Uttar Pradesh Initiates First Farm Stay Investment Drive to Enhance Agri-Tourism, ETTravelWorld

The Directorate of Tourism, Uttar Pradesh, has announced the launch of its first farm stay investment drive, a pioneering initiative aimed at linking agriculture with tourism and transforming villages into destinations. By inviting investors to develop farm stay accommodations across the state, Uttar Pradesh is positioning itself as India’s frontrunner in agri-tourism.

Under the scheme, a farm stay is defined as tourist accommodation built on or near a working farm, separate from the owner’s residence, with at least two lettable rooms and a reception area. Each unit must provide immersive rural activities such as agri-farming, horticulture, fishponds, dairy, animal husbandry, or farm tours, allowing visitors to experience farming life and village culture firsthand.

The initiative is supported by a comprehensive package of incentives:

Capital investment subsidy ranging from 10 per cent to 25 per cent , with limits up to INR 40 crore depending on project size.

Additional subsidy of up to 5 per cent for women entrepreneurs, SC/ST/Backward Class investors, and projects in focus destinations.

Interest subsidy of 5 per cent on bank loans up to INR 5 crore for five years.

100 per cent exemption on stamp duty, land conversion fees, and development charges.

Employment-linked incentives, including EPF reimbursement for units employing 50+ workers and support for differently-abled friendly units.

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.”

The state has identified villages with high tourism potential, and the farm stay programme complements its growing network of homestays and B&Bs. For farmers and rural entrepreneurs, the scheme offers an opportunity to diversify income while preserving their traditional lifestyles. By integrating agriculture and tourism, the programme is expected to generate hospitality jobs, support local crafts, and create additional revenue streams for farmers.

Mukesh Kumar Meshram, Principal Secretary, Tourism, added: “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.”

With Uttar Pradesh welcoming 65 crore tourists in 2024, the farm stay investment programme marks a significant new chapter. By turning farms into destinations and villages into cultural experiences, the state is laying the foundation to emerge as India’s leading rural tourism hub.