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Govt central schemes boost support for farmers, FPOs & SHGs
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Thursday, 05 February, 2026, 14 : 00 PM [IST]
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Our Bureau, New Delhi
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The Government of India has reaffirmed its commitment to strengthening agriculture and rural livelihoods by implementing a wide range of central sector and centrally sponsored schemes that provide financial assistance, subsidies, and institutional support to farmers, Farmer Producer Organisations (FPOs) and Self-Help Groups (SHGs). These schemes are designed to enhance agricultural productivity, promote entrepreneurship, foster collective action, and improve rural incomes across the country.
In a written reply to the Lok Sabha, the Ministry of Agriculture & Farmers’ Welfare detailed key support mechanisms that encompass the full spectrum of the agricultural ecosystem — covering credit, insurance, income support, infrastructure, seeds, mechanisation, marketing, organic and natural farming, digital agriculture, irrigation and procurement at Minimum Support Prices (MSP), among others.
A flagship initiative under this umbrella is the “Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs)” launched in 2020 with a budgetary outlay of Rs 6,865 crore. This programme aims to strengthen farmers’ bargaining power, enhance economies of scale, reduce production costs, and improve incomes by aggregating agricultural produce through collective action. Under this scheme, FPOs receive financial assistance of up to Rs 18 lakh per organisation for management support over three years. Additionally, a matching equity grant of Rs 2,000 per farmer member — capped at Rs 15 lakh per FPO — and a credit guarantee facility of up to ?2 crore are provided to enhance access to institutional credit.
As of 31 December 2025, all 10,000 targeted FPOs have been registered under the scheme, with financial support disbursed to thousands of groups. A total of Rs 430.77 crore has been distributed as matching equity grants to 6,557 FPOs, while Rs 662.71 crore of credit guarantee cover has been issued to 2,671 FPOs, underscoring the program’s reach and impact.
Officials highlighted that while there is no uniform timeline for subsidy disbursement across schemes, efforts are underway to streamline processes, strengthen monitoring, leverage digital platforms, and promote timely release of funds, subject to clearances and availability.
The government’s holistic approach aims to empower farmers, improve rural enterprise opportunities, and sustain agricultural growth by combining finance, capacity building, collective organisation, and policy backing — ultimately contributing to stronger rural economies and increased farmer incomes.
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