The agricultural sector is the backbone of India's economy, contributing over 17% to the GDP and employing more than 50% of the workforce.
However, as agri business evolves to meet modern challenges like climate change, market competition, and technology adoption, access to funding becomes a crucial factor.
The Indian government, along with private organizations, offers agri business grants to encourage innovation, sustainability, and infrastructure development in the agricultural sector. In this blog, we'll explore the top agri business grants in India, their benefits, and how you can apply for them to grow your business.
Why Agri Business Grants Are Important
Agri Business grants provide critical financial support to:
- Foster Innovation: Encourage the use of modern technology like IoT, AI, and blockchain in agriculture.
- Improve Productivity: Enable better equipment and advanced techniques for higher yields.
- Promote Sustainability: Support eco-friendly farming methods like organic farming and renewable energy solutions.
- Expand Market Access: Help farmers and entrepreneurs access domestic and international markets.
Did You Know? Modern agri business grants can reduce operational costs by 20-30%, enabling farmers and entrepreneurs to invest in higher-value activities like product branding and exports.
Top Agri Business Grants in India
Here are some of the top Agri Business grants available in India:
1️⃣ Agriculture Infrastructure Fund (AIF)
Objective: To develop post-harvest infrastructure and community farming assets.
- Provides loans with 3% interest subvention for up to ₹2 crore per project.
- Eligible projects include cold chains, warehouses, primary processing units, and more.
- Loans come with a credit guarantee for MSMEs under CGTMSE.
Who Can Apply? Farmers, FPOs (Farmer Producer Organizations), PACS (Primary Agricultural Credit Societies), startups, and agri-entrepreneurs.
Related Resource: Learn how to craft a solid business proposal for grants with our Pitch Deck Services.
2️⃣ National Horticulture Mission (NHM)
Objective: Promote horticulture development through area expansion, improved technology, and infrastructure.
- Offers subsidies up to 40% for farmers and 50% for SC/ST categories.
- Covers projects for nursery development, protected cultivation, and cold storage units.
Who Can Apply? Individual farmers, FPOs, SHGs (Self-Help Groups), and agri-entrepreneurs involved in horticulture.
3️⃣ Dairy Entrepreneurship Development Scheme (DEDS)
Objective: Support dairy farmers and entrepreneurs in developing sustainable milk production systems.
- Provides a capital subsidy of 25-33% on the cost of dairy infrastructure like milking machines and storage.
- Focuses on promoting hygienic milk production and value-added dairy products.
Who Can Apply? Farmers, cooperatives, and MSMEs in the dairy sector.
4️⃣ Rashtriya Krishi Vikas Yojana (RKVY)
Objective: Empower farmers through state-specific agricultural growth projects.
- Offers grants for modernizing farming practices, building irrigation systems, and establishing value chains.
- Focuses on innovative projects, such as farm mechanization and organic farming initiatives.
Who Can Apply? Farmers, FPOs, and private agri-entrepreneurs.
5️⃣ PM Kisan Sampada Yojana (PMKSY)
Objective: Promote food processing and agri-infrastructure development to minimize wastage and increase farmer income.
- Provides financial support for mega food parks, cold chain systems, and value addition infrastructure.
- Offers up to 35-50% subsidy depending on the location and project type.
Who Can Apply? Food processors, startups, and MSMEs in agri-processing.
Pro Tip: Ensure your business is registered to qualify for grants. Learn how with our MSME Certification Services.
How to Apply for Agri Business Grants
Here's a step-by-step guide to applying for agri business grants:
Evaluate your business needs and match them with suitable grants, such as AIF for infrastructure or NHM for horticulture projects.
Common requirements include:
- Business registration documents.
- MSME or FPO certification.
- Detailed project report (DPR).
- Financial projections and a clear business model.
Pro Tip: Need help with your project report? Our Pitch Deck Services can simplify the process.
Most grants can be applied for through government portals like AgriInfra Portal or state-specific websites.
Stay in touch with the relevant authorities for updates on your application status.
Benefits of Agri Business Grants
Here's how agri business grants can transform your operations:
- Access to Modern Technology: Use advanced tools for precision farming, such as drones and IoT sensors.
- Increased Profit Margins: Reduce wastage and improve quality for better pricing in the market.
- Sustainability: Transition to eco-friendly practices that attract premium markets and government incentives.
- Global Market Entry: Develop export-ready products with modern infrastructure and certifications.
Explore More: Wondering how grants can fit into your financing needs? Visit our Government Loans Services.
Success Stories
An FPO in Maharashtra utilized the AIF to build a cold chain system for fruits and vegetables. They reduced post-harvest losses by 40% and tripled their annual revenue.
A dairy startup in Punjab received funding under DEDS to install automatic milking machines. This improved milk yield by 25% and increased profitability.
Conclusion: Why Agri Business Grants Matter
Agri Business grants are the stepping stones to innovation, sustainability, and growth in the agricultural sector. By leveraging these opportunities, farmers and entrepreneurs can modernize their practices, reduce costs, and enhance market access.
Ready to take your agri business to the next level? Explore our services on Government Grants, MSME Certification, and Pitch Deck Preparation to simplify your application process and secure funding seamlessly.