Uttar Pradesh Tourism Launches First-Ever Farm Stay Investment Drive, Ushering a New Era of Agri-Tourism

• Turning farms into destinations: UP opens its fields and villages to the world
• A pioneering initiative to connect tourism with agriculture and empower rural communities

Our villages will be tourism’s heartbeat in a Viksit Uttar Pradesh, says Tourism Minister Jaiveer Singh

New Delhi, September 9, 2025: For the first time, the Directorate of Tourism, Uttar Pradesh, has invited proposals from investors to develop and operate farm stay accommodations across the state. This new initiative marks a bold step in positioning Uttar Pradesh as India’s agri-tourism pioneer, creating immersive rural tourism experiences that celebrate farming life, village culture, and countryside hospitality.

A farm stay, as defined under the scheme, is a 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 farm stay must offer hands-on rural experiences such as agri-farming, horticulture, fishponds, dairy farming, animal husbandry, farm tours, or other approved rural activities – making the village itself the attraction.

 The initiative comes with a comprehensive package of financial incentives:

Capital Investment Subsidy: 25% for projects between ₹10 lakh–₹10 crore (up to ₹2 crore); 20% up to ₹50 crore (up to ₹7.5 crore); 15% up to ₹200 crore (up to ₹20 crore); 10% up to ₹500 crore (up to ₹25 crore); and 10% above ₹500 crore (up to ₹40 crore).

Additional Subsidy: Up to 5% extra for women entrepreneurs, SC/ST/Backward Class investors, or projects in focus tourism destinations, with a 30% overall ceiling.

Interest Subsidy: 5% on bank loans up to ₹5 crore, capped at ₹25 lakh per year for 5 years (in lieu of capital subsidy).

100% Exemption: On stamp duty, land conversion fees, and development charges for eligible projects.

Employment Subsidy: Reimbursement of the employer’s EPF contribution for 5 years, for units employing 50+ local workers.

Support for Differently-Abled Friendly Units: ₹1,500 per month per worker, for up to 5 workers per unit.

“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 centers 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,” said Tourism Minister Jaiveer Singh.

The state government has already identified villages with high tourism potential, and this farm stay programme will add to its expanding network of homestays and B&Bs. For farmers and rural entrepreneurs, the scheme offers an unprecedented chance to diversify income while preserving their traditional lifestyles. By linking agriculture with tourism, the initiative is expected to create jobs in hospitality, promote local crafts, and help farmers gain additional income streams without leaving their land.

“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 Mukesh Kumar Meshram, Principal Secretary, Tourism.

With Uttar Pradesh recording 65 crore tourist visits in 2024, the launch of the state’s first farm stay investment programme signals a new chapter in tourism. By turning farms into destinations and villages into immersive cultural experiences, Uttar Pradesh is laying the foundation to become India’s undisputed rural tourism capital.