Horticulture Subsidy, NABARD Schemes, How to Apply

Horticulture Subsidy Schemes – Procedure, Documents required to avail the Subsidies: Horticulture is one of the main potential agricultural enterprisesin India which aim in accelerating the growth of country’s economy. What are we waiting for? Let us see how can we get horticulture subsidy in India.

A guide to Horticulture Subsidy and Schemes in India

India with its different climatic zones and with wide variety of soils is highly favourable for growing a large varieties and range of horticultural crops such as vegetables, fruits, tropical tuber crops, different varieties of potato, medicinal and aromatic plants, ornamental crops, spices and plantation crops such as coffee, cashew, coconut, cocoa, tea, and rubber. Horticulture is playing a major role in providing the country’s nutritional security, food security, poverty alleviation and employment generation programs are becoming increasingly important through this way development.

To boost the growth in this area, below is the list of subsidies available for horticulture.

Horticulture Subsidy for Fruits and Vegetables

Horticulture Subsidy for Vegetables.
Horticulture Subsidy for Vegetables.
  1. For vegetable seed production (maximum 5 ha / beneficiary), the subsidy available is 35% in general area, 50% in NE, TSP, A&N and Lakshadweep Islands and Rs.35,000/- for open and Rs.1,50,000/- for Hybrid Seeds under Sub Schemes of NHM & HMNEH under MIDH.
  2. For hi-tech nursery (2-4 ha unit), the subsidy available is 40% of cost, as credit linked back-ended subsidy is of Rs.25 lakhs per ha under Sub Schemes of NHM & HMNEH under MIDH.
  3. For small nursery (1ha unit), the subsidy available is 50% of cost, as credit linked back-ended subsidy. Rs. 15.00 lakhs per ha under Sub Schemes of NHM & HMNEH under MIDH.
  4. For establishment of new orchard (For a maximum area of 4 ha per beneficiary), the subsidy available is 40% in general area, 50% in NE, TSP, A&N and Lakshadweep Islands (3 installments of 60:20:20 subject to survival rate of 75% in 2nd year and 90% in 3rd year) and for Fruits (with integration of drip etc.)the subsidy available is Rs. 0.40 lakh per ha. To Rs. 2.20 lakh/haunder Sub Schemes of NHM & HMNEH under MIDH.
  5. For fruits (without integration), the subsidy available is 40% in general area 50% in NE, TSP, A&N and Lakshadweep (3 installments of 60:20:20 subject to survival rate of 75% in 2nd year and 90% in 3rd year)and the amount is Rs. 0.30 lakh/ha. toRs. 0.50 lakh/ha.underSub Schemes of NHM & HMNEH under MIDH.

Horticulture Subsidy for Spices (Maximum 4 ha for beneficiary)

  1. For seed spices and rhizomatic spices, the subsidy available is 40% in general area 50% in NE, TSP, and the amount is Rs. 12,000/ha. toRs. 15,000/ha.underSub Schemes of NHM & HMNEH under MIDH.
  2. For perennial spices (black pepper, cinnamon, clove and nutmeg), the subsidy available is 40% in general area, 50% in NE and TSP areas, Rs. 20,000/- per ha, Rs. 25,000/- per haunder Sub Schemes of NHM & HMNEH under MIDH.

Horticulture Subsidy for Flower Farming

For flowers (Loose bulbous and cut lowers) (Maximum 2 hectares/beneficiary) the subsidy available is 40% (small and marginal farmers), 25% other farmers (50% in NE and TSP areas),and the amount available is Rs. 16,000/- per ha to Rs. 60,000/- per ha under Sub Schemes of NHM & HMNEH under MIDH.

You should not miss the Organic Farming Business Plan, Profitability.

Subsidt for Flower Plantation.
Subsidt for Flower Plantation.

Horticulture Subsidy for Plantation Crops

For Plantation Crops (Cashew, Cocoa including replanting) (Maximum 4 hectares / beneiciary), the subsidy available is 40% in general, 50% in NE and TSP areas (3 installments of 60:20:20 subject to survival rate of 75% in 2nd year and 90% in 3rd year), and the amount available is Rs. 40,000/- per ha with integration Rs 20,000/- per ha without integrationunder Sub Schemes of NHM & HMNEH under MIDH.

Horticulture Subsidy for Aromatic Plants

For aromatic Plants (Maximum 4 hectares/beneiciary), the subsidy available is 40% in general area, 50% in NE and TSP areas, and the amount available is Rs. 16,000/- per ha with integration Rs 40,000/- per ha without integration under Sub Schemes of NHM & HMNEH under MIDH.

Lavender Plantation.
Lavender Plantation.

Assistance for Orchards

ForRejuvenation of old orchards, the subsidy available 50% of total cost, Rs. 20,000/- per ha, under Sub Schemes of NHM & HMNEH under MIDH.

Assistance for Beekeeping

For Bee Keeping for Pollination Support (Maximum 50 colonies / beneficiary), the subsidy available 50% of total cost, Rs. 800/- per colony and Rs.800/- per hive, under Sub Schemes of NHM & HMNEH under MIDH.

Horticulture Subsidy for Bamboo Plantation

ForProduction of Planting Material, the subsidy available 40% of total cost, Rs. Rs.16 lakhfor hi-tech nursery and Rs.5 lakh per unit for small nursery, under Sub Schemes of NHM & HMNEH under MIDH.

Production and distribution of quality planting material for Coconut

For Distribution of hybrids/ dwarf seedlings in Govt./ private sector, the subsidy available 25% of cost, for a maximum of 25,000 seedlings/acre at Rs. 9.00 per seedlingunder Sub Sub scheme of Coconut Development Board (CDB) under MIDH.

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Expansion of Area under Coconut

For 25% of cost, for a maximum of 4 ha per beneficiary, in two equal instalments forRs. 7500/- ha under sub scheme of Coconut Development Board (CDB) under MIDH.

Procedure for submission of the grants

The following is the step by step procedure for the submission of grants.

  1. To respective state office of NHB submit the project reportincluding the project cost of Rs.50.00 lakh.
  2. To NHB, HQ, place where you want to set up the project, the cost of project has to be above Rs. 50.00 lakh.
  3. Committee of NHB will consider a proposal of the project from FI/Bank for release of estimated subsidy as per the quoted project cost and NHB would release 100% of the estimated subsidy on the basis of the project setup and to the concerned bank/FI as per prevailing the norms of the cost which are in eligible cases approved by the committee.
  4. The subsidy would be maintained by bank/FI (until and unless the approval is done) in the Subsidy Reserve Fund Account (SRFA) of the Bank.
  5. The release of estimated subsidy amount will not exceed the limit of term loan amount sanctioned by FI/Bank for the project.

Documents required for claiming the subsidy for horticulture

Documents Required for availing Subsidy.
Documents Required for availing Subsidy.

The following documents are required for applying the above schemes and to avail the subsidies under horticulture.

  1. Application form as per the prescribed format based on the respective scheme.
  2. Keep the amount for cost of application form and scheme brochure as per the norms.
  3. Certified documents of the piece of project-land. In case if you setup the project in lease land then a certified copy of lease deed is compulsory which should be registered at the time of subsidy claim and for North-Eastern States the certificate from land possession certificate issued by State Govt. may also be accepted.
  4. Detailed Project Report (DPR) of the business.
  5. Detailed Appraisal note by NHB which should be authorized Bank/FI/ Institution.
  6. Declaration form which should be in prescribed format from Mechanical Engineer in case of Cold Storage project as per the rules.
  7. Basic data sheet in prescribed format as per the norms in case of cold storage/ripening chamber and reefer Van projects, this is must which will be evaluated by NHB empanelled technical experts just to confirm the compliance of the prescribed Technical Standards.
  8. Statement of expenditure incurred as per the norms which has to be certified by Chartered Accountant (CA).
  9. Financial appraisal report from the bank authorities.
  10. Term loan sanctioned letter, as per the bank norms and should be issued by bank along with detailed terms and conditions.
  11. Term loan disbursement statement of the project, undertaking in Format-IV
  12. For the release of at least 50% of term loan into project Bank loan account as per the norms.

NABARD subsidies available for Horticulture

  1. Refinance disbursement as per the norms under ST-Agriculture and others and the MT-Conversion/ Liquidity support which are aggregated to Rs.16952.83 crores during 2007-08 were sanctioned.
  2. Refinance disbursement under Investment Credit to banks such as commercial banks, state cooperative banks, state cooperative agriculture and rural development banks, RRBs and other eligible financial institutions especially during 2007-08 which were aggregated Rs.9046.27 crores.
  3. As per the Rural Infrastructure Development Fund (RIDF) Rs.8034.93 crores were sanctioned during 2007-08. with which a cumulative amount of Rs.74073.41 crores were sanctioned on average of 280227 projects as per the records that mainly covers irrigation, rural roads and bridges, health and education, many others such as soil conservation, drinking water schemes, flood protection, forest management etc.
  4. Under Watershed Development Fund with a corpus fund amount of Rs.613.71 crores as per records projects in 108 districts where a minimum of 16 state’s farmers have been benefited.
  5. Farmers now enjoy hassle free access to credit and plentyof securities through 714.68 lakh mainly Kisan Credit Cards which were issued through a vast rural banking network as per the schemes and norms.
  6. Under the Farmers’ Club Programme, a total amount of 28226 clubs mostly covering 61789 villages in 555 districts have been formed which aims at helping, distributing, and especially in helping farmers get access to credit, technologies and other extension services.

The above information may be applied to horticulture subsidy in Karnataka, horticulture subsidy in Tamilnadu, horticulture subsidy in Telangana, horticulture subsidy in Maharashtra, horticulture subsidy in Andhra Pradesh, horticulture subsidy in Kerala, horticulture subsidy in Bihar, horticulture subsidy in Madhya Pradesh, horticulture subsidy in Uttar Pradesh, horticulture subsidy in West Bengal, horticulture subsidy in Gujarat, horticulture subsidy in Rajasthan, horticulture subsidy in Punjab, horticulture subsidy in Haryana, horticulture subsidy in Uttarakhand, horticulture subsidy in Chhattisgarh, horticulture subsidy in Odisha, horticulture subsidy in Assam, horticulture subsidy in Himachal Pradesh, horticulture subsidy in Nagaland, horticulture subsidy in Meghalaya, horticulture subsidy in Tripura, government subsidy for horticulture equipment. Incase if you miss this: Coconut Coir Benefits, Making.

7 COMMENTS

  1. Dear Shri.Reddy,
    Are these schemes currently running.
    I have 2 Acrs 17 Gunta lad near Chamarajanagar with bore & Drip facility.
    How can you help me?Kindly let me know.

  2. Dear Sir,
    I have 3 – 4 acres of land in Basti, U.P. with the facility of irrigation like diesel engine set and bore.
    I would like to cultivate the strawberry, please let me know the sources of raw materials as seeds etc.
    Is there any subsidy from NABARD or any Govt organization.
    Mobile:- 9871594127

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