FAQ

Q. Is the farmer required to obtain the MOU from the registered trader/ extractor/ exporter with the Board?


Ans: The farmer is at liberty to sell his produce to who ever offers more. Accordingly, he is required to obtain the MOU from the same trader/ extractor/ exporter/ manufacturer. The buying firm and signatory from the firm should be a genuine one so as to safeguard the interests of the sellers/ cultivators

Q. Is the board finances the land development activities too?

Ans: NMPB has fixed unit costs for all the important medicinal crops in consultation with NABARD and the cost norms are not site specific and can not be changed depending on the site conditions.

Q. Is there any extra financial assistance for cultivators from SC/ST/Small/Marginal farming communities?

Ans: All the cultivators, irrespective of their social/ economic status, are eligible for the subsidy upto 30% of the cultivation cost.

Q. What are the Financial Institutions eligible for appraising the MP cultivation projects ( Bank Appraisal )?


Ans: As per NMPB directions, Bank appraisal in Annexure-X shall be from Nationalised Banks/ Scheduled Banks only. Approval from Private/ Rural Co-operative Banks may not be considered for sanctioning the assistance. Only banks which have favourable cash/ reserve ratio and do not violate section 11 & 12 of Banking Regulation Act and RBI guidelines shall be considered. For these banks, a certificate to this effect from the bank shall be enclosed to the appraisal.

Q. How much loan the cultivator has to obtain from the Financial Institution for qualifying for the subsidy?

Ans: The applicant has to obtain not less than 10% of the project cost as loan from the concerned financial institution for qualifying for the disbursement of the subsidy from NMPB.

Q. In the absence of Pattadar Pass Books, can the applicant enclose sale deed documents of the land in token of the possession of the land?

Ans: Attested copies of the sale deed documents are accepted in lieu of Pattadar Pass books.

Q. Can one apply for financial assistance for cultivation of medicinal plants in leased lands?


Ans: Lessee can apply for financial assistance for cultivation of MPs in leased lands. The lease agreement with the signatures of the lessee and lessor(s) has to be registered and submitted along with the copies of land documents of the lessor(s) while applying.

Q. How long will it take the board to process the application, sanctioning the project and release of the financial assistance?

Ans: The applications will be processed once in a month at state level and submitted to NMPB at regular intervals. at NMPB level, a Screening Committee will screen the projects and if found suitable will submit before the Standing Finance Committee which sanctions the projects. After the sanction, the accounts department will release the 1st instalment of the subsidy amount to the state boards which in turn releases the same to the bank account of the applicant after inspecting the field and after release of the 1st instalment of the bank loan. All this process will take about 3-4 months. However, the applicant can know the stage of his/her application by simply accessing the NMPB website.

Q. How soon can one utilize the subsidy after release by the board?

Ans: The financial assistance from the board is a back ended subsidy and will be released in two equal instalments to the bank favouring the applicant. The amounts will be released soon after the disbursement of term loan instalments and will be kept in a separate account. Soon after the completion of the project, the subsidy amount will be adjusted against the last insalments towards the repayment of the bank term loan. Please note that under no circumstances, the financial assistance will be released to the applicant in cash .

Projects Status