Uttar Pradesh: Yogi government launches ‘Farm Stay’ initiative to establish villages as hubs of Agri-tourism
The Yogi government in Uttar Pradesh has launched a first-of-its-kind initiative to transform villages into hubs of Agri-tourism. The government has invited proposals from investors to develop and operate farm stay accommodations in rural areas in the state. The initiative is intended to boost Agri-tourism in the state and establish it as a pioneer of Agri-tourism in the country. It celebrates rural life and proposes to provide an experience of farming life, village culture and rural hospitality to tourists. Welcoming the initiative, Uttar Pradesh Tourism Minister Jaiveer Singh said, “Uttar Pradesh is taking rural tourism to the next level with a vision that is entirely new. This initiative is not just about creating farm accommodations – it is about turning our villages into vibrant centres of culture, livelihood, and learning. Tourists today are eager to escape concrete jungles and experience authentic farm life – from milking cows at dawn to sharing meals in rural kitchens. We are ready to provide that warmth, simplicity, and authenticity.” Principal Secretary Tourism, Mukesh Meshram said that the project aims to bolster rural economies by relinking urban tourists with the country’s agrarian roots. “Our focus is clear — this new farm stay initiative must translate into real benefits for rural households. From ensuring authentic farm-based experiences to providing modern facilities, every project will be guided to meet global standards while staying true to local culture. With strong incentives and transparent processes, this initiative will not only strengthen rural economies but also reconnect urban visitors with India’s agrarian roots,” said Meshram. What the Farm Stay scheme offers The scheme envisages setting up farm stays, as tourist accommodations, on or close to a working farm. It lays down certain requirements for the farm stays, such as the farm stay should be separate from the residence of the owner, it should have two lettable rooms and a reception area. The scheme aims to attract tourists by ensuring that the farm stay offers a first-hand rural experience, like Agri-farming, horticulture, fishponds, dairy farming, animal husbandry, farm tours, or other approved rural activities. The initiative offers financial incentives and subsidies to attract investors. Here are the key incentives offered by the Uttar Pradesh government under the scheme- Capital Investment Subsidy: The state government will provide varied amounts of subsidies under the scheme for different categories of projects. For projects between ₹10 lakh–₹10 crore, the government will offer a 25% subsidy (up to ₹2 crore), while a 20% subsidy (up to ₹7.5 crore) will be provided for a project up to ₹50 crore (up to ₹20 crore). For projects up to ₹200 crore and ₹500 crore, the government will offer 15% (up to ₹20 crore) and 10% (up to ₹25 crore), respectively. And for projects above ₹500 crore, a subsidy of 10% (up to ₹40 crore) will be provided. Additional Subsidy: The Uttar Pradesh government will provide an additional subsidy for certain categories of investors. Up to 5% extra subsidy will be offered to women entrepreneurs, SC/ST/Backward Class investors, or for projects located in focus tourism destinations, with an overall ceiling of 30%. Interest Subsidy: An interest subsidy of 5% will be offered on bank loans up to ₹5 crore, with a limit of ₹25 lakh per year for 5 years (in place of capital subsidy). 100% Exemption: There will be a total exemption of stamp duty, land conversion fees, and development charges for eligible projects. Employment Subsidy: The employer’s EPF contribution for 5 years will be reimbursed for units employing 50+ local workers. Support for Differently-Abled Friendly Units: ₹1,500 per month per worker will be provided to units employing disabled workers, with a limit of 5 workers per unit. State government identified villages for the initiative Taking swift steps, the Yogi government has already identified villages with high tourism potential. The scheme will add to the existing network of homestays and B&Bs. It will empower farmers and rural entrepreneurs by offering them an opportunity to diversify their income sources and, at the same time, preserve their traditional lifestyle. The initiative will also help in promoting local crafts by linking rural culture with tourism.
The Yogi government in Uttar Pradesh has launched a first-of-its-kind initiative to transform villages into hubs of Agri-tourism. The government has invited proposals from investors to develop and operate farm stay accommodations in rural areas in the state. The initiative is intended to boost Agri-tourism in the state and establish it as a pioneer of Agri-tourism in the country. It celebrates rural life and proposes to provide an experience of farming life, village culture and rural hospitality to tourists.
Welcoming the initiative, Uttar Pradesh Tourism Minister Jaiveer Singh said, “Uttar Pradesh is taking rural tourism to the next level with a vision that is entirely new. This initiative is not just about creating farm accommodations – it is about turning our villages into vibrant centres of culture, livelihood, and learning. Tourists today are eager to escape concrete jungles and experience authentic farm life – from milking cows at dawn to sharing meals in rural kitchens. We are ready to provide that warmth, simplicity, and authenticity.”
Principal Secretary Tourism, Mukesh Meshram said that the project aims to bolster rural economies by relinking urban tourists with the country’s agrarian roots. “Our focus is clear — this new farm stay initiative must translate into real benefits for rural households. From ensuring authentic farm-based experiences to providing modern facilities, every project will be guided to meet global standards while staying true to local culture. With strong incentives and transparent processes, this initiative will not only strengthen rural economies but also reconnect urban visitors with India’s agrarian roots,” said Meshram.
What the Farm Stay scheme offers
The scheme envisages setting up farm stays, as tourist accommodations, on or close to a working farm. It lays down certain requirements for the farm stays, such as the farm stay should be separate from the residence of the owner, it should have two lettable rooms and a reception area. The scheme aims to attract tourists by ensuring that the farm stay offers a first-hand rural experience, like Agri-farming, horticulture, fishponds, dairy farming, animal husbandry, farm tours, or other approved rural activities.
The initiative offers financial incentives and subsidies to attract investors. Here are the key incentives offered by the Uttar Pradesh government under the scheme-
- Capital Investment Subsidy: The state government will provide varied amounts of subsidies under the scheme for different categories of projects. For projects between ₹10 lakh–₹10 crore, the government will offer a 25% subsidy (up to ₹2 crore), while a 20% subsidy (up to ₹7.5 crore) will be provided for a project up to ₹50 crore (up to ₹20 crore). For projects up to ₹200 crore and ₹500 crore, the government will offer 15% (up to ₹20 crore) and 10% (up to ₹25 crore), respectively. And for projects above ₹500 crore, a subsidy of 10% (up to ₹40 crore) will be provided.
- Additional Subsidy: The Uttar Pradesh government will provide an additional subsidy for certain categories of investors. Up to 5% extra subsidy will be offered to women entrepreneurs, SC/ST/Backward Class investors, or for projects located in focus tourism destinations, with an overall ceiling of 30%.
- Interest Subsidy: An interest subsidy of 5% will be offered on bank loans up to ₹5 crore, with a limit of ₹25 lakh per year for 5 years (in place of capital subsidy).
- 100% Exemption: There will be a total exemption of stamp duty, land conversion fees, and development charges for eligible projects.
- Employment Subsidy: The employer’s EPF contribution for 5 years will be reimbursed for units employing 50+ local workers.
- Support for Differently-Abled Friendly Units: ₹1,500 per month per worker will be provided to units employing disabled workers, with a limit of 5 workers per unit.
State government identified villages for the initiative
Taking swift steps, the Yogi government has already identified villages with high tourism potential. The scheme will add to the existing network of homestays and B&Bs. It will empower farmers and rural entrepreneurs by offering them an opportunity to diversify their income sources and, at the same time, preserve their traditional lifestyle. The initiative will also help in promoting local crafts by linking rural culture with tourism.
