Subsidy for Horticulture in India

Horticulture is a branch of agriculture that deals with the art, science, technology, and business of plant cultivation. Although horticulture is a division of agriculture which deals with plant gardening, it is actually different from agriculture. Further, horticulture strictly involves plant cultivation while agriculture deals with the cultivation of crops as well as animal farming. Also, horticulture is usually done on smaller, enclosed plots while agriculture is done on extensive pieces of land on a large scale. In India, horticulture is promoted by the National Horticulture Board (NHB). In this article, we look at the subsidy for horticulture in India.

National Horticulture Board (NHB)

National Horticulture Board (NHB) was set up by the Government of India in 1984 as an autonomous society under the Societies Registration Act 1860. The objectives of the National Horticulture Board are the development of hi-tech commercial horticulture, development of modern post-harvest management infrastructure, promotion, market development of fresh horticulture produce and more. To promote horticulture in India, the National Horticulture Board provides a number of subsidies

Subsidy for Horticulture in Open Field

The National Horticulture Board provides a subsidy for commercial horticulture development in open field conditions, including the components of planting material, plantation, irrigation, fertigation, precision farming, GAP, etc. The estimated cost of the horticulture project is Rs.75 lakh per project (Rs.125 lakh for date palm, olive and saffron) for projects covering an area of more than 2 ha.

For such projects, the scheme implemented by the State Horticulture Mission provides credit linked back-ended subsidy at 40% of project cost limited to Rs.30 lakh per project in the general area. The credit linked back-ended subsidy provided increases to 50% of project cost limited to Rs.37.50 lakh for NE and hilly and scheduled areas. Societies and other organisation obtaining grants-in-aid are eligible to avail this subsidy.

Subsidy for Horticulture in Protected Cover

The National Horticulture Board provides a subsidy for commercial horticulture development in protected cover conditions, including the components of planting material, plantation, irrigation, fertigation, precision farming, GAP, etc. The scheme assists development of commercial horticulture in protected cover @ Rs.112 lakh per project covering an area of above 2,500 sq. mt.

For such projects, the scheme implemented by the State Horticulture Mission provides credit linked back-ended subsidy at 50% of cost limited to Rs.56 lakh per project. Societies and other organisation obtaining grants-in-aid are eligible to avail this subsidy.

Subsidy for Post- Harvest Management Projects

The National Horticulture Board provides a subsidy for setting up integrated post-harvest management projects: e.g., packhouse, ripening chamber, refer van, retail outlets, pre-cooling units, primary processing, etc. The scheme provides assistance for projects costing less than Rs.145 lakh per project: The add-on components of pre-cooling, packhouse, grading, packing, cold room are individual components.

For such projects, the scheme is implemented by the State Horticulture Mission provides credit linked back-ended subsidy at 35% of cost limited to Rs.50.75 lakh per project. In general areas, the scheme provides subsidy at 50% of project cost limited to Rs.72.50 lakh per project in NE, hilly and scheduled areas. Societies and other organisation obtaining grants-in-aid are eligible to avail this subsidy.

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