NHB Subsidy Schemes with National Horticulture Board Guidelines

NHB stands for National Horticulture Board. In India, NHB provides financial assistance through several schemes to the farmers and entrepreneurs who are into the agro business. Here in this article, we have provided NHB subsidy schemes details along with guidelines.

National Horticulture Board implements programs as sub-scheme of Mission for Integrated Development of Horticulture (MIDH). Also, NHB houses the national level TSG under MIDH including NHM and NBM and extend administrative, logistical and personnel support towards their implementation.

Actually, Govt of India established the National Horticulture Board (NHB) in 1984. Basically, it is an autonomous society under the Societies Registration Act 1860. The headquarter of the NHB is in Gurgaon, Haryana.

Aims & Objectives of NHB Subsidy Schemes

  1. Development of hi-tech commercial horticulture in identified belts and make such areas vibrant with horticultural activity. Additionally, it will in turn act as hubs for development of horticulture.
  2. Development of modern post-harvest management infrastructure as an integral part of area expansion projects or as common facility for the cluster of projects.
  3. Furthermore, the development of integrated, energy efficient cold chain infrastructure for fresh horticulture produce.
  4. The popularization of identified new technologies/tools/techniques for commercialization/adoption, after carrying out technology need assessment.
  5. Assistance in securing the availability of quality planting material by promoting setting up of scion and root stock banks/mother plant nurseries and carrying out accreditation/rating of horticulture nurseries and need based imports of planting material.
  6. Additionally, promotion and market development of fresh horticulture produce.
  7. Promotion of field trials of newly developed/imported planting materials and other farm inputs; production technology; PHM protocols, INM and IPM protocols and promotion of applied R&D programs for commercialization of proven technology.
  8. In addition to that, promotion of consumption of horticulture produce and products.
  9. Setting up of Common Facility Centers in Horticulture Parks and Agri-Export Zones.
  10. In addition, strengthen market intelligence system by developing, collecting and disseminating horticulture database.
  11. Finally, carrying out studies and surveys to identify constraints and develop short and long term strategies for systematic development of horticulture and providing technical services including advisory and consultancy services.

List of NHB Subsidy Schemes

#1. Development of Commercial Horticulture through Production and Post Harvest Management of Horticulture Crops

Production Related

Basically, this scheme provides assistance to the credit linked projects relating to the establishment of hi-tech commercial production. However, the units must have involvement with any of the following items.

  • High-quality commercial horticulture crops
  • Indigenous crops/produce, herbs, spices
  • Aromatic & Medicinal Plants
  • Seed & Nursery
  • Biotechnology, microbiology, biochemistry, biodiversity & tissue culture
  • Protected cultivators
  • Bio-pesticides
  • Organic fertilizers, organic foods, bio-dynamic farming, vermicompost
  • Establishment of Hort. Health clinics/laboratories
  • Hydroponics, Aeroponics
  • Beekeeping and its products
  • Mushrooms and its products
  • Nuts and its products

Pattern of Assistance

Credit linked back-ended subsidy @ 20% of the total project cost limited to Rs 25 lakh per project in general area and Rs 30.00 lakh in NE Region, Hilly, and Scheduled areas. However, for capital intensive and high-value crops under protected cultivation and open air cultivation of date palm, olive and saffron subsidy will be @ 25% of the project cost with a ceiling of Rs.50 lakh (33% of the project cost with a ceiling of Rs.60 lakh for scheduled and hilly areas).

Processing Related

The different manufacturing and processing units are eligible for this scheme. However, the units must have an involvement in the following operations.

  • Washing, drying, sorting, grading, waxing, packing, palletizing, freezing units etc.
  • Pre-cooling units / Cool Stores
  • Reefer Van / Containers
  • Specialized Transport Vehicle
  • Retail outlets
  • Auction platform
  • Ripening/curing chamber
  • Market yards/rope ways
  • Irradiation/Vapour Heat Treatment unit
  • Primary processing of products (fermentation, extraction, distillation, juice vending, pulping, dressing, cutting, chopping, dehydration etc.)
  • Natural color and dyes extraction
  • Essential oils, perfumery, and cosmetics out of horticulture products
  • Products out of horticulture waste
  • Horticulture ancillary industry for promoting indigenous manufacturing of horticulture related farm tools & machinery, equipment, plastics containers, packaging etc.
  • Adoption of Quality Assurance Systems (HACCP, TQM, ISO, Euro-GAP etc.)
  • Plastic Crates and Bins, Cartons, Aseptic Packaging, and Nets.

Pattern of Assistance

Credit linked back-ended subsidy @ 40% of the total project cost limited to Rs 50 lakh per project in general area and @ 55% of project cost limited to Rs 60.00 lakh in Hilly and Scheduled areas. A pattern of assistance for plastic crates will be 50% of the total cost.

#2. Capital Investment Subsidy Scheme for construction/expansion/modernization of Cold Storages/Storages of Horticulture Produce

Basically, credit linked projects relating to Cold Storages including Controlled Atmosphere (CA) and Modified Atmosphere (MA) Stores, pre-cooling units, other Storages for onion, etc can apply for assistance under this component. However, you must follow the notified latest technical standards and protocol for the purpose by the Ministry of Agriculture.

Pattern of Assistance

Actually, the assistance comes as credit linked back-ended subsidy. Generally, it provides @ 40% of the capital cost of the project in general areas and 55% in case of Hilly & Scheduled Areas. You can apply for a maximum storage capacity of 5000 MT per project for following items

  • Multi-chamber cold storages with mezzanine floors of RCC and or wooden structure for products not requiring pre- cooling, temperature range 0°C plus to 16°C or above with fin-coil cooling system.
  • Multi-chamber and Multi-Product cold storage for a whole range of horticulture produce but without the pre-cooling system.
  • Modernization of Cold Storages
  • CA Storages (@ Rs 32,000 per MT)
  • Credit components as means of finance of the project should be term loan from banking or non-banking financial institutions and should be at least 15% more than the admissible rate of subsidy.
  • Only such projects under this component shall be eligible to get financial assistance as per revised norms, which meet prescribed minimum technical standards; this shall be ascertained as per implementation protocols prescribed in this regard.
  • Rack, pallets and design-appropriate system for mechanized handling are incorporated in above type designs.
  • In respect of projects, which have an addition of components or technically recommended different combinations of components of pre-cooling, pack house etc, the normative cost shall be worked out by the Committee of the Board.

#3. Technology Development and Transfer for promotion of Horticulture

The units involve the different agriculture related activity can apply for assistance under this scheme. The list includes value-added operations and services like

  • Introduction of New Technology
  • Visit of progressive farmers
  • Promotional and Extension Activities
  • Technical know-how from India/Abroad
  • Technology Awareness
  • Organising/participation in seminars/symposia/exhibitions
  • Udyan Pandit
  • Publicity and Films
  • Awareness for technology up gradation and markets
  • Honorarium to scientists for effective transfer of technology.
  • Accreditation and Rating of Horticulture Nurseries
  • Mother Plant Nurseries for pedigreed planting material for fruit crops
  • Assistance for Common Facilities in Horticulture Parks/ Agri Export Zones etc.

#4. Market Information Service for Horticulture Crops

The scheme is to generate information on wholesale prices, arrivals and trends in various markets of the country for important fruits, vegetables & flowers etc and also on retail prices for an increased number of selected markets. Additionally, to analyze the trends of arrivals, prices and other related factors of the selected fruit and vegetables.

#5. Horticulture Promotion Service

Under this component, specialized studies and surveys shall be carried and study/survey reports shall be brought out for use by targeted beneficiaries. In addition, technical laboratories shall be set up or cause to be set up and also provide technical services including advisory and consultancy services. This shall be done by NHB with or without services of outsourced experts. NHB will bear the 100% cost of the study.

Guidelines for NHB Subsidy Schemes

Procedure for filing applications for NHB subsidy schemes

You must apply in according to the direction of the Board of Directors/Managing Committee. It includes the procedure for filing applications for financial assistance under all schemes, including online applications, cost of application, inspection of projects, scrutiny norms and procedure for scrutiny of project proposals, communication of various sanctions and approvals and record keeping.

Eligible Organization for NHB Subsidy Schemes

Unless otherwise specified, organizations/promoters, such as Association of Growers, Individuals, group of farmer growers/consumers, Farmers Producer Organizations (FPOs) Partnership/ Proprietary Firms, Self Help Groups (SHGs), NGOs, Companies, Corporations, Cooperatives, Cooperative Marketing Federations, Agricultural Produce Marketing Committees, Marketing Boards/ Committees, Municipal Corporations/ Committees, Agro-Industries Corporations, SAU’s and other concerned R&D organizations are eligible to get assistance under all the NHB schemes.

For applying any of the NHB subsidy schemes, you have to contact the local office of your state. You can find a list of state-wise NHB offices Here.