Here is the whole scheme in one place: what you get, who qualifies, how to apply, and what to check.
| Scheme | Central Sector Scheme for Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs) |
|---|---|
| Ministry | Ministry of Agriculture and Farmers Welfare, Govt of India |
| Benefit | Equity grants, credit guarantee support, and business and market linkages for the FPO |
| Who can apply | Groups of farmers who produce agricultural goods, including small, marginal and landless farmers |
| How it is supported | Matching equity grant and credit guarantee through SFAC and partner agencies |
| Apply at | Through your state agriculture department, SFAC or a registered FPO promoting agency |
| Cost to join | Free to farmers, though members contribute share capital |
Key points
- FPOs help small farmers buy inputs cheaper and sell produce at better prices.
- The scheme has a total outlay of about Rs 6,865 crore up to 2027-28.
- Around 40% of the members of these FPOs are women farmers.
- The target of 10,000 FPOs was reached ahead of the March 2025 deadline.
So what does a farmer actually get from an FPO?
An FPO is a collective company formed by farmers who produce the same or related crops.
Members buy seeds, fertilisers and equipment together, which lowers the cost for each farmer.
Together they can sell produce in bulk and get a better price than they would alone.
The scheme also supports the FPO with a matching equity grant and a credit guarantee, so it can borrow more easily.
Shared facilities like mini-mills and cold storage help farmers add value to raw produce.
Who can join, and what does the scheme ask of a group?
The scheme is meant for farmers who produce agricultural goods, especially small, marginal and landless farmers.
Farmers come together as a group and register the FPO under a company or cooperative law.
The FPO works on a cluster-based approach for a produce or a mix of produce in a region.
Under the One District One Product idea, the FPO focuses on processing, branding, marketing and exporting a product declared for its district.
Members are expected to take part in the FPO's activities throughout the year, not just during one season.
Why were FPOs started, and what has changed recently?
The scheme was launched by Prime Minister Narendra Modi on 29 February 2020.
The Small Farmers' Agribusiness Consortium, under the Ministry of Agriculture, supports state governments in forming FPOs.
Average landholding has shrunk, from 1.08 hectares in 2015-16 to about 0.74 hectares in 2021-22, so pooling resources helps.
India reached the milestone of 10,000 FPOs, bringing nearly 30 lakh farmers together, before the March 2025 deadline.
Some critics say the focus should move beyond the number of FPOs to how well they actually earn money for members.
What documents should you keep ready?
Keep your Aadhaar card and a bank account linked with Aadhaar for every member.
Keep your land records, such as khatauni or the record of rights, to show you are a farmer.
For the FPO itself, keep the registration papers, the list of members, and the share capital details.
Keep a mobile number that every member can be reached on.
How do you form or join an FPO, step by step?
First, talk to your village or block agriculture officer about a farmer group in your area.
Gather a group of farmers who grow the same or similar produce in your region.
Register the FPO as a company or cooperative, with help from the state department or a promoting agency.
Each member buys shares in the FPO, and the group appoints a CEO and a board.
Once registered, the FPO can apply for the scheme's equity grant and credit support through SFAC.
- 1Talk to a local officerTalk to your village or block agriculture officer about a farmer group in your area.
- 2Gather a group of farmersGather farmers who grow the same or similar produce in your region.
- 3Register the FPORegister as a company or cooperative, with help from the state department or a promoting agency.
- 4Buy shares and appoint leadersEach member buys shares, and the group appoints a CEO and a board.
- 5Apply for supportOnce registered, apply for the equity grant and credit support through SFAC.
Graphic: News Anek, from the facts in this report
What should you do if support is delayed or you have a doubt?
Ask your state agriculture department or the FPO promoting agency about the status of your application.
Check the official ministry website for the latest guidelines and forms.
Be careful of anyone who asks for money to get your FPO registered. Official support does not need payment to agents.
Who can help, and what tips should you remember?
Contact your district agriculture office, or the SFAC office, for guidance on forming an FPO.
Choose members who are serious about regular participation, since the scheme values year-round engagement.
Make sure the accounts are clear and shared with all members from the start.
Frequently asked questions
Is there a fee to join an FPO?
Farmers buy shares in the FPO, which are their own capital. Be wary of any agent who asks for extra payment to register you.
Can women farmers join an FPO?
Yes. Around 40% of the members of the 10,000 FPOs are women farmers.
Is the scheme only for small farmers?
It focuses on small, marginal and landless farmers, but any farmer who produces agricultural goods can be part of an FPO.
Is there a last date to join?
The target of 10,000 FPOs was met ahead of March 2025. Check the official site for any new phase or application window.
Who runs the scheme?
The Ministry of Agriculture and Farmers Welfare runs it, with the Small Farmers' Agribusiness Consortium supporting state governments.
Official links
This guide is based on official scheme rules. Rules and amounts can change, so always confirm on the official website before you apply. News Anek is not a government website.
