**Executive Summary**
This document details the Government of India's initiatives to support farmers, Farmer Producer Organizations (FPOs), and Self Help Groups (SHGs) through various Central Sector and Centrally Sponsored Schemes. These schemes aim to promote employment, entrepreneurship, and income enhancement in rural areas. A key initiative mentioned is the "Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)" launched in 2020.
**Key Points / Main Content**
* **Government Schemes and Support:**
* The Government of India implements schemes providing financial assistance and subsidies to farmers, FPOs, SHGs, and entrepreneurs.
* Schemes cover a wide range of agricultural aspects, including credit, insurance, income support, infrastructure, crops, marketing, and digital agriculture.
* **Formation and Promotion of FPOs:**
* Launched in 2020 with a budget of Rs. 6865 Crores.
* Aims to enhance farmers' bargaining power and income through aggregation.
* FPOs receive up to ₹18.00 lakh for FPO management over 3 years.
* Matching equity grants up to ₹2,000 per farmer member (limit of ₹15.00 lakh per FPO) are available.
* Credit guarantee facility up to ₹2 crore of project loan per FPO is provided to ensure credit accessibility.
* As of 31.12.2025, 10,000 FPOs have been registered, ₹430.77 Crore distributed to 6557 FPOs as matching equity grant, and ₹662.71 Cr issued to 2671 FPOS as a credit guarantee.
* **Disbursement of Subsidies:**
* Disbursement is carried out as per the respective scheme guidelines.
* Efforts are made to ensure timely release of funds, subject to procedural requirements, approval of proposals, and availability of funds.
* **Addressing Delays:**
* The Government takes immediate action on instances of delay in subsidy disbursement.
* Measures include strengthening monitoring, digital platforms, Direct Benefit Transfer (DBT), reviews with States/UTs, simplification of procedures, and advisories.
* **List of Schemes:**
* An Annexure provides a list of schemes implemented by the Government to support States in agriculture, including:
* Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
* Pradhan Mantri Fasal Bima Yojana (PMFBY)
* Agriculture Infrastructure Fund (AIF)
* National Mission on Natural Farming (NMNF)
* Per Drop More Crop (PDMC)
* and many others (28 schemes listed in total).
**Impact Analysis**
**Stakeholder: Farmers**
* **Impact:** Enhanced income potential, access to credit and insurance, improved agricultural practices.
* **Action Required:** Participate in relevant schemes, form or join FPOs.
**Stakeholder: Farmer Producer Organizations (FPOs)**
* **Impact:** Financial assistance for management, access to credit guarantee, enhanced bargaining power.
* **Action Required:** Register under the scheme, apply for financial assistance and credit facilities.
**Stakeholder: Self Help Groups (SHGs)**
* **Impact:** Access to financial assistance and subsidies for promoting entrepreneurship in rural areas.
* **Action Required:** Apply for relevant schemes and utilize the available resources.
**Stakeholder: States and Union Territories**
* **Impact:** Implementing central schemes for agricultural development and rural entrepreneurship.
* **Action Required:** Report any delays in subsidy disbursement, participate in periodic reviews, and simplify procedures for timely processing and release of subsidies.
Key Entities Referenced
Ministry of Agriculture & Farmers Welfare: The central ministry responsible for the schemes and programs discussed in the document.
Farmer Producer Organizations (FPOs): Organizations of farmers that are a central focus of the central schemes discussed.
Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs): A major scheme launched in 2020 aimed at enhancing farmers' bargaining power and incomes through FPOs.
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): A scheme listed in the annexure of schemes implemented by the Government to support States in agriculture.
Direct Benefit Transfer (DBT): A system used to disburse subsidy amounts effectively by the government.
Ministry of Agriculture & Farmers Welfare
Central Schemes Support Farmers, FPOs and
SHGs to Boost Income and Rural
Entrepreneurship
Posted On: 03 FEB 2026 8:11PM by PIB Delhi
Government of India is implementing a comprehensive range of Central Sector as well as Centrally
Sponsored Schemes and programmes for the welfare of farmers across under which financial assistance
and subsidies are provided to farmers, Farmer Producer Organisations (FPOs), Self Help Groups (SHGs)
and entrepreneurs with a view to promoting employment generation, entrepreneurship and income
enhancement in rural areas. These schemes encompass entire spectrum of agriculture including credit,
insurance, income support, infrastructure, crops including horticulture, seeds, mechanization, marketing,
organic and natural farming, farmer collectives, irrigation, extension, procurement of crops from farmers
at minimum support prices and digital agriculture.
The "Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)" was launched in the
year 2020 with a total budgetary outlay of Rs.6865 Crores to enable farmers enhance their bargaining
power, leverage economies of scale, reduction in cost of production and enhancing farmers’ incomes
through aggregation of their agricultural produce, thus playing a major role towards sustainable income.
Under the said scheme, FPOs are provided financial assistance upto ₹18.00 lakh per FPO for a period of
03 years for FPO management. In addition to this, provision has been made for matching equity grant upto
₹2,000 per farmer member of FPO with a limit of ₹15.00 lakh per FPO and a credit guarantee facility upto
₹2 crore of project loan per FPO from eligible lending institution to ensure institutional credit accessibility
to FPOs. As on 31.12.2025, 10,000 FPOs have been registered under the scheme ₹430.77 Crore has been
distributed to 6557 FPOs as a matching equity grant and credit guarantee cover worth ₹662.71 Cr is issued
to 2671 FPOS.
The list of the schemes implemented by the Government to support States in agriculture is at Annexure.
The disbursement of sanctioned subsidy amounts under the aforesaid schemes is carried out as per the
provisions of the respective scheme guidelines. While no uniform time-limit has been prescribed across all
schemes, efforts are made to ensure timely release of funds subject to fulfilment of procedural
requirements, approval of proposals and availability of funds.
(d)&(e):Government take immediate action on instances of delay in disbursement of subsidy amounts
under certain schemes as and when such cases are reported from States and Union Territories.The
Government has taken several measures, inter alia, including strengthening of monitoring mechanisms,
adoption of digital platforms and Direct Benefit Transfer (DBT) systems, periodic review with
States/Union Territories, simplification of procedures, and issuance of advisories to ensure timely
processing and release of subsidies.
ANNEXURE
The list of the schemes implemented by the Government to support States in agriculture1. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
2. Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY)
3. Pradhan Mantri Fasal Bima Yojana (PMFBY)/Restructured Weather Based Crop Insurance Scheme
(RWBCIS)
4. Modified Interest Subvention Scheme (MISS)
5. Agriculture Infrastructure Fund (AIF)
6. Formation and Promotion of 10,000 new Farmer Producers Organizations (FPOs)
7. National Bee Keeping and Honey Mission (NBHM)
8. Namo Drone Didi
9. National Mission on Natural Farming (NMNF)
10. Pradhan MantriAnnadataAaySanraksHanAbhiyan (PM-AASHA)
11. Agri Fund for Start-Ups & Rural Enterprises’ (AgriSURE)
12. Per Drop More Crop (PDMC)
13. Sub-Mission on Agriculture Mechanization (SMAM)
14. ParamparagatKrishiVikasYojana (PKVY)
15. Soil Health & Fertility (SH&F)
16. Rainfed Area Development (RAD)
17. Agroforestry
18. Crop Diversification Programme (CDP)
19. Sub-Mission on Agriculture Extension (SMAE)
20. Sub-Mission on Seed and Planting Material (SMSP)
21. National Food Security and Nutrition Mission (NFSNM)
22. Integrated Scheme for Agriculture Marketing (ISAM)
23. Mission for Integrated Development of Horticulture (MIDH)
24. National Mission on Edible Oils (NMEO)-Oil Palm
25. National Mission on Edible Oils (NMEO)-Oilseeds
26. Mission Organic Value Chain Development for North Eastern Region
27. Digital Agriculture Mission
28. National Bamboo Mission
This information was given by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath
Thakur in a written reply in Lok Sabha today.
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RC/PU/641
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