subsidy for medicinal plant National Ayush Mission scheme

National Ayush Mission Operational Guideline For Medicinal Plants

Scheme for medicinal plant – Support cultivation of medicinal plants which is the key to integrity, quality,efficacy and safety of the AYUSH systems of medicines by integrating medicinal plants in the farming systems, offer an option of crop diversification NATIONAL AYUSH MISSION

To promote medicinal plants as a crop alternative to the farmers and through increased coverage of medicinal plants and with linkages for processing, marketing and testing, offer remunerative prices to the growers/farmers

Financial Assistance

The species for which subsidy was provided @ 20% of the cost of cultivation will now be 30% and for those species for which subsidy was provided @ ranging from 50% or 75% of cost norms as admissible during the 11th Plan period will continue to be admissible. However, to offset increase in cost of cultivation on account of inflationary pressure, the basic cost norms for computing the subsidy will be as provided in the 11th Plan for such species, with increase of 10% in the cost norm for every successive year action plan, subject to concurrence of SFC.

In order to further improve the range and scope of the programme to make it more effective and need based for the States, additional species of medicinal plants and aromatic plants with medicinal value can be grouped into 30%, 50% and 75% subsidy support under the scheme

Establishment of Seed / germ plasm Centers and nurseries for Supply of Quality Planting Material:

Cultivation of medicinal plants and eventual returns from such cultivation is largely dependent upon the quality of planting material used. However, as of now, there is no mechanism of providing quality germ plasm or producing quality planting stock on commercial scale.

Model Nurseries

A model nursery should on average have an area of about 4 hectares and would cost Rs. 25 lacs per unit. The model nurseries which would be established under the Public sector / SHGs will be eligible for 100% assistance of a maximum of Rs. 25.00 lakhs per unit. The model nurseries would produce 2 – 3 lakhs plants depending upon the input costs and time required for the plant to be fit for planting.

It would be the responsibility of the nurseries to ensure quality of the planting material. For model nurseries in the private sector the assistance will be 50% of the cost subject to a maximum of Rs. 12.50 lakhs per unit through public sector banks.

Small Nurseries

Small nurseries, covering area of about one hectare, will have infrastructure facilities to hold 60,000 to 70,000 plants. Small nurseries would cost Rs. 6.25 lakhs per unit. The assistance will be tothe extent of 100% of the cost for the Public sector / SHGs and 50% of the costsubject to a ceiling of Rs. 3.125 lakhs for the nurseries in the private sector through public sector banks.



Government Organisation (State Agriculture/Forest/Horticulture Department)/Government R&D institution / SHGs, ICAR, CSIR, ICFRE, DBT, DST institutions,

NGO, Private entrepreneurs, farmers (They would get only 50% of the grant initially on a pilot basis)

For Cultivation;

Growers, farmers, cultivators Growers Associations, Federations, Self Help Groups, Corporate, growers cooperatives.

Cultivation will be assisted only in case of clusters. Each cultivation cluster will have minimum 2 hectare of the land. Each cultivation cluster should be drawn from farmers having lands within a radius of not more than 15 km. Assistance will be available to willing farmers desirous of cultivating medicinal plants on the same land in successive years.


For Processing facilities and infrastructural support:

 Financial assistance @ 30% of the project cost subject to a maximum of Rs. 30 lakhs will be admissible for setting up of quality test labs for testing of raw material and value added products in a PPP mode on the basis of an MoU between organization, State Implementation Agency and NMPB, admissible under the flexible component. Additionally, financial assistance for market promotion through the media, participation in exhibitions, trade fairs, developing and hiring of display facilities will be available @ 50% of the project cost limited to Rs. 10 lakhs.

Norms of assistance for nurseries and cultivation

Programme Estimated Cost Admissible Assistance
Production of planting material    
a) Public sector    
i) Model nursery (4 ha.) Rs. 25 lakhs Maximum of Rs. 25.00 lakhs
ii) Small Nursery (1 ha.) Rs. 6.25 lakhs Maximum of Rs.6.25 lakhs
b) Private Sector (initially on Pilot basis)    
i) Model nursery (4 ha.) Rs. 25 lakhs 50% of the cost limited to Rs. 12.50 lakhs
ii) Nursery (1 ha.) Rs. 6.25 lakhs 50% of the cost limited to Rs. 3.125 lakhs
i) Species that are highly endangered and in high demand by AYUSH industry As per Annexure –II 75% of the cost of cultivation
ii) Species that are endangered and sources of supply are declining As per Annexure –II 50% of the cost of cultivation
iii) Other species in demand by AYUSH industry and for exports As per Annexure –II 30% of the cost of cultivation
Tags: No tags

Add a Comment

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