Krishi Unnati Yojana – MOVCDNER: Organic Farming in North East India

Krishi Unnati Yojana – MOVCDNER (Mission Organic Value Chain Development for North Eastern Region) is a Central Sector Scheme launched by the Ministry of Agriculture and Farmers’ Welfare. Implemented in the North Eastern states—Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura—during the 12th Plan period, the scheme is designed to realize the potential of organic farming in the region. The initiative promotes certified organic production by developing commodity-specific organic value chains that link growers with consumers and support the entire value chain from inputs and certification to collection, aggregation, processing, marketing, and brand building.

Mission Objectives

• Value Chain Development:

  • Develop crop-specific organic production clusters with infrastructural, technical, and financial support.

  • Facilitate partnerships between farmers and local enterprises/Farmer Producer Companies (FPCs) for back-to-back trade relations in domestic and export markets.

• Empowerment and Organization:

  • Organize farmers into Farmer Interest Groups (FIGs) with the goal of federating into FPCs/companies.

  • Transition from conventional or subsistence farming to sustainable, high-value commercial organic enterprises.

• Integrated Approach:

  • Develop commodity-specific organic value chains with end-to-end facilities for production, processing, storage, and marketing.

  • Establish organic parks/zones with facilities for collection, aggregation, value addition, processing, storage, and market linkages.

• Brand Building:

  • Promote NER organic products as brands/labels under the ownership of growers’ organizations.

• Coordination:

  • Create state-specific lead agencies (Organic Commodity Board or Organic Mission) to coordinate, monitor, and support the entire value chain development.

Benefits

• Cluster Development:

  • Formation of crop/commodity-specific organic production clusters for improved training, hand-holding, certification, and aggregation.

• Capacity Building:

  • Assistance for on-farm input production units (e.g., liquid manure tanks, NADEP compost tanks, botanical extract units) with a one-time benefit of ₹3,750 per hectare (up to ₹7,500 for 2 hectares per beneficiary).

• Off-Farm Inputs Support:

  • One-time assistance of ₹3,750 per hectare for procurement of biofertilizers, biopesticides, and neem cake for up to 2 hectares.

• Seed and Planting Material:

  • Subsidy covering 50% of the actual cost of quality seed/planting material, limited to ₹17,500 per hectare (maximum subsidy of ₹35,000 per hectare).

• Extension and Infrastructure:

  • Support for extension services, training, hand-holding, and certification.

  • Assistance for establishing input delivery and custom hiring centers, pack houses, cold chain infrastructure, and marketing dealerships.

• Value Addition & Processing:

  • Credit-linked subsidy support for setting up integrated processing units and value addition centres by FPCs/FPOs/FIGs.

• Overall Impact:

  • Enhance market access, improve production efficiency, increase income for organic farmers, and promote sustainable agricultural practices in the North Eastern Region.

Eligibility

• Geographical Coverage:

  • The scheme is applicable in the North Eastern states: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura.

• Farmer Organization:

  • Beneficiaries include individual farmers, farmer groups, FPOs, FCOs, and cooperative societies engaged in organic farming.

• Cultivation Criteria:

  • Organic production clusters should cover a significant area (e.g., minimum 50-60% area under targeted commodities) and be developed in new areas or integrated into existing FPCs.

• Additional Requirements:

  • Registered farmers must procure inputs and seed material from authorized sources as per state guidelines.

  • Beneficiaries must adhere to certification and quality standards to ensure uniformity in organic production.

Application Process

Offline Process:

1. Submission:

   • Eligible beneficiaries (or their respective organizations such as FPCs/FIGs/FPOs) fill the subsidy proposal in the prescribed format.

   • The proposal, along with all supporting documents, is submitted to the designated State Lead Agency (SLA) under the Mission.

2. Screening & Recommendation:

   • The SLA conducts a transparent selection process. Projects already receiving subsidies from other State or Central schemes are not eligible.

   • The SLA forwards the subsidy proposals to NEDFi for further processing.

3. Loan Sanction & Subsidy Approval:

   • Once a term loan is sanctioned by the Commercial Bank/Financial Institution, the subsidy proposal is placed before the Subsidy Sanctioning Committee (comprising representatives from NEDFi, IIFPT, and the SLA).

   • A joint pre-sanction site inspection is conducted, and based on the progress and verification of beneficiary contributions, the subsidy is sanctioned and released.

4. Disbursement:

   • Subsidy funds are disbursed in three installments, on a pro-rata basis, directly to the beneficiary’s account through the designated financial channel.

Documents Required

• Project Documentation:

  • Detailed Project Report (DPR) with item-wise cost details, total outlay, loan and margin details.

  • Approved plan/map and civil drawings of the project infrastructure.

  • Invoices for purchase of machinery/equipment.

  • Copy of land documents where the project is established.

  • Notarized affidavit on non-judicial stamp paper as required by the SLA.

  • Registered partnership deed, Memorandum & Articles of Association, or relevant registration certificate for companies/FPCs/FPOs/FIGs.

• Financial Documents:

  • Last three years’ audited balance sheet.

  • Bank statements covering expenditures incurred.

• Other Supporting Documents:

  • Photographs of the project site.

  • Any documentation of previous financial assistance, if applicable (or an undertaking if none was granted).

Frequently Asked Questions (FAQs)

• What is the objective of the scheme?
  To develop a sustainable organic value chain in the North Eastern Region by supporting certified organic production clusters, linking growers with consumers, and building integrated infrastructure for organic agriculture.

• Which states are covered under the scheme?
  Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura.

• What types of support does the scheme provide?
  Financial assistance for on-farm input production, procurement of off-farm inputs (biofertilizers, biopesticides), quality seed supply, extension services, and infrastructure development for processing, cold chain, and marketing.

• How is the subsidy amount determined?
  The subsidy is calculated as a percentage of the unit cost for various components (e.g., 50% for quality seed/planting material, 75% for infrastructure, etc.) with specific ceilings per hectare.

• What is the maximum assistance available for input production and quality seed?

  • On-farm input production: ₹3,750 per hectare (up to ₹7,500 for 2 ha).

  • Quality seed/planting material: 50% of actual cost, limited to ₹17,500 per hectare (max ₹35,000).

• What are the eligibility criteria for becoming a beneficiary?
  Registered farmers, FPCs, FPOs, and other organized entities engaged in organic farming in the North Eastern Region are eligible, provided they meet the crop area and certification requirements.

• How does the subsidy disbursement process work?
  Subsidy funds are released in three installments after successful site inspections and verification of the beneficiary’s contributions, following loan sanction by the bank.

• Can beneficiaries apply for multiple projects?
  Each project is evaluated individually; beneficiaries must meet the criteria for each application.

• Where can I find more information about the scheme?
  Detailed guidelines, application forms, and project briefs are available on the official portal and through state lead agencies.