UPSC Prelims Practice Questions — Government Achieves Milestone of 10,000 Farmer Producer Organisations Registered Across the Country

Q1. Under the Central Sector Scheme for 'Formation and Promotion of 10,000 FPOs', what is a Cluster-Based Business Organisation (CBBO)?

  • A. A multi-disciplinary agency, empanelled by an implementing agency, that registers and provides end-to-end professional handholding to FPOs for five years
  • B. The apex trust that operates the dedicated Credit Guarantee Fund and issues collateral-free cover to lenders financing FPOs
  • C. A federation of producer companies that markets the aggregated produce of member FPOs on commission
  • D. The single nodal implementing agency responsible for disbursing the matching equity grant to all FPOs

Q2. With reference to the legal forms an FPO may take, consider the following statements: 1. An FPO may be incorporated as a Producer Company under the Companies Act, 2013. 2. An FPO may be registered as a cooperative society under a State Cooperative Societies Act. 3. The Producer Company legal form originated on the recommendation of the Y.K. Alagh Committee. 4. Under the scheme, an FPO must necessarily be registered as a Section 8 (non-profit) company. Which of the above is/are NOT correct?

  1. An FPO may be incorporated as a Producer Company under the Companies Act, 2013.
  2. An FPO may be registered as a cooperative society under a State Cooperative Societies Act.
  3. The Producer Company legal form originated on the recommendation of the Y.K. Alagh Committee.
  4. Under the scheme, an FPO must necessarily be registered as a Section 8 (non-profit) company.
  • A. 1 only
  • B. 4 only
  • C. 3 and 4
  • D. 2 only

Q3. Under which provisions of the Companies Act, 2013 are Producer Companies presently governed?

  • A. Sections 378A to 378ZU
  • B. Sections 581A to 581ZT
  • C. Sections 8 to 25
  • D. Sections 465 to 470

Q4. With reference to women's participation under the 10,000-FPO scheme, consider the following statements: 1. 1,175 FPOs are registered with 100% women members. 2. As on 1 January 2026, about 21.96 lakh of the registered farmer-members were women. 3. Women constitute roughly 40% of the farmers connected to FPOs. 4. The scheme mandates that every FPO must have a woman as its Chief Executive Officer. Which of the above is/are NOT correct?

  1. 1,175 FPOs are registered with 100% women members.
  2. As on 1 January 2026, about 21.96 lakh of the registered farmer-members were women.
  3. Women constitute roughly 40% of the farmers connected to FPOs.
  4. The scheme mandates that every FPO must have a woman as its Chief Executive Officer.
  • A. 1 only
  • B. 2 and 3
  • C. 4 only
  • D. 1 and 2

Q5. Consider the following statements regarding women and membership norms under the 10,000-FPO scheme: 1. 1,175 of the registered FPOs are 100% women-member FPOs. 2. Women shareholders are to be preferred under the scheme's membership norms. 3. The total registered farmer-membership crossed 56 lakh as on 1 January 2026. 4. The scheme mandates a minimum of 50% women members in every FPO. Which of the statements given above is/are correct?

  1. 1,175 of the registered FPOs are 100% women-member FPOs.
  2. Women shareholders are to be preferred under the scheme's membership norms.
  3. The total registered farmer-membership crossed 56 lakh as on 1 January 2026.
  4. The scheme mandates a minimum of 50% women members in every FPO.
  • A. 1 and 4
  • B. 2, 3 and 4
  • C. 1, 2 and 3
  • D. 1 and 2 only

Q6. In which year was the Central Sector Scheme 'Formation and Promotion of 10,000 FPOs' launched?

  • A. 2011
  • B. 2013
  • C. 2018
  • D. 2020

Q7. On the recommendation of which committee was the Producer Company legal form first created in India?

  • A. Y.K. Alagh Committee
  • B. Ashok Dalwai Committee
  • C. Shanta Kumar Committee
  • D. M.S. Swaminathan Commission

Q8. The FPO aggregation strategy is aimed primarily at which category of cultivators, who form the single largest share (about 86%) of India's farmers?

  • A. Small and marginal farmers
  • B. Semi-medium farmers
  • C. Medium farmers
  • D. Large farmers

Q9. Consider the following statements linking the FPO push to broader farmer-welfare initiatives: 1. PM-KISAN provides income support of Rs. 6,000 per year to eligible farmers. 2. The Doubling Farmers' Income strategy is associated with the Ashok Dalwai Committee. 3. The 10,000th FPO was launched alongside the release of the 19th instalment of PM-KISAN. 4. The 10,000-FPO scheme is a Centrally Sponsored Scheme funded on a 60:40 Centre-State basis. Which of the above is/are NOT correct?

  1. PM-KISAN provides income support of Rs. 6,000 per year to eligible farmers.
  2. The Doubling Farmers' Income strategy is associated with the Ashok Dalwai Committee.
  3. The 10,000th FPO was launched alongside the release of the 19th instalment of PM-KISAN.
  4. The 10,000-FPO scheme is a Centrally Sponsored Scheme funded on a 60:40 Centre-State basis.
  • A. 1 only
  • B. 4 only
  • C. 2 and 3
  • D. 1 and 4

Q10. With reference to the 10,000th FPO that marked the scheme's milestone, which one of the following is correct?

  • A. It is registered in Khagaria district, Bihar, and deals in maize, banana and paddy
  • B. It is the only all-women FPO formed under the entire scheme
  • C. It is the first FPO ever registered in India
  • D. It is registered exclusively as a cooperative and can never be a producer company

Q11. Under the scheme, the matching equity grant is capped at what amount per FPO?

  • A. Rs. 15 lakh
  • B. Rs. 18 lakh
  • C. Rs. 20 lakh
  • D. Rs. 2 crore
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