Farm Sector Development Department (FSDD)
FSDD has been carved out of the erstwhile Development Policy Department - Farm Sector. The Department's core function is implementation of various farm sector initiatives aimed at conservation and management of natural resources, creating credit absorption capacity of farmers for accelerating ground level credit flow by the rural financial institutions, enhancing agricultural production and productivity by way of promoting modern farming technologies, good agricultural practices and skill building of farmers, generating rural employment and raising the standard of living of rural poor and enhancing farmers’ income through nurturing and supporting farmers’ collectives.  
Effective implementation of the above programmes, which have evolved over a period through various policy initiatives and initiating other measures required for addressing climate related issues, risk mitigation, promoting climate smart/ hi-tech agriculture, crop diversification and enhancing of farmers’ income, promoting and nurturing farmers’ collectives, etc., are some of the important responsibilities assigned to the Department. Further, addressing the operational issues emerging during implementing, monitoring the programmes, documenting successful models/ practices for scaling up and providing feedback for policy framing/ improvement, are a part of the task assigned to the Department. The important portfolios handled by FSDD, are grouped under four verticals, as furnished below:
Major Functional Areas of the Department
A. Farm Sector Promotional Fund
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, good agricultural practices, skill building of farmers, transfer of technology for enhancing production and productivity in agriculture and allied sectors, building resilience against adverse impact of climate change and other innovative measures required for promoting modern agricultural practices and increasing the farmers’ income.
B. Producers Organisation Development Fund (PODF)
Indian farming is characterized by a large number of small and marginal land holders (almost 85 per cent of total), who are exposed to multiple risks and vulnerability. The fragmented and dispersed nature of farm holdings pose major problems for on-farm productivity and the resultant farm incomes, especially in the rain fed areas. The immediate recourse for the small and marginal farmers to tide over the state of vulnerability and deprivation, is to scale up the operations and have improved access to technologies, credit and market through formation of Producers’ Collectives/ Organizations. NABARD has been extending financial assistance to Producer Organizations out of its ‘Producers’ Organization Development Fund (PODF)’, set up during 2011-12.
Any registered Producers’ Organization viz., Producers’ Company (as defined under Sec 581 A in part IXA of Company’s Act 1956), Producers’ Cooperatives, registered Farmers’ Federations, MACS (Mutually-aided Cooperative Society) and other registered entities of producers, are eligible to avail financial assistance under the fund. Support under PODF is provided as under:
  • Need-based grant support up to a maximum of 20% of loan amount in the case of POs and 10% in the case of PACS/ PCARDBs, linked to availment of loan from commercial banks, cooperative banks, RRBs and the subsidiaries of NABARD, will be considered for sanction, provided the proposed activity forms part of the project and its needs are clearly evaluated and justified while sanctioning the loan by the concerned lending agency.
Tribal Development Programmme
NABARD has been closely associated with tribal development and sustainable livelihoods through orchard based farming systems. As an integral component of NABARD’s Natural Resource Management (NRM) policy of providing sustainable livelihoods, NABARD laid special emphasis on providing support for holistic development of tribal communities with orchard establishment as the core element.
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 corpus was augmented from time to time. All projects under TDF are implemented by partnering with State Governments, Government of India, NGOs and Corporates.
Watershed Development Programme
The Union Finance Minister, in his budget speech for 1999-2000, had announced the creation of a Watershed Development Fund (WDF) in National Bank for Agriculture and Rural Development (NABARD) with broad objectives of unification of multiplicity of watershed development programmes into a single national initiative through involvement of village level institutions and PFAs. 
In pursuance thereof, WDF has been created in NABARD with a contribution of Rs. 100 crore each by Ministry of Agriculture, Government of India (GoI) and NABARD.
Additional Information
A. Farm Sector Promotional Fund
B.   Promotion of Farmers' Producer  Organisation (FPOs)
C.  Tribal Development Programmme