BKS Alleges CBBOs Involved In Multi-Crore Scam

Bharatiya Kisan Sangh (BKS) has alleged that Cluster-Based Business Organisations (CBBOs) are involved in a scam worth crores of rupees.

This allegation was made by National BKS president K Sai Reddy during a media interaction in Bhopal on Monday.

The Central Government had launched a central sector scheme called Formation and Promotion of 10,000 Farmers Producer Organisations (FPOs) in 2021. The total budgetary outlay for this scheme was Rs 6,865 crore.

According to Reddy, 70% of CBBOs have failed to promote FPOs. FPOs are provided Rs 33 lakh for three years and CBBOs are provided Rs 25 lakh per FPO for five years to promote FPOs.

There are 10,000 FPOs and 300 CBBOs in the country. FPOs are provided financial assistance up to Rs 18 lakh per FPO for a period of three years. In addition to this, provision has been made for a matching equity grant up to Rs 2,000 per farmer member of an FPO, with a limit of Rs 15 lakh per FPO.

A credit guarantee facility up to Rs 2 crore of project loan per FPO from eligible lending institutions has also been made available to ensure institutional credit accessibility to FPOs.

Reddy also stated that the Central Government permitted state government to procure 25% of the moong crop, but everything depended on the state government. He emphasized that all agricultural produce should be procured at the minimum support price (MSP).

BKS has suggested that the government should develop a fertiliser distribution system through FPOs and Primary Agricultural Credit Societies. To achieve this, FPOs should be granted licences for fertiliser and seed distribution.

This allegation by BKS has brought attention to the functioning of CBBOs and their role in promoting FPOs. The government had launched the scheme to promote FPOs and provide financial assistance to farmers.

However, the alleged failure of CBBOs to promote FPOs has raised concerns about the effectiveness of the scheme. The government needs to take action to address these concerns and ensure that the scheme is implemented effectively.

The issue of procurement of agricultural produce at MSP is also a major concern for farmers. The government needs to take steps to ensure that all agricultural produce is procured at MSP to provide fair prices to farmers.

In conclusion, the allegation by BKS has highlighted the need for effective implementation of the scheme to promote FPOs and provide financial assistance to farmers. The government needs to take action to address the concerns raised by BKS and ensure that the scheme is implemented effectively.