NHB Subsidy: New Financial Support for Precision Farming and Exports

The National Horticulture Board (NHB) has updated its operational guidelines to prioritize high-tech horticulture and precision farming. This scheme offers a significant capital investment subsidy, up to 40% for general areas and 50% for hilly or scheduled areas, to encourage the production of export-quality fruits and vegetables. As detailed in the NHB Scheme Guidelines, the focus is on technology integration, including automated fertigation systems and climate-controlled greenhouses, to meet international phytosanitary standards. ## What this means for exporters Agri-exporters can leverage this subsidy to set up production units that satisfy the stringent residue limits required by European and Middle Eastern markets. The financial assistance is credit-linked and back-ended, meaning the subsidy is released to a term loan account after successful project verification. By adopting precision farming under this NHB initiative, SME exporters can ensure year-round availability of produce, higher yields per hectare, and better price realization in global markets. It is mandatory to obtain an In-Principle Approval (IPA) from the NHB before commencing project construction to ensure eligibility for the funds.