HomeGovt. for FarmersOrganic Farming Subsidy – Benefits, Guidelines & Eligibility

Organic Farming Subsidy – Benefits, Guidelines & Eligibility

As consumers are getting more aware of the harmful effects of chemical fertilizers on health, producers and governments across the globe are forced to promote organic farming in whichever way they can. For this, the Government of India is promoting organic farming subsidies under various schemes under the Ministry of Agriculture & Farmers Welfare. Here in this article, you can find more details on government subsidies for organic farming.

Scheme Overview

  • Scheme Name: Government subsidy for organic farming
  • Scheme Modified: 2014
  • Scheme Fund Allocated: Up to 40 lakhs
  • Type of Government Scheme: Central Government of India
  • Sponsored / Sector Scheme: NMSA, MIDH, NFSM and RKVY.
  • Website to apply: https://www.nabard.org/
  • Helpline No.: 1800229009

Features of Organic Farming Government Schemes

The subsidy for organic farming is provided through the NABARD in collaboration with the National Centre of Organic Farming (NCOF). This scheme aims to promote commercial crop production of organic produce while preserving soil health and being safe for the environment. It also urges the farmers to have organic compost plants and convert the organic waste into valuable forms.

Who is eligible? Individuals or groups of individuals, firms, cooperatives, companies, etc.
What does it include? Establishment of new or renovation of old bio-fertilizer units.
  • For bio-fertilizer and pesticide plants, a total of  INR 160 lakhs for 200 tons/year.
  • For fruit and vegetable compost plant, INR 200 lakhs for 100 TPD capacity
Subsidy amount
  • 25% of total cost or up to INR 40 lakhs per unit for bio fertilizers and pesticides.
  • 33% of cost or INR 60 lakhs per unit for fruits and vegetable compost units.
Subsidy released by NABARD through banks.

  • 50% on project form and claim submission
  • Remaining 50% after inspection and recommendations of the financial institution.
Loan tenure The project must be completed within 15 months with an additional grace period of 3 months.
Loan repayment Up to 10 years with additional 2 years of grace period.


Benefits of NABARD Schemes for Organic Farming

  • Farmers having small or bigger farming land can benefit from this organic farming subsidy scheme.
  • The farmers can establish a compost unit on their land and use them for farming, reducing the overall production expenses.
  • For a small[-scale farmer, there are chances to sell the extra compost they have made.

Drawback of Subsidy on Organic Farming

The organic farming subsidy is highly attractive and sounds convenient. But it may take months for the prospective farmer to find the ideal land. It will take another few months or years to convince the bank to finance your project. The assistance of the NABARD will arrive only after clearance from the bank. Until then, there could be an extended period.

There still needs to be more awareness among farmers regarding the misuse of chemical fertilizers and the benefits of organic products for their farming. Unless this knowledge gap is filled, the scope for the success of organic farming will be much less.

Challenges are also seen in the marketing of the products. At times, the farmers may get a much lesser price for their organic produce than the other conventional products. There should be a proper marketing strategy and price limits.

Difficulty in maintaining the quality of organic manure could derail the entire project, especially with the export prospects. Measures should be taken to maintain good quality through awareness and training in specific regions of the country, according to the local weather conditions.

How to Apply for an Organic Farming Subsidy?

  • Step 1: Plan the project well, prepare the details and submit the plan to the financial institute or bank.
  • Step 2: The bank will review, assess, and approve the plan.
  • Step 3: Application to NABARD and the bank’s approval for their financial assistance.
  • Step 4: Assessment from the NABARD will be done, and the loan will be approved.
  • Step 5: 50% of the approved loan will be released to the bank and, from there, to you.
  • Step 6: The remaining 50% of the subsidy will be released after the bank’s assessment.

Documents Required

  • Project Plan
  • Bank approval
  • Aadhaar card
  • Address proof
  • Ration card
  • Property details
  • Passport size photograph


The organic farming subsidy can be applied online through the NABARD online portal. This can be a game-changing scheme for the farmers to produce without hammering the environment and with less burden on their pockets.

Note: The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial or legal advice. Pesticides are a considerable risk of loss in crops and viewers are advised to do their own research before making any decisions.

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