1. Agripedia

Horticulture in India – Know about Different Subsidy Schemes, Application Process and much more

Chintu Das
Chintu Das

Currently, Horticulture is one of the budding agricultural ventures in our country that aims at leading India's economy to new horizons. India being so diverse with its soil and climatic conditions favor the growth of an abundance of fruits, vegetables, crops, plants, spices, etc.

Apart from that soil in India also supports most of the major plantation crops such as coffee, coconut, cocoa, cashew, rubber, and tea. Horticulture in India is acting as a major driving force behind the alleviation of poverty, unemployment, problems related to food and nutrition. 

For the growth of horticulture as a sector in India, there are many subsidies available to the interested parties. 

Fruits and Vegetables: 

  • For the production of vegetable seed, per beneficiary maximum of 5 hectares is allowed; subsidy for the general area is 35%, for NE, TSP, Lakshadweep, and A&N is 50%. Under sub-schemes of NHM and HMNEH which is under the MIDH scheme, a total of Rupees 35,000 is offered for open, and rupees 1,50,000 is offered for hybrid seeds.  

  • For setting up a hi-tech nursery which is a 2 to 4-hectare unit, subsidy covers 40% of the total cost. Also, a sum of rupees .25 lakhs per hectare is offered as credit linked back-ended subsidy under NHM, HMNEH sub-schemes under MIDH. 

  • For a small nursery set up which is a 1-hectare unit, subsidy covers 50% of the total cost, and a total of rupees 15 lakhs is offered as credit linked back-ended subsidy under NHM, HMNEH sub-schemes under MIDH. 

  • For a new orchard establishment, a single beneficiary can hold a maximum area of 4 hectares. subsidy cover for the general area is 40%, NE, TSP, Lakshadweep, and A&N is 50% (60:20:20 triple installments which will be subjected to 75% survival rate in the 2nd year, and for 3rd year it is 90%). For fruits, the subsidy offered is between rupees .40 lakhs per hectare to 2.2 lakh per hander under sub-schemes of NHM and HMNEH under MIDH. 

  • For fruits without integration, 40% subsidy is available in the general area, for NE, TSP, Lakshadweep and A&N, it is 50%. (60:20:20 triple installments which will be subjected to 75% survival rate in the 2nd year, and for the 3rd year it is 90%). The amount comes up to rupees .30 lakh per hectare to rupees .50 lakh per hectare under the sub schemes of NHM and HMNEH under MIDH.  

Spices:  

  • Seed spices and rhizomatic spices: per beneficiary maximum of 4 hectares is allowed; subsidy for the general area is 40%, for NE, TSP, Lakshadweep, and A&N is 50%. Under sub-schemes of NHM and HMNEH which is under the MIDH scheme, the total amount ranges between rupees 12,000 to 15,000 per hectare. 

  • Perennial spices such as cinnamon, black pepper, nutmeg, and clove: subsidy for the general area is 40%, for NE, TSP, Lakshadweep, and A&N is 50%. Under sub-schemes of NHM and HMNEH which is under the MIDH scheme, the total amount is rupees 20,000 per hectare and rupees 25,000 per hander. 

Flower: 

For cut flowers and loose bulbous, per beneficiary, 2 hectares is allowed and 40% subsidy is available for small and marginal farmers and 25% is available for others (For NE and TSP areas it is 50%). The amount ranges between rupees 16,000 to 60,000 per hectare under NHM and HMNEH under MIDH. 

Plantation crops:  

For plantation crops such as cashew, cocoa, etc, a maximum of 4 hectares is allowed per beneficiary. For the general area, it is 40% and for NE and TSP areas, it is 50%. (60:20:20 triple installments subjected to a survival rate of 75% in the 2nd year and 90% for the 3rd year). With integration, the amount sums up to rupees 40,000 and without integration, rupees 20,000 is offered under sub-schemes of NHM and HMNEH under MIDH. 

Aromatic Plants:  

Per beneficiary, 4 hectares is allowed. the subsidy covers 40% in general areas and 50% in the NE and TSP regions. Rupees 16,000 with integration and rupees 40,000 without integration per hectare under sub-schemes of NHM and HMNEH under MIDH. 

Orchard: 

The subsidy covers 50% of the total cost. Rupees 20,000 per hectare is offered for rejuvenation of old orchards under NHM and HMNEH under MIDH. 

Beekeeping:  

In beekeeping, Per beneficiary, a maximum of 50 calories is allowed for pollination. The subsidy covers 50% of the total cost. Rupees 800 per colony and hive is offered under NHM and HMNEH under MIDH. 

Bamboo: 

The subsidy covers 40% of the total cost for planting material production Rs.16 lakh is offered for high-tech nurseries and rupees .5 lakh for every small nursery unit under NHM and HMNEH under MIDH. 

Coconut: 

For the distribution of hybrids or dwarf seedlings in the Government or private sector, subsidy cover of 25% of the total cost is provided and a total of 25,000 seedlings per acre is provided under MIDH. 

Grant submission process: 

  • Submit the project report including the project cost of rupees 50 lakhs to the state NHB office. 

  • To NHB HQ, the place of establishment and the cost of the project has to be above 50 lakhs. 

  • NHB committee will consider the project proposal from the bank for the release of the subsidy amount on the basis of the quoted project cost. NHB will release 100% of the funds to the concerned bank based on the prevailing norms and project setup after the approval from the committee. 

  • - The bank will maintain the subsidy amount in its SFRA account until the approval is done. 

  • - Estimated subsidy amount will not exceed the term loan amount that is sanctioned by the bank for the project. 

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