Organic Farming – What are the various government schemes for the sector in India?

Author: Rahul Acharya, Senior Advisor, NuernbergMesse India Pvt. Ltd.

In India, a cumulative area of 29.41 lakh ha, 38.19 lakh ha and 59.12 lakh ha have been brought under organic cultivation in the last three years (2019-20, 2020-21 and 2021-22) using organic manure and other organic inputs. This constitutes 2.10%, 2.72% and 4.22% respectively of the cultivable land of 140 million ha. The area under organic farming has doubled over the last three years due to the focused efforts of the government. Over the years, organic promotion activities have led to development of state specific organic brands and increased domestic supply and exports of organic produce from the North East region. Awareness programmes, availability of adequate post-harvest infrastructure, marketing facilities, premium price for the organic produce among others, have certainly motivated farmers towards organic farming thereby increasing organic coverage in the country.

The Government of India provides assistance for promoting organic farming across the country though various schemes. Some of these schemes include:

1. Paramparagat Krishi Vikas Yojana (PKVY) promotes cluster based organic farming with PGS (Participatory Guarantee System) certification. Cluster formation, training, certification and marketing are supported under the scheme. Assistance of Rs. 50,000 per ha /3 years is provided out of which 62 percent (Rs. 31,000) is given as incentive to a farmer towards organic inputs.

1.1 PKVY has some sub-schemes such as the Bharatiya Prakritik Krishi Paddhti (BPKP), which aims to promote traditional indigenous practices which gives freedom to farmers from externally purchased inputs and excludes use of all synthetic chemical inputs directly or indirectly. It encourages use of inputs largely based on on-farm biomass recycling with major stress on biomass mulching, use of cow-dung urine formulations and plant-based preparations for soil aeration.

1.2 Another sub-scheme of PKVY, the Large Area Certification (PKVY-LAC) aims to transform large contiguous traditional/ default organic areas such as tribal areas, hill districts etc. into certified organic through PGS certification. Large contiguous areas with no agro-chemical input usage history, can be transformed into organic certified using one village one group concept. Under this component financial assistance is available only for certification facilitation at Rs. 2,700/ ha for three years.

1.3 Individual and small farmer groups (5-50 farmers) undertaking organic farming on their own and not part of any government scheme can also avail the certification assistance. For this, farmers need to transform their farm into organic and get registered with State Agriculture Department and nearby Regional Council of PGS-India program. Cost of certification limited to Rs. 2,700/ ha for three years will be reimbursed directly to the certification authority.

2. Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) scheme promotes third party certified organic farming of niche crops of north east region through Farmer Producer Organisations (FPOs) with focus on exports. Farmers are given assistance of Rs 25,000 per hectare for three years for organic inputs including organic manure and bio-fertilisers among other inputs. Support for formation of FPOs, capacity building, post-harvest infrastructure up to Rs 2 crore are also provided in the scheme.

The scheme aims to promote commercial organic farming in value chain mode to link growers with consumers and to support the development of entire value chain starting from inputs, seeds, certification, to the creation of facilities for collection, aggregation, processing, marketing and brand building. Farmers in contiguous areas are aggregated for 20 ha farmer interest groups and 25 such groups are aggregated into Farmer Producer Organizations (FPO) Entire value chain is created under their FPO ownership.

MOVCDNER is a central sector scheme with 100% funding from Central. Govt. The scheme is being implemented by the respective state governments through their state specific “Organic Missions.”

Assistance under postharvest handling and value addition components is open to FPOs created under the scheme or private entrepreneurs/ companies. Financial assistance limited to cost norm given below is provided as subsidy @ 75% to FPOs and 50% to private entities. Subsidy to private entities is credit linked.

Components	Total Financial Outlay ceiling	Maximum amount of admissible subsidy
Integrated processing unit	Rs. 800 lakh	Rs. 600 lakh
Integrated pack house	Rs. 50 lakh	Rs. 37.25 lakh
Reefer van	Rs. 25 lakh	Rs. 18.75 lakh
Cold room, cold chamber, ripening chamber etc.	Rs. 25 lakh	Rs. 18.75 lakh
Small processing units (TFO 25 lakhs)	Rs. 25 lakh	Rs. 18.75 lakh

3. Capital Investment Subsidy Scheme (CISS) under Soil Health Management Scheme Under this scheme, 100 percent assistance is provided to state government, government agencies for setting up of mechanised fruit and vegetable market waste, agro-waste compost production unit up to a maximum limit of Rs 190 lakh per unit (3,000 Total Per Annum TPA capacity). Similarly, for individuals and private agencies assistance up to 33 percent of cost limit to Rs 63 lakh per unit as capital investment is provided.

4. National Mission on Oilseeds and Oil Palm (NMOOP): Under the Mission, financial assistance at 50 percent subsidy to the tune of Rs. 300 per hectare is being provided for different components including bio-fertilisers, supply of Rhizobium culture, Phosphate Solubilising Bacteria (PSB), Zinc Solubilising Bacteria (ZSB), Azatobacter, Mycorrhiza and vermi compost.

5. National Food Security Mission (NFSM): Under NFSM, financial assistance is provided for promotion of bio-fertiliser (Rhizobium/PSB) at 50 percent of the cost limited to Rs 300 per hectare.

6. State agencies, Primary Agricultural Credit Societies (PACS), Farmer Producer Organisations (FPOs), entrepreneurs among others can avail loans for setting up of post-harvest infrastructure for value addition to organic produce under 1 lakh crore Agriculture Infrastructure Fund (AIF) of Aatmanirbhar Bharat.