Grow Your Agri Venture with NABARD & AIF Subsidy Support

Agriculture is the backbone of India’s economy, and with rising opportunities in agri-processing and value addition, entrepreneurs can now turn farm produce into profitable ventures. The NABARD Subsidy Schemes under the Agriculture Marketing Infrastructure Scheme (AMIS) and Agri Infrastructure Fund (AIF) play a key role in promoting rural entrepreneurship, reducing post-harvest losses, and supporting agri-based startups.

NABARD Subsidy Scheme Overview

The NABARD Subsidy Scheme aims to strengthen India’s agricultural infrastructure by supporting the creation of godowns, cold storage, and agri-processing units. Implemented under the Agriculture Marketing Infrastructure Scheme (AMIS) and the Agri Infrastructure Fund (AIF), it helps farmers, FPOs, and entrepreneurs set up value addition and storage projects.

Through this scheme, eligible beneficiaries can receive capital subsidies up to ₹30 lakh, 3% interest subvention on loans, and credit guarantee coverage for loans up to ₹2 crore. The program is designed to enhance productivity, minimize post-harvest losses, and promote sustainable rural entrepreneurship.

Eligible Under the NABARD Subsidy Scheme

The NABARD Subsidy Scheme (AMIS & AIF) is designed to support a wide range of beneficiaries engaged in agriculture, food processing, and rural enterprise development. The following entities are eligible to apply under the scheme:

1. Individual Entrepreneurs

Farmers, agri-graduates, and rural youth planning to set up storage or processing units.
Individual proprietors involved in agriculture, horticulture, or allied sectors.

2. Farmer Producer Organizations (FPOs) & Cooperatives

Registered FPOs, Farmer Cooperative Societies, and Self-Help Groups (SHGs) engaged in collective farming, aggregation, or value addition activities.

3. Agribusiness Firms & Companies

Private Limited Companies, Partnership Firms, and LLPs working in agri-infrastructure, cold chain, warehousing, or food processing.

4. Panchayats & Local Bodies

Panchayati Raj Institutions, Municipalities, and other local government bodies can establish agri-marketing infrastructure and godowns under this scheme.

5. Women, SC/ST, and Priority Category Entrepreneurs

Women entrepreneurs, Scheduled Caste/Scheduled Tribe beneficiaries, and North Eastern region applicants receive higher subsidy benefits (33.33%).

6. State Agencies & Federations

State marketing boards, federations, and agricultural marketing committees are also eligible for creating large-scale infrastructure projects that support rural markets.

Financial Benefits under the NABARD Subsidy

1. Capital Subsidy on Project Cost

Financial assistance available under AMIS (Agriculture Marketing Infrastructure Scheme).
Subsidy based on beneficiary category and project cost.
Category I & II: 33.33% subsidy up to ₹30 lakh (for FPOs, Women, SC/ST, NE States, UTs, Panchayats).
Category III: 25% subsidy up to ₹25 lakh (for individuals, firms, companies, others).
Calculated on the appraised project cost or actual cost, whichever is lower.

2. Interest Subvention under AIF

Additional support through the Agri Infrastructure Fund (AIF).
3% interest subvention on the term loan amount.
Applicable for a maximum period of 7 years.
Loan limit: Up to ₹2 crore per project.
Available for storage and non-storage agri projects.

3. Credit Guarantee Coverage

Credit risk protection under CGTMSE (Credit Guarantee Fund Trust for Micro & Small Enterprises).
Loan coverage: Up to ₹2 crore.
Guarantee fee paid by Government — no cost to the borrower.

4. Project Financing Norms

Promoter’s Contribution: Minimum 20% of total project cost.
Bank Term Loan: Minimum 50% of project cost (credit-linked scheme).
Subsidy Release: In two stages — 50% Advance Subsidy + 50% Final Subsidy after verification.

5. Integrated Project Advantage

Projects combining storage + processing units can qualify for enhanced subsidy up to ₹130 lakh.
Encourages integrated agri-infrastructure development within the same district.

How KIP Can Help You

KIP is your trusted partner in accessing and maximizing government subsidy benefits for agri and MSME projects. Our team provides complete end-to-end support — from project planning to subsidy disbursement.

Our Expert Services Include:

Project Feasibility & DPR Preparation – Detailed Project Reports aligned with NABARD and AIF guidelines.
Financial Assistance – Guidance in securing low-interest bank loans and credit-linked subsidies.
Subsidy Application Support – Complete documentation, submission, and follow-up for NABARD and AIF claims.
Compliance & Audit Assistance – Ensuring all approvals, certificates, and utilization reports meet official standards.
Strategic Planning – Structuring your enterprise (FPO, LLP, Pvt. Ltd.) to qualify for maximum subsidy rates.

Frequently Asked Questions (FAQs)

Q1: What is the NABARD Subsidy Scheme?

A government scheme offering up to 33.33% subsidy for agri-processing and infrastructure projects.

Q2: How much subsidy is available?

25% to 33.33% of the project cost (max ₹30 lakh).

Q3: Is a bank loan mandatory?

Yes, the scheme is credit-linked. Self-financed projects are not eligible.

Q4: What extra benefits are offered?

3% interest subvention under the Agricultural Infrastructure Fund (AIF) on loans up to ₹2 crore.

Q5: Which projects qualify?

Warehouses, cold storage, grain cleaning, jaggery, honey, and similar agri-processing units.

Q6: How can KIP help?

KIP provides DPR, bank loan, and subsidy application support for hassle-free approval.

Grow Your Agri Venture with NABARD & AIF Subsidy Support

NABARD Subsidy Scheme Overview