Top 10 Government Subsidy Trees for Plantation in India (2025) – Earn High Profit with Low Investment
Tree plantation is becoming the most profitable long-term business for farmers in India. The government is now offering huge subsidies on selected trees under schemes like:
- CAMPA Plantation Scheme
- National Agroforestry Policy
- NABARD Forestry Subsidy
- PM Krishi Sinchai Yojana (tree-based farming)
- Green India Mission
If you want guaranteed income, low investment, and government financial support, then this guide will show you the best government subsidy trees for plantation in India.
Table of Contents
Top 10 Government Subsidy Trees for Plantation (2025)
1. Melia Dubia / Malabar Neem
- Why govt supports? Fast-growing timber tree, high carbon absorption.
- Profit: Ready in 6–7 years, ₹2–3 lakh/acre.
- Subsidy Available:- CAMPA & Agroforestry Mission
- States:- Karnataka, Tamil Nadu, Telangana, MP
2. Bamboo (All Varieties)
- Why govt supports? National Bamboo Mission.
- Profit:- 80–150 ton/acre, very high demand.
- Subsidy:- 40–60% under NBM (National Bamboo Mission)
3. Red Sandalwood
- Why govt supports? Export booster tree.
- Profit:- 15–20 lakh/acre in 12–15 years.
- Subsidy:- Available in Andhra, Telangana, Karnataka
4. Teak Wood (Sagwan)
- Why govt supports? Timber shortage in India.
- Profit:- Huge long-term income.
- Subsidy:- Forestry schemes by NABARD & State Forest Dept.
5. Mahogany
- Why govt supports? International value.
- Profit:- 10–15 lakh/acre in 10–12 years.
- Subsidy:- Under CAMPA & Agroforestry 2025
6. Moringa (Drumstick)
- Why govt supports? Nutritional tree, climate friendly.
- Profit:- Earn yearly income.
- Subsidy:- Horticulture Mission (MIDH)
7. Neem Tree
- Why govt supports? Medical & pesticide industry uses.
- Profit:- Oil, seed, leaves – multi-income.
- Subsidy:- Green India Mission, Agroforestry
8. Areca Palm
- Why govt supports? Landscaping demand + export value.
- Profit:- Nurseries and landscaping income.
- Subsidy:- Horticulture Boards & Bamboo Mission
9. Babul / Acacia
- Why govt supports? Drought area support.
- Profit:- Gum, fodder, timber.
- Subsidy:- Dryland afforestation schemes
10. Rubber Tree
- Why govt supports? Industrial use.
- Profit:- High long-term income.
- Subsidy:- Rubber Board of India – Plantation Grant Scheme
For agricultural crops, horticultural crops, and annual plantations where crop loss exceeds 33%, a provision exists under #SDRF to provide up to ₹17,000 per hectare. Additionally, assistance of ₹22,500 per hectare is provided for perennial crops.
— All India Radio News (@airnewsalerts) December 9, 2025
- Union Agriculture Minister… pic.twitter.com/Au04r8E1gC
Positive & Negative of Government Subsidy Trees
1) Positive (Benefits)
- Low investment, high profit
- Government financial support
- Long-term income security
- Suitable for poor rainfall areas
- Carbon credit opportunities
- Buyback available in many states
2) Negative (Challenges)
- Long maturity period for some trees
- Requires legal permission for sandalwood
- Market linkage needed for timber
- State-to-state subsidy varies
Government Eligibility for Tree Plantation Subsidy
- Farmer / landowner
- Aadhaar + Bank account
- Land documents (7/12, Pattadar Passbook)
- Plantation photos
- Geo-tagging (in some schemes)
- Apply through state horticulture / forest department
How to Apply for Subsidy? (Simple Steps)
- Visit your District Horticulture Office
- Ask for Agroforestry Subsidy Form
- Attach land papers
- Plantation inspection
- Subsidy transferred to bank account
Required Documents
- Aadhaar card
- Land document copy
- Bank passbook
- Farmer ID
- Plantation photos
- Mobile number
Recommended Plant Spacing
- Malabar Neem:- 10×10 ft (6–7 yrs)
- Mahogany:- 12×12 ft (10–15 yrs)
- Red Sandalwood:- 8×8 ft (12–15 yrs)
- Bamboo:- 6×6 ft (4–5 yrs)
- Teak:- 10×10 ft (12–15 yrs)
Conclusion
Government subsidy trees are a golden opportunity for farmers who want to earn high profit with minimal investment. Trees like Malabar Neem, Bamboo, Mahogany, and Sandalwood offer excellent returns and are fully supported under national schemes. With proper planning, record-keeping, and plantation management, farmers can earn long-term secure income supported by government incentives.
FAQs
1. Which tree gives the highest government subsidy?
Bamboo, Malabar Neem, Mahogany, and Teak receive the highest subsidies.
2. How much subsidy is available for tree plantation?
Ranges from 30% to 80%, depending on state and scheme.
3. Do farmers get subsidy for sandalwood?
Yes, in Andhra, Karnataka, Tamil Nadu under special schemes.
4. Which tree gives the fastest income?
Moringa, Bamboo, and Malabar Neem.
5. Can I apply online for tree subsidy?
Many states support online application through horticulture or forest websites.
6. Is there subsidy for boundary plantation?
Yes, under Agroforestry Mission 2025.