About this farmer scheme
The Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs) scheme is a flagship central government initiative launched in 2020 by the Ministry of Agriculture & Farmers Welfare with a budget of ₹6,865 crore over 5 years (2020-25, extended to 2027). The scheme aims to aggregate small and marginal farmers into FPOs (Farmer Producer Companies, Cooperatives, or Producer Societies) to give them collective bargaining power for input purchase and output marketing. Each FPO gets: (1) Matching equity grant up to ₹18 lakh over 3 years (₹15 per farmer member, maximum ₹18 lakh), (2) Credit guarantee cover up to ₹2 crore per FPO via NABARD/NCDC (eliminates need for collateral for crop loans), (3) Project Management Agency (PMA) support — professionals hired to provide technical, marketing, and legal handholding for 5 years. SFAC (Small Farmers Agribusiness Consortium) is the national coordination agency.
Farmer benefits at a glance
| Scheme Name | 10,000 FPOs Scheme 2026 — Farmer Producer Organisation Formation: ₹18 Lakh Equity Grant + Credit Guarantee |
| Launched By | Government of India |
| Launch Year | 2020 |
| Benefit | Equity grant up to ₹18 lakh per FPO + Credit guarantee ₹2 crore (no collateral) + Professional PMA support for 5 years + Priority access to NABARD/NCDC loans + GeM portal seller onboarding + FPO Market Linkage support |
| Category | Agriculture |
| Last Verified | 9 September 2026 |
| Official Portal | https://sfacindia.com |
What farmers receive
Equity grant up to ₹18 lakh per FPO + Credit guarantee ₹2 crore (no collateral) + Professional PMA support for 5 years + Priority access to NABARD/NCDC loans + GeM portal seller onboarding + FPO Market Linkage support
Which farmers qualify
- ✓Minimum 300 farmer members (hills/tribal: 100 members) to form a qualifying FPO
- ✓At least 2/3rd members must be small or marginal farmers (landholding ≤ 2 hectares)
- ✓FPO must be registered as FPC (Farmer Producer Company under Companies Act 2013), Cooperative, or Producer Society
- ✓Must be in agriculture, horticulture, fisheries, animal husbandry, or allied sectors
- ✓Existing FPOs formed after April 2020 are also eligible if they meet the membership criteria
Papers to keep ready
Registration walkthrough
- 1Aggregate minimum 300 farmers (or 100 in hills/tribal areas) willing to form an FPO
- 2Select a Cluster Based Business Organisation (CBBO) — government-empanelled NGO/professional agency that will guide FPO formation
- 3Register FPO as Farmer Producer Company at MCA21 portal OR as Cooperative under state law
- 4Apply to SFAC/NABARD/NCDC (depending on state) with FPO registration + member list + DPR
- 5After approval, receive equity grant in 3 instalments and access credit guarantee facility
- 6CBBO/PMA will provide 5-year handholding for business operations, marketing, and financial management
Official Government Portal
The single official window for this scheme is sfacindia.com. Filing is free, so steer clear of touts promising guaranteed selection.
🔗Apply on sfacindia.com