10,000 FPOs Formation Scheme
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What is 10,000 FPOs Formation Scheme?
The Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs) scheme is a flagship central government initiative launched in 2020 by the Ministry of Agriculture & Farmers Welfare with a budget of ₹6,865 crore over 5 years (2020-25, extended to 2027). The scheme aims to aggregate small and marginal farmers into FPOs (Farmer Producer Companies, Cooperatives, or Producer Societies) to give them collective bargaining power for input purchase and output marketing. Each FPO gets: (1) Matching equity grant up to ₹18 lakh over 3 years (₹15 per farmer member, maximum ₹18 lakh), (2) Credit guarantee cover up to ₹2 crore per FPO via NABARD/NCDC (eliminates need for collateral for crop loans), (3) Project Management Agency (PMA) support — professionals hired to provide technical, marketing, and legal handholding for 5 years. SFAC (Small Farmers Agribusiness Consortium) is the national coordination agency.
10,000 FPOs Formation Scheme — Quick Overview
| Scheme Name | 10,000 FPOs Scheme 2026 — Farmer Producer Organisation Formation: ₹18 Lakh Equity Grant + Credit Guarantee |
| Launched By | Government of India |
| Launch Year | 2020 |
| Benefit | Equity grant up to ₹18 lakh per FPO + Credit guarantee ₹2 crore (no collateral) + Professional PMA support for 5 years + Priority access to NABARD/NCDC loans + GeM portal seller onboarding + FPO Market Linkage support |
| Category | Agriculture |
| Last Verified | 27 May 2026 |
| Official Portal | https://sfacindia.com |
Benefits of 10,000 FPOs Formation Scheme
Equity grant up to ₹18 lakh per FPO + Credit guarantee ₹2 crore (no collateral) + Professional PMA support for 5 years + Priority access to NABARD/NCDC loans + GeM portal seller onboarding + FPO Market Linkage support
Major Benefits
| Support | Details |
|---|---|
| FPO formation | Formation and handholding support for eligible farmer groups |
| Management support | Professional management support during the initial years |
| Equity support | Matching equity grant to strengthen the FPO's financial base |
| Credit support | Facilitation of institutional credit and credit guarantee |
| Business support | Support for aggregation, processing, value addition and marketing |
| Capacity building | Training and skill development for FPO members |
Who is Eligible for MIDH Horticulture Mission?
- Horticulture farmers — individuals, SHGs, FPOs, cooperatives
- For polyhouse/greenhouse: own agricultural land + water source
- For NE & Himalayan states: HMNEH component with higher subsidy
- Apply through State Horticulture Mission (state agriculture department)
How to Apply for MIDH Horticulture Mission Online?
- Approach the State Horticulture Mission office under your state's agriculture department to start the MIDH application.
- For commercial horticulture investment, register directly with the National Horticulture Board at nhb.gov.in.
- Submit land records and water source proof (borewell/canal) to qualify for polyhouse or drip irrigation subsidy.
- Prepare and submit a project proposal (DPR) for infrastructure components like cold storage or protected cultivation.
- Provide Aadhaar card, bank passbook, and caste/category certificate (if applicable) for subsidy processing.
- Subsidy of 40-90% is released after horticulture department or NHB officials verify project completion.
- SHGs, FPOs, and cooperatives can apply collectively through their organisation instead of as individuals.
Key Objectives
- Improve farmers' bargaining power
- Enable collective purchase of agricultural inputs
- Improve access to markets and better prices
- Promote aggregation, processing and value addition
- Reduce input and marketing costs
- Improve access to credit, technology and infrastructure
- Strengthen farmers' income and business opportunities
Who Can Benefit?
The scheme primarily benefits small and marginal farmers, including farmers who come together through an FPO. FPOs can help members collectively undertake activities such as input procurement, production, storage, processing, branding and marketing.
How FPOs Help Farmers
Farmers → FPO → Aggregation → Processing/Value Addition → Market → Better Bargaining Power
In Short
10,000 FPO Scheme = Farmer Collectives + Better Inputs + Market Access + Value Addition + Stronger Farmer Businesses