1. Agripedia

Greenhouse Farming Loans, Different Government Subsidies and How to Apply for It

Chintu Das
Chintu Das

Green house farming systems incorporate farming activities related to floriculture and horticulture. In order to set up a greenhouse facility, you will require a major capital investment and upfront planning. Apart from the establishment of the main facility, several other factors are there that require money and financial aid in order to function as an overall system.

Such factors include costs related to buying electric motors integrated with pumps, purchasing tractor and other machinery equipment, costs involving digging of wells and installation of pipes, installing irrigation systems, planting of fruits or vegetables etc. For all of these to work efficiently without any lags, you will need a solid full proof source of finance.

Banks offering Greenhouse Farming Loans

Now, let’s have a look at some of the loan providers in our country for Greenhouse farming:

- State Bank of India:

SBI offers financial aid with regards to greenhouse setup under agricultural & rural banking. SBI also offers several other agricultural loans and other financial assistance with respect to farming. They offer good plans for repayment of loan amounts for the farmers and provide ample time to the farmers for generating money. If you require better understanding then you can visit your nearest SBI branch.

- Central Bank of India:

CBI provides financial assistance under its Poly House, Green House, Shade Net House Scheme. Loans are provided up to 80% of the project cost and up to a maximum Rs.5.00 crore. For SHGs and JLGs the maximum loan will be Rs.20 lakh and Rs.5.00 lakh respectively. Repayment options provide a maximum of 7 years including a moratorium period of 3 to 12 months.

- ICICI Bank:

ICICI offers several types of agricultural loans. You can use ICICI bank's overdraft facility to get cover for the cost of cultivation and other working capital and other allied activities. Other loans provided by the bank include loans for the purchase of irrigation equipment and other agricultural requirements.

- Bank of Baroda:

BOB provides loans for the construction of Greenhouse or Poly house. These term loans are provided with zero margin till 1 lakh and if the loan amount is more than 1 lakh, the margin will be 10% of the total project cost (The margin will not include subsidy amount, if applicable for the project). Repayment has to be done within 3 to 9 years with a moratorium period of 6 to 12 months. The repayment option can be fixed monthly or quarterly or half yearly or annually.

- Reliance:

Reliance money provides several agricultural loans. You can avail loans from Reliance money for setting up a food processing unit, starting up a new storage facility, installing drip irrigation system, building a greenhouse, for installing different agri-equipments etc. They have a range of unique loans as per your agri-businesses based needs.

- Axis Bank:

Axis Bank provides loans for modern horticultural practices. These agriculture loans come hassle-free and at attractive interest rates. The loans help farmers with the credit part for purchasing inputs, machinery, poly houses, drip irrigation installation, domestic consumption, etc.

- HDFC Bank:

HDFC provides finance to farmers for the activities related to establishment and maintenance of nurseries, Orchards, Plantation crops, Poly house or Green house and Hi-tech farming. Facilities include Cash Credit or Overdraft in order to meet production cost of crops and other expenses regarding the consumption, post harvest expense and maintenance and repair. Other one is a Term loan for investment purposes.

- Union Bank of India:

UBI provides loans under "Union Biotech" scheme. These loans help out farmers in setting up greenhouses, poly houses and buying integrated farming systems. There is no upper limit on the project based loan and the margin will be 25 percent of the loan amount. A total of 7 years is provided for repayment and a moratorium period of 2 years is provided.

- Bank of Maharashtra:

BoM offers term loans for hi-tech projects on green houses, poly houses, shed net etc. Security has to be provided in the form of hypothecation of crops or assets or mortgage of land. Repayment can be done within a time period of 5 to 9 years. Margin up to 1 lakh is nil and over 1 lakh, it will range between 15 to 25%.

Subsidies available from the Govt. for green house development in India:

Under Govt. Boards and schemes, agriculture subsidies are provided in our country. Likewise for Greenhouse based farming, there are several subsidies provided under different schemes by different boards. The provided subsidies are either in the form of soft loans or back ended subsidies on the total cost of the project. Because agriculture is the dominant sector of our country, even bank loans are offered for agricultural purposes under minimum interest rates.

Subsidy pattern for green house farming in India:

The Regulatory body in India for green house farming is NHB (National Horticulture Board). NHB provides a subsidy of 50% on a project of 112 lakh maximum ceiling per beneficiary.

GAIC (Gujarat Agro Industries Corporation) provides 6% subsidy on a loan interest to a maximum limit of 4 lakhs.

NHM (National Horticulture Mission) provides 50% subsidy upto a maximum limit of 50 Lakhs.

Apart from the above, for every state, there is a facility provided by the SHM (State Horticulture Mission), which provides an additional subsidy of 15 - 25 % on the 50 % provided by NHM.

All the above subsidies can be availed by any farmer or entrepreneur, however under single beneficiary name only.

Guidelines on how to apply:

The government of India is trying to promote green house farming all over the country by introducing greenhouse farming subsidies via its horticulture department. Subsidies of around 50 to 60% is provided on the entire project cost of the greenhouse. The amount and percentage of provided subsidy may vary with respect to the individual state. You can find all the necessary guidelines and information on subsidy on the NHB and NHM website. Or you can go for a visit to your nearest govt. Agriculture office.

Pattern of Assistance in Various Schemes of Dept. of Agriculture & Cooperation, Min. of Agriculture, Govt. of India

Broad Activity

Sub Activity

Pattern of Assistance

Name of Scheme

Horticulture Infrastructure (Green, Poly House, Structure etc.)

Protected  Cultivation  Green House, Fan & Pad System (limited to 4000 sq m per beneficiary)

50% of cost (15% higher for hilly areas), Rs. 700/- to 825/- per sqm.

Sub Schemes of NHM & HMNEH under MIDH

Naturally Ventilated System (Maximum 4000 sq m per beneficiary)

50% of cost (15% higher for hilly areas),

(i) Rs. 422/- to Rs. 530/- per sq m. Tubular structure

(ii) Rs. 270/- per sq m. wooden structure,

(iii) Rs. 225/- per sq m. Bamboo structure

Sub Schemes of NHM & HMNEH under MIDH

Shade Net House: Tubular structure (Maximum 1000 sq m per beneficiary)

50% of cost (15% higher for hilly areas) upto Rs. 355/- per sq m

Sub Schemes of NHM & HMNEH under MIDH

Bamboo & Wooden Structure (Maximum 200 sq m per beneficiary limited to 5 units)

50% of cost (15% higher for hilly areas), Rs. 180/- and Rs. 246 per sq m. for bamboo and wooden structures respectively.

Sub Schemes of NHM & HMNEH under MIDH

Plastic Mulch

50% of cost (15% higher for hilly areas) upto Rs. 16,000/- ha.

Sub Schemes of NHM & HMNEH under MIDH

Plastic Tunnel: (Maximum 1000 sq m/ beneficiary)

50% of cost (15% higher for hilly areas) upto Rs. 300/- per sq m

Sub Schemes of NHM & HMNEH under MIDH

Subsidy Norms under NHM:

Green House structure

 

 

(a) Fan & Pad system

Rs. 1400/Sq. m and Rs. 1610/ Sq. m for hilly areas

50% of cost for above 2500 Sq.m

(b) Naturally ventilated system

 

 

i) Tubular structure

Rs. 844/Sq. m and Rs.970/Sq. m for hilly areas

50% of cost for above 2500 Sq.m

ii) Wooden structure

Rs. 540/Sq. m and Rs. 621/Sq. m for hilly areas

50% of cost for above 2500 Sq.m

iii) Bamboo structure

Rs. 450/Sq. m and Rs. 518/Sq. m for hilly areas

50% of cost for above 2500 Sq.m

Subsidy Norms under NHM:

Green House

Rs 1650 per Sq. m (upto area 500 sq

 

Rs 1465 per Sq. M (> 500 Sq. m up to 1008 Sq. M)

 

Rs 1420 (> 1008 Sq. M upto 2080 Sq. m)

Like this article?

Hey! I am Chintu Das. Did you liked this article and have suggestions to improve this article? Mail me your suggestions and feedback.

Share your comments

Subscribe to our Newsletter. You choose the topics of your interest and we'll send you handpicked news and latest updates based on your choice.

Subscribe Newsletters