NABARD Subsidy: New FPO Support for Export-Oriented Agri-Clusters

NABARD has introduced a refined support framework for Farmer Producer Organizations (FPOs) aiming to enter the global market. This initiative focuses on building last-mile export infrastructure, such as primary processing centers, specialized grading lines, and climate-controlled storage facilities. According to the NABARD operational guidelines for agri-export clusters, FPOs are eligible for credit-linked capital subsidies to bridge the gap between farm-gate and international shipping ports. This scheme complements the existing Central Sector Scheme for the formation and promotion of 10,000 FPOs, emphasizing value addition for export-quality produce like grapes, mangoes, and spices. ## What this means for exporters For SME exporters sourcing from rural areas, this provides an opportunity to partner with FPOs that are now financially backed to maintain export standards. Leveraging the NABARD subsidy reduces the capital expenditure (CAPEX) for setting up collection centers. Exporters should encourage their FPO partners to apply through the regional NABARD offices. Key requirements include a viable business plan and a buy-back agreement with a merchant exporter or a direct foreign buyer to secure the subsidy disbursement.