The National Horticulture Board (NHB) Explained

The National Horticulture Board (NHB) is an autonomous organisation of the Government of India, set up in 1984 and headquartered in Gurugram, Haryana, to promote the integrated development of horticulture, meaning fruits, vegetables, flowers, spices, plantation crops and related produce. The Board works under the Ministry of Agriculture and Farmers Welfare and is best known for its credit-linked subsidy schemes for commercial horticulture, cold storages and post-harvest infrastructure.

India is among the world’s leading producers of fruits and vegetables, and horticulture now contributes a significant share of the value of agricultural output. The National Horticulture Board exists to turn that production strength into better farm incomes and lower post-harvest losses. This explainer covers what the Board is, what it funds, who can apply and how it differs from other agri-bodies. It was last reviewed on 22 October 2026.

Key Takeaways

• The National Horticulture Board was established in 1984 as an autonomous society under the Ministry of Agriculture and Farmers Welfare, with its headquarters in Gurugram, Haryana.
• The National Horticulture Board provides credit-linked, back-ended capital investment subsidy for commercial horticulture projects and for cold storage and post-harvest infrastructure.
• Subsidy rates under National Horticulture Board schemes have generally been higher in the North-East, hilly and scheduled areas than in general areas.
• India is among the top two producers of fruits and vegetables in the world, and its horticulture output has exceeded foodgrain output by volume in recent years.
• The National Horticulture Board also publishes horticulture statistics and market information, and it promotes technology transfer and capacity building.
• The National Horticulture Board is separate from the National Horticulture Mission and the Mission for Integrated Development of Horticulture, which are state-implemented government schemes.

What is the National Horticulture Board?

The National Horticulture Board is a central-government-backed autonomous body that supports the integrated growth of horticulture in India. It is registered as a society and is funded by the Ministry of Agriculture and Farmers Welfare, which sets the broad direction of its work.

Horticulture refers to the cultivation of fruits, vegetables, flowers, ornamental plants, medicinal and aromatic plants, spices, plantation crops such as coconut, cashew and cocoa, and mushrooms. The National Horticulture Board focuses especially on the commercial and market side of horticulture, helping projects reach scale and handle produce in ways that reduce spoilage.

The Board is led by a Chairman, a Managing Director and a governing body with representatives from the central government, states, financial institutions and industry. It operates through its Gurugram headquarters and regional and state offices, which receive and process applications and carry out inspections.

Why was the National Horticulture Board set up in 1984?

The National Horticulture Board was set up in 1984 because the government wanted a single body to coordinate horticulture development, which had grown in importance as diets diversified and exports of fruits and vegetables began to rise. Until then, horticulture had received comparatively less institutional attention than foodgrains such as wheat and rice.

The Board’s formation reflected recommendations to give horticulture a dedicated developmental structure, with the aim of improving production, storage, marketing and export. Over the following decades, India’s fruit and vegetable output rose sharply, and the Board’s role grew to include infrastructure financing and market information.

What problems was the Board meant to address?

• Large post-harvest losses of fruits and vegetables due to poor storage, handling and transport.
• Limited access to institutional credit for horticulture entrepreneurs and cold-chain operators.
• Gaps in technology adoption, planting material and market intelligence.
• Low value addition and weak linkages between producers and buyers.

What does the National Horticulture Board do?

The National Horticulture Board does five main things: it gives capital subsidy for projects, supports technology development and transfer, offers promotional services, collects market information and publishes statistics. These activities are carried out through a set of schemes that are revised from time to time by the Ministry.

• Capital investment subsidy for commercial horticulture projects such as orchards, protected cultivation and vegetable farming.
• Capital investment subsidy for cold storages, controlled atmosphere stores and other storage infrastructure.
• Support for post-harvest management units such as packhouses, ripening chambers and sorting and grading facilities.
• Technology development and transfer, including demonstrations, training and farmer exposure visits.
• Market information services and horticulture statistics for planning and trade.
• Promotional activities such as seminars, workshops and participation in fairs.

What subsidy schemes does the National Horticulture Board offer?

The National Horticulture Board offers a credit-linked, back-ended capital investment subsidy, which means a project is financed by a bank loan and the subsidy is released to the borrower’s loan account after the project is completed and verified. The Board’s schemes are reviewed periodically, so applicants should always confirm the latest guidelines on the Board’s official portal.

The exact percentages, project cost ceilings and eligible components have been changed several times. The table above therefore gives only indicative patterns, and readers should treat any specific figure as subject to verification against the current operational guidelines.

Which projects are typically eligible?

• New orchards or plantations of fruit crops, meeting minimum area and technical norms.
• Protected cultivation, such as polyhouses and shade-net houses, for vegetables and flowers.
• Cold storages, controlled atmosphere (CA) storages and related handling equipment.
• Pack houses, ripening chambers, sorting and grading lines and refrigerated transport in some cases.
• Integrated projects that combine production with post-harvest handling.

Who can apply for National Horticulture Board assistance?

Individuals, farmers, farmer producer organisations (FPOs), cooperatives, partnership firms, companies and other entities can apply for National Horticulture Board assistance, provided they meet the scheme conditions and have a bankable project. Applicants are generally required to submit a detailed project report, evidence of land ownership or lease, and a bank’s financing sanction.

The usual application process follows these steps.

• The applicant prepares a project report and obtains a loan sanction from a bank or financial institution.
• The application is submitted through the Board’s online portal, together with the required documents.
• Board officials appraise the project and, if approved, issue an in-principle approval or sanction.
• The project is implemented, and the Board’s team inspects it at the completion stage.
• The subsidy is released to the borrower’s loan account after verification of completion and bank confirmation.

Because the subsidy is back-ended, applicants must arrange their own margin money and bank finance first, so the scheme is aimed at projects that can attract institutional credit rather than at small subsistence activities.

How big is horticulture in India?

Horticulture in India is a very large sector, with annual production of fruits, vegetables, flowers, spices and plantation crops running to several hundred million tonnes, and in recent years the volume has exceeded that of foodgrains. India is the second-largest producer of fruits and vegetables in the world after China, and it ranks first in several crops.

Horticulture offers farmers higher income per hectare than most cereal crops, and it supports food processing, retail and export industries. However, fruits and vegetables are perishable, which is why storage, cold chain and market access are central to the National Horticulture Board’s work.

Why does post-harvest management matter?

Post-harvest management matters because a considerable share of India’s fruits and vegetables is lost between the farm and the consumer, with estimates frequently placed in a broad range of several percent to over a fifth depending on the crop. These losses reduce farmers’ incomes and raise prices for consumers.

Cold chain facilities, which keep produce at controlled temperatures from harvest to sale, are the most important solution. A cold chain typically includes pre-cooling units, cold storages, refrigerated transport and ripening chambers. The National Horticulture Board’s subsidy for cold storages and related infrastructure is intended to expand this network.

Typical post-harvest infrastructure

• Pack houses for sorting, grading and packing produce near the farm.
• Pre-cooling units that remove field heat soon after harvest.
• Cold storages of various temperature ranges for potatoes, apples, onions and other crops.
• Controlled atmosphere stores that adjust oxygen and carbon dioxide levels to extend storage life.
• Ripening chambers for fruits such as banana and mango.
• Refrigerated vehicles for last-mile and long-distance transport.

What market information and statistics does the Board provide?

The National Horticulture Board provides market information, price data and horticulture statistics that help farmers, traders and planners make decisions. It compiles area, production and productivity data for horticulture crops, and it publishes this information in periodic reports and on its website.

Such data is useful for policymakers deciding on infrastructure and for entrepreneurs evaluating where to locate projects such as cold storages. The Board’s market information work also supports traders by showing price trends in major wholesale markets.

How is the National Horticulture Board different from other agencies?

The National Horticulture Board differs from other agencies in that it is a project-financing and promotional body focused on commercial horticulture, whereas schemes like the Mission for Integrated Development of Horticulture are broader government programmes implemented through states. Several agencies work on different parts of the same sector, so it is easy to confuse them.

Applicants should check which agency’s scheme best fits their project, and note that rules on combining benefits from more than one scheme for the same component are typically restricted.

What challenges does Indian horticulture face?

Indian horticulture faces challenges in cold-chain gaps, price volatility, fragmented landholdings, quality planting material and climate risks. These issues limit the incomes of growers and the competitiveness of exports.

• An insufficient and unevenly distributed cold-chain network, with storage concentrated in certain crops and states.
• Sharp price swings for crops such as tomato and onion, which hurt growers during gluts.
• Small and fragmented holdings that make aggregation and quality control difficult.
• Shortages of certified disease-free planting material for some fruit crops.
• Weather and climate events, including unseasonal rain, heat and hail, which damage perishable crops.
• Meeting export quality and residue standards in demanding markets.

The National Horticulture Board’s role, together with state governments, research institutes and the private sector, is to address these challenges through infrastructure, technology and information.

Bottom Line

The National Horticulture Board, set up in 1984 and based in Gurugram, is the central agency that finances and promotes commercial horticulture and post-harvest infrastructure in India. For entrepreneurs, farmer groups and companies planning orchards, protected cultivation or cold storages, the Board’s credit-linked subsidy is one of the main routes to government support, provided they check the current guidelines before applying.

Frequently Asked Questions

What is the National Horticulture Board (NHB)?

The National Horticulture Board is an autonomous body under the Ministry of Agriculture and Farmers Welfare that promotes the integrated development of horticulture in India. It was set up in 1984 and is headquartered in Gurugram, Haryana. Its best-known work is a credit-linked subsidy for commercial horticulture and cold-chain projects.

What subsidy does the National Horticulture Board give?

The National Horticulture Board gives a back-ended, credit-linked capital investment subsidy on eligible project cost. The rate has commonly been around one-third in general areas and about half in the North-East, hilly and scheduled areas, subject to ceilings. Because rates and cost norms are revised from time to time, applicants should confirm them in the current guidelines.

Who can apply to the National Horticulture Board?

Farmers, farmer producer organisations, cooperatives, firms, companies and other entities can apply if they have a bankable horticulture project. Applicants usually need a project report, land documents and a bank loan sanction. Applications are submitted through the Board’s online portal.

What does back-ended subsidy mean?

Back-ended subsidy means the subsidy is released after the project has been completed and verified, rather than at the start. The borrower first takes a bank loan and builds the project, and the Board then credits the subsidy to the loan account. This reduces the outstanding loan and the interest burden.

Is the National Horticulture Board the same as the National Horticulture Mission?

No, the National Horticulture Board and the National Horticulture Mission are different bodies. The Board is a central autonomous society that funds commercial projects directly, while the National Horticulture Mission, now part of the Mission for Integrated Development of Horticulture, is a government scheme implemented largely through state agencies. Both aim to develop horticulture but work through different channels.

How large is horticulture in India?

Horticulture in India produces several hundred million tonnes of fruits, vegetables and other crops a year, and in recent years the volume has been higher than that of foodgrains. India is the second-largest producer of fruits and vegetables after China and leads the world in mango, banana, papaya and okra. Post-harvest losses remain a major concern, which is why cold-chain support is a priority.

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