**Executive Summary**
This document addresses Unstarred Question No. 641 in Lok Sabha, concerning agricultural subsidies and employment generation schemes. It outlines the Indian government's support to farmers, Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and entrepreneurs through various schemes. The response details the financial assistance and efforts to prevent subsidy payment delays, with data as of December 31, 2025.
**Key Points / Main Content**
* **Government Support:**
* The Government of India implements Central Sector and Centrally Sponsored Schemes for farmer welfare, providing financial assistance and subsidies.
* These schemes aim to promote employment, entrepreneurship, and income enhancement in rural areas, covering all aspects of agriculture.
* **FPO Scheme:**
* The "Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)" scheme launched in 2020 with a budgetary outlay of Rs. 6865 Crores.
* Provides financial assistance of up to ₹18.00 lakh per FPO for 3 years for FPO management.
* Includes a matching equity grant of up to ₹2,000 per farmer member (max. ₹15.00 lakh per FPO) and a ₹2 crore project loan credit guarantee per FPO.
* As of 31.12.2025, 10,000 FPOs registered, ₹430.77 Crore distributed to 6557 FPOs, and ₹662.71 Cr credit guarantee cover issued to 2671 FPOs.
* **Subsidy Disbursement:**
* Disbursement of subsidies follows scheme-specific guidelines.
* No uniform time-limit prescribed, but efforts are made for timely release subject to procedural requirements, proposal approvals, and fund availability.
* **Addressing Delays:**
* The government addresses subsidy disbursement delays reported by States/Union Territories.
* Measures include strengthening monitoring, using digital platforms (DBT), conducting periodic reviews, simplifying procedures, and issuing advisories.
* **Schemes Annexure:**
* 28 schemes supporting States in agriculture are listed, including Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), Formation and Promotion of 10,000 new Farmer Producers Organizations (FPOs), and National Bamboo Mission.
**Impact Analysis**
**Stakeholder: Farmers, Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and Entrepreneurs**
* **Impact:**
* Financial assistance and subsidies provided under various schemes contribute to income enhancement and employment generation.
* The FPO scheme enables them to enhance bargaining power, leverage economies of scale, reduce production costs, and enhance incomes.
* **Action Required:**
* Understand and comply with the guidelines of the specific schemes to avail financial assistance and subsidies.
* Follow the required procedures and documentation for timely processing and disbursement of subsidy amounts.
**Stakeholder: State Governments and Union Territories**
* **Impact:**
* Affected by the implementation of Central Sector and Centrally Sponsored Schemes in their respective regions.
* Responsible for addressing any reported delays in subsidy disbursement and ensuring timely processing of payments.
* **Action Required:**
* Comply with the procedures and guidelines of the schemes to facilitate timely processing and release of funds.
* Report any delays in subsidy disbursement to the central government and implement corrective measures.
Key Entities Referenced
Ministry of Agriculture and Farmers Welfare: The primary Indian government ministry responsible for policies related to agriculture and farmers' welfare, including subsidy schemes.
Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs): A central scheme aimed at strengthening farmer collectives and increasing their income through the formation and promotion of Farmer Producer Organizations.
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): A Central Sector Scheme to provide income support to all landholding farmer families in the country.
Agricultural subsidies and employment generation schemes: The general topic of discussion which provides financial assistance and subsidies to farmers, FPOs, SHGs, and entrepreneurs to promote employment and income enhancement in the agricultural sector.
States and Union Territories: The geographical area to which government implements the range of Central Sector as well as Centrally Sponsored Schemes and programmes for the welfare of farmers.
O.I.H.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 641
TO BE ANSWERED ON 3RD FEBRUARY, 2026
AGRICULTURAL SUBSIDIES AND EMPLOYMENT GENERATION SCHEMES
†641. DR. FAGGAN SINGH KULASTE:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ(cid:874)ष एवं (cid:873)कसान क(cid:227)याण मं(cid:287)ी
be pleased to state:
(a) whether the Government provides subsidies to farmers, Farmer Producer
Organisations (FPOs), Self Help Groups (SHGs) and entrepreneurs under employment-
oriented schemes in the agricultural sector;
(b) if so, the names of such schemes presently under implementation along with the
provision and percentage of subsidy under each scheme;
(c) the prescribed time-limit for disbursment of the sanctioned subsidy amount to the
beneficiaries under the said schemes;
(d) whether complaints regarding delays in subsidy payments in various States have
come to the notice of the Government; and
(e) if so, the reasons therefor and the steps being taken by the Government to address
and eliminate such delays?
ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ(cid:874)ष एव ं (cid:873)कसान क(cid:227)याण रा(cid:207)य म(cid:287)ं ी (SHRI RAMNATH THAKUR)
(a) to (c): 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 agriculture
1. 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 Mantri Annadata Aay SanraksHan Abhiyan (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. Paramparagat Krishi Vikas Yojana (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
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