Archive · 23 Aug 2026
Centre Tightens Horticulture Subsidy Rules After Officials’ Kin Benefited
The government changed rules for a program that gives money to people growing certain vegetables and flowers.
The changes came after a report said relatives of a minister and a senior government official received subsidies.
Now, many current public officials and government employees cannot apply for this money.
Their family members may receive help only once, if they meet the rules.
The government also made the word “family” include parents and adult children.
A family can use the subsidy only one time across the National Horticulture Board’s schemes.
The maximum subsidy percentage was lowered for most states.
People can also return the subsidy and leave the program if they follow the new conditions.
The National Horticulture Board amended its scheme guidelines on August 21 after an investigation reported subsidy benefits received by relatives of public officials.
The revised rules make ministers, legislators, mayors, district panchayat chiefs, most government employees and certain pensioners ineligible for NHB assistance.
The definition of family now includes an applicant’s spouse, parents, sons and daughters, rather than only a spouse and dependent minor children.
Only one family member may receive assistance across NHB schemes, including through firms, companies or Hindu Undivided Families.
The subsidy for general-category states was reduced from 50% to 35%, while beneficiaries in North Eastern or Himalayan states can receive up to 45%.
- Who
- The National Horticulture Board, public officials and their relatives, and applicants to NHB horticulture schemes are involved. The reported beneficiaries included relatives of Minister of State Bhagirath Choudhary and senior IAS officer Naresh Pal Gangwar.
- What
- The Centre revised eligibility, family-definition, subsidy-limit and refund rules for National Horticulture Board horticulture schemes.
- When
- The National Horticulture Board issued the amendments on August 21; the changes followed a June 27 investigation and a 2025 subsidy received by Bhagirath Choudhary.
- Where
- The changes apply to schemes administered by the National Horticulture Board under the Ministry of Agriculture and Farmers’ Welfare.
- Why
- The NHB said the amendments were intended to rationalise assistance, distribute benefits equitably, prevent duplicate subsidies and improve transparency and implementation.
- Amending body
- National Horticulture Board, an autonomous body under the Ministry of Agriculture and Farmers’ Welfare
- Eligible crops
- Capsicum, cucumber, tomato, rose, lilium and chrysanthemum, among other listed horticultural crops
- Previous subsidy
- Up to 50% of project cost, capped at Rs 1 crore per family
- New subsidy
- 35% in general-category states and 45% in North Eastern or Himalayan states
- New family definition
- Applicant’s spouse, father, mother, sons and daughters
- One-family limit
- Only one family member may receive assistance across NHB schemes or components
- Voluntary exit
- Beneficiaries may refund the full subsidy and applicable interest during the lock-in period, subject to NHB conditions