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Formation of 10,000 FPOs
CoreSignal / Agriculture & Employment / Formation of 10,000 FPOs
Central Farmer Scheme

Formation of 10000 FPOs: Equity Grant, Credit Guarantee and How Farmers Form a Producer Company

What the Centre gives a farmer producer organisation, which agencies help form one, and how a group of farmers can register.

Compiled from official releases and published sources, October 2026 9 min read Department: Ministry of Agriculture & Farmers Welfare, Government of India

01What the Scheme Is

The scheme for Formation and Promotion of 10000 FPOs (Farmer Producer Organisations) is a Central Sector scheme with a budget of ₹6,865 crore, running to 2027-28. An FPO is a company or cooperative owned by farmers, which buys inputs and sells produce together so that small farmers get better prices.

02What an FPO Receives

Support under the scheme
ItemDetail
Equity grantMatching grant of up to ₹2,000 per member, capped at ₹15 lakh per FPO
Credit guaranteeCover for project loans up to ₹2 crore per FPO
Management cost₹18 lakh per FPO over five years

03Agencies That Help

The scheme is carried out through the Small Farmers’ Agribusiness Consortium (SFAC), NABARD (through NABKISAN), the National Cooperative Development Corporation (NCDC) and, in some cases, NAFED and state bodies. These agencies appoint cluster-based business organisations (CBBOs) that help farmers form and run FPOs block by block.

04Progress Reported

A Press Information Bureau note of February 2025 reported the 10,000th FPO launched in Khagaria, Bihar, with about 30 lakh farmer members, around 40% of them women. A Lok Sabha reply of March 2025 reported all 10,000 registered.

The two sources differ on equity grants and credit guarantees released, with credit guarantee figures far apart. No West Bengal FPO count was found.

05How a Farmers’ Group Forms an FPO

  1. Contact the state or district office of SFAC, NABARD, NCDC or NAFED, or the CBBO working in the block.
  2. The group brings farmers together as members. Guides mention minimum memberships of 300 in plains and 100 in hills.
  3. Register the FPO as a producer company under the Companies Act or as a cooperative society.
  4. Apply for the equity grant and credit guarantee through the implementing agency. Registration on e-NAM is encouraged so that the FPO can trade online.
The minimum membership figures are from guides and were not found on the official pages. The agency can state the current requirement.

07Frequently Asked Questions

Can an individual farmer apply for this scheme?

No. The support goes to an FPO. An individual farmer can join an existing FPO as a member or help form one.

How much equity grant does an FPO get?

A matching grant of up to ₹2,000 per member, up to ₹15 lakh per FPO.

Is the scheme still open?

It runs to 2027-28 according to the 2025 note, though the target of 10,000 FPOs was reported as registered by early 2025.

How many FPOs are in West Bengal?

The official state count could not be confirmed here. The implementing agencies publish it.

This page is updated periodically. Benefit amounts, limits, dates and portal menus change; for the most current and binding information, always refer to the official portal or the implementing office.