Bana Kaih — Mizoram Handholding Scheme
A state-declared support price for the five crops Mizoram actually grows, plus collateral-free bank loans of up to ₹50 lakh with up to 100% interest subvention.
Run by: Government of Mizoram
- Ginger MSP
- ₹50 / kg
- Mizo chilli MSP
- ₹350 / kg
- Broom MSP
- ₹100 / kg (A), ₹80 / kg (B)
- Paddy MSP
- ₹30 / kg (mainly Kolasib, Mamit)
- Loans
- Up to ₹50 lakh, collateral-free, 100% interest subvention
- 2026-27 outlay
- ₹350 cr (₹150 cr for procurement)
Overview
Mizoram's farm problem is not yield, it is price: ginger and chilli grow well in the hills, but a grower with no storage and no buyer takes whatever the trader offers on the day. Bana Kaih — the state's flagship Handholding Scheme, launched by Chief Minister Lalduhoma on 19 September 2024 at Vanapa Hall, Aizawl — attacks both the price and the capital side at once. It replaced the earlier SEDP, which had in turn replaced the NLUP.
On price, the state buys five crops at a declared rate through designated secondary collection centres: ginger at ₹50 a kg, Mizo bird's eye chilli at ₹350 a kg, broomstick grass at ₹100 a kg for Grade A and ₹80 for Grade B, unhusked paddy at ₹30 a kg (mainly from Kolasib and Mamit districts), and turmeric at a notified rate. The government then re-sells the produce to companies through an auction. For 2026-27 the state has earmarked ₹350 crore for the scheme, ₹150 crore of it for procurement of these five crops.
On capital, the scheme arranges collateral-free bank loans of up to ₹50 lakh from partner banks, with an interest subvention of up to 100% on timely repayment — which removes the usual barrier for a farmer whose land is community-held and cannot be mortgaged. By March 2026 the scheme had drawn over 5,000 applicants.
The procurement side has been costly for the exchequer: the state spent about ₹95.28 crore buying more than 3.45 lakh quintals of ginger from farmers but recovered only around ₹12.78 crore in resale, and in February 2026 it was reviewing the ginger rate as traders held back from buying. The guaranteed price to the farmer is real, but the scheme's long-run finances are still being worked out.
What you get
The benefit as the state notifies it — nothing here is an estimate.
- A state-declared purchase price for ginger (₹50/kg), Mizo chilli (₹350/kg), broomstick (₹100/₹80 by grade), paddy (₹30/kg) and turmeric, bought at secondary collection centres.
- Collateral-free bank loans up to ₹50 lakh from partner banks, which removes the usual barrier for a farmer with community-held land.
- Interest subvention of up to 100% on timely repayment, making the credit effectively interest-free.
- A predictable price the farmer can plan a season around, instead of taking whatever a trader offers on the day.
Who is eligible
State schemes usually state their criteria as prose rather than a checklist. This is that prose, unpacked — the department’s verification is what decides.
You qualify if
- Resident farmer or entrepreneur in Mizoram
- Growing one of the five covered crops for the support price
- A viable farm or enterprise activity for the credit component
- Bank account for the support payment or loan
Not covered
- Crops outside the five notified for procurement
- Loans where the borrower does not meet the partner bank's appraisal
Documents you need
Have these ready before you start — most rejections are a missing paper, not a missing right.
- Aadhaar card
- Mizoram residence proof
- Land or activity details for the crop
- Bank passbook
- Sale records for the produce
How to apply
Fewer steps than a central scheme, and usually one office rather than a portal.
- 1
Register under the scheme
Enrol through the Agriculture Department / the scheme’s district structures for the crop you grow or the enterprise you plan.
- 2
Sell at or above the declared rate
If the market gives you less than the declared support price, the state pays the difference up to that rate.
- 3
Or take the credit component
Apply for the collateral-free loan; repay on time and the interest rebate can cover up to 100% of the interest.
If something goes wrong
Missing from the list, or payment stuck — here is the channel the department itself publishes for it.
- For produce accepted at a collection centre but not paid for, a wrongly graded lot, or a loan application stuck with a partner bank, take it up first with the district Agriculture / Trade & Commerce office running the collection centre and then the Deputy Commissioner's grievance cell, which also holds Jan Sunwai public hearings.
- For corruption or misuse of office in the procurement chain, the Mizoram Lok Ayukta (since 2014) can be approached directly.
Frequently asked questions
Which crops get a support price?
Five: ginger (₹50/kg), Mizo bird's eye chilli (₹350/kg), broomstick grass (₹100/kg Grade A, ₹80/kg Grade B), unhusked paddy (₹30/kg, mainly from Kolasib and Mamit), and turmeric at a notified rate.
How does the state actually buy the crop?
Through designated secondary collection centres, where the farmer sells at the declared rate. The government then re-sells the produce to companies by auction.
Do I need collateral for the loan?
No. The scheme arranges collateral-free loans of up to ₹50 lakh from partner banks, and timely repayment earns an interest subvention of up to 100%, making it effectively interest-free.
Is the guaranteed price safe, given the scheme's losses?
The price paid to farmers has been real — the state bought over 3.45 lakh quintals of ginger for about ₹95.28 crore. But it recovered only about ₹12.78 crore in resale, and in February 2026 was reviewing the ginger rate as traders held back. The purchase rate can change between seasons, so check the current notified rate before you plan.
How much money is behind the scheme?
For 2026-27 the state earmarked ₹350 crore for Bana Kaih, including ₹150 crore specifically for procuring the five crops.
What happened to NLUP and SEDP?
NLUP ended in 2018 and was replaced by SEDP, which has in turn been succeeded by Bana Kaih as the state's flagship since 19 September 2024.
Facts checked against dipr.mizoram.gov.in on 20 October 2026. editorial policy.