Content: 10,000 FPOs Achieved under Government’s Flagship Scheme National Waterways (Construction of Jetties/Terminals) Regulations, 2025 10,000 FPOs Achieved under Government’s Flagship Scheme Introduction The Central Sector Scheme for “Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)” was launched by Prime Minister Narendra Modi on 29th February 2020. Budget outlay of ₹6,865 Crore till 2027-28. ₹254.4 Crore in equity grants released to 4,761 FPOs. ₹453 Crore credit guarantee cover issued to 1,900 FPOs. 10,000th FPO launched in Khagaria district, Bihar, focusing on maize, banana, and paddy. Over 30 lakh farmers connected to FPOs, with 40% women participation. Relevance : GS 2(Governance ),GS 3(Agriculture) What are FPOs? Definition: Collectives of farmers registered under the Companies Act or Co-operative Societies Act. Purpose: Achieve economies of scale in production, marketing, and access to institutional support. Implementing Agency: Small Farmers’ Agribusiness Consortium (SFAC), under the Ministry of Agriculture & Farmers Welfare. Need for FPOs Small and marginal farmers face challenges in: Access to technology, quality inputs (seeds, fertilizers, pesticides), and credit. Market linkages and fair pricing due to low bargaining power. FPOs strengthen farmers’ economic capacity by facilitating: Collective purchase and sales. Direct market access, reducing dependency on middlemen. Value addition and processing capabilities. Objectives of the Scheme Form 10,000 FPOs to create a sustainable farming ecosystem. Improve productivity, market linkages, and access to institutional finance. Provide handholding support for 5 years, including₹18 lakh financial assistance per FPO. Enable FPOs to become self-sustaining through entrepreneurship training. Convergence of Ministries for FPO Development Ministry of Agriculture & Farmers Welfare: Provides input licenses, dealership support, and market linkage via ONDC, e-NAM. Ministry of Food Processing: Offers 35% capital subsidy, 50% branding/marketing grants. Ministry of MSMEs: Provides credit guarantees, equity grants, and capacity-building programs. Ministry of Fisheries, Animal Husbandry & Dairying: Funds dairy cooperatives and fodder FPOs. APEDA: Supports export-oriented FPOs. Spices Board: Aids in export promotion and value addition for spices. Key Services and Activities of FPOs Input Supply: Seeds, fertilizers, pesticides at wholesale rates. Machinery Rental: Custom hiring of farm equipment. Value Addition: Cleaning, grading, sorting, and packaging. Market Aggregation: Collective marketing for better price realization. Logistics Support: Storage, transportation, and loading/unloading services. Higher-Income Activities: Seed production, beekeeping, mushroom cultivation, etc. Major Initiatives under the Scheme Credit Guarantee Fund (CGF): Dedicated CGF created to facilitate bank loans for FPOs. Ensures better access to credit from financial institutions. ONDC Registration: 5,000 FPOs onboarded on ONDC to enable digital marketing and online sales. Strengthens B2B and B2C transactions, reducing dependence on intermediaries. MoU for Converting FPOs into CSCs: Collaboration between CSC SPV & Ministry of Agriculture. 10,000 FPOs to be converted into CSCs for digital service delivery. Inclusivity and Social Impact Special focus on marginal farmers, women SHGs, SC/ST farmers. Ensuring financial and social empowerment of weaker sections. Promotion of sustainable and climate–resilient farming practices. National Waterways (Construction of Jetties/Terminals) Regulations, 2025 Context and Significance Inland waterways have been underutilized in India despite their potential for cost-effective, fuel-efficient, and environmentally friendly cargo transport. The new regulations aim to unlock private sector investments, enhance logistics efficiency, and reduce transportation costs. This move aligns with the broader infrastructure development goals of the government, fostering Ease of Doing Business (EODB) and promoting the inland waterways sector as a growth engine. Relevance : GS 3(Infrastructure) Key Features of the Regulations Permission and Approval Process Any public, private, or joint venture entity must obtain a No Objection Certificate (NoC) from the Inland Waterways Authority of India (IWAI) before developing a terminal. Both new and existing jetties/terminals fall under the purview of these regulations. Classification of terminals: Permanent terminals: Can be operated throughout their lifetime. Temporary terminals: Initially granted for five years, extendable based on performance and compliance. Role of the Terminal Developer and Operator The technical design and construction responsibility lies with the developer, ensuring compliance with business and environmental standards. Adequate connectivity and access must be provided to facilitate efficient cargo movement. Digital Portal for Transparency and Efficiency IWAI is developing an online portal for: Application submission for jetties/terminals. Tracking the approval process in real time. Ensuring transparency, efficiency, and ease of access in regulatory procedures. Impact on Infrastructure and Economic Growth Private Sector Involvement and Investment Encourages public-private partnerships (PPPs), leading to greater capital inflow into inland waterways infrastructure. Reduces government expenditure burden while leveraging private sector efficiency. Boost to Cargo Movement and Trade Cargo transport on national waterways increased from 18 million tonnes to 133 million tonnes in FY 2023-24. Enhanced infrastructure will further increase freight movement, making waterways a competitive alternative to road and rail transport. Expected to lower logistics costs and reduce congestion on highways and rail networks. Environmental and Cost Benefits Inland water transport is cheaper and has a lower carbon footprint compared to road and rail. Aligns with India’s sustainability goals by reducing fossil fuel consumption in logistics. Government Initiatives Strengthening the Waterways Sector Jalvahak Scheme Aims to shift 17% of cargo transport to national waterways, reducing reliance on road and rail networks. Provides financial and operational incentives to promote water-based logistics. Digitalization and Process Simplification Online portals and streamlined regulatory frameworks reduce bureaucratic delays, ensuring a seamless investment climate. Alignment with PM Gati Shakti and Maritime Vision 2030 Supports the broader PM Gati Shakti initiative, which focuses on multi-modal connectivity and integrated infrastructure planning. Complements Maritime Vision 2030, which aims to establish India as a global maritime power. Challenges and Way Forward Infrastructure Bottlenecks Need for modernizing existing jetties and developing last-mile connectivity to integrate waterways with road and rail. Regulatory and Compliance Issues Ensuring fast approvals and clear policy guidelines for private investors. Need for a robust dispute resolution mechanism to build investor confidence. Awareness and Adoption Challenges Limited awareness among businesses about the cost benefits of inland waterways. The government must undertake capacity-building initiatives and provide financial incentives for faster adoption.