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📰 Bihar Agriculture & Cooperative Banking (Dec 2024 - Aug 2026) Chapter 5: 4th Krishi Road Map, PACS Computerization, DCCBs, FPOs & Rural Credit

Mod 5: June–July 2025: Farmer Producer Organizations (FPOs) Expansion & Direct Agri-Exports

📖 Chapter 5 of 8 🧩 Module 5 of 14 ⏱️ ~2 min read 💡 10 MCQs
Topic Part 1 of 2

Scaling Farm Collectives & Export Corridors (Jun–Jul 2025):

By mid-2025, Bihar consolidated over 750 active Farmer Producer Organizations (FPOs) under the Central Sector Scheme for Formation and Promotion of 10,000 FPOs, driven by NABARD and the Small Farmers' Agri-Business Consortium (SFAC).


Institutional Impact & Infrastructure Grants:

  • Custom Hiring Centers (CHCs): FPOs received capital grants up to 80% (capped at ₹15–20 lakh) to procure heavy tractors, rotavators, drone sprayers, and combine harvesters rented to marginal member farmers at subsidized hourly tariffs.
  • Shahi Litchi & Mango Air Corridors: Coordinated by APEDA and the State Horticulture Mission, FPOs from Muzaffarpur and Bhagalpur exported commercial consignments of GI-tagged Shahi Litchi and Zardalu Mango directly to the United Kingdom, UAE, and European markets via custom-bonded air cargo from Patna and Kolkata.
  • Makhana Producer Companies: In Madhubani, Darbhanga, and Purnia, FPOs installed automated grading, sorting, and vacuum-packaging lines to eliminate local intermediary traders.

Exam View: Key Takeaways:

  • Target FPO Saturation: Over 750 registered producer companies in Bihar.
  • Farm Machinery Bank Subsidy: Up to 80% capital subsidy for FPO hiring hubs.
  • Export Promotion Agency: APEDA (Agricultural and Processed Food Products Export Development Authority).
  • GI Export Highlights: Shahi Litchi (Muzaffarpur) & Zardalu Mango (Bhagalpur).
⭐ Key Points
  • Target FPO Saturation: Over 750 registered producer companies in Bihar.
  • Farm Machinery Bank Subsidy: Up to 80% capital subsidy for FPO hiring hubs.
  • Export Promotion Agency: APEDA (Agricultural and Processed Food Products Export Development Authority).
  • GI Export Highlights: Shahi Litchi (Muzaffarpur) & Zardalu Mango (Bhagalpur).
📌 One-line Q&A
  • Target FPO Saturation: Over 750 registered producer companies in Bihar.
  • Farm Machinery Bank Subsidy: Up to 80% capital subsidy for FPO hiring hubs.
  • Export Promotion Agency: APEDA (Agricultural and Processed Food Products Export Development Authority).
  • GI Export Highlights: Shahi Litchi (Muzaffarpur) & Zardalu Mango (Bhagalpur).
Questions 10 MCQs

Answer this question, then use Next.

What capital subsidy percentage is provided to Farmer Producer Organizations (FPOs) to establish Custom Hiring Centers / Farm Machinery Banks?

FPOs receive up to 80% capital subsidies (capped under scheme guidelines) to set up farm machinery banks.

Which central statutory authority coordinates the overseas export of Bihar's GI-tagged Shahi Litchi and Zardalu Mango?

APEDA (Agricultural and Processed Food Products Export Development Authority) facilitates agricultural exports.

Approximately how many Farmer Producer Organizations (FPOs) were consolidated in Bihar by mid-2025?

Over 750 FPOs operate across Bihar, aggregating smallholder production.

Which district of Bihar is world-renowned for its GI-tagged Shahi Litchi export clusters?

Muzaffarpur produces the famous Shahi Litchi, protected under a Geographical Indication tag.

What is the full form of SFAC, which promotes Farmer Producer Companies alongside NABARD?

SFAC stands for Small Farmers' Agri-Business Consortium, under the Ministry of Agriculture.

What equity grant support is provided to an eligible FPO under the central promotion scheme?

Eligible FPOs can receive an Equity Grant of up to ₹15 lakh matching the capital raised from member farmers.

Which district in East Bihar is the traditional home of the sweet and aromatic GI-tagged Zardalu Mango?

Bhagalpur is renowned for the GI-tagged Zardalu Mango.

What type of modern farm spraying machinery is subsidized for FPOs to accelerate pest control?

Kisan Drones are subsidized for FPOs and custom hiring centers to enable precise spraying of bio-pesticides and liquid nano-urea.

Under which legislation are Farmer Producer Companies officially registered in India?

FPOs are registered as Producer Companies under the Indian Companies Act.

Which district in Seemanchal houses dedicated FPOs processing commercial baby corn and sweet corn?

Purnia and Katihar in the maize belt host FPOs aggregating and processing specialty corn products.
Question 1 of 10

One-liners

Write your answer, then submit to see the correct answer.

Target FPO Saturation: ______

Over 750 registered producer companies in Bihar.

Farm Machinery Bank Subsidy: ______

Up to 80% capital subsidy for FPO hiring hubs.

Export Promotion Agency: ______

APEDA (Agricultural and Processed Food Products Export Development Authority).

GI Export Highlights: ______

Shahi Litchi (Muzaffarpur) & Zardalu Mango (Bhagalpur).