NABARD subsidy for agricultural projects

Maximize NABARD Subsidy Benefits for Agri Projects in India (Hindi Version)

Unlock new growth opportunities in the agriculture sector with the NABARD Subsidy Scheme. This 2025 guide explains how entrepreneurs, FPOs, and agribusiness investors can avail up to 33.33% capital subsidy and 3% interest subvention under AIF for establishing agri-processing, warehousing, and infrastructure projects. Learn key eligibility norms, required documentation, and smart strategies to maximize financial benefits for your project. With expert assistance from KIP, simplify your subsidy application and reduce project costs effectively. Start your agri-business journey today with NABARD’s powerful support for sustainable rural growth.

NABARD Subsidy Scheme Overview

The NABARD Subsidy Scheme is a flagship initiative of the Government of India aimed at promoting agricultural infrastructure, value addition, and rural entrepreneurship. Implemented under the Agriculture Marketing Infrastructure (AMI) sub-scheme of the Integrated Scheme for Agricultural Marketing (ISAM), it provides financial assistance to entrepreneurs, farmers, FPOs, and agribusiness units for establishing warehouses, cold storage, and processing units across India.

The scheme offers a capital subsidy of 25% to 33.33% on the total project cost, with a maximum limit of ₹30 lakh. Eligible beneficiaries can also access a 3% interest subvention on bank term loans under the Agricultural Infrastructure Fund (AIF) for up to seven years. NABARD acts as the nodal agency, ensuring transparent disbursement through banks. This subsidy framework encourages investment in rural areas, reduces post-harvest losses, and enhances farmers’ income by promoting value-added agricultural enterprises.

Eligible Under the NABARD Subsidy Scheme

Individual Entrepreneurs – Farmers, agri-graduates, and rural youth engaged in agri-based activities.
Farmer Producer Organizations (FPOs) and Farmer Producer Companies (FPCs).
Partnership Firms, Private Limited Companies, and LLPs involved in agricultural processing or infrastructure.
Cooperative Societies and Self-Help Groups (SHGs) operating in rural or semi-urban areas.
Panchayati Raj Institutions (PRIs) and Local Bodies developing community-level storage or processing projects.
Women Entrepreneurs, Scheduled Caste (SC), and Scheduled Tribe (ST) beneficiaries (eligible for higher subsidy rate of 33.33%).
Agri Startups and MSMEs engaged in food processing, warehousing, or supply chain enhancement.
Projects must be credit-linked with a term loan from an approved bank or financial institution.

Financial Benefits under the NABARD Subsidy Scheme

The NABARD Subsidy Scheme provides strong financial support to promote agri-processing and infrastructure development across India. The key financial benefits include:

Capital Subsidy:
- Up to 33.33% of the total project cost for eligible categories.
- Up to 25% subsidy for general category beneficiaries.
- Maximum subsidy limit: ₹30.00 Lakhs.
Credit-Linked Assistance:
The subsidy is linked to a bank term loan, ensuring proper financing and project execution.
AIF Interest Subvention:
Eligible units can also avail a 3% interest subsidy under the Agricultural Infrastructure Fund (AIF) for a period of up to 7 years, applicable on term loans up to ₹2 Crore.
Integrated Project Support:
Combined projects involving both storage and processing units can receive enhanced assistance, with total subsidy benefits reaching up to ₹130.00 Lakhs (for the 33.33% category).

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.