Subsidy :
The financial aid provided by the government to an individual, business, or institution in order to promote an enterprise.

Subsidies for Horticultural Crops :
An agricultural subsidy/incentive is a government incentive paid to farmers, agribusinesses, agricultural organizations and farms to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities by promoting the farmers to grow the horticultural crops.

Horticulture is one of the main potential agricultural enterprises in India which contributes to the growth of the nation’s economy. The government aims at promote growing of horticultural and plantation crops and improving it’s business in all the states. To grow these crops initial investment for seeds, fertilizers, insecticides is required so some small scale and marginal farmers seek the support from government through schemes/subsidies. So, NABARD came up with a scheme to assist the farmers.
Now let’s get to know about how to avail horticultural subsidies in India.

1. Fruits and Vegetables :
• Vegetable seed production (up-to 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.1.5 lakh for Hybrid Seeds.
• Hi-tech nursery (2-4 ha) : the subsidy available is 40% of cost, as credit linked back-ended subsidy is of Rs.25 lakhs per ha.
• Small Nursery (1ha) : the subsidy available is 50% of cost, as credit linked back-ended subsidy. Rs. 15.00 lakhs per ha.
• Establishment of New Orchard (up-to 4ha/ beneficiary) : the subsidy available is 40% in general area, 50% in NE, TSP, A&N and Lakshadweep Islands.
• Fruits (with drip irrigation) : the subsidy available is Rs. 0.4 – 2.20 lakh/ha.
• Fruits (without drip irrigation) : the subsidy available is 40% in general area 50% in NE.
TSP, A&N and Lakshadweep and the amount is Rs. 0.3 – 0.5 lakh/ha.

2. Spices :
• Seed spices & Rhizomatic spices : the subsidy available is 40% in general area 50% in NE, TSP, and the amount is Rs. 12,000-15,000/ha.
• Perennial spices (black pepper, cinnamon, clove and nutmeg) : the subsidy available is 40% in general area, 50% in NE and TSP areas, and the amount is Rs. 20,000 – 25,000/ ha.

3. Flower Farming :
• Loose, bulbous and cut flowers (up-to 2 ha/ beneficiary) : the subsidy available is 40% for small and marginal farmers, 25% for other farmers and 50% in NE and TSP areas and the amount available is Rs. 16,000 – 60,000/ha.

4. Plantation Crops :
• Plantation Crops like cashew, cocoa including replanting (up-to 4 ha/ beneficiary) : the subsidy available is 40% in general, 50% in NE and TSP areas and the amount available is Rs.40,000/ha with integration to Rs.20,000/ha without integration.

5. Aromatic Plants :
• Aromatic Plants (up-to 4 ha/ beneficiary) : the subsidy available is 40% in general area, 50% in NE and TSP areas and the amount available is Rs. 16,000/ha with integration Rs 40,000/ha without integration.

6. Orchards :
• Rejuvenation of old orchards : the subsidy available 50% of total cost and the amount is Rs.20,000/ha.

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 by 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 empaneled 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.

The following is the step by step procedure for the submission of grants.
1.To respective state office of NHB submit the project report including 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 project from FI/Bank for release of estimated subsidy as per the quoted project cost.
4.And NHB would release 100% of the estimated subsidy on the basis of the project setup and to the concerned bank/Fl as per prevailing the norms of the cost which are in eligible cases approved by the committee.
5.The subsidy would be maintained by bank/Fl (until and unless the approval is done) in the Subsidy Reserve Fund Account (SRFA) of the Bank.
6.The release of estimated subsidy amount will not exceed the limit of term loan amount sanctioned by FI/Bank for the project.

The government provides the best schemes and subsidies to promote and encourage horticultural crop farming for the ones who seek out for help to produce the crops. The government should especially focus on helping the small and marginal farmers so that everyone will be benefited.

U Yeshwanth Kumar

By U Yeshwanth Kumar

I am Yeshwanth Kumar from Hindupur, Andhra Pradesh. I'm currently pursuing Bsc Hons Agriculture final year at Lovely professional University.

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