Key Schemes by the Ministry of Agriculture to Boost Organic Farming in India

Organic farming in India has received a major push from the government over the past decade. The Ministry of Agriculture and Farmers’ Welfare has introduced several targeted schemes that go beyond simple subsidies. These initiatives focus on building farmer skills, setting up local bio-input production facilities, providing financial support during the critical transition period, and strengthening the market for organic produce. If you are a farmer, student, or agricultural professional looking to understand how government support works for organic farming, this guide breaks down the key schemes and their real-world impact.

The foundation: National Project on Organic Farming (NPOF) 🔗

India’s structured support for organic farming started with the National Project on Organic Farming (NPOF), launched in 2004 during the Tenth Five-Year Plan. The project was implemented through the National Centre of Organic Farming (NCOF) in Ghaziabad, along with its Regional Centres located in Bengaluru, Bhubaneswar, Imphal, Jabalpur, Nagpur, and Panchkula. The core idea behind NPOF was to address the growing concern around soil degradation caused by excessive use of chemical fertilizers and pesticides, and to build a proper ecosystem for organic agriculture.

NPOF focused on several critical areas: human resource development through training programmes for state government officers, fertilizer inspectors, and field-level extension workers; statutory quality control of biofertilizers and organic fertilizers under the Fertilizer Control Order (FCO, 1985); promoting Participatory Guarantee System (PGS-India) for affordable organic certification; and financial support for organic input production units through a Capital Investment Subsidy Scheme administered via NABARD. This scheme provided back-ended subsidies for setting up commercial production units for biofertilizers, biopesticides, and compost – up to 33% of the total financial outlay for private agencies, subject to defined ceilings.

The project also supported demonstration activities and model organic farms. Regional Centres conducted field demonstrations on farmers’ fields to show the tangible benefits of organic practices in terms of soil fertility and crop quality. Model organic farms were set up to serve as practical learning centres where neighbouring farmers could observe best practices first-hand. This “seeing is believing” approach proved important in convincing risk-averse farmers to consider organic methods.

Paramparagat Krishi Vikas Yojana (PKVY): cluster-based organic promotion 🔗

Building on NPOF’s groundwork, the government launched Paramparagat Krishi Vikas Yojana (PKVY) in 2015-16 as a centrally sponsored programme. PKVY took a more decentralized, community-driven approach to organic farming promotion. Instead of individual farmer support, it organized farmers into clusters of 20 hectares each, where the entire cluster would practice organic agriculture together. This collective approach addressed one of the biggest challenges in organic farming – the risk of contamination from neighbouring conventional farms.

Financial assistance under PKVY 🔗

Under PKVY, the government provides financial assistance of ₹50,000 per hectare over a three-year period. This covers multiple components including training and capacity building, data management, PGS certification, value addition, marketing, and publicity. Out of this total amount, ₹31,000 per hectare over three years is transferred directly to farmers through Direct Benefit Transfer (DBT) for purchasing on-farm and off-farm organic inputs. The funding pattern between the Centre and States is 60:40, while for North Eastern and Himalayan states, the ratio is 90:10, and Union Territories receive 100% central assistance.

The scheme specifically allocates funds for procuring liquid biofertilizer consortia (nitrogen-fixing, phosphate-solubilizing, and potassium-mobilizing bacteria) at ₹500 per acre, liquid biopesticides (including Trichoderma viridae, Pseudomonas fluorescens, Beauveria bassiana) at ₹500 per acre, and vermicompost units at ₹5,000 per unit. Additional allocations exist for organic input production units, hologram printing for product labelling, and online farmer registration.

Capacity building and training 🔗

Training is deeply embedded in PKVY’s structure. The scheme allocates ₹7,500 per hectare over three years specifically for handholding and capacity building. NCONF (formerly NCOF) and its Regional Centres organize diverse training formats: one-day farmer training programmes, two-day sessions for extension officers, specialized PGS certification courses, and 30-day certificate courses on organic farming. They also conduct large-scale awareness events like Jaivik evam Prakratik Kisan Sammelan for up to 500 participants at a time.

Regional Councils within each district anchor the implementation. They sensitize local groups and farmers on vermicompost production, ensure farmers undertake production of organic inputs like Panchagavya, Beejamruth, and Jeevamruth, and organize distribution of organic inputs to local farming groups. This creates a self-sustaining local ecosystem of knowledge and input supply.

Certification and market support 🔗

PKVY promotes the Participatory Guarantee System (PGS-India), a farmer-friendly organic certification system. In PGS, stakeholders including the farmers themselves assess, inspect, and verify each other’s production practices and collectively declare their produce as organic. This peer-review system is far more affordable and accessible than expensive third-party certification, making it suitable for domestic market sales. An allocation of ₹2,700 per hectare over three years is provided for certification-related expenses.

To help farmers sell their organic produce at better prices, states organize seminars, conferences, buyer-seller meetings, exhibitions, trade fairs, and organic festivals. The government has also developed the Jaivik Kheti portal – an online marketplace where farmers can directly sell organic produce to consumers. Over 6.22 lakh farmers have registered on this portal.

Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) 🔗

India’s North Eastern states – Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura – have traditionally used very limited agro-chemicals in their farming. Recognizing this natural advantage, the government launched MOVCDNER as a Central Sector Scheme under the National Mission for Sustainable Agriculture (NMSA). The scheme aims to convert the region’s default organic practices into a formal, certified, and commercially viable organic enterprise.

How MOVCDNER works 🔗

The scheme provides ₹46,575 per hectare over three years for creation of Farmer Producer Organizations (FPOs), support for organic inputs, quality seeds and planting material, training, handholding, and third-party certification under NPOP (required for exports). Out of this, ₹32,500 per hectare goes to farmers for organic inputs – including ₹15,000 as direct cash transfer and ₹17,500 worth of planting material provided in kind through the State Lead Agency.

A distinctive feature of MOVCDNER is its focus on the complete value chain. The scheme doesn’t stop at production support. It provides financial assistance for setting up collection and aggregation centres (at ₹15 lakh with 75% subsidy), integrated processing units (up to 75% subsidy for Farmer Producer Companies), pack houses, refrigerated transport, and cold storage facilities. This end-to-end approach addresses the common complaint that organic farmers can grow good produce but struggle to process, brand, and sell it at premium prices.

Impact on farmer livelihoods 🔗

Under MOVCDNER, 379 farmer-producer companies have been formed covering 1,72,966 hectares with 1,89,039 farmers. These FPCs have connected with national retail brands, enabling farmers who were previously dependent on local traders to access much larger markets. Farmers serve as board members, CEOs, and chairpersons of their own FPCs, giving them ownership and decision-making power over the entire supply chain – from growing to marketing.

Setting up bio-input production units 🔗

One of the most practical aspects of the Ministry’s organic farming schemes is the financial support for setting up bio-input production facilities at various scales. Without a reliable local supply of biofertilizers, biopesticides, and organic manure, farmers would depend on distant suppliers, driving up costs and reducing the economic advantage of organic farming.

Biofertilizer production units 🔗

Under the Soil Health Management (SHM) component of NMSA, the government provides 100% assistance to state governments and government agencies for setting up liquid or carrier-based biofertilizer and biopesticide production units, up to ₹160 lakh per unit. For individual and private agencies, 25% of the cost (limited to ₹40 lakh per unit) is available as capital investment subsidy through NABARD for units with 200 TPA (tonnes per annum) production capacity. The Indian Council of Agricultural Research (ICAR) has also developed improved biofertilizer strains specific to different crops and soil types, including liquid biofertilizer technology with longer shelf life.

Vermicompost units 🔗

Vermicomposting support comes from multiple schemes. Under PKVY, ₹5,000 per unit is provided for constructing vermi-pits, procuring earthworms, and purchasing raw materials. The Mission for Integrated Development of Horticulture (MIDH) provides 50% financial assistance for vermicompost units up to ₹50,000 per beneficiary for a standard-sized unit (30′ × 8′ × 2.5′). For HDPE vermi beds, assistance of up to 50% (maximum ₹8,000 per bed) is available. Through the NABARD-administered Capital Investment Subsidy Scheme, back-ended subsidies of up to 33% of total cost are available for larger commercial vermicomposting operations.

Other bio-input support 🔗

The National Food Security Mission (NFSM) provides 50% subsidy for biofertilizer promotion (Rhizobium and PSB cultures), limited to ₹300 per hectare. Similarly, the National Mission on Oilseeds and Oil Palm (NMOOP) offers 50% subsidy at ₹300 per hectare for various microbial cultures including Rhizobium, PSB, Zinc Solubilizing Bacteria, Azotobacter, and Mycorrhiza. These multiple channels of support ensure that farmers can access bio-inputs regardless of which crops they cultivate.

Field demonstrations and model organic farms 🔗

Seeing organic farming work on a real field is far more convincing than reading about it in a manual. The Ministry of Agriculture has invested heavily in field demonstrations and model organic farms as tools for farmer education and technology dissemination.

The NCONF and its five Regional Centres organize front-line demonstrations across the country. These are conducted on actual farmers’ fields under real-world conditions, supervised by scientists and agricultural experts. The purpose is to show local farmers the practical differences between organic and conventional management – improvements in soil health, comparable crop yields after the transition period, and reduced input costs over time.

ICAR has developed organic farming packages for 68 cropping systems across 16 states and identified 104 crop varieties suitable for organic cultivation. These research-backed packages are demonstrated through a network of 20 centres under the Network Project on Organic Farming. Long-term experiments at selected sites have shown that yields under organic management were comparable to or even higher than conventional approaches for certain systems like coarse rice, basmati rice, and soybean-based cropping, especially over the long term. Soil organic carbon was also significantly higher under organic management.

Model organic farms take this a step further. These are fully operational organic farms designed as permanent learning centres where farmers, extension workers, and even agricultural students can observe best practices across the entire farming cycle – from soil preparation and composting to harvest and post-harvest management. States have also been encouraged to set up demonstration plots under PKVY clusters to showcase successful organic cultivation techniques locally.

PM-PRANAM and market development assistance 🔗

A relatively newer initiative, PM Programme for Restoration, Awareness, Nourishment, and Amelioration of Mother Earth (PM-PRANAM), takes a different approach. Instead of directly subsidizing farmers, it incentivizes state governments – they receive 50% of the savings in fertilizer subsidy when they successfully reduce chemical fertilizer use and promote alternatives like organic and biofertilizers.

The government has also announced Market Development Assistance at ₹1,500 per metric tonne for fermented organic manure and liquid fermented organic manure. This financial incentive at the market level helps bridge the price gap between chemical and organic fertilizers, making organic inputs more competitive for farmers who are still comparing costs.

Bharatiya Prakritik Krishi Padhati (BPKP) 🔗

Recognizing the growing interest in natural farming (a step beyond organic farming that relies entirely on on-farm inputs), the government introduced Bharatiya Prakritik Krishi Padhati (BPKP) as a sub-scheme under PKVY. States like Andhra Pradesh (1 lakh hectare) and Kerala (0.8 lakh hectare) have taken up large-scale natural farming promotion under BPKP. This sub-scheme encourages the use of entirely on-farm inputs – cow-dung based preparations, natural pest repellents, and mulching – eliminating even purchased organic inputs from the system.

How farmers can access these schemes 🔗

Accessing government support for organic farming involves a few practical steps. For PKVY, farmers need to form or join a group of at least 20 farmers covering a minimum of 50 acres (20 hectares) and apply through their respective state agriculture departments. The cluster is then registered under PGS-India for domestic organic certification. For MOVCDNER in the North East, farmers join Farmer Interest Groups that are federated into FPOs, and applications go through the State Lead Agency.

For setting up bio-input production units, applications can be routed through NABARD branches or state agriculture departments. Farmers seeking organic certification for export markets need to register with agencies accredited under NPOP through APEDA (Agricultural and Processed Food Products Export Development Authority). Financial support from the Agriculture Infrastructure Fund (AIF) – a ₹1 lakh crore fund under Aatmanirbhar Bharat – is also available through PACS, FPOs, and entrepreneurs for setting up post-harvest infrastructure for organic produce.

The cumulative area under organic farming in India has grown significantly – from 11.83 lakh hectares in 2014 to 59.74 lakh hectares cumulatively under NPOP and PGS-India certifications. Under PKVY alone, 38,043 clusters covering 8.41 lakh hectares have been established. Several states have developed their own organic brands to market locally produced organic goods, helping farmers realize better prices.

What do you think? With the government offering financial support across production, certification, and marketing, what do you believe is the biggest remaining barrier for small farmers wanting to switch to organic – is it the initial yield dip during the transition period, or the difficulty of finding reliable markets for their organic produce?

References

1. https://agriwelfare.gov.in/en/IntegratedDiv
2. https://pgsindia-ncof.gov.in/about-us
3. https://www.nabard.org/content1.aspx?id=2791&catid=23&mid=23
4. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1946809
5. https://www.etvbharat.com/en/!bharat/government-organic-farming-through-schemes-of-pkvy-enn25020706776
6. https://www.bighaat.com/kisan-vedika/blogs/mission-organic-value-chain-development-for-north-eastern-region-movcdner
7. https://earth5r.org/indias-organic-farming-revolution-ground-realities-challenges-and-the-next-five-years/
8. https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=152048&ModuleId=3&reg=3&lang=1
9. https://agriculturepost.com/farm-inputs/5-govt-schemes-promoting-organic-farming-in-india/
10. https://www.insightsonindia.com/2025/02/08/organic-farming-india/
11. https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2100761