CURRENT AFFAIRS

Detailed explanation-1: -NAFED has formed & registered 05 Honey FPOs during current year in Uttar Pradesh, Madhya Pradesh, Rajasthan, Bihar & West Bengal. FPOs will be provided financial assistance upto Rs 18.00 lakh per FPO for a period of 03 years. In addition to this, provision has been made for matching equity grant upto Rs.

Detailed explanation-2: -Promotion of FPO by Government The ongoing support for the FPOs is mainly in the form of a grant of matching equity, i.e. cash infusion of up to Rs. 10 lakh to registered FPOs, and providing credit guarantee cover to lending institutions, i.e. maximum guarantee cover 85% of loans not exceeding Rs. 100 lakh).

Detailed explanation-3: -In order to maintain the same momentum in the future, a budget provision of Rs 955 crore has been earmarked for the formation of new FPOs this year, while the Agriculture Infra Fund and Pradhan Mantri Fasal Bima Yojana, beneficial for the farmers, are also being promoted.

Detailed explanation-4: -Financing Farmer Producer Companies (FPC)/ Organization (FPO) To meet the credit requirements of the Farmer Producer Companies / Organizations in the form of term loans to create an assets and Working capital loan to meet the recurring expenditure.

Detailed explanation-5: -The minimum paid-up Capital being Rs. 1 Lakh and minimum authorized capital being Rs. 5 lakh for a PC, it easy to mobilise the small amount. Minimum number of producers required to form a PC is 10 while there is no limit for maximum number of members and the membership can be increased as per feasibility and need.