Agri, allied sectors contribution to GDP can further rise on strengthened marketing; FPOs are key: Shah

Cooperation Minister Amit Shah on Friday said the contribution of agriculture and allied sectors to the country’s GDP can be further enhanced by strengthening marketing, for which Farmer Producer Organisations (FPOs) are the key.

Addressing a conclave here, the minister said agriculture can become a profitable business if modern technology and marketing methods are adopted. Primary Agricultural Credit Societies (PACS) and Farmer Producer Organisations (FPOs) can help in this endeavour.

Shah said FPOs formed by PACS are more capable to provide benefits to farmers compared to FPOs set up by individuals, companies and partnerships. He also asked existing FPOs to have an agreement with PACS.

Shah noted that agriculture, animal husbandry and fisheries sectors are the backbone of the Indian economy. The growth in these sectors will not only help in increasing GDP but also create job opportunities.

Shah highlighted the initiatives taken by the Narendra Modi government in the last nine years in the agriculture sector to boost farmers’ income.

He said the budget for the agriculture sector in 2023-24 is Rs 1.15 lakh crore against around Rs 22,000 crore in 2013-14. Shah said the MSP has been increased significantly and strengthened procurement operations. Agriculture Minister Narendra Singh Tomar and Minister of State for Cooperation BL Verma also attended the event.