Agriculture subsidies
Agriculture Central Government Subsidies
Agriculture subsidies refer to financial assistance provided by the government to the agricultural sector — primarily to farmers, agri-entrepreneurs and agricultural producers — to achieve policy objectives and address specific challenges in agriculture.
What are agriculture subsidies?
Financial assistance from the central government to stimulate economic activity, improve productivity and support the agricultural sector across India.
Subsidies are available from both State and Central Government — covering everything from dairy and cold storage to food processing, horticulture and export promotion.
Central government subsidy schemes
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NABARD Subsidy
Multiple schemes
NABARD (National Bank for Agriculture and Rural Development) provides various subsidies and financial support programmes to promote agricultural and rural development. These subsidies benefit farmers, rural entrepreneurs and agricultural enterprises.
1. Dairy Entrepreneurship Development Scheme (DEDS)
Promotes entrepreneurship in the dairy sector and encourages rural youth to take up dairy farming as a livelihood. Provides financial assistance for establishment of modern dairy units and expansion of existing dairy farms.
2. Capital Investment Subsidy — Organic/Biological Inputs
Promotes commercial production units for organic and biological inputs. Encourages sustainable farming practices and reduces dependence on chemical inputs. Provides financial assistance and subsidies for eligible entities.
3. Rural Godowns / Warehouse
Enhances storage infrastructure in rural areas. Financial assistance provided to individuals, FPOs, SHGs and agricultural cooperatives for construction of new godowns or renovation of existing ones.
4. Functional Infrastructure
Develops marketing infrastructure for agricultural and allied produce including horticulture, livestock, poultry, fishery, bamboo, minor forest produce — supporting farmers' income enhancement.
5. National Livestock Mission — Poultry Venture Capital Fund
Provides financial assistance to entrepreneurs and farmers for setting up and expanding poultry farming units. Aims to enhance poultry production, create employment and improve income of rural households.
6. Capital Investment Subsidy — Compost, Biofertilizers & Biopesticides
Government financial support for composting, biofertilizers and biopesticides production units — promoting sustainable agricultural inputs.
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National Horticulture Board (NHB)
Horticulture
NHB provides financial assistance, technical support and guidance to horticulture-related activities. It encourages and facilitates production, post-harvest management and marketing of horticultural crops.
Financial assistance for commercial horticulture projects
Support for post-harvest management infrastructure
Marketing and export development for horticultural crops
Technical guidance for quality improvement
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Agriculture Infrastructure Fund (AIF)
Interest subvention
Agriculture Infrastructure Fund provides financial support for development, improvement and maintenance of infrastructure related to the agricultural sector — enhancing productivity, efficiency and sustainability of agricultural activities.
Key benefits: Interest subvention · Credit guarantee · Convergence with other Central/State schemes
Who can apply
Farmers, FPOs, PACS, Marketing Cooperatives
Multipurpose & Cooperative Societies
State Agencies & APMCs (Mandis)
National & State Federations of Cooperatives
Agri-Entrepreneurs & Startups
Joint Liability Groups & SHG Federations
Govt. PPP Projects (Central/State/Local Bodies)
Primary Agricultural Credit Societies
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APEDA Subsidy
Export promotion
The Agricultural and Processed Food items Export Development Authority (APEDA) was formed under the APEDA Act (December 1985) to develop and promote export of scheduled products. APEDA provides financial support, knowledge and guidance for the creation of planned goods.
Subsidy amount
40% (General) · 75% (Women/SC/ST)
Maximum cap
₹2 Crores
Scheme effective
20 October 2021
Instalments
Single instalment
Eligible equipment: Colour Sortex including Compressors, Vibrators, Metal Detectors, Sensors & Silos. APEDA RCMC Registration is mandatory. Direct export is mandatory.
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Ministry of Fisheries
Aquaculture
The Ministry of Fisheries manages and regulates fisheries and aquaculture activities in India. Its primary goal is to ensure sustainable and responsible use of aquatic resources, protect marine ecosystems and support development of the fishing and aquaculture industries.
Financial support for aquaculture development and modernisation
Subsidies for fishing vessels, equipment and cold chain infrastructure
Support for marine and inland fisheries development
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MOFPI Scheme — PMKSY
Food processing
The Ministry of Food Processing Industries (MoFPI) promotes and develops the food processing sector in India. PMKSY (Pradhan Mantri Kisan Sampada Yojana) covers 15+ food processing sectors with financial assistance.
Sectors covered under MOFPI PMKSY
Fruits & Vegetables · Meat & Meat Products · Poultry Products · Dairy Products · Confectionery, Biscuits & Bakery · Honey, Jaggery & Sugar · Cocoa & Chocolates · Alcoholic & Non-Alcoholic Beverages · Cereal Products · Groundnuts & Walnuts · Pickles, Papads & Chutneys · Guar Gum · Floriculture · Herbal & Medicinal Plants · Cashew & Cashew Products
Eligibility criteria
Net worth minimum 1.5x of grant-in-aid sought
Sanction letter on or after 25 Sep 2023
Term loan minimum 20% of project cost
Minimum project cost of ₹3 crore
Minimum 20% capital infusion by promoter
Detailed Project Report mandatory
Max 2 projects per entity in 10 years
2-year gap if availed other MOFPI schemes
Key documentation required
Non-refundable fee of ₹20,000 for application
Bank Guarantee (BG) of 5% of subsidy for project duration + 60 days
Online application — all pages self-attested by applicant
CA certificate for net worth statement with documentary evidence
CoI / MoA / AoA / GST / PAN of entity
Audited financials for last 2 years
Land details — owned or leasehold for minimum 15 years
Quotation from OEM or authorised dealers for Plant & Machinery
Want to know which agriculture subsidy applies to your business?
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