National Horticulture Board (NHB) Schemes

    Unlock Horticulture Subsidies
    with NHB 2025 Schemes

    NHB offers 3 flagship credit-linked schemes covering Commercial Horticulture, Cold Storage, and Cluster Development. Get back-ended subsidies up to 50% and expert guidance.

    Implementing Agency: National Horticulture Board (NHB)
    Grant of Clearance (GoC): Mandatory before project start
    Guidelines: Effective from 01.01.2025
    Explore Schemes How to Apply
    Horticulture Farming

    🌱 National Horticulture Board

    3 Core Schemes | 2025 Guidelines

    Common Provisions for All Schemes

    Credit-linked subsidy GoC mandatory 18-month completion
    Eligible Applicants
    • • Individuals, groups of growers
    • • Farmer Producer Organizations (FPOs)
    • • Companies, Partnership/LLP firms
    • • Cooperatives, Self-Help Groups, Trusts
    • • APMCs, Municipal Corporations, SAUs, R&D bodies
    Key Common Rules
    • • Land: Owned or registered lease (10+ years)
    • • Project timeline: 18 months + 6 months extension
    • • Subsidy: Back-ended; kept in SRFA for 36 months
    • • No duplication: Cannot combine with NHM, APEDA, MoFPI
    • • GoC: Mandatory before any work starts

    Note: All schemes are credit-linked back-ended subsidies – you must obtain a term loan from a bank. Subsidy is released after project completion and verification.

    3
    Core Schemes
    Commercial, Cold Storage, Cluster
    50%
    Max Subsidy
    For Special Category Areas
    20,000 MT
    Cold Storage Capacity
    Max per project
    ₹200 L
    Hi-Tech Project Ceiling
    For high-value crops

    3 Core NHB Schemes

    Complete subsidy structure and eligibility details

    Commercial Horticulture

    40% / 50%
    Subsidy (General / Special Areas)
    Open field (>2 ha), Protected cultivation (>4000 sqm)
    Tissue Culture, Mushroom (50-300 MT)
    Post-Harvest Management: Pack houses, cold rooms, reefer vans
    Max project cost: ₹100 Lakhs (open) / ₹200 Lakhs (hi-tech)
    GoC Mandatory View Details

    Cold Storage

    35% / 50%
    Subsidy (General / Special Areas)
    Type-I, II, CA, III (Ripening), IV (Spices) – 1500 to 20,000 MT
    Expansion & Modernization (Refrigeration, Insulation)
    Refrigerated Vehicles (15-30 MT) – GPS mandatory
    Modernization cap: ₹125 L (Ref) / ₹120 L (Insulation)
    NCCD Compliant View Details

    Cluster Development

    Project-based
    Through specialized Implementing Agencies
    Vertical 1: Pre-production & Production (capacity building, farm mechanization)
    Vertical 2: PHM & Value Addition (pack houses, cold storage, processing)
    Vertical 3: Logistics, Marketing & Branding (market linkages, export)
    Value-chain approach View Details

    Scheme 1: Commercial Horticulture

    General: 40% Special: 50%

    Objective: To develop hi-tech commercial horticulture, reduce post-harvest losses, and boost farmer incomes through integrated production and post-harvest management projects.

    Eligible Beneficiaries
    CategoryDescription
    IndividualIndividual farmers & entrepreneurs
    Farmer OrganizationsFarmer Producer Organizations (FPOs)
    Corporate EntitiesCompanies, Partnership Firms, LLPs
    CollectivesCooperatives, Self-Help Groups (SHGs)
    Other BodiesTrusts, APMCs, Municipal Corporations
    Eligible Components
    ComponentDescription
    Open Field CultivationPlanting material, drip irrigation, fertigation, mechanization, precision farming, GAP
    Protected CultivationPolyhouse, shadenet, plastic tunnels, hydroponics, aeroponics, automation
    Tissue Culture Units10–25 lakh plants/year; accreditation mandatory within 18 months
    Mushroom Units50–300 MT capacity, with/without canning
    Post-Harvest ManagementPack houses, ripening chambers (CS-3), refrigerated vehicles (15–30 MT), primary/secondary processing
    Eligible Activities
    ActivityDetails
    Crop CultivationFruits, vegetables, flowers, spices, medicinal plants
    Nursery DevelopmentHi-tech plug type nurseries, tissue culture
    Post-HarvestSorting, grading, cleaning, packing, ripening, cold storage
    ProcessingPrimary and secondary processing for value addition
    Key Benefits – At a Glance
    S.No Benefit / Component Key Numbers
    1Open Field Subsidy (General)40% of project cost
    2Open Field Subsidy (Special Areas)50% of project cost
    3Hi-Tech Open Field (General)40% of project cost
    4Hi-Tech Open Field (Special)50% of project cost
    5Protected Cultivation Subsidy50% (max ₹100 Lakhs)
    6Tissue Culture – Public Sector100% assistance
    7Tissue Culture – Private Sector40% (max ₹250 Lakhs/unit)
    8Mushroom Unit (General)40% subsidy
    9Mushroom Unit (Special Areas)50% subsidy
    10Refrigerated Vehicle (General)35% (max ₹80 Lakhs)
    11Refrigerated Vehicle (Special)50% (max ₹100 Lakhs)
    12Ripening Chamber (General)35% subsidy
    13Ripening Chamber (Special)50% subsidy
    14Secondary Processing (General)35% subsidy
    15Secondary Processing (Special)50% subsidy
    16Add-on – Land CostUp to 10% EPC (max ₹60,000/acre)
    17Add-on – Drip System₹24,000–₹30,000 per acre
    18Add-on – Pack House₹4.80 Lakhs per unit (9×6 m)
    19Add-on – GAP Certification₹4,800 per acre
    20Modern TechnologiesHydroponics, aeroponics, sensor automation, solar fencing

    Special Areas: North-East, Himalayan, Scheduled, J&K, Ladakh, A&N, Lakshadweep

    Scheme 2: Cold Storage

    General: 35% Special: 50%

    Objective: To develop integrated, energy-efficient cold chain infrastructure to minimize post-harvest losses, improve shelf life, and enhance market connectivity.

    Eligible Beneficiaries
    CategoryDescription
    IndividualIndividual entrepreneurs & farming groups
    Farmer OrganizationsFarmer Producer Organizations (FPOs)
    Corporate EntitiesCompanies, Partnership Firms, LLPs
    CollectivesCooperatives, Self-Help Groups (SHGs)
    Other BodiesMarketing boards, agro-industries corporations, PSUs
    Eligible Components
    ComponentDescription
    Cold Storage TypesCS-I (single), CS-I Onion, CS-II (multi), CS-II-CA (controlled atmosphere), CS-III (ripening), CS-IV (spices/raisins)
    ModernizationRefrigeration, insulation, refrigerant change (low GWP), Unified Control System, traceability
    ExpansionAdding new chambers with new equipment (treated as new project)
    AncillaryCOâ‚‚ scrubbers, conveying systems, dock levellers, material handling, racking systems
    Eligible Activities
    ActivityDetails
    New ConstructionMulti-chamber cold storages (5,001–20,000 MT; NE: 1,000 MT minimum)
    ExpansionAdding capacity to existing facilities
    ModernizationUpgrading refrigeration, insulation, refrigerants, digital control systems
    Digital IntegrationUnified Control System, traceability software, GPS-enabled vehicles
    Key Benefits – At a Glance
    S.No Benefit / Component Key Numbers
    1Subsidy (General Areas)35% of project cost
    2Subsidy (Special Areas)50% of project cost
    3Capacity Range (Type I / IV)5,001 – 20,000 MT
    4Capacity Range (Type II / CA)1,500 – 20,000 MT
    5Minimum Capacity (NE States)1,000 MT
    6Ripening Chamber (CS-III)Max 300 MT (15–30 MT/chamber)
    7Refrigeration Modernization50% subsidy (max ₹62.5 Lakhs) on ₹125 Lakhs
    8Insulation Modernization50% subsidy (max ₹60 Lakhs) on ₹120 Lakhs
    9Refrigerant Change (GWP 500-1000)50% subsidy (max ₹60,000) @ ₹2,000/kg
    10Unified Control System50% subsidy (max ₹2.5 Lakhs) on ₹5 Lakhs
    11Traceability System50% subsidy (max ₹1.75 Lakhs) on ₹3.5 Lakhs
    12Bundle Component (PCM/Solar + UCS + Trace)50% subsidy (max ₹21.75 Lakhs) on ₹43.5 Lakhs
    13CO₂ Scrubber System₹10 Lakhs per system (mandatory for high-CO₂ produce)
    14Dock Leveller System₹8.4 Lakhs per set (max 2 sets)
    15CA Generator (Controlled Atmosphere)₹150 Lakhs per unit (max 2 units)
    16Refrigerated Vehicle (General)35% (max ₹80 Lakhs) | 15–30 MT
    17Refrigerated Vehicle (Special)50% (max ₹100 Lakhs) | 15–30 MT
    18Mandatory – VFDFor 3+ compressors, 2 VFDs required
    19Mandatory – GPSAll refrigerated vehicles must have GPS & telematics
    20Energy & EnvironmentalLow-GWP refrigerants, CFC-free insulation

    NCCD Compliance: Strict adherence to NCCD Engineering Guidelines is mandatory.

    Scheme 4: Cluster Development Programme (CDP)

    Project-based Assistance

    Objective: To enhance competitiveness of horticulture clusters through integrated interventions across the value chain – from pre-production to marketing – via specialized Implementing Agencies.

    Eligible Beneficiaries
    StakeholderRole
    Farmers & Producer GroupsPrimary producers in the cluster
    Traders & AggregatorsCollection and distribution
    Logistic Players & RetailersTransport and market linkage
    Processors & ExportersValue addition and export
    Eligible Components (3 Verticals)
    VerticalDescription
    V1: Pre-production & ProductionCapacity building, planting material, crop care, farm mechanization until harvest
    V2: PHM & Value AdditionPack houses, cold storage, ripening chambers, sorting/grading, packaging, processing
    V3: Logistics, Marketing & BrandingSeamless logistics, market linkages, branding, export promotion
    Eligible Activities
    ActivityDetails
    Cluster IdentificationBased on geographical specialization
    Value Chain AssessmentGap analysis and intervention planning
    Intervention ImplementationThrough specialized Implementing Agencies (IAs)
    Capacity BuildingTraining, demonstrations, skill development
    Infrastructure DevelopmentCommon facilities, processing units, pack houses
    Market LinkagesBranding, export facilitation, market intelligence
    Key Benefits – At a Glance
    S.No Benefit Impact / Details
    1Project-based AssistanceFinancial support through specialized Implementing Agencies
    2Integrated Value-ChainComplete coverage from pre-production to branding
    3Market-Driven ApproachProduction aligned with domestic & export demand
    4Enhanced CompetitivenessImproved quality, efficiency, and productivity
    5Better Price RealizationAccess to premium markets and export opportunities
    6Employment GenerationJobs across farming, processing, logistics, and marketing
    7Export PromotionCreates exportable surpluses with quality assurance
    8Sustainable PracticesEnvironment-friendly interventions (GAP, waste management)
    9Capacity BuildingTraining and skill development for all stakeholders
    10Infrastructure DevelopmentCommon facilities, pack houses, cold storages, processing units
    11Brand BuildingProduct branding and promotion at national/international level
    12Reduced Post-Harvest LossesScientific handling, storage, and logistics
    13Technology AdoptionMechanization, precision farming, digital traceability
    14Farmer ProsperityHigher incomes through market linkages and value addition

    Focus: Entire horticulture cluster ecosystem – not individual projects.

    Application Process

    4 simple steps to avail NHB subsidy

    1

    Register & Apply

    Register on the NHB portal, fill online application, upload required documents, pay applicable fee.

    2

    Get GoC / Loan

    Obtain In-Principle Approval (optional) or direct Grant of Clearance after bank loan sanction. GoC is mandatory before project start.

    3

    Implement Project

    Start work only after GoC. Complete within 18 months (extendable by 6 months with valid reasons).

    4

    Claim Subsidy

    Bank submits claim; joint inspection by NHB, State Dept, Bank; subsidy released to SRFA, adjusted after 36 months.

    Subsidy Reserve Fund & Adjustment

    The subsidy released by NHB is kept in a Subsidy Reserve Fund Account (SRFA) and is adjusted against the term loan only after 36 months from the date of release of the first installment.

    36 Months Lock-in

    Subsidy kept in SRFA for 3 years before adjustment

    Back-ended Benefit

    Interest not charged on subsidy amount during lock-in period

    Subsidy Adjustment Certificate

    Bank submits SAC to NHB after adjustment

    Recall Provision

    NHB can recall subsidy in case of misuse or NPA

    Special Incentives

    Higher subsidy for eligible categories

    Special Category States

    North-East Region, Himalayan States, Scheduled Areas, Jammu & Kashmir, Ladakh, Andaman & Nicobar, Lakshadweep

    50% Subsidy (vs 35-40% General)

    SC/ST & Women Beneficiaries

    NHB has a 15% budget earmarked for SC applicants. Convergence with NSFDC for term loans at 8% interest.

    Priority in project selection

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    Frequently Asked Questions

    Everything you need to know about NHB Schemes

    What is the subsidy percentage under NHB schemes?
    Commercial Horticulture: 40% (General) / 50% (Special). Cold Storage: 35% (General) / 50% (Special). CDP: Project-based.
    Is Grant of Clearance (GoC) mandatory?
    Yes, for Schemes 1 & 2, GoC is mandatory before starting any project work. Work started before GoC leads to rejection.
    Can I claim subsidy from multiple schemes?
    No. NHB schemes are mutually exclusive with NHM, APEDA, MoFPI. Only one scheme per project component.
    What is the project completion timeline?
    Maximum 18 months from first loan disbursement, extendable by up to 6 months with NHB approval.
    Who are the eligible beneficiaries?
    Individuals, FPOs, Companies, Cooperatives, SHGs, Trusts, Partnership/LLP firms, APMCs, Municipal Corporations, SAUs, R&D organizations.
    What is the subsidy adjustment process?
    Subsidy is kept in a Subsidy Reserve Fund Account for 36 months, then adjusted against the term loan without interest on the subsidy amount.
    Official Disclaimer: This is a summary of the National Horticulture Board (NHB) Operational Guidelines effective from 01.01.2025. For complete and updated information, please refer to the official NHB guidelines.