If you are looking for the subsidy to set up a hydroponic farm, then you have landed upon the right place.
We all know that farming is the only business that will not stop growing. It will eventually succeed. Recent statistics have proved that agriculture is profitable. This field has attracted many business people who know the potential and market of the agriculture sector.
You can earn passive income by importing and exporting fresh fruits and vegetables for many years. This is one of the important reasons to get a loan to start your hydroponic farming business. The second is to grow any vegetable or fruit throughout the year. The third one is that hydroponic farming does not require soil.
Hydroponic farming requires you to invest once and reap the rewards every time. Your wealth will increase by investing in hydroponic farming.
How to Get Subsidy For Hydroponics?
Hydroponic farming is one of the latest technological advancements in agriculture. In India, it is getting popular as the demand for fresh and local food has increased, mainly in the country’s urban regions.
All hydroponic projects associated with establishing hi-tech and commercial hydroponic production units can apply for subsidy under this NHB scheme. These projects must be credit-linked to be eligible for the subsidy.
Also read – Aquaponics
Subsidy to Set Up a Hydroponic Farm – Eligibility criteria
Following are eligible to get subsidy under the National Horticulture Board scheme:
- Farmers Producer Organization (FPOs)
- Self Help Groups (SHGs)
- Co-operative Marketing Federations
- Partnership/Proprietary Firms
- Agricultural Produce Marketing Committees (APMC)
- Agro-Industries Corporations
Also read – Best Agricultural Business in India
Subsidy to Set Up a Hydroponic Farm – Financial Assistance
The group or legal entity is considered a unit when availing the subsidy under the National Horticulture Board Scheme. Under the Production Development component, the highest subsidy that an applicant can benefit from is the maximum permissible subsidy under the National Horticulture Board Scheme guidelines. It is valid on the date of application under which they applied.
Subsidy to Set Up a Hydroponic Farm – Pattern of Financial Assistance
Credit linked back-ended subsidy @ 50% of the total project cost limited to Rs.56 lakh per project as per the applicable cost norms for the greenhouses, shade net houses, and cost of planting materials, etc.
The credit linked back-ended subsidy implies that the beneficiary has to avail term loan from the Nationalized Banks/Financial Institutions such as:
- State Industrial Development Corporations
- State Financial Corporations
- National SCST/minorities/Backward- Classes Financial and Development Corporation
- Cooperative Banks
Subsidy to Set Up a Hydroponic Farm – Other Criteria
- The project should be implemented within two years from the date of sanction of the loan.
- The payment of a back-ended subsidy gets transferred once the project is completed, fulfilling all the terms and conditions of the loan.
- The project should be in an area of more than 1000 sq. meters to be eligible for the subsidy under the National Horticulture Board scheme.
- Credit components as a medium of project finance should be term loans from banking or non-banking financial institutions. Moreover, it should be at least 15% more than the applicable subsidy rate.
- Projects related to setting up new production units must enable the entrepreneur to incorporate essential components in planting material, precision farming, primary processing-related infrastructure. The project should unite with nature.
- NHB will prescribe the regulating costs of various components. There should be provisions for selecting the construction material used to build the greenhouses and shade net houses. To minimize the cost of the structure, preference will be given to the use of locally available material.
- Crops eligible for the NHB scheme should be high-value vegetable crops such as capsicum, cucumber, tomato, etc.
Subsidy to Set Up a Hydroponic Farm – Cost Norms
The criteria, norms, regulations, subsidy amount, or percentage can differ with the different states, as each has its own agriculture goals. However, one common thing between all is that every state wants to support the new and advanced agriculture technologies in their region for sure.
1. Greenhouse structure:
(a) Fan and Pad System: Rs. 1400/m2, and Rs. 1610/m2 for hilly states and a subsidy of 50% of the cost provided for the area above 2500 m2.
(b) Naturally Ventilated System:
Tubular structure: Rs. 844/m2, and Rs.970/m2 for the hilly state, and the subsidy of 50% of the cost for an area above 2500 m2.
Wooden structure: Rs. 540/m2, and Rs. 621/m2 for hilly states, and the subsidy of 50% of the cost for an area above 2500 m2.
Bamboo structure: Rs. 450/m2, and Rs. 518/m2 for hilly states, and the subsidy of 50% of the cost for an area above 2500 m2.
2. Shade Net House:
Tubular structure: Rs. 710/m2, and Rs. 816/m2 for hilly states, and the subsidy of 50% of the cost for an area above 2500 m2.
Wooden structure: Rs. 492/m2, and Rs. 566/m2 for hilly states, and the subsidy of 50% of the cost for an area above 2500 m2.
Bamboo structure: Rs.360/m2 and Rs.414/m2 for hilly states, and the subsidy amount are the same as the above.
We hope you find this helpful. Contact us if you have any other queries about hydroponic farming, loans, or subsidies.
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