Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs)
10,000 कृषक उत्पादक संगठनों (एफपीओ) का गठन एवं संवर्धन
A central sector scheme that helps a cluster of farmers register their own Producer Organisation, then backs it with an equity grant, a collateral-free credit guarantee and five years of professional handholding — not a cash payment to any individual farmer.
- Scheme type
- Central Sector Scheme
- Total outlay
- ₹6,865 crore (2019-20 to 2027-28)
- Target
- 10,000 FPOs — achieved Feb 2025
- Launched
- 29 February 2020, Chitrakoot (UP)
- Equity grant
- Up to ₹15 lakh per FPO
- Credit guarantee
- Up to ₹2 crore per FPO
- Handholding
- 5 years per FPO (via CBBO)
- Implementing agencies
- SFAC, NABARD, NCDC
Overview
This Central Sector Scheme funds the formation of new Farmer Producer Organisations (FPOs) — companies or cooperatives owned and run by farmers themselves — and then supports each one for its first five years. The Cabinet Committee on Economic Affairs approved it on 19 February 2020 with an outlay of ₹6,865 crore; Prime Minister Narendra Modi launched it on 29 February 2020 at Chitrakoot, Uttar Pradesh.
Three implementing agencies — SFAC, NABARD and NCDC — are each allocated clusters (mostly on a "one district, one product" basis) by the Ministry. In every cluster, the agency engages a Cluster Based Business Organisation (CBBO), a professional resource institution that mobilises farmers, prepares the business plan and gets the FPO registered — as a Producer Company or a Cooperative Society, with farmers as its shareholder-members.
The scheme itself pays nothing to an individual farmer's bank account. What it pays is to the FPO entity: a matching equity grant, a credit guarantee on the loans it takes, and management-cost support for its first three years, plus five years of CBBO handholding. A farmer benefits by becoming a shareholder-member — buying inputs cheaper and selling produce collectively at a better price — not by receiving a scheme instalment.
Scheme highlights
CBBO-mediated formation
A professional Cluster Based Business Organisation mobilises farmers and gets the FPO registered — you never have to do the paperwork alone.
Matching equity grant
Up to ₹2,000 per farmer-member, capped at ₹15 lakh per FPO, paid to the FPO to strengthen its capital base.
Collateral-free credit guarantee
Cover of up to ₹2 crore on a project loan per FPO, so banks lend to the FPO without demanding land or other collateral.
Management cost support
Up to ₹18 lakh per FPO (or actual, whichever is lower) over its first three years, to pay a CEO/manager and run the office.
5-year handholding
The CBBO stays engaged for five years from the FPO's formation — business planning, input tie-ups, market linkage, credit access.
One district, one product
Clusters are largely organised around a district's specialised crop or produce, aimed at better processing, branding and export.
What you get
Equity grant to the FPO
A matching grant of up to ₹2,000 per farmer-member, capped at ₹15 lakh per FPO — paid to the company, not to any member individually.
Credit guarantee on FPO loans
Up to ₹2 crore of project loan per FPO is guaranteed; for loans above ₹1 crore up to ₹2 crore the cover is 75% of the loan, capped at ₹1.5 crore.
Management cost support
Up to ₹18 lakh per FPO (or actual cost, whichever is lower) across the first three years, mainly to cover salary and running costs.
Professional handholding
A CBBO stays with the FPO for five years — training the board, writing the business plan, arranging inputs and buyers.
Who is eligible
Both lists come from the notified operational guidelines — meeting the left column is not enough if anything in the right column applies to your family.
You qualify if
- You are a primary producer — a farmer, grower, or livestock/fishery producer, not only a trader or input dealer
- You are willing to become a shareholder-member of a Producer Organisation, not just a customer buying from one
- An active CBBO or an already-registered FPO covers your block/cluster, or your area can be proposed as a new cluster to SFAC/NABARD/NCDC
- For a brand-new FPO: at least 300 producers in a plain-area cluster (100 in hilly, North-Eastern, tribal or desert areas), as the scheme's cluster norm requires
- The FPO is registered, or will register, as a Producer Company under the Companies Act or as a Cooperative Society, with primary producers as its shareholders
Excluded — even with land
- Entities where members are not primary producers — pure trading, processing or input-dealer collectives
- An FPO that has already received the equity grant and/or credit guarantee once before under this scheme (each FPO is funded once)
- Informal, unregistered farmer groups — the financial support flows only after formal registration as a Producer Company/Cooperative
- A cluster no Implementing Agency has been allocated and no CBBO engaged for (there is no route to apply for the grant outside an identified cluster)
Where this scheme applies
A central scheme with pan-India coverage — open to eligible farmers in every State and Union Territory.
Documents you need
Have these ready before you start — the online form takes ten minutes when nothing is missing.
Aadhaar card
Identity proof needed to become a shareholder-member during FPO registration or a later share transfer.
Land record or proof of cultivation
Shows you are a genuine primary producer in the cluster's produce area — the basis on which a CBBO enrols members.
Passport-size photograph
Needed for the membership register and share certificate the FPO issues.
Bank passbook
For your share-money payment and any produce-sale payments the FPO makes to members.
Memorandum & Articles of Association (for a new FPO)
Drafted by the CBBO with the promoter group of farmers, and filed with the Registrar of Companies/Cooperative Societies.
CBBO baseline/feasibility report (for a new FPO)
The cluster survey and business-plan document the CBBO prepares before a new FPO is registered.
How to apply, step by step
The same six steps apply whether you register yourself online or sit down at a CSC.
- 1
Cluster allocation
The Ministry (DA&FW) allocates a produce cluster/district to one of the three Implementing Agencies — SFAC, NABARD or NCDC — which engages a CBBO for it.
- 2
Mobilisation
The CBBO runs village meetings and a baseline survey in the cluster, explaining what an FPO is and identifying interested farmers.
- 3
Promoter group and business plan
A group of committed farmers forms the promoter body; the CBBO drafts a business plan around the cluster's chosen produce.
- 4
Registration
The FPO is registered as a Producer Company (Registrar of Companies) or a Cooperative Society, with farmers as its founding shareholders.
- 5
Joining as a member
You (or any farmer in the cluster) can join by buying shares — either as a founding member at registration, or later through the FPO's board.
- 6
Support kicks in
Once registered, the FPO can draw the equity grant, apply for the credit-guaranteed loan, and receive CBBO handholding for five years.
Important dates
CCEA approval
19 February 2020
Scheme launched
29 February 2020
Launched by PM Narendra Modi at Chitrakoot, Uttar Pradesh
Original formation period
2019-20 to 2023-24
Outlay ₹4,496 crore for formation, plus a further ₹2,369 crore committed for 2024-25 to 2027-28 towards 5-year handholding
10,000-FPO target achieved
24 February 2025
10,000th FPO registered in Khagaria district, Bihar (maize, banana, paddy)
Financial support/handholding runs till
2027-28
Five years of CBBO support from each FPO's year of formation
Facts last checked
10 August 2026
Against sfacindia.com and pib.gov.in
Check your eligibility
Straight from the notified criteria. Nothing you enter leaves your phone.
0 of 6 answered
This checker applies the criteria in the official operational guidelines, but it is guidance — only the state government’s verification against the land records is final.
Downloads
Official documents only — everything below is hosted on the government's own servers.
Operational Guidelines (English)
The scheme rulebook — cluster norms, the role of Implementing Agencies and CBBOs, and the equity grant / credit guarantee / management-cost formulas, as notified by SFAC.
Addendum to Operational Guidelines (3 February 2025)
The latest official amendment to the operational guidelines, as published by SFAC.
Strategy Paper on Promotion of 10,000 FPOs
The original strategy document setting out the cluster approach and each implementing agency's role.
Official links & helpline
Bookmark the portal itself — no third-party site can release, block or speed up a payment.
- SFAC — FPO scheme pageThe nodal implementing agency's page for the scheme — guidelines, SOPs and state-wise FPO lists.
- SFAC — FPO scheme FAQsOfficial answers on membership, the formation process and financial support.
- NABARDOne of the three implementing agencies — covers the clusters allocated to it.
- NCDCOne of the three implementing agencies — forms FPOs registered as cooperative societies.
Helpline
24×7 IVRS and help desk, run by the ministry — the call is the fastest way to check a stuck payment.
Frequently asked questions
What is a Farmer Producer Organisation (FPO)?
An FPO is a company or cooperative owned and run by farmers themselves, who become its shareholder-members. It buys inputs in bulk, aggregates produce, and sells collectively so members get better prices than selling alone.
What is the "Formation and Promotion of 10,000 FPOs" scheme?
A Central Sector Scheme, approved by the Cabinet on 19 February 2020 and launched on 29 February 2020, with an outlay of ₹6,865 crore to form 10,000 new FPOs and support each one for five years. SFAC, NABARD and NCDC implement it through Cluster Based Business Organisations (CBBOs).
What is a CBBO?
A Cluster Based Business Organisation is a professional resource institution engaged by SFAC, NABARD or NCDC for a specific cluster. It mobilises farmers, prepares the business plan, gets the FPO registered, and then hand-holds it for five years — training the board, tying up input suppliers, and finding buyers.
How much equity grant does an FPO get?
A matching equity grant of up to ₹2,000 per farmer-member, capped at ₹15 lakh per FPO. It is paid to the FPO to strengthen its own capital base, not to individual members' bank accounts.
What is the credit guarantee, and how much does it cover?
It covers up to ₹2 crore of a project loan per FPO from an eligible bank or lending institution, so the FPO can borrow without pledging collateral. For a loan above ₹1 crore and up to ₹2 crore, the guarantee covers 75% of the loan, capped at ₹1.5 crore.
Is there support for an FPO's day-to-day running costs?
Yes. Management cost support of up to ₹18 lakh per FPO (or actual cost, whichever is lower) is available over its first three years — mainly to pay a CEO/manager and cover office running costs while the FPO becomes self-sustaining.
How do I join an existing FPO?
Find the FPO active in your block or produce cluster (ask your local CBBO, SFAC/NABARD/NCDC office, or the FPO's own board) and buy at least one share to become a shareholder-member. There is no separate online "apply" portal for individual membership — it is handled by the FPO's board.
How do I form a brand-new FPO if none exists in my area?
Approach your state office of SFAC, NABARD or NCDC (whichever is allocated your district) to ask whether a cluster and CBBO can be set up. As a norm, the scheme looks for at least 300 interested farmers in a plain-area cluster, or 100 in hilly, North-Eastern, tribal or desert areas, before a CBBO takes a new FPO through mobilisation and registration.
Who can be a member of an FPO?
Primary producers — farmers, growers, or livestock/fishery producers in the cluster's produce area. Other registered Producer Institutions can also hold membership. Traders and input dealers who are not themselves producers are not the intended members.
Is the equity grant or credit guarantee paid to me personally?
No. Both go to the FPO as a company/cooperative, not to any individual farmer's account. This is why the scheme has no fixed annual cash benefit for a farmer — the benefit is indirect, through the FPO's stronger capital, cheaper credit and better bargaining power.
Which agency implements the scheme in my state?
The Ministry allocates clusters/districts among the three Implementing Agencies — SFAC, NABARD and NCDC. There is no single public list mapping every district to its agency on the main scheme page; ask at your nearest SFAC, NABARD or NCDC state office, or your district agriculture office, which one covers your area.
Has the target of 10,000 FPOs been achieved?
Yes. The 10,000th FPO was registered on 24 February 2025 in Khagaria district, Bihar, focused on maize, banana and paddy. Financial support and the five-year CBBO handholding for FPOs already formed continue through 2027-28.
How is this different from PM-KISAN?
PM-KISAN pays ₹6,000 a year directly to an individual landholding farmer family's bank account. This scheme funds a collective — the FPO — not a person; the equity grant, credit guarantee and management-cost support all go to the registered FPO entity, and a farmer benefits indirectly by being its shareholder-member.
Is there a fee to join an FPO?
You pay for the shares you buy to become a member (a small, FPO-decided amount, often a few hundred rupees), the same as buying a stake in any cooperative. There is no fee to the government or the CBBO for the membership itself.
What happens after the 5 years of CBBO handholding end?
The CBBO's intensive support (business planning, market linkage, training) is for five years from the FPO's formation, with management-cost funding limited to the first three years. After that, the FPO is expected to run on its own revenue, though it can still access other schemes and bank credit like any registered producer company.
Still have questions?
The FAQs above cover the common ones. For anything about your specific application, the ministry helpline 011-26966017 is the authoritative answer — and we are happy to point you in the right direction.