Farm Sector Development Department
1. Genesis
The Farm Sector Development Department (FSDD) was created out of NABARD’s erstwhile Development Policy Department - Farm Sector.
The objective of the department is the implementation of multifarious farm sector initiatives aimed at:
•    Conservation and management of natural resources
•    Accelerating ground level credit flow by rural financial institutions
•    Promoting incremental agricultural production and productivity
•    Generating rural employment 
•    Raising the standard of living of rural poor through credit and grant
FSDD manages the following funds:  
•    Farm Sector Promotion Fund (FSPF)
•    Watershed Development Fund (WDF)
•    Tribal Development Fund (TDF)
•    Producers Organization Development Fund (PODF) 
•    ‘Producers’ Organization Development and Upliftment Corpus’ Fund (PRODUCE fund)
2. Core functions of the Department:
  • Farm Sector Promotion Fund (FSPF)
Farm Sector Promotion Fund (FSPF) was created in NABARD, by the merger of two erstwhile funds, viz. Farm Innovation and Promotion Fund (FIPF) and Farmers' Technology Transfer Fund (FTTF), on 26 July 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. 
  • Watershed Development Fund (WDF)
NABARD has been implementing watershed development projects since the inception of Indo-German Watershed Development Programme in India (IGWDP) during 1990s. The participatory watershed development concept and methodology has proved to be a successful initiative in enhancing the productivity, production and improving livelihood security of rural community. 
To replicate the initiatives further in the drought prone areas of the country, the Union Finance Minister, in his budget speech for 1999-2000 had announced the creation of a Watershed Development Fund (WDF) in NABARD. WDF comprises a contribution of 100 crore each by Ministry of Agriculture (MoA,) Government of India (GoI) and NABARD.
  • Tribal Development Fund (TDF)
NABARD has been supporting tribal development through concessional rates of refinance, separate line of credit to agencies supporting tribal families, promotional activities, etc. However, a key concern for NABARD has been the sustainability of tribal livelihoods.
Based on the successful experience of Adivasi Development Programmes, NABARD embarked upon an ambitious program of replicating the wadi model across the country. In this direction, NABARD created a Tribal Development Fund (TDF) with a corpus of Rs. 50 crore, out of its profits for 2003-04. The fund has grown over the years and the available corpus as on 01.04.18 is ` 1080.50 crore. All projects under TDF are implemented by partnering with State Governments, Krishi Vigyan Kendras (KVKs,) NGOs, and corporates. The comprehensive tribal development programme, popularly called as "Wadi" model along with off farm, Agri. Allied activities, sericulture, bee keeping, etc., are being implemented for improving livelihood of tribals under this programme.
  • Promotion and Development of Farmer Producer Organizations
Producer Organization (PO) is a legal entity formed by primary producers, viz. farmers, milk producers, fishermen, weavers, rural artisans, craftsmen, etc. Producer Organizations 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 POs through two funds:
Producers Organization Development Fund (PODF)
Recognizing the strength of POs, NABARD created a dedicated fund “Producers Organization Development Fund (PODF)” during 2011, to support these organizations on three levers i.e. credit support, capacity building and market linkage support. PODF was created with an initial corpus of Rs. 50 crore with a sanctioning limit of Rs. 100 crore, out of NABARD’s profits with effect from 1st April 2011.
‘Producers’ Organization Development and Upliftment Corpus’ Fund (PRODUCE fund)
PRODUCE fund of Rs. 200 crores was created by Government of India in NABARD in 2014-15 for building of 2000 Farmer Producer Organizations (FPOs) during next two years. The aim of the PRODUCE fund is to address the initial financial requirements of the emerging FPOs, which would subsequently be able to avail of credit from financing institutions for new business activities.
  Umbrella Programme for Natural Resource Management (UPNRM)
  • To examine the viability of the loan based participatory and community oriented Natural Resource Management (NRM) based business models with strong capacity building support. Screening of projects is based on the Guiding Principles that ensure the projects are pro-poor, environmentally sustainable, have community participation, practice good governance, and are integrated & needs-based
  • To encourage a shift in NRM financing from grant to loan and from a project approach to a programme approach in the NRM sector
  • To undertake Appraisal, Sanction, Disbursement, Monitoring, Default/NPA Management of projects of both Head Office (HO) and Regional Offices (RO) and repayment of HO projects
  • To manage reimbursement of claims under Loan and Grants from KfW and GIZ
  • To maintain project data and reimbursement of claims
  • To undertake Special Audit, Operational Audit and Statutory Audit
3. Broad Achievements of the Department
Farm Sector Promotion Fund (FSPF)
  • During the year 2016-17, 5837 new Farmers clubs were promoted, covering 31 states in the country.
  • During the year 2016-17, 280 exposure programmes involving financial support of  Rs 1.30 Crore were sanctioned, covering 7737 farmers. Under this programme, 100% grant support is given to NGOs/agencies, for undertaking exposure visits of Farmers (usually for a team 15-20 farmers) within and outside the State.
  • During the year 2016-17, 304 projects under DPR mode were sanctioned, involving grant commitment of Rs 8.94 crore. Cumulative disbursement of Rs 9.16 crore was made during the year as grant towards various new and ongoing promotional programmes.
Watershed Development Fund (WDF)
Watershed Development Programme is implemented through participatory approach involving Village Watershed Committees, Self-Help Groups (SHGs) and Joint Liability Groups (JLGs), non-Governmental organizations (NGOs,) corporate bodies, line departments of State Governments, etc. The programme focuses on major drought prone states like:
Programme No. of Projects No of projects completed Area (lakh ha) Amt sanctioned (Rs. lakh) Amt released (Rs. lakh)
Gujarat 35 0 37587 3835 3386
Maharashtra 220 205 223900 20381 19167
Rajasthan 35 5 34601 4038 3775
Telangana 36 36 41634 4901 4886
Subtotal 326 246 337722 33155 31214
PMs Package
Andhra Pradesh 166 154 180000 19507 17679
Karnataka 132 109 156210 14371 12767
Kerala 136 135 88423 12115 10980
Maharashtra 72 72 171860 17158 13665
Telangana 258 203 289399 29496 25142
Subtotal 764 673 885892 92647 80232
Andhra Pradesh 14 0 20396 1491 729
Bihar 5 0 555 63 32
Chhattisgarh 60 17 46197 4560 3514
Gujarat 20 3 12855 1038 744
Haryana 2 0 341 46 33
Himachal Pradesh 8 1 10911 666 411
Jammu 1 0 1003 133 51
Jharkhand 26 8 23000 1552 1304
Karnataka* 87 65 83247 5872 5305
Kolkata 39 14 29148 1564 1258
Madhya Pradesh 21 1 27113 972 415
Maharashtra 49 0 27845 2228 1557
Odisha 88 10 58436 6434 4070
Rajasthan 36 8 17957 1161 809
Tamil Nadu* 159 38 145370 11253 7664
Uttar Pradesh 74 6 11506 1206 764
Uttarakhand 10 0 8383 534 380
Subtotal 699 171 524263 40773 29040
IWDP 79 77 80000 6000 5500
KDPP 10 10 10000 350 330
Grand total 1878 1177 172925 146316
Tribal Development Fund (TDF)
•    Total number of projects sanctioned in 28 States / UT - 712
•    Number of tribal families benefitted – 521292
•    Amount sanctioned from TDF as on 31.03.2018 – `2120.70 crore
•    Amount disbursed as on 31.03.2018 – `1461.98 crore
Promotion and Development of Farmer Producer Organizations
Under PRODUCE fund a grant assistance of Rs. 193.16 crore has been sanctioned to 792 Producer Organization Promoting Institutions (POPIs) for promotion and nurturing of 2,160 FPOs. As on 31 January 2017, 1,847 FPOs have been registered under different statute/legal forms. 19 Resource Support Agencies (RSAs) are engaged in providing necessary training and handholding support to POPIs for undertaking the promotion of FPOs.
As on 31 January 2017, cumulative loan sanctioned to 2,534 PACS/PCARDBs and 2217 POs amounted to Rs. 726.02 and Rs. 455.63 crores respectively. Against the sanction, Rs. 443.57 crore and Rs. 248.92 crore have been disbursed by NABARD as loan support.
4. Ongoing projects and schemes
Farm Sector Promotion Fund (FSPF)
  • Farmers’ Club Programme
  • Capacity Building for Adoption of new Technology (CAT)
  • DPR Projects for productivity enhancement 
Watershed Development Fund (WDF)
  • Indo-German Watershed Development Programme (IGWDP) 
  • Prime Minister’s Package for Distressed Districts under WDF
  • Watershed Development Fund - Non Distressed Districts
  • Convergence of CSR funds in watershed projects
  • Sustainable Development in Watershed areas
  • Implementation of Soil Restoration and Rehabilitation of Degraded Soils for Food Security (Climate Proofing Soil Project) through KfW & GIZ, Germany
  • Climate Change Adaptation Project in Akole & Sangamner Taluka of Ahmednagar District, Maharashtra
  • Climate Proofing of Watershed Projects in Rajasthan and Tamil Nadu
  • Web based monitoring of Watershed projects
5. Additional Information
NABARD has conducted impact and mid-term evaluation studies in completed watershed projects through different agencies. The evaluation reports submitted by the agencies are as under:
  • Impact Evaluation in Maharashtra by Institute of Rural Management (IRMA,) Anand
  • Mid Term evaluation of watersheds in Andhra Pradesh by Central Research Institute for Dryland Agriculture (CRIDA)
  • Impact evaluation of PMs Package Programme by Indian Council of Agricultural Research (ICAR), Bellary
In order to share the learnings and successful interventions with the other agencies in watershed projects, following publications have been brought out:  
  • Watershed Digest- January 2016 issues
  • Touching Lives - IGWDP-AP success stories
Contact Information:
Dr. P. M. Ghole
Chief General Manager
5th floor, 'A' Wing
C-24, G Block
Bandra-Kurla Complex, Bandra (E)
Mumbai – 400 051
Tel: (91) 022-26539649