officer

Member

District Soil Conservation Officer

Member

District Fisheries Officer

Member

District Rural Development Officer

Member

Marketing Secretary, JSAMB

Member

DDM, NABARD

Member

LDM of concerned district

Member

Representative of CBBO of Implementing agency

Member

Invitees FPO/Bankers with permission of Chairperson

Member

Roles and Responsibilities of DLMC:

 The DLMC will be monitoring the activities and progress of FPOs.

 DLMC will recommend for sanction of one time matching equity grant.

 Nodal Officer will undertake re- verification/check of members of FPO on sample basis or full

for whom equity is being claimed by FPO.

 Nodal officer or any nominated official by Chairperson will undertake visit to FPOs who have

availed benefit under the scheme for ensuring utilization of fund for the purpose for which

FPO has availed the grant.

 The DLMC will facilitate FPOs to increase business activities & membership.

 The DLMC will facilitate FPOs for development of Cluster for business activities with focus on

one district one product cluster.

 The DLMC will facilitate FPOs in linkages with various other schemes of Government.

झारखÖडगजट(असाधारण) सोमवार, 20 मई, 2024

 The DLMC will organize review meeting of stakeholders and FPOs in the first week every

quarter.

 The Nodal officer will upload the proceeding of quarterly meeting on Web Portal so that

same can be put up in SLMC meeting in every quarter.

 The DLMC may recommend SLMC for intervention in Policy related matters under this

scheme.

Nodal Agency for implementation of Scheme:

The Directorate of Agriculture will be the Nodal agency for implementation of Scheme in the State.

Implementation Mechanism of Scheme:

a) On boarding of Scheme on web Portal:

 The scheme will be implemented in online mode for transparency and better monitoring of

scheme.

 An online scheme structure will be developed and will be on-boarded on integrated portal of

Department.

 The proposed domain name of the scheme will be www.granttofpo.gov.in. However

domain name may also be selected as per availability or convenience.

 The necessary user id and logins will be created on portal for stakeholders and others.

 The existing PMU & manpower deployed for portal management will be assisting the Nodal

agency towards implementation of Scheme.

 However, if required, the additional technical manpower may be hired for management of

Portal in consultation with NIC/JAPIT/NICSI, Ranchi etc.

 The required technical manpower related to management of portal may be hired through

GeM portal/NICSI/Agency approved by JAPIT.

 The NIC, Ranchi/JAPIT etc will provide technical support towards development, integration,

related infrastructure, coordination, man power etc with technical team of Implementing

agencies and Government of India and State Government.

b) Process of Selection of FPOs for the scheme:

It will be ensured that the applicant/beneficiary FPO will have ease in every process of scheme.

Therefore it will be tried that scheme model will be such that most of the process will be completed

through online.

c) Eligibility criteria for FPOs:

 FPO should be incorporated/registered either under the Companies (Amended) Act 2020

under Chapter XXIA under part-1 or under Co-operative Societies Act of the Jharkhand state

and formed for the purpose of leveraging collectives through economies of scale in

production and marketing of agricultural and allied sector.

झारखÖडगजट(असाधारण) सोमवार, 20 मई, 2024

 FPO should have minimum membership of 100 shareholders farmers with minimum equity

shareholding of Rs 2 lakhs.

 FPO should have proof of Equity received from shareholders or shares distributed.

 FPO should have turnover of minimum turnover Rs 10 lakhs during the last 3 financial years

with minimum turnover of Rs 3 Lakhs each financial year.

 FPO should have audited balance sheet from Chartered accounts for the last three years.

 FPO should have PAN/TAN/GST registration.

 FPO should have ITR for last three years.

 FPO should have atleast 5 office bearers on the company role.

 FPO should have active current back account.

 FPO should be ready to enter into MoU with Government of Jharkhand.

d) Application by FPO for obtaining Matching Equity Grant:

 The eligible FPO will register themselves through OTP based password and then complete

the application process in prescribed format. The Application format will downloaded from

web portal.

 The eligible FPO will have to apply for matching equity grant.

 Office bearer will fill all desired details on web portal .

e) Verification and recommendation of application at DLMC :

 The received application for FPO will be evaluated at DLMC level.

 Nodal Officer will scrutinize the application.

 Nodal Officer may undertake /check of members or shareholders of FPO on sample basis

for whom equity grant is being claimed by FPO.

 Nodal Officer-DLMC will verify and recheck the application and will put before DLMC

recommendation.

 Nodal officer will put the scrutiny report before DLMC for evaluation and approval.

 Nodal officer will forward application into Login of Implementing agency for further

processing.

झारखÖडगजट(असाधारण) सोमवार, 20 मई, 2024

f) Verification & recommendation of application at State Level:

 Director, Agriculture will scrutinize the application received from DLMC and sanction the

matching equity grant for eligible FPO.

 Existing PMU at directorate will assist in scrutiny and coordination among Implementing

agencies, FPOs and District.

 After due diligence the eligible FPO will be approved for entering into MoU.

 If required, implementing agencies may be asked for further clarification.

g) Drafting of MoU:

 The MoU will be drafted by SLMC. In drafting of MoU will be done in consultation with

implementing agency and should be based on prescribed MoU by Government of India

Guidelines.

 If required draft MoU may also be vetted by Law Department.

h) Entering into MoU:

 The Director, Agriculture will invite approved FPO by DLMC for entering into MoU within

given time line. (Maximum 30 days from the date of signing MoU, however in no case

period should exceed 60 days)

 Authorized official (who has applied for obtaining benefit of scheme on behalf of FPO) of

approved FPO will enter into MoU with the Director, Agriculture.

 The signed MoU will be uploaded on portal.

 The time period of MoU will be valid till validity of MoU between FPO and implementing

agency.

 In case the approved FPO failed to sign MoU within given timeframe, the FPO will be marked

as ineligible FPO for availing the matching grant under this scheme. Such ineligible FPO has

apply fresh application online again with valid reasons/ justification.

Note: In case of death of applying authorized official of FPO. FPO need to submit application to

District Agriculture Officer along with Board resolution for second authorized official)

i) Release of matching equity grant to FPOs:

 After entering into MoU, the one time matching equity grant will be released to the bank

account of FPO by Director Agriculture through DBT. Maximum amount of one time

matching equity grant will be Rs 15 lakhs (Fifteen lakhs only). As for example, if FPO having

100 shareholders and equity is Rs 2 lakhs then FPO will be given Rs 2 lakhs matching equity

grant.

 Matching grant will be released within 30 days of MoU.

झारखÖडगजट(असाधारण) सोमवार, 20 मई, 2024

 Director, Agriculture will ensure timely processing of application and release of matching

equity grant to FPOs.

j) Performance based incentives to FPO:

 The well performing FPOs will be incentivize over and above one time matching grant for

next 4 years towards promoting and encouraging their business capabilities, competency

and transactions.

 Based on performance evaluation the FPOs under MoU will also be given annual financial

assistance up to next 4 years from the date of release of one time matching grant. The

performance of FPO will be evaluated on incremental annual sales turn over and profitability

of FPO. A marking system will be developed for performance parameters and based on

evaluation the assistance will be given to FPO.

 The FPO will be given financial incentive up to maximum Rs.10 lakhs equivalent to profit

margin before tax or on incremental sales turn over for next 4 years. The minimum profit

before tax of FPO should be Rs.2 lakhs for a financial year. As for example, if a FPO has made

incremental profit margin before tax from business transaction of Rs 2 lakh in a particular

year, then they will be given Rs.2 lakhs as an incentive, however in no case incentive will be

more than Rs.10 lakhs. Similarly, if annual sales turnover of FPO increased by Rs 2 lakh over

previous year then FPO will be given equivalent incentive of Rs.2 lakhs, however, in no case

incentive will be more than Rs.10 lakh. The minimum incremental sales turnover should be

Rs 2 lakhs over previous year.

 In case , if FPO performance is below Rs.2 lakhs in terms of profitability or sales turnover in

any year during the first 5 years from the date of selection under this scheme, then for that

year no incentive will be given. In any case, the time period for availing incentive will not be

beyond 5 years from the date of selection of FPO under this scheme.

 The incentive will be either for annual incremental sales turn over or profitability. FPO

performance will be judged either on any criteria.

 FPO have to submit audited balance sheet for claiming incentive based on profitability/ sales

turn over.

k) Re-imbursement of Certification charges in case of natural/ organic farming:

 FPOs which are engaged in organic or natural farming and having certification for organic

cultivation on agricultural, horticultural, dairy, fisheries, poultry, piggery, goatery, duckery,

NTFP and allied activities from recognized and renowned agencies of national and

international repute will be given special assistance towards reimbursement of 100%

certification charges.

l) Award and other incentives:

 3 Best FPOs will be awarded with cash price of Rs.1 lakh, Rs.50,000 & Rs.25000 each for

performance in terms of Turnover, image building for one district one product, profitability

and number of shareholders.

झारखÖडगजट(असाधारण) सोमवार, 20 मई, 2024

 Best FPOs will recommended for national and international awards and return economy

flight tickets for two office bearers will be reimbursed towards attending such events.

 Selected FPOs will be encourage to participate in national & international level exhibitions,

trade fairs etc to show case their unique business and products. The expenditure towards

stall charges (minimum charges), return economy flight ticket for two office bearers and

lodging & boarding charges for 3 star accommodation will be reimbursed.

 Selected FPOs will invited to participate in State level exhibition, programmes & occasions

etc to exhibit their capabilities, products, activities during such occasion.

State level FPO facilitation centre:

 A state level FPO facilitation centre for supporting business development of FPOs will

established.

 The facilitation center will extend support to FPOs for need based B2B networking and

market linkage, management support, technical support etc will be established.

 A State level FPO facilitation center will be set up by Director, Agriculture.

 A expert PMU will be setup to run the facilitation center. The PMU will be hired through

online open tender.

 If required district level PMU may also be set up.

 The expenditure towards setting up and running of such facilitation center will be born

under admin expenditure.

Mechanism of Fund Transaction:

 Director, Agriculture will open a corpus fund account in bank.

 The expenditure will done through PFMS portal.

 Other expenditure will be met through administrative expenditure.

Budget Provision:

 A budget Rs.50 crore has been earmarked for the financial year 2023-24.

 A corpus fund will be created and fund will kept in bank account for smooth operation under

this scheme.

 5% of total budget will be kept towards admin expenditure.

 Depending upon the need, admin expenditure towards various activities like set up of

PMU/Facilitation centre, incentives, awards, training, exposure visit, exhibition ect may be

increased/revised from next year onwards with approval of Department level.

झारखÖडगजट(असाधारण) सोमवार, 20 मई, 2024

Online Grievance re-addressal :

All types of Grievances of applicant will be processed through portal. The application processing

status may be check by applicant online. However a help line number will also be created for the

applicant. The Grievance cell will be set up at Directorate of Agriculture.

Creation of conducive environment for special FPOs:

Under this scheme formation of new and need based FPOs will be supported in the area/location

where there is no existing FPOs through convergence of schemes.

Amendments in Operational guidelines:

Based on recommendations of State level monitoring committee the Operational aspect of

guidelines may be amended by the department.

Disclaimer:

A due diligence has been taken to prepare this guidelines, however, there are possibilities of typo

and grammatical error. Hence, readers and users of guidelines are requested to carefully read and

use this document.

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अधी¢क

अधी¢क, झारखÖड

झारखÖड राजकȧय मुġणालय

राजकȧय मुġणालय, राँची ɮवारा Ĥकाͧशत एवं मुǑġत

राँची ɮवारा Ĥकाͧशत एवं मुǑġत,

झारखÖड गजट

झारखÖड गजट (असाधारण

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