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Guide to Aloe vera farming and subsidy

Introduction to aloe vera

Aloe vera, a succulent perennial plant that resists drought, is well-known for its therapeutic properties. 

Several beneficial effects of Aloe vera have been documented, such as immunomodulation, wound and burn healing, hypoglycemia, anticancer, gastro-protective, antifungal, and anti-inflammatory properties. 

Aloe vera has been used for a variety of commercial purposes because of its beneficial therapeutic properties. 

Taxonomy of Aloe vera

Kingdom – Plantae
Order – Asparagales
Division – Spermatophyta
Subdivision – Angiospermae
Class – Monocotyledoneae
Family – Liliaceae
Genus – Aloe
Species – barbadensis Mill

Other names of Aloe vera

Arabic – Sibr                                         Chinese – Lu Hui
Persian – Sibr                                        Cuban – Sabilla
Urdu – Ailwa                                         Dutch – Aloe
Hindi – Kumari                                       French – Aloes
Sanskrit – Ghritra kumari                    German – Aloe
Kannada – Karilola                                 Greek – Aloi
Telugu – Kalabanda                                Haiti – Laloi
Tamil – Kattalai                                      Italian – Aloe
Gujarati – Eliyo                                      Japanese – Rokai
Kashmiri – Musabbar                             Korean – Nohwa
Marathi – Korphad                                  Russian – Aloe, Aloi, Sabur
Oriya – Musaboro                                   Thai – Wan hang Jo
Punjabi – Musabbar                                 Vietnam – Lohoi
Assamese – Musabhar

Morphology of aloe vera

Taste : Bitter
Odour : None
Size & Shape : Plant growing to 60-100cm in lance-shaped with elongated.
Strands Colour : Leaves are green to grey- green flower.
Flower : Yellow tubular in 25-35cm in a slender loose staments.
Root : Root fibbers that can reach 30-40 cm in length

Market and Government initiative for aloe vera farming

Based on the report made by IMARC, the compound annual growth rate – CAGR of global aloe vera market is predicted to rise by the rate of 7.70% for the year of 2021-2026. USA is the global leader in aloe vera production.

As reported by NMPB – National medicinal plant board (statistics from 2015-2016), Uttar Pradesh was the leading state in India with 512 hectares of aloe vera farming. wwhile, Manipur being the 2nd ranking state and Rajasthan being the 3rd ranking state in terms of aloe vera cultivation.

Manipur, Kerala, Mizoram, Himachal Pradesh, Telangana, Rajasthan, Uttar Pradesh, Jammu and Kashmir, Haryana, Maharashtra and Karnataka are the states in India where NMPB has recorded aloe vera cultivation.

Guide to Aloe vera farming and subsidy

Medicinal and aromatic plants (MAPs) are now not just playing an important part in Indian traditional medicine market but also experiencing a worldwide demand as more and more research and studies are proving their credibility. Hence, aloe vera cultivation proves to be one of the profitable agribusinesses.

NAM program initiated by NMPB focus on shifting the dependence of harvesting the MAPs from forest area to planned cultivation with good agricultural practices. A total of 140 priority medicinal plant species are identified, out of which 95 species have been finalized by NMPB for subsidy schemes . Aloe vera being one of them (with eligibility of 30% subsidy).

Click Here to get the details of the nodal and controlling offices in your respective state.

Guide to aloe vera farming

In the following section, we will present the general good practices for aloe vera farming. Please keep in mind, the some methods and procedures ( such as soil enrichment and spacing ) might vary depending on the terrain and the soil composition. However, in most cases, the methods presented in this section can be applied to any aloe vera farm.

Commercial varieties of aloe vera for farming

Soil for aloe vera farming

Climate for aloe vera farming

Land Preparation for aloe vera farming

Spacing between plants for aloe vera farming

Planting material and propagation for aloe vera farming

Guide to Aloe vera farming and subsidy

Manuring and application of Plant Nutrients for aloe vera farming

Irrigation for aloe vera farming

Guide to Aloe vera farming and subsidy

Maintenance and plant protection for aloe vera farming

Harvesting and yield of aloe vera in aloe vera farming

Government subsidy for Aloe vera farming

According to Prioritised list of Medicinal Plants for cultivation, aloe vera comes under the medicinal plants which are eligible for 30% subsidy. National Mission on Medicinal Plants or now known as National Medicinal Plants Board – NMPB (merged with National AYUSH Mission – NAM in 2015-16), facilitates with the subsidy application process. (It also has roles like drawing up policies and strategies for conservation, proper harvesting, cost-effective cultivation, research and development, processing, marketing of raw material in order to promote and develop this sector.)

Based on the report released by the national medical plant board in 2016-17, the estimated cost of farming aloe vera per is 24889.70 rupees per hectare or 20570.00 rupees per acre. (The base cost will be increased by 10% every subsequent year).

Apart from the subsidy on aloe vera farming in India, NMPB has also released details of subsidy on other agrobusinesses such as subsidy on nursery setup for aloe vera, subsidy on post-harvest management of aloe vera, subsidy on processing of aloe vera.

Assistance and subsidy for aloe vera nursery and aloe vera farming

ProgrammeEstimated CostAdmissible Assistance / Subsidy
1. Nursery
Production of planting material
a) Public sector
i) Model nursery ( 4 ha.)25 Lakh INRMaximum 25 lakh INR
ii) Small nursery (1 ha.)6.25 Lakh INRMaximum 6.25 lakh INR
b) Private sector
i) Model nursery ( 4 ha.)25 Lakh INR50% of cost limited to 12.5 lakh INR
ii) Small nursery (1 ha.)6.25 Lakh INR50% of cost limited to 3.125 lakh INR
2. Cultivation
Aloe vera cultivation As per the estimates by the government for current year 30% of total cost of cultivation



Assistance and subsidy for aloe vera post harvest management

Programme Estimated Cost Admissible Assistance / Subsidy
Drying shed10 lakh INR100% subsidy for government / semi-government / public sector
50% subsidy for SHGs / Cooperatives / Private sector
Storage godowns10 lakh INR100% subsidy for government / semi-government / public sector
50% subsidy for SHGs / Cooperatives / Private sector



Assistance and subsidy for aloe vera processing

ProgrammeEstimated CostAdmissible Assistance / Subsidy
Processing unit4 crore INR100% subsidy for government / semi-government / public sector / SHGs / Cooperatives / Private sector
Limited to 4 crore INR / Unit
Marketing infrastructure10 lakh INR for rural collection center100% subsidy for government / semi-government / public sector
50% subsidy for SHGs / Cooperatives / Private sector
2 crore INR for district collection center100% subsidy for government / semi-government / public sector
50% subsidy for SHGs / Cooperatives / Private sector
Organic / GAP certification5 lakh INR / 50 Ha.Assistance / subsidy upto 50% of the cost limited to 10000 INR / ha.
Minimum area of 4 ha is required.
The subsidy amount will be given spreading over a period of 3 years for GAP farming.
For GAP certification, 5 lakh INR for 50 ha. will be provided
Demonstration plots _Project based depending upon
species cultivated and
infrastructure created limited to
Rs. 10.00 lakhs / plot of
minimum 2 acres
Setting up of seed/
germ plasm centres
_Rs. 25 lakhs/ centre

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