Budget 2019 will help to create FPOs agribusiness Ecosystem

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Pune : 5July MAHAFPC has satisfied over the budgetary announcement for the promotion and development of FPOs, said Yogesh Thorat. Union budget highlighted to form the farmer producer Organisations for the agricultural development. This will help to create ecosystem for rebooting the growth of business of FPOs. Presently, FPOs are facing the problem of conducive business environment. However today’s announcement will be explored by value chain stakeholders like financial institutions, Retail Organisations, private sector, food processors etc. 

it was also demand of FPOs to raise funds from the stock exchanges. Electronic Stock exchanges platform called Social stock exchange has been proposed in the budget. It may be good opportunity for FPOs to be listed on these platform to raise capital for equity, debt or as like  mutual fund for value chain development. Also, support for Non Banking Financial Companies will help to promote collateral free value chain financing.

At the marketing front, centre has assured to support  by instructing APMCs not to hamper farmers from getting fair prices. It is positive move for the agriculture marketing reforms. Changes in custom duty of cashew kernel to 70% will help to benefit local cashew growers. Also, custom duty of 7.5% on oils will increase the competitiveness of FPOs dealing with soybean   over hiked MSP.

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