Economics · Economy
Consider the following statements regarding institutional support for Farmer Producer Organizations (FPOs) in India: Statement 1: The Small Farmers Agri-Business Consortium (SFAC) is a registered society that plays a pivotal role in implementing the Equity Grant Scheme and Credit Guarantee Fund Scheme. Statement 2: An FPO is a legal entity formed by primary producers operating on cooperative principles where surplus can be distributed among members based on patronage. Statement 3: Under the Equity Grant Scheme managed by SFAC, a matching grant up to a maximum of 15 lakh is provided to eligible FPOs to enhance their capital base. Which of the following assessments is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statement 1 and Statement 2 are accurate, but Statement 3 is incorrect because the maximum limit for the equity grant is 30 lakh per FPO.
- 2All three statements are accurate and reflect the current operational framework for FPOs in India.✓
- 3Statement 1 is correct, but Statement 2 and Statement 3 are incorrect because FPOs are not allowed to distribute surplus as dividends.
- 4Only Statement 3 is correct as SFAC has been entirely replaced by NABARD for all equity related schemes.
Correct answer
All three statements are accurate and reflect the current operational framework for FPOs in India.
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