The Farm Sector Development Department (FSDD) was created out of NABARD’s erstwhile Development Policy Department - Farm Sector.

The objective of the department is to formulate policies and implement multifarious farm sector initiatives under various programmes aimed at:

• Conserving and managing natural resources
• Accelerating ground level credit flow by rural financial institutions
• Improving incremental agricultural production and productivity
• Generating rural employment
• Raising the standard of living of rural poor through credit and grant
• Formulating appropriate policies concerning agriculture and allied sector activities, natural resource management, climate change adaptation and mitigation etc., within the overall policy framework of Government of India

FSDD manages the following funds

• Watershed Development Fund (WDF)
• Tribal Development Fund (TDF)
• Producers Organization Development Fund (PODF)
• Central Sector Scheme for Promotion and Nurturing of Farmers Producers Organisations (FPOs)
• Farm Sector Promotion Fund (FSPF)

Core functions of the department

A. Watershed Development Fund (WDF)

Rainfed areas, which account for 51% of the cultivated area, play a significant role in food production, contributing 40-45% of the total food production. To address the issues in rainfed farming, NABARD entered into watershed development space in the year 1992 through KfW assisted Indo-German Watershed Development Programme (IGWDP) in Maharashtra, wherein participatory approach of watershed development was adopted on a large scale for the first time.

Based on the success in implementation of the participatory watershed development under IGWDP, Watershed Development Fund (WDF) was set up at NABARD in 1999-2000 with an initial corpus of Rs 200 crore contributed equally by GoI and NABARD. It is augmented over the years through the interest dierential earned under RIDF.

B. Tribal Development Fund (TDF)

Based on the successful experience of Adivasi Development Programmes, NABARD embarked upon an ambitious programme of replicating the small orchard of one or two acre with multiple crops model across the country. In this direction, Tribal Development Fund (TDF) was created by NABARD with an initial corpus of Rs 50 crore, out of its profits for the year 2003-04. The Fund has grown over the years and the credit balance as on 31 May 2025 is Rs 1087.61 crore with total committed sanction of Rs 685.72 crore. The projects under TDF are implemented by collaborating with State Governments, Krishi Vigyan Kendra (KVKs), NGOs and corporates. A comprehensive tribal development programme having small orchard as the core component is being implemented for improving the livelihood of tribal population. Over the years, livelihood interventions with non-orchard activities viz. animal husbandry, sericulture, lac, Non-Timber Forest Products (NTFPs) etc. have also been included to cover landless tribal families.

C. Promotion of Farmer Producer Organisations

Farmer Producer Organisation (FPO) is a legal entity formed by primary producers, viz. farmers, milk producers, fishermen etc. Producer Organisations have been considered to be one of the effective means of linking small producers with the agricultural value chain for the purpose of enhancing net income of producers. NABARD provides financial and development support to FPOs through the following programmes:

i. Producers Organisation Development Fund (PODF)

Recognising the strength of POs, NABARD created a dedicated fund “Producers, Organisation Development Fund (PODF)” during 2011, to support these organisations on three levers i.e. credit facilitation, capacity building and market linkage support. In addition, grant support is also made available for business incubation services, skill building, documentation of successful models, ICT application in business management, etc.

NABARD has also introduced a new scheme i.e. Producers’ Organization Development Fund – Interest Differential (PODF-ID) as the corpus has been augmented by way of appropriation of interest differential out of RIDF, for the promotion and nurturing of 3,000 FPOs.

ii. Central Sector Scheme for Promotion and Nurturing of Farmers Producers Organisations (FPOs)

The GoI has announced Central Sector Scheme on Formation and Promotion of 10,000 FPO and NABARD is one of the Implementing Agencies. The aim of the scheme is to promote new FPOs and support their initial financial requirements to make them credit worthy, commercially vibrant, and as a sustainable business enterprise for farmers. BIRD, Lucknow act as Nodal Training Institute for the scheme of CSS on FPOs. Credit Guarantee Fund of Rs 1,000 crore with equal contribution from GoI and NABARD has been envisaged under NABSanrakshan, a subsidiary of NABARD.

D. Farm Sector Promotion Fund (FSPF)

Farm Sector Promotion Fund (FSPF) was created in NABARD by merging two erstwhile funds, viz. Farm Innovation and Promotion Fund (FIPF) and Farmers' Technology Transfer Fund (FTTF), on July 26, 2014. The Fund focusses on promoting innovative and feasible concepts/projects and transfer of technology for enhancing production and productivity in agriculture and allied sectors.

3. Broad achievements of the Department (As on 31 May, 2025)

A. Landscape-based Regenerative Resilient Rainfed Ecosystem Development Programme (LREDP)

The watershed development programme has been revamped as the Landscape-based Regenerative Resilient Rainfed Ecosystem Development Programme (LREDP), a climate-resilient, agroecological approach aimed at revitalizing India's rainfed agriculture. It focuses on water conservation, soil regeneration, and livelihood security, aligning with Sustainable Development Goals (SDGs), Nationally Determined Contributions (NDCs), and Land Degradation Neutrality (LDN). Cumulatively, 3761 watershed development and related projects have been sanctioned with a cumulative disbursement of Rs 2,355.96 crore, covering an area of 27.2 lakh ha. As on 31 May 2025, 684 watershed development and related projects are under various stages of implementation across 29 states.

B. Springshed Development Programme for Climate Change Adaptation

The Springshed-based watershed development programme has been revamped as the Springshed Development Programme for Climate Change Adaptation, considering its broader scope. The programme aims to rejuvenate drying springs in the Himalayan, North East Region (NER), and other hilly areas has led to the augmentation of drinking water supply and irrigation water availability for farming, benefiting rural communities in these fragile ecologies. As on 31 May 2025, 160 springshed development projects have been sanctioned with a cumulative disbursement of Rs 33.04 crore in the NER and other hilly areas of Sikkim, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Maharashtra, Odisha, and Uttarakhand.

C. Agroecology-JIVA

JIVA, an agroecology programme, based on the cardinal principles of natural farming, was piloted across 24 projects in 11 states, spanning five agroecological zones. The initiative focuses on ensuring long-term sustainability of interventions carried out in completed watershed and orchard-based livelihood (wadi) projects by fostering ecologically sound farming systems. JIVA fosters holistic farm management by integrating diversified cropping systems, kitchen gardens, agroforestry, livestock, and natural farming, while the use of bio-resources like compost, bio-fertilizers, and mulching enhances soil health, sustains multi-tier cropping, and boosts ecological resilience and productivity. As on 31 May 2025, 43 JIVA projects are ongoing under watershed and tribal development programmes under which an amount of Rs. 12.89 crore has been disbursed.

D. Pilot Project on reclamation of Alkali Soil

Four pilot projects for reclaiming alkaline soils in Punjab and Haryana were grounded in FY 2022, with a financial outlay of  Rs 7.49 crore, covering 2,000 hectares. Scientific assessments of soil samples from each beneficiary’s farm were conducted by ICAR-CSSRI, Karnal, to determine site-specific gypsum requirements. These projects have completed and have resulted in a notable reduction in soil pH and Exchangeable Sodium Percentage (ESP), reflecting significant improvements in soil health and substantial increases in rice and wheat yields. The targeted application of gypsum not only restored soil quality but also enhanced water use efficiency and crop productivity, contributing directly to the economic resilience and livelihoods of farming communities.

E. Soil Restoration and Rehabilitation of Degraded Soils for Food Security (Climate Proofing Soil Project) through KfW, Germany

NABARD, in collaboration with KfW, is implementing the project ‘Integration of Watershed Development for Rehabilitation of Degraded Soils and Climate Change Adaption’ since 2017. Supported by the German Government (BMZ) under “One World- No Hunger” (SEWOH), the project aims to rehabilitate degraded soils and strengthen the adaptive capacity of vulnerable communities through natural resource conservation. Co-financed by KfW, NABARD, and beneficiaries, the total KfW grant is €19.5 million (Rs 143.75 crore), routed through NABARD to village watershed committees and implementing agencies. Covering 226 watersheds in 10 states across three phases, 178 projects under Phases I and II are completed. SEWOH I was implemented in Andhra Pradesh, Chhattisgarh, Karnataka, Odisha & Telangana; SEWOH II in Kerala and Jharkhand; and SEWOH III is ongoing in Bihar, Maharashtra and Tamil Nadu. As of 31 May 2025, Rs 32.45 crore has been utilized under SEWOH Phase III.

F. Web-based monitoring of watershed projects

NABARD BHUVAN Portal, a dedicated geospatial platform developed by NRSC, is being used since 2015 for monitoring the progress of watershed projects. To strengthen this initiative, NABARD has established an in-house Remote Sensing Cell (RSC) to carry out web-based monitoring and analysis. As on 31 May 2025, 1,193 projects have been onboarded onto the portal, with over 2 lakh assets successfully geotagged. In addition, 748 impact evaluation studies have been conducted leveraging geospatial technology, enhancing the effectiveness and transparency of project outcomes.

B. Tribal Development Fund (TDF) as on 31 May 2025

• Total number of projects sanctioned: 1030
• No. of states and union territories covered under the programme: 29
• Number of tribal families benefitted: 6.30 lakh
• Total area covered: 5.77 lakh acre
• Total financial assistance sanctioned from TDF: Rs  2863.16 crore
• Total financial assistance disbursed: Rs 2177.44 crore

C. Promotion and Development of Farmer Producer Organisations as on 31 May 2025

Farmer Producers' Organisations supported by NABARD as on 31 May 2025

NABARD has developed a portal named ‘nabfpo.in and digitised the FPO data including members’ profiles for use by the stakeholders.

Performance Grading Tool has been developed for the assessment and monitoring of overall performance and facilitating designing of need-based interventions and credit linkages for building robust organisation.

To increase the credit flow and to make the banks aware about the type of credit needs of FPOs, NABARD has developed guidance note on financing FPOs by Banks.

D. Farm Sector Promotion Fund (FSPF)

Since inception, FSPF involves various promotional initiatives such as innovative projects in agriculture and allied sectors, enhancing agriculture productivity and income of the farmers, creating market access, promotion of climate resilient agriculture in vulnerable / distressed districts, agricultural value chains, Farmers’ Clubs and their collectives including training and capacity building of farmers, etc. As on 31 May 2025, an amount of Rs.281.83 crore has been cumulatively disbursed under FSPF.

Since the inception of the fund, 2070 projects were sanctioned under DPR mode, and grant assistance of Rs 156.19 crore has been disbursed towards implementation of these projects. Presently, 331 projects are ongoing across 31 States/UTs.

The projects were sanctioned for demonstration of innovative technologies in the hi-tech agriculture, High Density Planting technology, animal husbandry, Integrated Farming System, precision farming, polyhouse technology, and financing value chain development IOT, ICT, AI & ML in agriculture, millet value chain development, application of drone technology in agriculture, hydroponics technology, etc.

Since the inception of Fund, 2866 exposure visits were supported so far to build the capacity of around 84485 farmers in collaboration with select Research Institutes like KVKs, SAUs, ICAR and ICRISAT, etc. for adopting new/ innovative methods of farming. The areas covered under the exposure visits were agri-extension services, dairy farming, integrated farming methods, organic farming, new agriculture technologies etc. As on 31 May 2025, an amount of Rs.24 crore has been disbursed under Capacity Building for Adoption of Technology (CAT).

Contact Information

Dr A V Bhavani Shankar
Chief General Manager
5th Floor, 'A' Wing
Plot: C-24, 'G' Block .
Bandra Kurla Complex, Bandra (East).
Mumbai - 400 051
Tel: 022-68120040
E-mail Address: fsdd@nabard.org

Information under RTI – Section 4(1)(b)