GovernmentCentral (Department of Agriculture & Farmers Welfare) Verified 2026-07-05

Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs)

Financial assistance up to Rs 18 lakh per FPO towards management cost over 3 years; matching equity grant up to Rs 2,000 per farmer member (max Rs 15 lakh per FPO); credit guarantee facility up to Rs 2 crore of project loan per FPO. Five years of handholding support.

Maximum benefit value

₹18 L

Eligibility

  • New FPOs registered as producer companies or cooperatives
  • Minimum 300 members in plains; 100 members in hilly/North-Eastern regions
  • Must be a legal entity that has raised member equity as per its byelaws

How to apply

FPOs are formed and handheld by Implementing Agencies and Cluster-Based Business Organisations (CBBOs) empanelled under the scheme; equity grant and credit guarantee accessed through the implementing framework.

Required documents

  • FPO registration/incorporation documents
  • Member list and equity records
  • Byelaws/Articles of Association
  • Bank account details

Official sources

Verification notes

Verified on pib.gov.in and nic.in scheme guidelines. Rs 18 lakh management cost, Rs 15 lakh equity grant cap and Rs 2 crore credit guarantee confirmed. maxValueInINR set to management-cost component. [AI-gathered from official sources on 2026-07-05; needs team review]