SCHEME FOR DEVELOPMENT OF COMMERCIAL HORTICULTURE THROUGH PRODUCTION AND POST-HARVEST MANAGEMENT OF HORTICULTURE PRODUCE UNDER MIDH
Dear Businessman/Investors,
In Series of KIP: Business and Subsidy Update, today we are going to share with you benefit of SCHEME FOR DEVELOPMENT OF COMMERCIAL HORTICULTURE THROUGH PRODUCTION AND POST-HARVEST MANAGEMENT OF HORTICULTURE PRODUCE UNDER MIDH.
Objective:
Promote commercial horticulture (open-field and protected cultivation) in project mode and strengthen value chain for horticultural produce — from planting material to production, post-harvest handling, processing and marketing.
Quantum of Assistance:
Type of subsidy: Credit-linked, back-ended capital subsidy — paid after project implementation and verification (subsidy released through banks / implementing agency).
General pattern (two broad categories):
- General areas: subsidy typically ~35%–40% of eligible capital cost for many integrated/project-based interventions.
- Special / Northeastern, Himalayan, Scheduled / TSP, Vibrant villages, Islands, hill & scheduled areas: higher assistance ~50%–55% for most capital/post-harvest and marketing infrastructure.
Project size / cost norms:
- Integrated commercial horticulture (open-field project mode): typical project cost norm ₹100.00 lakh per project for projects covering area over 2 ha (includes add-on components on pro-rata basis).
Eligibility Entities:
- Individual farmers / landowners engaged in horticulture.
- Farmer Producer Organisations (FPOs), Farmer Interest Groups (FIGs) and Self Help Groups (SHGs).
- Cooperatives, societies, trusts, NGOs implementing horticulture production/processing/marketing projects.
- Proprietorships, partnership firms, private limited companies / corporates (subject to component-wise admissibility; larger/industrial components like integrated processing, cold chain generally accept corporate applicants).
- State/UT agencies, municipal bodies, institutional agencies — public bodies may receive special assistance patterns (including 100% assistance for certain public sector interventions as per MIDH norms).
Eligibility & Implementation:
- Project must be technically & financially viable and fall within the horticulture activities specified under MIDH/NHB (fruits, vegetables, spices, flowers, aromatic & medicinal plants, plantation crops, tuber crops, mushrooms, cultivars, protected cultivation, post-harvest infrastructure, etc.).
- Credit-linked projects: require term loan sanction from a bank / financial institution (subsidy is linked to bank sanction for back-ended subsidies).
- Land / tenure: applicants must produce proof of land ownership/lease as per guideline (lease agreements of required duration for project-mode plantations or registered lease for specified years for orchards) — state implementing norms may specify minimum assured irrigation criteria for plantation.
- Compliance with technical standards: projects must meet prescribed technical specifications / quality standards (BIS codes, NHB technical protocols, installation standards for cold chain, protected structures, etc.) and provide execution documents for inspection.
- Targeting / special provisions: the guidelines include prioritisation and higher assistance ceilings for SC/ST/women beneficiaries, vibrant villages and specified disadvantaged regions.
Applicability:
The National Horticulture Scheme (MIDH) Operational Guidelines 2025 are issued and apply for the FY 2025-26 onwards under the revised norms. The guidelines are dated 31.12.2025 and are the operative framework for implementation in the current policy cycle.
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