Skip to content

Subsidy For Horticulture Business in India – Complete Guide

The objective of creating this article is to provide information about different schemes of subsidy for horticulture businesses in India. Many aspiring entrepreneurs who want to start a horticulture business often look for agriculture loans, Government grants, or subsidies.

Horticulture is a specific part of agriculture that deals with many techno-commercial aspects and plant cultivation. The horticulture business demands intensive management and a significant investment of time and energy. It is important to be aware of your motivation for establishing a horticultural enterprise.

Primary objectives of the National Horticultural Board

National Horticulture Board (NHB) was set up by the Government of India in 1984. Basically, it is an autonomous society under the Societies Registration Act 1860.

The objectives of the National Horticulture Board are the development of hi-tech commercial horticulture, the development of modern post-harvest management infrastructure, promotion, market development of fresh horticulture produce, and more.

They also carry out studies and surveys to identify constraints. Additionally, they develop short and long-term strategies for the systematic development of horticulture.

Also, the agency provides technical services including advisory and consultancy services. National Horticulture Board in India provides several subsidies for different horticulture initiatives.

Related: Best Government Subsidy For Small Businesses In India

Different Schemes of Subsidy For Horticulture Business

A) Commercial Horticulture Scheme

1. Commercial Horticulture through Production and Post Harvest Management

Credit-linked projects relating to the establishment of commercial production units in the open field as well as under protected conditions and projects on Postharvest Management and primary processing of products are eligible for assistance under this scheme.

2. Commercial Horticulture Development in open field conditions

National Horticulture Board accepts integrated commercial horticulture development projects in open field conditions on project mode, including components viz planting material, plantation, irrigation, fertilization, mechanization, precision farming, GAP, etc. for projects covering an area of 2.00 ha. (5 Acres).

Integration of the production unit with on-farm PHM components and primary processing unit shall also be allowed in project mode. Credit linked back-ended subsidy @ 40% of the total project cost limited to Rs 30.00 lakh per project in general areas and @ 50% of project cost limited to Rs. 37.50 Lacs in NE Region, Hilly, and Scheduled areas.

3. Commercial Horticulture Development in a protected cover

The Board accepts commercial horticulture development projects under protected cover on project mode including components viz planting material, plantation, irrigation, fertilization, mechanization, etc for projects having an area over 2500 SQ meters.

Credit linked back-ended subsidy @ 50% of the total project cost limited to Rs 56.00 lakh per project as per admissible cost norms for greenhouses, shade net houses, plastic tunnels, anti-bird /hail nets & cost of planting material, etc.

4. Integrated Post Harvest Management projects 

National Horticulture Board accepts Integrated Post Harvest Management projects relating to Pack Houses, Ripening Chambers, Refer Vans, Retail Outlets, Pre-cooling units, Primary processing, etc. NHB will also take up projects in component mode and for standalone projects of PHM components.

Credit linked back-ended subsidy @ 35% of the total project cost limited to Rs 50.75 lakh per project in the general area and @ 50 % of the project cost limited to Rs. 72.50 lacs per project in NE, Hilly, and Scheduled areas.

B) Cold Storage Scheme

Credit-linked projects relating to Cold Storage including Controlled Atmosphere (CA) and their modernization are eligible for assistance under this component.

Subsidy need not be credit-linked for the institutions like Public Sector Units, Panchayats, cooperatives, registered societies/trusts, and public limited companies provided they can meet the remaining share of the project cost out of their own resources.

Such projects will have to be appraised by an appraising agency approved by NHB. The assistance will be given as a subsidy @ 35% of the capital cost of the project in general areas and 50% in the case of NE, Hilly & Scheduled Areas for a storage capacity of 5000 MT up to 10000 MT.

C) Technology Development and Transfer Scheme 

National Horticulture Board accepts projects for the popularization of identified new technologies/tools/techniques for commercialization and adoption through the following sub-components of the scheme

  • Setting up of block /mother plant and rootstock nursery
  • Acquisition of technologies including import of planting material from other countries
  • Import/Procurement of Machines and Tools for horticulture for demonstration purpose
  • Development & Transfer of Technology
  • Product Promotion and Market Development Services
  • Exposure visit of farmers (Outside State)
  • Accreditation and Rating of Fruit Plant Nurseries

The financial success of a horticulture business often depends on having adequate finance to fund you until your crop is fully established and generating the profits you planned for. Plan rightfully and contact the nodal officers to get a subsidy for the horticulture business in time.

About Next What Business Research Team

The Editorial Staffs at NextWhatBusiness is a team of Business Consultants with years of experience in small and medium-scale manufacturing and service-based businesses.