Development Support for Coffee in Traditional Areas: Water Augmentation
40% subsidy for water infrastructure on traditional coffee estates · up to ₹2.5 lakh
The Coffee Board offers coffee growers (holdings up to 10 hectares) a 40% subsidy on water harvesting structures (tanks, open/ring wells) and irrigation equipment (sprinkler or drip systems) to improve plantation productivity. The maximum subsidy is ₹2.5 lakh per beneficiary across all water augmentation components combined. Apply online through the Coffee Board's subsidy portal — you must obtain a Technical Feasibility Report before starting any construction work.
About This Scheme
The Coffee Board offers coffee growers (holdings up to 10 hectares) a 40% subsidy on water harvesting structures (tanks, open/ring wells) and irrigation equipment (sprinkler or drip systems) to improve plantation productivity. The maximum subsidy is ₹2.5 lakh per beneficiary across all water augmentation components combined. Apply online through the Coffee Board's subsidy portal — you must obtain a Technical Feasibility Report before starting any construction work.
Full official description
The scheme "Development Support for Coffee in Traditional Areas: Water Augmentation" is a Sub-Component of the Scheme "Integrated Coffee Development Project During the Medium Term Framework (MTF) Period: Development Support to Stakeholders" by the Coffee Board, Department of Commerce, Ministry of Commerce and Industry. The objective of this scheme is to improve the production and productivity of coffee plantations by encouraging water augmentation in traditional areas.
Benefits
- 40% subsidy on water storage tanks (unit cost varies by holding size, e.g. ₹43,000 for up to 1 ha)
- 40% subsidy on sprinkler or drip irrigation equipment (e.g. ₹24,000 subsidy on ₹60,000 cost for up to 1 ha)
- ₹30,000 subsidy on open/ring wells (unit cost ₹75,000)
- Maximum ₹2.5 lakh per beneficiary across all components
- SC/ST growers (up to 4 ha): additional 10% subsidy (still capped at ₹2.5 lakh total)
- Payment directly to bank account via RTGS/NEFT/EFT
💡 Why Startups Should Care
Traditional coffee estates getting water infrastructure subsidies are primed for technology adoption — a startup offering drone-based crop monitoring or soil-moisture sensors can target exactly this cohort who are already investing in productivity with government support.
Who Can Apply (Eligibility)
- Individual coffee growers, joint owners, or family members (mother, father, wife, children) applying jointly
- Coffee holdings up to 10 hectares in traditional or non-traditional areas
- Must not have received subsidy for the same activity in the past 10 years
- Water infrastructure must be within or adjacent to the coffee estate, on land owned by the grower or family
How to Apply
- First obtain a Technical Feasibility Report (TFR) before starting any work — activity started before TFR is ineligible. Visit coffeeboard.gov.in, click "Online Services" → "Subsidy," fill the application form, and upload documents.
- The Coffee Board's jurisdictional office scrutinises documents and conducts a field inspection, then issues the TFR.
- After completing the water infrastructure, submit a subsidy claim in the prescribed format (duplicate) to the jurisdictional Coffee Board office.
- The office scrutinises documents, inspects the field, prepares a Physical Verification Report, and forwards to the Deputy Director (Extension).
- On confirmation of claim admissibility, the Deputy Director releases the subsidy to your bank account.
Frequently Asked Questions
What is the minimum depth recommended for an open well/ring well with or without a pump?
The recommended depth is 30 feet.
What is the unit cost for open well/ring well activities?
The unit cost for open well/ring well activities is [?]75,000 per unit.
Can growers choose to execute water storage structures of any dimension?
Yes, growers can execute structures of any dimension based on their requirements, and the subsidy will be applicable based on unit cost or actual cost, whichever is less.
What is the unit cost for sprinkler/drip irrigation equipment for different holding sizes?
The unit cost varies for different categories of holdings, ranging from [?]60,000 to [?]580,000.
How is the subsidy amount released to the beneficiaries?
The Deputy Director (Extn) releases the subsidy amount directly to the bank account of the applicant through Electronic Funds Transfer (EFT), RTGS, or NEFT.
Is there additional support for the Scheduled Caste/Scheduled Tribe (SC/ST) community?
Yes, SC/ST community growers with coffee holdings up to 4 hectares are eligible for an extra 10% subsidy, with a ceiling of [?]2,50,000.
What is the scale of subsidy for water storage tanks for different holding sizes?
Subsidies range from 40% of the unit cost up to [?]2,50,000 for different holding sizes.
What documents are required to obtain a Feasibility Report?
Documents include a filled and signed application, Aadhaar card, proof of land ownership, rough sketch of the estate, quotation for machinery/equipment, and more.
What is the procedure for claiming the subsidy?
Applicants should submit the subsidy claim to the jurisdictional Coffee Board office, which involves document scrutiny, field inspection, and approval by the Deputy Director (Extn).
What should growers ensure before commencing any activities related to the scheme?
Growers should obtain the Technical Feasibility Report (TFR) before starting any activities related to the scheme.
Are non-tribal coffee growers in Non-Traditional Areas eligible for this subsidy?
Yes, non-tribal coffee growers in Non-Traditional Areas with coffee holdings of up to 10 hectares are also eligible for this subsidy.
Where should water augmentation infrastructure be created?
It should be created either within the coffee estate or in its vicinity, depending on the water source. The land for this purpose should be in the name of the grower or their family members.
When do growers become eligible for the same water augmentation activity again if they have previously benefited from the subsidy?
Growers become eligible for the same activity from the 11th year onwards after benefiting from the subsidy.
Is it possible to combine subsidies for different water augmentation activities?
Subsidy may be availed for any one of the water harvesting structures combined with any one of the irrigation equipment during the MTF period.
Can a grower avail the subsidy for the same activity more than once during the Multi-Year Thrust Plan (MTF) period?
No, a grower who has availed the subsidy for a specific activity/component cannot avail it again during the MTF period unless new beneficiaries are included.
What specific purposes is the subsidy applicable for?
The subsidy is applicable for water harvesting structures (e.g., water storage tanks, open wells, or ring wells) and procurement of irrigation equipment, including sprinkler or drip systems.
Who is eligible to apply for this subsidy?
Individual growers, joint ownerships, or family members applying jointly (limited to mother, father, wife, and children) with coffee holdings of up to 10 hectares are eligible.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
For obtaining feasibility report:
- Application and self-declaration in prescribed format (duplicate)
- Aadhaar card
- Land ownership proof (Patta, Khatha extract, RTC, or equivalent)
- Rough sketch of estate with proposed site clearly marked
- Quotation for machinery/equipment
- Self-prepared plan and estimation for water storage structure or well
- Caste certificate (for SC/ST growers claiming extra 10% subsidy)
- Bank passbook with account number, branch, and IFSC code
For claiming subsidy:
- Claim statements in prescribed format (duplicate)
- Original invoice with TIN for irrigation equipment
- Work completion report and fund utilization certificate