Who is Eligible for NABARD Subsidy?

Over the disbursement of credit support with a clear emphasis on youth, women, Scheduled Castes and Scheduled Tribes, minorities, backward classes and other weaker sections of the society, the National Bank for Agriculture and Rural Development, popularly known as NABARD, is a financial institution that caters the rural credit needs of the country India specifically. It offers many grants, loans, and funding to support the agricultural and rural sectors. Subsidy schemes of NABARD are committed for Farmers, rural entrepreneurs & Institutions involved in strengthening rural infrastructure, agriculture, farming, agricultural related sectors. If you are interested to know as to who can avail NABARD subsidies, this article provides information on the criteria, procedures and various NABARD ventures.

What is NABARD?

NABARD was established one as a development bank in India in 1982 by the Government of India to concentrate on the development of rural area. Many of them function as apex institutions to support fund for agricultural and rural development interventions. Mission of NABARD is to act as a catalyst and provide financial products at the appropriate time for the growth of the economy especially focusing on rural region.

• Strengthen rural infrastructure.
• Provide micro-finance and financial inclusion to marginalized communities.

Supporting its credit plans and programs, NABARD provides various types of subsidies under different schemes help out numbers of stakeholders in respect of rural & Agricultural development.

Who is Eligible for NABARD Subsidy?

Eligibility for NABARD subsidies depends on the specific scheme, but generally, the following groups are eligible:

1. Farmers

NABARD mainly emphasizes financial help to farmer especially small and marginal farmers. Farmers in the crop production, horticulture, dairy farming, poultry or in any allied sector may approach NABARD for availment of subsidy.

The eligibility criteria for farmers vary depending on the nature of the subsidy scheme but generally include:

• Small and Marginal Farmers: Many of the farmers with such sizes of landholding are small farmers with less than 2 hectares of farmland and marginal farmers with farmland of 2-5 hectares.
• Type of Farming: Other individuals eligible could be farmers who practice conservation agriculture, organic farming or those who want to adopt modern inputs or irrigation systems respectively.
• Income Criteria: Some of the subsidy programmes are designed for certain specific categories of farmers, and hence, income tests may be run.

For instance, NABARD launched the Agricultural Marketing Infrastructure (AMI) scheme where arrangements of cold storages, warehouses and other basic marketing corporation can be funded for the farmers and FPOs.

2. Women Entrepreneurs and Self-Help Groups (SHGs)

NABARD is aware of the necessity of providing a voice to women in rural regions. Among others, it provides subsidies to women entrepreneurs and SHGs or microfinance borrowers in agriculture and rural enterprises.

• Small-scale agricultural ventures such as floriculture, poultry farming, etc.
• Processing and value addition to agricultural produce.
• Agro-based small businesses like cottage industries or dairy farming.

In respect of SHGs, NABARD offers funds for setting up of enterprises in rural areas, training and capacity building. Most of the NABARD subsidy programs established for developing rural employment and minimizing gender bias are favoured to Women-led SHGs.

3. Farmers’ Producer Organizations (FPOs)

FPOs are established by a set of farmers or producers with the aim of enhancing the input in the production, marketing, and processing of agricultural produce. NABARD offers many subsidies to foster the creation and development of FPOs. Eligibility for these subsidies includes:

• Registration of FPOs: FPOs have to be legally formed and recognized legal entities viz Producer Company, Society or Cooperative.
• Group Size: One of the key requirements is that this group should comprise a major chunk of farmers.
• Project Viability: Thus, the FPO needs to submit a business plan that will demonstrate its ability to enhance farmers’ income and production.

NABARD has launched FPO promotion scheme under which financial assistance is also given to the FPOs in capacity building infrastructure development and market linkages. These subsidies thus avails collection capacity among FPOs in production, marketing and supply chain services within agriculture.

4. Rural Entrepreneurs and Start-ups

NABARD also encourages individuals who are contributing to the development of rural area infrastructure, service delivery, and employment. Eligibility for subsidies under this category generally includes:

• Business Type: It should generate wealth in the rural area in a form of investment in value addition such as agro processing, food processing, environmental friendly industries or firms in renewable energy sectors.
• Location: The business should be established in rural and semi-urban centres, preferably.
• Project Focus: NABARD offers funding to business ventures that are innovative, employment-generating and community-oriented.

Those in manufacturing sectors related to agriculture machinery or equipment, agro-processing or handicraft industries can expect to be subsidized if the proposed projects are to assist towards making the rural economy productive.

5. Co-operatives and Producer Groups

NABARD offers credit for supporting specific operations of cooperative societies and producer groups for raising agricultural production and common rural facilities. These can include:

• Cooperative Banks: NABARD assists the cooperative banks and rural credit institution and promote the credit support to the farmers and the others. The reason for this is because these banks can offer their farming customers better interest rates on loans.
• Producer Groups: Group entities like farmer’s organizations, producer organizations and producer companies engaged in increasing production or marketing of agricultural produce.

To implement RIDF, funds are provided where cooperatives and producer groups are allowed to avail subsidies for infrastructure development to enhance the standard of rural economy through NABARD.

6. Institutions and NGOs

Education institutions, which include colleges and universities, NGOs and agricultural research institutions/training centres, if involved in rural development, agricultural research and Environmental conservation, can also apply for subsidies with NABARD. NABARD provides:

• Financial Assistance for Rural Development Projects: Special attention is made for project where subsidies are applied, such as those in the rural area, in building capacity, and projects that benefit the community.
• Research and Development: Some of the ways through which Agricultural related NGO and research institutions can finance their projects include.

The Development Assistance programs of the NABARD are directed towards institution and NGOs who are involved with bringing about betterment in the agriculture sector, those who work on rural infrastructure, and developmental securities.

Types of NABARD Subsidy Schemes

The subsidy plans provided by NABARD comprise a broad array of opportunities suitable for various sectors and their beneficiaries. Some of the popular schemes include:

1. Agriculture Marketing Infrastructure (AMI) Scheme: This scheme aids farmers and farmer producer organisations in creation of marketing infrastructure like cold chains, godowns, and processing facilities. Thus, NABARD also gives subsidies for streamlining the agricultural value chain through its ability to enhance the processing and reduce mer employing post harvest losses.

2. RIDF – Rural Infrastructure Development Fund: According to the RIDF, NABARD offers subsidies to rural infrastructure facilities such as roads and bridges, and any irrigation projects. The emphasis is on enhancing the accessibility of such regions and the development of rural areas in particular.

3. Subsidies on Farming of Dairy and Poultry Products: NABARD provides incentives to the farmers as well as other entrepreneurs in the field of dairy and poultry farming. These schemes seek to facilitate achievement of improved contemporary structures of carrying out dairy and poultry farming.

4. Promotion and Enhancement of FPOs: NABARD promotes the formation of Farmer Producer Organizations through extending of credit. It comprises institutional development for the FPOs, the development of necessary infrastructure and market access for products of FPOs.

5. Micro Finance Institutions (MFIs) and Self Help Groups (SHGs): NABARD also maintains the providing of finance to SHGs and MFIs through which facilitating the finance to SMEs and Farming activities in the Rural Regions. These institutions may be subsidy recipients for training and capacity building as well as infrastructure.

How to Apply for NABARD Subsidy?

To obtain the subsidies from the NABARD it usually follows specific steps. Below are the key steps:

1. Research the Available Schemes: However, it is important to know which of the NABARD subsidy schemes applies to the kind of business or project one wants to undertake.
2. Prepare the Necessary Documents: All of the schemes will usually demand the project report, the financial documents and certificates of eligibility such as farmer status, registration of their cooperative etc.
3. Submit Application to NABARD: These applications can normally be made directly to Nabard, or through local branch of the participating bank and other financial institutions.
4. Approval and Disbursement: It is once can evaluate of your application, NABARD will sanction the subsidy and will be disbursed on agreed procedure starting from implemented scheme.

Conclusion

NABARD’s subsidised policy has a vital role in uplifting the rural India agricultures and structures. Subsidy in scheme under NABARD depends on the type of the beneficiary, purpose of the project and the type of scheme. Any farmer, or any people involving himself in business, SHG, and cooperative, there are several options NABARD has provided with its financial aid.

As a result, you can use NABARD subsidies to enhance your business or agricultural activities and overall sustainability, growth and prosperity in rural India By knowing these requirements and procedures you can avail the subsidies offered by NABARD.