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Subsidy for Agriculture in India, NABARD, Subsidy for Bio-Fertiliser manufacturing

Subsidy for Organic Farming in India

Subsidy for Organic Farming in India

The increasing and continued use of synthetic fertilizers and pesticides is starting to cause environmental deterioration and health problems. Therefore, there is an increasing need for organically farmed produce, as consumer awareness and environmental regulations continues to evolve. Organic farming requires biological and organic inputs in lieu of chemical inputs and there is a need to augment the production of bio-fertilizers or organic fertilizers in India. Accordingly, the Government of India under National Project on Organic Farming provides capital investment subsidy for commercial production units manufacturing organic fertilizers / bio-fertilizers.  In this article, we look at the subsidy for organic farming in India, in terms of units manufacturing bio-fertilizers, bio-pesticides or fruit & vegetable compost.

Objectives of the Scheme

The capital investment subsidy scheme for commercial production units of organic/ biological Inputs is being implemented by the Department of Agriculture & Cooperation through National Centre of Organic Farming (NCOF) in collaboration with NABARD or NCDC. The main objectives of the scheme are to promote organic farming in the country by making available the organic inputs, to increase the agricultural productivity while maintaining the soil health and environmental safety, to reduce the total dependence on chemical fertilizers and pesticides, to convert the organic waste in to plant nutrient resources and to prevent pollution and environment degradation.

Entities Eligible for Subsidy

New and existing units (expansion/renovation) engaged in the production of organic fertilizers or bio-fertilizer are eligible for subsidy under the scheme. If bio-fertilizer and/or bio-pesticides are manufactured, subsidy can be availed by individuals, group of farmers/growers, proprietary firms, partnership firms, co-operatives, fertilizer industry, companies, corporations and NGOs. If a fruit & vegetable waste compost unit is envisaged, APMCc, Municipalities, NGOs and private entrepreneurs can avail subsidy under the scheme.

Project Location & Project Cost

There are no specific requirements for location under the scheme.Therefore, the entrepreneur can set up the unit at any place where it will be technically feasible and commercially viable. The estimated total cost for establishing a new bio-fertilizer or bio-pesticide production unit of 200 tonne/annum capacity is about Rs.160 lakhs and the estimated total project cost for establishing a new fruit and vegetable waste compost unit of 100TPD capacity is Rs.200 lakhs. The above mentioned estimated total project costs are just indicative and the actual project cost for a project will depend on multiple factors such as capacity, location, technology, pricing of equipment, etc.,

Subsidy Component & Release of Subsidy

The scheme provides credit linked and back-ended capital investment subsidy. Bio-fertilizer and bio-pesticides unit are provided with a capital subsidy of 25% of total project cost subject to a maximum of Rs.40 lakhs per unit. Fruit & vegetable compost units are provided with a capital subsidy of 33% of total project cost subject to a maximum of Rs.60 lakhs per unit. Project cost can include the cost of land purchased, civil works, plant & machinery, scientific instruments and equipments etc. The value of land to be computed in the project cost should not exceed 10% of the project cost. The cost of the land and civil structures (buildings) should not exceed 50% of the total financial outlay.

The cost of land computed in the project cost can be reckoned towards the margin money required to be met by the enterprise. However, the cost of land will be computed in the project cost only when the land is to be purchased by the enterprise. Also, the cost of the land should be the purchase value and the value of that portion of the land which is need based for the project only will be considered.

NABARD will release the subsidy to the units financed by Commercial Banks, Regional Rural Banks and other institutions which are eligible for refinance from NABARD. The subsidy will be release in two installments. NABARD will release 50% of the subsidy amount to the financing institution on submission of project profile and claim form – after sanction and disbursement of first installment of loan. The remaining 50% would be disbursed to the financing institution on conduct of an inspection and as per recommendations made by the officials from the financing institutions, NABARD/NCDC and NCOF/DAC. As the subsidy is back-ended, the subsidy will be kept by the financing institution in a subsidy reserve fund account, to be finally adjusted against loan amount of the bank at the end of the repayment period.

Tenor of Repayment

A time limit of 15 months is prescribed for the completion of the project and a grace period of 3 months may be granted, if justified.  If the project is not completed within stipulated period, then the benefit of subsidy is withdrawn and advance subsidy has to be refunded. For repayment of the loan, bio-fertilizer units, bio-pesticide units and fruit & vegetable compost units are generally allowed upto 10 years with a grace period of two years. The rate of interest will be decided by the financing institution as per their norms.

To know more about the subsidy for organic farming in India or to start a new business, visit IndiaFilings.com

Comments (37)

sumit sajnani

Oct 04, 2014 at 1:47 PM

i am interested in setting up an organic farm at raipur, chhattisgarh
kindly guide.

ranjit singh mahal

Nov 01, 2014 at 3:45 PM

I m intresting orgenic farming

Ankush Wagh

Nov 23, 2014 at 12:18 PM

I wish to make project on organic manure, so what is the procedure of NABARD for organic manure plant subsidy
Address – dist.- nashik ms

Ankush Wagh

Nov 23, 2014 at 12:18 PM

I wish to make project on organic manure, so what is the procedure of NABARD for organic manure plant subsidy
Address – dist.- nashik ms

Rahul pandey

Feb 01, 2015 at 5:50 PM

Hello
I want to start organic farming in Uttrakhand. Seeking an expert for advice.

Regards
Rahul Pandey
9999140121

વૈધ જીતુભાઈ

Feb 20, 2015 at 5:07 PM

हम गुजरात में ऑर्गेनिक फार्मिंग यानि सजीव खेती में कामकाज करते है
हमरे पास आलू और प्याज पूरीजैविक तरीके से पकाते है

punam

Mar 21, 2015 at 9:46 PM

I will start organic farming.
but I have no idea how manage, how apply of subsidy…
from Nashik.

punam

Mar 21, 2015 at 9:46 PM

I will start organic farming.
but I have no idea how manage, how apply of subsidy…
from Nashik.

Paul Ponniah

May 09, 2015 at 10:57 AM

Interested to set up a unit to develop organic farming to subside income and develop a system of farming to grow more food of the best kind. I need support and guidance for the same , both funds and technology and marketing of product.

Palvinder Singh

Jun 12, 2015 at 10:59 AM

i want to start organic farming and please tell me the all process. how it is work ??

Palvinder Singh

Jun 12, 2015 at 11:00 AM

Contact no -9996145410

Nagendra Katikala

Jun 12, 2015 at 2:33 PM

Hi,
I want to know about Organic farming business and which pesticides are required for organic formation.
I want complete document for that..

Please suggest me

Regards,
Nagendra.

IndiaFilings

Jun 17, 2015 at 2:17 PM

Dear Sir,

Greetings from IndiaFilings.com, India’s premier online consulting co!!
It is our pleasure to assist you. We think it is better to have a telephonic conversation
With our business adviser, so kindly provide your contact number to guide you better.
Looking forward to work with you in the near future. Have a great day.

Thanks & Regards,
IndiaFilings Team

Satyendra

Jul 12, 2015 at 12:49 PM

Hi,

We are in process of setting up a organic farm project and looking for seed funding
pls contact +919850353814

K. Thirupathi

Jul 16, 2015 at 5:09 PM

I do need to set up production unit for Organic Fertilizer using food waste. I do need subsidy & existing funding details.

Regards,
Thiru, Madurai

Ashok

Jul 17, 2015 at 8:36 PM

Dear Sir,

Interested to set up a unit to develop organic farming to subside income and develop a system of farming to grow more food of the best kind. I need support and guidance for the same , both funds and technology and marketing of product.
But I have no idea how manage, how apply of subsidy…
Please Guide.
9445451004

Ribhu Maheshwari

Jul 19, 2015 at 5:09 PM

We are in process of setting up a organic farm project and looking for seed funding
pls contact +919837073625

Vimala

Oct 05, 2015 at 7:53 PM

A team of women Interested to start organic farm and bio manure using food waste. Kindly guide us..

swapnil

Nov 06, 2015 at 10:20 AM

Dear Sir,

Interested to set up a unit to develop organic farming to subside income and develop a system of farming to grow more food of the best kind. I need support and guidance for the same , both funds and technology and marketing of product.
But I have no idea how manage, how apply of subsidy…

VIKASH SINGH

Nov 13, 2015 at 12:37 PM

Hello
I want to start organic farming in Uttar Pradesh and I have my own land. Seeking an expert for advice.
RegardS

Sankar Alla

Dec 16, 2015 at 9:33 PM

I would like to start up my organic farm in Andhra Pradesh, please to discuss further.

Megharaj NIkam

Jan 29, 2016 at 3:14 PM

Dear Indiafiling Team,
We are new mfg. of Organic Fertiliser at Pune. We need good business adviser for Plant Subsidy and Import Export facility.
so please kindly call us on +91 84466 99966 OR +91 865700 5400

have greate day !!

Thank You

IndiaFilings

Feb 26, 2016 at 7:21 PM

Hi megharaj, you can discuss this with our Business Advisors. Please contact 04440247777 or email [email protected]

Yogesh Chandra

Feb 12, 2016 at 11:52 AM

We are a leading organization in India with 65 year old established brand of Organic Maure STERAMEAL,which is a concentrated organic with animal waste and leather meal base with high nutrient value .We have all India network of our distribution and offices .

Pls be in touch who are looking for organic farming.

Regards,

Yogesh Chandra
All India Business Head Fertilizer
Swal Corporation Limited
Previously known as Shaw Wallace and Co.
( UPL Group of Company)
Mumbai
E mail- [email protected]
Cell 09920952432

sourabh mundra

Feb 24, 2016 at 10:59 PM

I want to start organic farming but I have no idea about it and don’t knw how to apply for the loan n subsidie
7023112421

IndiaFilings

Feb 26, 2016 at 12:30 PM

Hi Sourabh, you can discuss this with out Business Advisors. Please contact 04440247777 or email [email protected]

IndiaFilings

Feb 26, 2016 at 1:20 PM

Hi Sourabh, you can discuss this with our Business Advisors. Please contact 04440247777 or email [email protected]

shakher

Mar 03, 2016 at 7:15 PM

Interested to line up a unit to develop organic farming to subside financial gain and develop a system of farming to grow additional food of the most effective kind. i want support and steerage for constant , each funds and technology and selling of product.
But I even have no plan however manage, however apply of subsidy…

Sumesh

Mar 17, 2016 at 2:18 PM

Hi Shakher,
you can discuss this with our Business Advisors, they will explain you about subsidy procedure. you can call 04440247777

SHASHANK AGARWAL

Mar 25, 2016 at 1:34 PM

I am very much interested to set up an organic farming industry. Need assistance on the same.

Regards
Shashank Agarwal
+91 9836469429

Sumesh

Apr 07, 2016 at 12:34 PM

Hi shashank,
Our business advisors will explain about this you can call @ 04440247777

chiranjeevi

Apr 14, 2016 at 2:53 PM

Dear sir,
I am very intrested about organic forms i need ur support for, how to develop, what r the requirements and how to getting the subsidies from govt… i need theese type of all details. Sir please provide those details. I am from nellore, andhra pradesh

Sumesh

Apr 15, 2016 at 9:54 AM

Hi chiranjeevi,
It’s our pleasure to help you. I think it is better to have a telephonic conversation with our business adviser,you can contact 04440247777

Utkarsh gethe

Apr 19, 2016 at 10:36 PM

Dear Sir,
I am very much interested in setting up my organic farm business in my city.
Can you please guide me from where to start and how to manage it to make it a success?

Regards
Utkarsh gethe

Sumesh

Apr 20, 2016 at 10:25 AM

Hi Utkarsh,
you can discuss this with our Business Advisors. Please contact 04440247777 or email [email protected]

Dayal Singh

Apr 13, 2017 at 8:18 PM

I want to establish a organic (composed) fertlizer plant at my village in Dist Jodhpur. Pl let me know cost and subsidy.

prabhakaran

Apr 26, 2017 at 4:23 PM

sir i’m prabhakaran. i want to start dairy farm,with organic culture.
today we don’t get pure milk even we r paying at high prices.most of the providers mixing synthetic chemicals,preservatives.
they r preparing artificial milk.many mothers feed their babies with these dangerous chemical mix.many people have intestine problems due to this.there is no ethical values in present business world.only they want profits.
so we want to change this senario.i’m a chemistry graduate,i want to start up with un employed graduates(friends) in
dairy form sector.we want to provide pure milk with butter as it is collected from cows,bufellows , at nominal prices to white card holders,(common people) like non profitable organisations.we want to do business with ethical values. please guide me how to approach,land acquisition& how to use govt subsidies applicable,veterinary doctors,etc… present we don’t have land,money.but we have great patriotism to serve people with great efforts,&ethical values.
please guide me….

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