Cluster Development Programme (CDP)
The CDP is a Central Sector Scheme designed to leverage the geographical specialisation of horticultural crops in different regions. It promotes integrated development — from pre-production to marketing — for enhancing productivity and competitiveness.
✅ Think of it as an end-to-end transformation model for horticulture clusters.
Quick Facts
| Feature | Details |
| Purpose | To build holistic horticulture value chains around geographically specialized crop clusters. |
| Type | Central Sector Scheme (100% funded by the Centre) |
| Implementing Agency | National Horticulture Board (NHB) |
| Launch Year | 2021 |
Objectives of CDP
- Increase exports of target horticulture crops by at least 20%.
- Develop cluster-specific brands to make Indian produce globally competitive.
- Improve productivity, value-addition, and marketability.
Beneficiaries – Who Gets the Benefit?
All key players in the horticultural value chain:
- Farmers/Producers
- Traders
- Aggregators
- FPOs/SHGs
- Anyone involved in processing, branding, or marketing of horticulture produce.
Classification of Clusters
The CDP classifies clusters by area size to allocate appropriate funding:
| Cluster Type | Area (in hectares) | Financial Assistance |
| Mega Cluster | More than 15,000 ha | Up to ₹100 Cr |
| Midi Cluster | 5,000 to 15,000 ha | Up to ₹50 Cr |
| Mini Cluster | Up to 5,000 ha | Up to ₹25 Cr |
Implementation Architecture
This multi-layered structure ensures efficient execution at all levels:
a. National Horticulture Board (NHB):
- The apex authority.
- Funds and supervises the overall implementation.
b. Cluster Development Agency (CDA):
- Appointed by State/Central Government for each cluster.
- Responsible for on-ground implementation of CDP.
c. Cluster Development Cell (CDC):
- A dedicated team within CDA.
- Ensures day-to-day coordination and smooth progress.
d. Implementing Agencies (IAs):
- Selected transparently via Call for Proposals.
- Assigned to specific verticals like production, post-harvest, logistics, etc.
Key Interventions under CDP
Let’s divide the support into three core areas:
A. Pre-Production & Production:
- Training & capacity-building of farmers.
- Quality planting materials.
- Promotion of crop-care practices.
- Use of farm mechanisation up to the harvest stage.
B. Post-Harvest Management & Value Addition:
- Building infrastructure for handling, grading, cold storage, and processing.
- Emphasis on value addition and packaging.
C. Logistics, Marketing & Branding:
- Strengthening market linkages.
- Developing cluster-specific branding.
- Promoting outreach in domestic and export markets.
CDP SURAKSHA – A Unique Feature
To ensure transparent and quick subsidy delivery, CDP introduces:
- CDP SURAKSHA: A direct benefit transfer mechanism.
- Uses e-RUPI voucher from NPCI (National Payments Corporation of India).
- Subsidies go directly to farmers’ bank accounts, ensuring minimal leakages.
Conclusion: Strategic Importance
The Cluster Development Programme (CDP) is not just about infrastructure — it is about integrated development, brand-building, and global positioning of Indian horticulture.
For UPSC, this scheme reflects:
- Government’s focus on value-chain development.
- Shift from production to market-driven horticulture.
- Promotion of export competitiveness and agri-branding — vital for increasing farmers’ income.