Section 42
Farmers and FPOs
A farmer can grow into a processor, trader or service provider, alone or through a Farmer Producer Organisation. Credit, infrastructure loans and food-processing subsidies are built for this step.
- Farmers connected to FPOs (about 40% of them women) · 2025
- About 30 lakh
- Equity grant released under the 10,000 FPO scheme (to 4,761 FPOs) · 2025
- ₹254.4 crore
- Credit guarantee cover issued to FPOs (1,900 FPOs) · 2025
- ₹453 crore
Schemes and loans for you
- Formation and Promotion of 10,000 FPOsActiveCentral scheme that helps farmers form a producer company or cooperative, with five years of handholding, equity support and a loan guarantee.Equity grant up to ₹2,000 per member (max ₹15 lakh per FPO); ₹18 lakh management cost over 3 years; loan guarantee up to ₹2 croreOfficial page ↗
- National Horticulture Board (NHB) capital subsidyActiveBack-ended subsidy for commercial horticulture, protected cultivation, mushroom units, post-harvest and cold storage.35% (general areas) or 45% (NE, hill and scheduled areas); cold storage max ₹2 croreDetails →Official page ↗
- NABARD AgriSURE fundActiveEquity funding for agri and rural startups through NABARD-backed investment funds.Ticket size up to ₹25 croreDetails →Official page ↗
- Agriculture Infrastructure Fund (AIF)UnclearInterest subvention and guarantee on loans for warehouses, cold chains, sorting and processing near the farm.3% interest subvention on loans up to ₹2 crore for up to 7 yearsDetails →Official page ↗
- PM Formalisation of Micro Food Processing Enterprises (PMFME)UnclearCapital subsidy for small food-processing units; FPOs, SHGs and cooperatives can also apply.35% of eligible project cost, max ₹10 lakh per unitDetails →Official page ↗
- Kisan Credit Card (KCC)UnclearA revolving crop and working-capital loan from banks, also available for animal husbandry and fisheries.Details →Official page ↗
- Agri-Clinics and Agri-Business Centres (ACABC)UnclearFree training and a loan-linked subsidy for agriculture graduates who set up a farm-advice or agri-business centre.Subsidy 44% (women, SC/ST, NE and hill states) or 36% (others) of project costDetails →Official page ↗
- Sub-Mission on Agricultural Mechanization (SMAM)UnclearSubsidy for farm machines and for custom hiring centres that rent machines to small farmers.Details →Official page ↗
- Pradhan Mantri Matsya Sampada Yojana (PMMSY)UnclearHelp for fish farming, hatcheries, feed plants, cold chains and fish markets.Details →Official page ↗
Business ideas that suit you
- Dairy Farm (Cows / Buffaloes)from ₹1.9 lakh
- Mushroom Cultivation & Processingfrom ₹13.7 lakh
- Vermicompost Unitfrom ₹3.5 lakh
- Honey Bee Farming (Beekeeping)from ₹6.6 lakh
- Rice Mill (Mini)from ₹20.1 lakh
- Dal Millfrom ₹17.7 lakh
- Cold Storage (Potato, 2000 MT)from ₹1.3 crore
- Tractor and Ploughing Hire Servicefrom ₹16.4 lakh
- Plant Nursery (Fruit / Ornamental)from ₹15 lakh
- Cattle Feed (Pellet) Unitfrom ₹23.4 lakh
Sources (9)
- 10,000 FPOs Achieved under Government's Flagship Scheme (1 Mar 2025) · 2025
- AIF Revised Scheme Guidelines, September 2024 · 2024
- PM FME Scheme Guidelines (2020) · 2020
- myScheme — Kisan Credit Card · 2026
- NHB Public Circular dated 21 Aug 2026 (revised rates) · 2026
- myScheme — Agri-Clinics And Agri-Business Centres Scheme · 2026
- myScheme — Sub-mission On Agriculture Mechanization · 2026
- myScheme — Pradhan Mantri Matsya Sampada Yojana · 2026
- AgriSURE — Agri Fund for Start-ups and Rural Enterprises · 2026