What is the SFAC Equity Grant for FPCs?

SFAC (Small Farmers' Agri-Business Consortium) provides a 1:1 matching equity grant to Farmer Producer Companies — for every rupee of farmer equity, SFAC matches it with a government grant, up to ₹15 Lakhs. The grant goes directly into the FPC's equity and does not need to be repaid.

How many farmer members does an FPC need for the SFAC equity grant?

Minimum 50 individual farmer shareholders in plains regions (lower thresholds apply for hilly areas and North-East). Each farmer must have a valid land record (7/12, RoR, or Patta) and Aadhaar linkage in the share allotment register.

Does the SFAC grant need to be repaid?

No. The SFAC Equity Grant is non-repayable. It is credited directly to the FPC's paid-up share capital account and strengthens borrowing capacity for bank credit.

SFAC Equity Grant for FPCs: ₹15 Lakh Matching Grant — Eligibility & How to Apply

The SFAC Matching Equity Grant is one of the most underutilised government schemes for Farmer Producer Companies. SFAC matches every rupee of farmer equity with one rupee of central government grant — up to ₹15 Lakhs — credited directly into your FPC's share capital. No repayment required.

Who Is SFAC?

The Small Farmers' Agri-Business Consortium (SFAC) is a Society promoted by the Ministry of Agriculture & Farmers' Welfare, Government of India, with the mandate to promote FPC formation and financial strengthening across India.

Eligibility Criteria

Farmer membership: Minimum 50 individual farmer shareholders in plains (lower in hilly/NE regions)
Land records: Each farmer must have a valid 7/12 extract, RoR, or Patta linked to their Aadhaar in the share allotment register (MGT-1)
Women director: At least one woman director on the board per SFAC guidelines
Equity paid-up: Minimum paid-up equity base at time of application
Active ROC compliance: All ROC forms (AOC-4, MGT-7A) filed and no outstanding penalties
Bank account: FPC must have an active current account with a scheduled commercial bank

What Documents Are Required?

Copy of Certificate of Incorporation and latest CIN
Memorandum and Articles of Association
MGT-1 Member Register (all farmers with land record numbers)
Share certificate copies (sample)
Last 2 years' audited financial statements
Board resolution authorising SFAC application
Bank statement for last 6 months
Aadhaar card of all farmer members with land linkage evidence

The #1 Reason FPCs Get Rejected

The most common rejection reason is incomplete land-Aadhaar linkage in the MGT-1 register. Many FPCs collected share applications but never formally updated the register with 7/12 numbers for each farmer. Without this, SFAC cannot verify farmer eligibility.

The second most common: the share allotment register contains farmers with urban Aadhaar addresses — SFAC requires bona fide rural cultivators with agricultural land.

How to Apply

Register on the SFAC portal at sfacindia.com
Complete the FPC registration form with CIN, PAN, and bank details
Upload all documents (scanned, not photograph images)
Submit board resolution in the prescribed format
An SFAC field officer may conduct a physical verification visit
Grant disbursed directly to the FPC bank account on approval

Combining SFAC Grant with AIF for Maximum Capital

FPCs that receive the SFAC Equity Grant significantly improve their net worth, which directly strengthens eligibility for Agriculture Infrastructure Fund (AIF) loans at 3% interest subvention for warehouses, cold chains, and primary processing infrastructure.