Subsidy for Organic Farming in India
Synthetic fertilisers and pesticides are being more widely used, resulting in environmental damage and health issues. As consumer awareness and environmental standards continue to grow, there will be an increased demand for organically produced products. Organic farming necessitates the use of biological and organic inputs rather than chemical inputs, and India’s bio-fertilizer or organic fertiliser output has to be increased. As a result, the Indian government, through the National Project on Organic Farming, offers capital investment subsidies to commercial production units that produce organic fertilisers and bio-fertilizers. The subsidy for organic farming in India is examined in this article in terms of units producing bio-fertilizers, bio-pesticides, or fruit and vegetable compost.
Objectives of the Scheme
The Department of Agriculture and Cooperation, in partnership with NABARD or NCDC, is implementing a capital investment subsidy plan for commercial production units of organic/ biological inputs through the National Centre of Organic Farming (NCOF). The scheme’s main goals are to promote organic farming in the country by making organic inputs available, increase agricultural productivity while maintaining soil health and environmental safety, reduce total reliance on chemical fertilisers and pesticides, convert organic waste into plant nutrient resources, and prevent pollution and environmental degradation.
- To encourage organic farming in the country by making organic inputs such as bio fertilisers, bio insecticides, and fruit and vegetable market waste compost available, resulting in a higher return on the produce.
- Increase agricultural yield while protecting soil health and the environment
- Increasing the availability and improving the quality of bio fertilisers, bio pesticides, and composts in the country to minimise total reliance on chemical fertilisers and pesticides.
- Converting organic waste into plant-nutrient resources is the goal.
- By properly converting and using organic waste, pollution and environmental deterioration may be avoided.
- To set up production plants for bio fertilisers and insecticides.
- Setting up a composting facility for fruit and vegetable waste
Subsidized Entities
The plan provides financial assistance to new and existing units involved in the manufacture of organic fertilisers or bio-fertilizers (expansion/renovation). Individuals, groups of farmers/growers, proprietary enterprises, partnership firms, co-operatives, the fertiliser industry, companies, corporations, and NGOs can all benefit from a subsidy if they make bio-fertilizer and/or bio-pesticides. If a fruit and vegetable waste compost unit is planned, APMCc, municipalities, non-governmental organisations, and private businesses may be eligible for financial assistance under the scheme.
Component of Subsidy & Disbursement
Credit-linked and back-ended capital investment subsidies are available through this programme. It offers a capital subsidy of 25% of the entire project cost, up to a maximum of Rs.40 lakhs per unit, to bio-fertilizer and bio-pesticides companies. A capital subsidy of 33% of the total project cost, up to a maximum of Rs.60 lakhs per unit, is available for fruit and vegetable compost facilities. Purchased land, civil works, plant and machinery, scientific instruments and equipment, and other costs may be included in the project budget. Calculate the land value in the project budget, which must not exceed 10% of the total budget. The entire financial investment should not exceed 50% of the cost of land and civil constructions
The land cost included in the project cost might be used to the enterprise’s margin money requirements. The cost of land, on the other hand, will only be included in the project cost if the firm plans to buy the site. Also, the land cost should be the purchase price, with the value of that section of the property that is solely needed for the project being taken into account.
The subsidy will be released to units financed by Commercial Banks, Regional Rural Banks, and other institutions that are qualified for NABARD refinancing. The subsidy will be distributed in two instalments. After sanction and distribution of the first instalment of the loan, NABARD will release 50% of the subsidy amount to the financing institution upon submission of the project profile and claim form. The remaining 50% will be distributed to the financing institution following an examination and recommendations from officials from the financing institutions, NABARD/NCDC and NCOF/DAC.
The Government of India Organic Farming Different Schemes
Due to the government’s concerted efforts, the amount of cultivable land under organic farming has grown from 11.83 lakh hectares in 2014 to 29.17 lakh hectare by 2020. Organic marketing operations in the north eastern area have resulted in the establishment of state-specific organic trademarks, improved local supply, and organic exports. The vision statement sets a goal of 20 lakh extra hectares of area coverage by 2024, based on the success of organic activities. Awareness campaigns, as well as the provision of suitable post-harvest infrastructure, marketing facilities, and a premium price for organic food, among other things, would undoubtedly encourage farmers to switch to organic farming, resulting in an increase in the country’s organic coverage.
1. Paramparagat Krishi Vikas Yojana (PKVY)
Paramparagat Krishi Vikas Yojana promotes cluster based organic farming with PGS (Participatory Guarantee System) certification. Cluster formation, training, certification and marketing are supported under the scheme. Assistance of Rs. 50,000 per ha /3 years is provided out of which 62 percent (Rs. 31,000) is given as incentive to a farmer towards organic inputs.
2. Mission Organic Value Chain Development for North Eastern Region (MOVCDNER)
Through Farmer Producer Organizations (FPOs), the system supports third-party certified organic cultivation of specialist crops in the northeast, with an emphasis on exports. Farmers receive a three-year subsidy of Rs 25,000 per acre for organic inputs such as organic manure and bio-fertilizers, among other things. The plan also includes funding for the development of FPOs, capacity building, and post-harvest infrastructure up to Rs 2 crore.
3. National Mission on Oilseeds and Oil Palm (NMOOP)
Bio-fertilisers, provision of Rhizobium culture, Phosphate Solubilising Bacteria (PSB), Zinc Solubilising Bacteria (ZSB), Azatobacter, Mycorrhiza, and vermi compost are among the components covered by the Mission, which receives a 50 percent subsidy of Rs. 300 per acre.
4. National Food Security Mission (NFSM)
Under NFSM, financial assistance is provided for promotion of bio-fertiliser (Rhizobium/PSB) at 50 percent of the cost limited to Rs 300 per hectare.
5. Capital Investment Subsidy Scheme (CISS) under Soil Health Management Scheme
Up to a maximum of Rs 190 lakh per unit, this programme provides state governments and government agencies with 100 percent assistance for the establishment of mechanised fruit and vegetable market waste, agro waste compost producing units (3000 Total Per Annum TPA capacity). Individuals and private organisations are also eligible for capital investment assistance of up to 33% of the cost limit, up to Rs 63 lakh per unit.