We Are Here To Enrich Your Business !!

The NABARD Subsidy Scheme: Tailoring The Needs of Your Seed Processing Units

The NABARD Subsidy Scheme: Tailoring The Needs of Your Seed Processing Units

Seed Processing Units

After harvest, the seeds must be processed by various methods to keep their physical purity intact and increase the shell life. That should be done before the seeds are stored. Several procedures must be followed, including cleaning (wet and dry), winnowing, sifting, drying, and testing to determine the level of seed dryness. Refining post-harvest seed to its purest form for replanting and human and animal consumption is one of the essential processes in seed processing. It involves coating the cleaned seed with a chemical, usually antimicrobial or fungicidal, to make them more robust for the field.

  • The seed produced will have many impurities like stones, weeds, trash, other crop seeds, etc.
  • Seed processing means cleaning operations that are taken up to the raw produce from the field.
  • In this process, the seed produced will be used for seed purposes. That’s why we have to take care of the germination percentage also.

Importance of Seed Processing Units

The seed produced will have many impurities like stones, weeds, trash, other crop seeds, etc. Seed is the most unassuming potent gift in the farmer’s life to make his life fruitful. Right to good food and right to safe food are the slogans of the day, and the same can be achieved by attaining food sustenance and food security. Seed is the kernel of life itself, the source of Our food. India is a country that mainly relies upon agriculture, and to boost agricultural output, the availability of excellent quality seeds to farmers is inevitable. Depending on the crop, the direct contribution of quality seed to total yield ranges between 15 and 20%. If additional inputs are managed effectively, they can be increased to 45%. The improvements in India’s seed industry, particularly in the previous 30 years, have been remarkable.

Critical Success Factors in the Seed Industry

  • Research and development strength
  • Protection of intellectual property.
  • Production, Planning, Inventory management, and distribution strength.

The NABARD Subsidy Scheme: Tailoring The Needs of Your Seed Processing Units!

When the Government of India gives you a chance to cater to the requirements of your seed processing unit by subsidy allocation, why not embrace it?

Yes. Our government has mandated the financial institution & development bank named National Bank for Agriculture And Rural Development (NABARD) to manage and provide financial aid to the agricultural and rural sectors.

While the changing demands of the agricultural sector left their footprints in 1982, NABARD took the stage to ensure that even farmers reap the fruits of technological progress and modernization. They offer holistic support to the agricultural industry. Within which lies the seed processing units!

What is the NABARD Subsidy Scheme for Seed Processing Units?


The seed processing unit is considered as a Primary Processing Unit. As one of the objectives of the NABARD Subsidy is to ensure remunerative prices to the farmers for their produce, activities like either storage or other marketing infrastructure up to primary processing will be covered. Primary processing for this sub-scheme relates to value addition to raw agricultural produce, which, after processing, does not result in a change of product form. Primary processing for which subsidy under AMI is available is those such as cleaning, cutting, de-podding, decortication, de-husking, de-sheller, Grain cleaner, specific gravity separator, mini rice huller, drying equipment (solar/standard), bleaching, grading, sorting, packing/bag stitching, labeling, waxing, ripening, chilling, pasteurization, homogenization, freezing, refrigeration and other value addition activities, etc.

What is the Subsidy pattern?

FOR INFRASTRUCTURE PROJECTS OTHER THAN STORAGE (NONSTORAGE) INFRASTRUCTURE INCLUDING FARMER-CONSUMERS MARKET AND DEVELOPMENT AND UPGRADATION OF RURAL HAATS/RPMs into GrAMs: Capital cost of the project for subsidy will be calculated on the Project cost as appraised by a financial institution or actual cost of eligible components as certified by a Chartered Accountant, whichever is lower.

Category Rate of Subsidy

(on capital cost)

Maximum Subsidy

Ceiling # (Rs. in lakhs)

A.     North Eastern States, Sikkim, States of Uttarakhand, Himachal Pradesh, Jammu & Kashmir, UTs of Andaman & Nicobar and Lakshadweep Islands, hilly* and tribal areas 33.33% 30.00 Lakhs
B.   In Other Areas
1)     For Registered FPOs, Panchayati Raj Institutions, Women farmers/ entrepreneurs, Scheduled Caste(SC)/ Scheduled Tribe (ST) entrepreneurs and their cooperatives** 33.33% 30.00 Lakhs
2)   For all Other categories of beneficiaries 25% 25.00 Lakhs
What is the procedure for applying NABARD subsidy.

• Bank will submit the subsidy application within 90 days of disbursement of the Term Loan to RO, NABARD, through its controlling / nodal office, a brief project profile-cum-claim form for advance subsidy in the prescribed form given in Annexure-VIII along with the required documents

Who are Eligible to get the NABARD Subsidy Scheme for Seed Processing Units?

You can apply and derive the NABARD Subsidy incentive for your seed processing units if you are –

  • State governments or entities promoted by the central or state governments,
  • Cooperatives, federations of cooperatives, or joint ventures,
  • Farmers’ producer organizations,
  • Special purpose vehicles,
  • Corporates and companies,
  • Entrepreneur, etc.
Summing up with Enrich Professional Services:

Does the process of deriving the NABARD Subsidy Scheme seem like a daunting task? Relax! Our NABARD Seed Processing Unit Subsidy Consultants can help you navigate it all! With several years of expertise, they can provide solutions that fit your needs.

So, why wait? Contact our NABARD Seed Processing Unit Subsidy Consultants today and elevate your chance of procuring the incentives!

Note: These Primary Processing Units are also eligible for a 3% Interest Subsidy up to a 2 Crore Term Loan under Agriculture Infrastructure Fund (AIF) Scheme.

Add a Comment

Your email address will not be published. Required fields are marked *