Temporal and Spatial Dynamics of Equity Grant Fund Availment among Farmer-Producer Organisations in India

Abstract

Background: The various constraints and limitations to farmers revealed the scope for rural institutions as an engine for growth of the sector, coupled with government support to enhance the financial and marketing facilities for farmers in India. Aim: The present study examines the growth and state-wise distribution of the Equity Grant Fund (EGF) for Farmer-Producer Organisations (FPOs) in India during 2014–2024. Methodology: The study utilized Secondary data on the number of FPOs availed the Equity Grant and the respective amount distributed to the FPOs across India. The data were analysed using Compound Annual Growth Rate (CAGR), Coefficient of Variation (CV), and Cuddy–Della Valle Index (CDVI). The state-wise comparison between pre and post CSS period was depicted using graphical tools (arrow plots and split bar charts). Results: The results reveal substantial increases in both outreach (49.89%) and fund disbursement (49.64%), accompanied by considerable year-to-year volatility. A clear structural shift is observed after 2021–22, coinciding with the implementation of the Central Sector Scheme (CSS) for the promotion of 10,000 FPOs, which significantly accelerated scheme expansion. Maharashtra and Tamil Nadu account for a large share of total fund utilization, while the CSS has improved geographical inclusiveness by expanding EGF access to previously underrepresented states. Conclusion: The study identified that the Equity Grant has been an important scheme in ensuring sustainability of the formed FPOs across the country. The findings also highlight the role of complementary institutional support as well as the catalytic role of the CSS scheme in enhancing the sustainability and financial viability of smallholder collectives in India.