Terms and conditions differ from bank to bank, state to state and again the procedure for release of first installment is delayed. This may put the nursery unit in loss or trouble.
Financial Resources from Government
National Horticulture Mission (NHM) started in 2005 in India with an objective to establish ideal nurseries for production of genetically pure plant materials. Nurseries in the public sectors (on government establishments) are entitled to get 100 per cent subsidies on expenditure. The nurseries in the private sector get a subsidy of 50 per cent on their expenditures.
There are two types of nurseries based on their sizes. Big nurseries are those with size of 1 hectare area. Such nurseries are entitled to receive financial assistance up to 30 Lakh as subsidy. The small nurseries with size of 1 Acre are entitled for a subsidy up to 18 Lakhs. The subsidies are given as per the bank loans sanctioned.
Financial Resources from Nationalized Banks
There are different schemes under National Horticulture Mission for establishment of horticulture nurseries:
1. Development of Orchard with Tools and Implements
2. Establishment of New Orchards
3. Sources of Irrigation Facilities
4. Controlled Farming
5. Integrated Pest Management/ Integrated Disease Management
6. Organic Farming
7. Human Resource Development
8. Practicals on Technology
9. Honey Bee Keeping
10. Post Harvest Handling of Fruits and Vegetables.
11. Self Employment Program.
Financial Resources from Private Sector
There are various private financing institutes funding the establishment of horticultural nurseries. Private Credit Co-operative Societies also extend loan facilities to nurseries.