Central Schemes Support Farmers, FPOs and SHGs to Boost Income and Rural Entrepreneurship
04 February 2026, New 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 agriculture
- Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
- Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY)
- Pradhan Mantri Fasal Bima Yojana (PMFBY)/Restructured Weather Based Crop Insurance Scheme (RWBCIS)
- Modified Interest Subvention Scheme (MISS)
- Agriculture Infrastructure Fund (AIF)
- Formation and Promotion of 10,000 new Farmer Producers Organizations (FPOs)
- National Bee Keeping and Honey Mission (NBHM)
- Namo Drone Didi
- National Mission on Natural Farming (NMNF)
- Pradhan MantriAnnadataAaySanraksHanAbhiyan (PM-AASHA)
- Agri Fund for Start-Ups & Rural Enterprises’ (AgriSURE)
- Per Drop More Crop (PDMC)
- Sub-Mission on Agriculture Mechanization (SMAM)
- ParamparagatKrishiVikasYojana (PKVY)
- Soil Health & Fertility (SH&F)
- Rainfed Area Development (RAD)
- Agroforestry
- Crop Diversification Programme (CDP)
- Sub-Mission on Agriculture Extension (SMAE)
- Sub-Mission on Seed and Planting Material (SMSP)
- National Food Security and Nutrition Mission (NFSNM)
- Integrated Scheme for Agriculture Marketing (ISAM)
- Mission for Integrated Development of Horticulture (MIDH)
- National Mission on Edible Oils (NMEO)-Oil Palm
- National Mission on Edible Oils (NMEO)-Oilseeds
- Mission Organic Value Chain Development for North Eastern Region
- Digital Agriculture Mission
- National Bamboo Mission
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