Heard government gives matching money to FPOs as equity grant. How much and how to claim.
What is the FPO equity grant under the 10,000 FPO scheme?
AAnjali Verma1yr ago · 422 views
3 Answers
🌾Farmer.in Krishi TeamExpert ✓1yr ago
Under SFAC's Equity Grant scheme, the government gives a matching equity grant of up to Rs 2,000 per farmer member, subject to a maximum of Rs 15 lakh per FPO. Example: if 750 members each put in Rs 2,000 (Rs 15 lakh paid-up capital), the matching grant doubles it to roughly Rs 30 lakh, strengthening your balance sheet and creditworthiness. The FPO must be a registered Producer Company or cooperative, have a minimum member base and shareholding, and apply through the SFAC portal with audited accounts and a business plan. There is also a Credit Guarantee Fund to back loans from eligible lenders. Eligibility limits and ceilings are revised periodically, so verify the latest figures on the SFAC website before applying.
PPrakash Naik1yr ago
We applied through our CBBO and the main hold up was audited accounts. Get your books audited early and keep member shareholding records clean, otherwise the application bounces back. The matching grant did help us get a bigger working capital loan afterwards.
SShabana Khan1yr ago
Remember the grant goes into the FPO as equity, it is not cash you can spend freely on salaries or distribute to members. It strengthens your capital base so lenders trust you more. Treat it as a tool to unlock credit, not as income. Confirm the exact per member and per FPO ceiling with your district SFAC or NABARD office as it has been revised over the years.