Turning farms into destinations: Uttar Pradesh Tourism opens its fields and villages to the world.
In a first-of-its-kind move, the Directorate of Tourism, Uttar Pradesh, has invited proposals from investors to develop and operate farm stay accommodations across the state. This pioneering initiative positions Uttar Pradesh as India’s agri-tourism trailblazer, offering 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.
Incentives for Investors
The state has introduced a robust package of financial incentives designed to encourage private participation in developing farm stays. The capital investment subsidy has been structured on a graded scale: 25% for projects ranging between ₹10 lakh and ₹10 crore, capped at ₹2 crore; 20% for projects up to ₹50 crore, with a maximum of ₹7.5 crore; 15% for projects up to ₹200 crore, capped at ₹20 crore; 10% for projects up to ₹500 crore, with a limit of ₹25 crore; and 10% for projects above ₹500 crore, with a ceiling of ₹40 crore.
Additional benefits are available for women entrepreneurs, SC/ST/Backward Class investors, and projects located in focus tourism destinations, who can receive up to 5% extra support, subject to a total ceiling of 30%. For investors opting for financial support through loans, the state will provide a 5% interest subsidy on bank loans up to ₹5 crore, capped at ₹25 lakh annually for a period of five years in place of the capital subsidy.
To reduce upfront costs, 100% exemptions are being offered on stamp duty, land conversion fees, and development charges for eligible projects. Units employing 50 or more local workers will be eligible for reimbursement of the employer’s EPF contribution for five years, while differently-abled friendly units can avail support of ₹1,500 per month per worker, for up to five workers per unit.
Rural Tourism as a Growth Engine
“Uttar Pradesh is taking rural tourism to the next level with a vision that is entirely new. This initiative is not simply 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,” said Tourism Minister Jaiveer Singh.
The state government has already identified villages with strong tourism potential, and this farm stay programme will complement its growing network of homestays and B&Bs. For farmers and rural entrepreneurs, the scheme presents an opportunity to diversify income while preserving traditional lifestyles. By linking agriculture with tourism, the initiative is expected to create hospitality jobs, promote local crafts, and help farmers gain additional revenue streams without leaving their land.
“Our focus is clear — this new farm stay initiative must translate into real benefits for rural households. Authentic farm-based experiences, modern facilities, and adherence to global standards will all be key. With strong incentives and transparent processes, this initiative will strengthen rural economies and reconnect urban visitors with India’s agrarian roots,” said Mukesh Kumar Meshram, Principal Secretary, Tourism.
With Tourism Uttar Pradesh recording 65 crore tourist visits in 2024, the launch of this farm stay investment programme signals a new chapter in state tourism. By transforming farms into destinations and villages into living cultural experiences, Uttar Pradesh is laying the foundation to become India’s leading rural tourism capital.
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