Agriculture Subsidy
Agriculture subsidy refers to financial assistance or support provided by the government to the agricultural sector, primarily to farmers and agricultural producers. These subsidies are often intended to achieve various policy objectives and to address specific challenges in agriculture.
There are subsidies available by State & Central Government & which are mentioned below -:
A. Agriculture Central Government Subsidy
A agriculture central government subsidy refers to financial assistance or support provided by the central or federal government of a country to individuals, businesses, organizations, or other levels of government. Subsidies are typically designed to achieve specific policy goals, stimulate economic activity, or provide relief in certain sectors or regions.
Most Beneficial Subsidy Schemes under Agriculture Central Government Subsidy
- National Horticulture Board
The main role of the National Horticulture Board is to provide financial assistance, technical support, and guidance to horticulture-related activities. It aims to encourage and facilitate the production, post-harvest management, and marketing of horticultural crops.
- NABARD Subsidy
NABARD (National Bank for Agriculture and Rural Development) provides various subsidies and financial support programs to promote agricultural and rural development in India. These subsidies aim to benefit farmers, rural entrepreneurs, and agricultural enterprises.
Most Beneficial Subsidy Schemes under NABARD
1. Dairy Entrepreneurship Development Scheme
The Dairy Entrepreneurship Development Scheme (DEDS) is a scheme implemented by the Indian government under the Ministry of Agriculture and Farmers Welfare. The scheme aims to promote entrepreneurship in the dairy sector and encourage rural youth to take up dairy farming as a livelihood option. It provides financial assistance and support for the establishment of modern dairy units and the expansion of existing dairy farms.
2. Capital Investment Subsidy Scheme For Commercial Production
The Capital Investment Subsidy Scheme for Commercial Production Units for Organic/Biological Inputs is a scheme implemented by the Indian government to promote the production of organic and biological inputs for agriculture. It aims to encourage the use of sustainable farming practices and reduce dependence on chemical inputs. The scheme provides financial assistance and subsidies to eligible entities for setting up commercial production units for organic and biological inputs.
3. Rural Godowns / Warehouse
Rural Godown Scheme aims to enhance the storage infrastructure in rural areas. Under this scheme, financial assistance is provided to individuals, farmer producer organizations (FPOs), self-help groups (SHGs), and agricultural cooperatives for the construction of new godowns or the renovation/expansion of existing ones.
4. Functional Infrastructure
To develop marketing infrastructure to effectively handle and manage marketable surpluses of agricultural and allied produce including horticulture livestock, poultry, fishery, bamboo, minor forest produce and such like produce supportive to enhance farmers’ income.
5. National Livestock Mission (Poultry Venture Capital Fund Scheme)
The objective of the Poultry Venture Capital Fund Scheme is to provide financial assistance and support to entrepreneurs and farmers for setting up and expanding poultry farming units. The scheme aims to enhance poultry production, create employment opportunities, and improve the overall income of rural households.
6. Capital Investment Subsidy For Vegetable & Fruit Market Waste Compost, Biofertilizers, Biopesticides Production Units
Under the scheme the government provides financial support for activities related to composting, biofertilizers, and biopesticides production.
- Agriculture Infrastructure Fund(AIF)
Agriculture infrastructure funding refers to financial support provided for the development, improvement, and maintenance of infrastructure related to the agricultural sector. This funding is aimed at enhancing the productivity, efficiency, and sustainability of agricultural activities.
Governments, international organizations, and financial institutions often allocate funds specifically for agricultural infrastructure projects.
Who are Eligible
- Farmers (Farmer Producers Organization (FPO), PACS, Marketing Cooperative Society, Multipurpose Cooperative Society, State Agencies, Agricultural Produce Market Committees (Mandis), National & State Federations of Cooperatives, Federations of FPOs, and Federations of Self-Help Groups (SHGs). etc.)
- Government (Central / State / Local Bodies-sponsored Public-Private Partnership Project)
- Agri-Entrepreneurs & Start-Ups
- Joint Liability Groups
- Primary Agricultural Credit Society
Benefits under the Scheme
- Interest Subvention
- Credit Guarantee
- Convergence with other Central / State schemes
- APEDA Subsidy
In accordance with the APEDA Act, which was approved by the Parliament in December 1985, the Government of India formed the Agricultural and Processed Food items Export Development Authority (APEDA) to develop and promote export for the items that were scheduled. With the passage of this legislation, the Processed Food Export Promotion Council (PFEPC) was replaced by APEDA. Schedule products are the goods listed under the APEDA Act.
APEDA is also obligated to provide financial support, knowledge, and instructions for the creation of planned goods.
APEDA registration is necessary since it is in charge of developing and promoting scheduled items for export.
Scheme Information
- Subsidy (Financial Assistance)
- Subsidy for purchase of Colour Sortex including Compressors, Vibrators, Metal Detectors, Sensors & Silos.
- Scheme effective from 20-10-2021
- Amount of Subsidy – 40% (General) & 75% (Women / SC / ST), Max cap upto ₹ 2 Crores
- No. of Instalments – Single
Procedure
- PEDA RCMC Registration is mandatory.
- Order should not be confirmed, advance payment should not be made to supplier, also should not purchase machinery before submission of Subsidy Appln to APEDA.
- Term Loan is not Mandatory.
- If Term Loan (TL) taken, Appraisal Note and TL copy required. 5 25% BG on Subsidy Amount for a period Implementation Period +| 1 Year, Direct Export is mandatory
- The Ministry of Fisheries
The Ministry of Fisheries, also known as the Department of Fisheries or similar names depending on the country, is a government department or ministry responsible for managing and regulating fisheries and aquaculture activities within a specific jurisdiction. Its primary goal is to ensure the sustainable and responsible use of aquatic resources, protect and conserve marine ecosystems, and support the development of the fishing and aquaculture industries.
- MOFPI Scheme
The Ministry of Food Processing Industries (MoFPI) is a ministry of the Government of India. Its primary objective is to promote and develop the food processing sector in India. The ministry is responsible for formulating and implementing policies and programs to encourage investment, modernization, and expansion of the food processing industry in the country.
Most beneficial subsidies under MoFPI Scheme-:
1. Fruits, Vegetables and their Products
]The Ministry of Food Processing Industries is responsible for formulating and implementing policies and programs to promote the growth and development of the food processing industry in India.
2. Meat and Meat Products
Ministry of Food Processing Industries (MOFPI) in India offers various schemes and programs to support the meat and meat processing sector.
3. Poultry and Poultry Products
Ministry of Food Processing Industries (MOFPI) in India has undertaken various initiatives to support the poultry and poultry products sector.
4. Dairy Products
The Ministry of Food Processing Industries (MOFPI) in India has implemented various schemes and programs to support the dairy products sector.
5. Confectionery, Biscuits and Bakery Products
Ministry of Food Processing Industries (MOFPI) in India has implemented various initiatives to support the confectionery, biscuits, and bakery products sector.
6. Honey, Jaggery and Sugar Products
The Ministry of Food Processing Industries (MOFPI) in India has implemented various initiatives to support the honey, jaggery, and sugar products sector.
7. Cocoa and its products, chocolates of all kinds
The Ministry of Food Processing Industries (MOFPI) in India has implemented various initiatives to support the cocoa and its products sector, including chocolates.
8. Alcoholic and Non-Alcoholic Beverages
The Ministry of Food Processing Industries (MOFPI) in India has implemented various initiatives to support the honey, jaggery, and sugar products sector.
9. Cereal and Cereal Products
Ministry of Food Processing Industries (MoFPI) in India has implemented various initiatives to support the cereal and cereal products sector.
10. Groundnuts, Peanuts and Walnuts
Ministry of Food Processing Industries (MoFPI) in India has implemented various initiatives to support the groundnuts, peanuts, and walnuts sector.
11. Pickles, Papads and Chutneys
The Ministry of Food Processing Industries (MoFPI) in India has implemented various initiatives to support the pickles, papads, and chutneys sector.
12. Guar Gum
The government of India has implemented various schemes and programs to support the cultivation and processing of agricultural crops, including Guar.
13. Floriculture and Floriculture Products
Ministry of Food Processing Industries (MoFPI) in India primarily focuses on promoting the growth and development of the food processing industry. Floriculture, which involves the cultivation and processing of flowers, falls under the purview of the Ministry of Agriculture and Farmers’ Welfare and related agencies.
14. Herbal and Medicinal Plants
The Ministry of Food Processing Industries (MoFPI) in India primarily focuses on the promotion and development of the food processing industry. However, the cultivation and processing of herbal and medicinal plants generally fall under the purview of the Ministry of AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homoeopathy)
15. Cashew kernel, Cashew nuts shell liquids, kardanol
The cashew industry in India is primarily under the purview of the Ministry of Agriculture and Farmers’ Welfare, along with other related agencies and departments. The government of India has implemented various schemes and programs to support cashew cultivation, processing, and value addition.
Eligibility for MOFPI PMKSY scheme:
1. Net worth should be a minimum of 1.50 time grant in aid sought under the scheme
2. Final or in principle sanction letter on or after 25th Sep 2023
3. Term loan should be a minimum of 20% of the project cost
4. A detailed appraisal note along with the sanction letter is mandatory
5. Detailed Project Report (required by Banker)
6. Project to be located inside Mega Food Park or outside the same
7. Minimum project cost of INR 3 crore
8. Minimum 20% capital infusion by promoter
9. Any entity who has already availed subsidy under this scheme can avail the same again
10. In case the entity has availed MOFPI funding under any other scheme, they can avail it after two years of start of commercial production for the same
11. No entity can avail of subsidy benefits for more than 2 projects in a span of ten years
Documentation required:
1. Non-refundable fee of INR 20,000 for applying for the same
2. Bank Guarantee (BG) of 5% of subsidy to be granted for the entire duration of the project plus 60 days once MOFPI approves the project for subsidy
3. Application to be strictly filed online and all pages of the application to be self-attested by the applicant
4. In case documents are in the regional language they need to be translated by English or Hindi translation of the same
5. CA certificate for a net worth statement along with documentary evidence
6. Entity’s CoI / MoA / AoA / GST / PAN to be provided
7. Annual report and audited financials for the last 2 years
8. Promoter profile and entity’s background
9. Details of land, either owned or leasehold for a period of 15 years
10. Quotation from OEM or authorized dealers for Plant & Machinery