NABARD – Organic Farming

Capital Investment subsidy scheme for commercial production units for organic/ biological inputs


Main objectives of the scheme are

  • To promote organic farming in the country by making available the organic inputs such as biofertilisers, Biopesticides and fruit & vegetable market waste compost and thereby better return for the produce.
  • To increase the agricultural productivity while maintaining the soil health and environmental safety.
  • To reduce the total dependence on chemical fertilizers and pesticides by increasing the availability and improving the quality of biofertilizers, biopesticides and composts in the country.
  • To convert the organic waste in to plant nutrient resources.
  • To prevent pollution and environment degradation by proper conversion and utilization of organic waste.  

Eligible organizations:

1. Biofertilisers and Biopesticides production unit

  • Individuals, Group Of farmers
  • Proprietary and partnership firms
  • Co-operatives, fertilizer industry
  • Companies
  • Corporation, NGOS

2. Fruits & Vegetable waste Compost units

  • Municipalities
  • NGOS & Private Entrepreneurs

Subsidy Calculation:

The scheme provides credit linked and back-ended capital investment subsidy @ as described below.

Category  Biofertilisers – Biopesticides   Unit Fruits & Vegetable market waste compost unit
Owners Contribution % 25-33% 25-33%
Bank Loan 42-50% 34-42%
Subsidy From Govt. 25% 33.33%
Maximum amount ( lakh) 40.00 60.00

Time limit for completion:

A time limit of maximum 15 months is prescribed for completion of the project from The date of sanction by bank. However, if reasons for delay are justified, a further grace period of 3 months may be allowed by the participating bank. If the project is not completed within stipulated period, the benefit of subsidy is withdrawn and advance subsidy has to be refunded forthwith