Do you know? How much Percentage of Government provides Subsidy for Food Industry?


State Government Subsidy
  • From 25 to 50%

  • Capital Subsidy

  • Interest Subsidy

  • Air/ Sea Freight Subsidy

  • GST Incentives

  • Electricity Rate and Stamp Duty

Central Government Subsidy

The following are the list of subsidy which is provided by Ministry of Food Processing Industries, Government of India under Pradhan Mantri Kisan SAMPADA Yojana.


1. Agro Processing Cluster

The main objective of the Scheme is to create modern infrastructure for food processing industries closer to the production areas.

Basic Enabling Infrastructure: Roads, water supply, power supply (DG Set, Bio-mass Power Plant), drainage, ETP, etc.,

Core Infrastructure/ Common facilities: Warehouses, cold storage, Frozen Store, IQF, Ripening Chamber, Blast Freezer, Plate Freezer, Reefer Truck, Tetra Pack, F&V sorting, grading, Grains Sortex, etc.

Land Area Requirement: Minimum 10 Acre

Other Condition: At least 5 food processing units with a minimum investment of Rs. 25 crore has to be set up in the Project which is also eligible to take grant under the Scheme of CEFPPC of MoFPI

Grant-in-aid @ 35% for General Areas and @ 50% for North East States, Himalayan States, ITDP Areas subject to Maximum of Rs. 10.00 crores.


2. Creation /Expansion of Food Processing/ PC (Unit Scheme)

The setting up of new units and modernization/ expansion of existing units are covered under the scheme.

Units will be considered in Mega Food Parks (MFPs), Agro-processing Clusters assisted by the Ministry notified by the Ministry from time to time.

Grant-in-aid @ 35% for General Areas and @ 50% for North East States, Himalayan States, ITDP Areas, SC/ ST Candidate.

Maximum Grant Ceiling is 5 Crore


3. Backward – Forward Linkages

This scheme is to provide effective and seamless backward and forward integration for processed food industry by plugging the gaps in supply chain in terms of availability of raw material and linkages with the market.

Financial assistance is provided for setting up of primary processing centers/ collection centers at farm gate and modern retail outlets at the front end along with connectivity through insulated/ refrigerated transport.

Grant-in-aid @ 35% for General Areas and @ 50% for North East States, Himalayan States, ITDP Areas.

Maximum Grant Ceiling is - 5 Crore


4. Cold Chain and Value Addition Infrastructure

It is the creation of an infrastructure facility along with the entire supply chain facilities from farm level to distribution Level. The scheme allows flexibility in project planning with special emphasis on the creation of cold chain infrastructure at the farm level.

For storage infrastructure grant-in-aid @ 35% for General Areas and @ 50% for North East States, Himalayan States, ITDP Areas. For value addition and processing infrastructure grant-in-aid @ 50% for General Areas and @ 75% for North East States, Himalayan States, ITDP Areas. For irradiation facilities, grant-in-aid will be provided @ 50% for General Areas and @ 75% for North East States, Himalayan States, ITDP Areas.

Maximum Grant Ceiling is 10 Crore


5. Operation Greens

The Ministry has formulated a scheme for the integrated development of short term intervention for F&V value chain.

The Scheme is for infrastructure development from Farming Level to Collection center, Value Addition to Marketing.

The scheme has two-pronged strategy of Price stabilisation measures (for short term) and Integrated value chain development projects (for long term).

Operation Greens extended from Tomatoes, Onion and Potatoes (TOP) to ALL fruits and vegetables (TOTAL);

50% subsidy on transportation from surplus production to deficient markets and 50% subsidy on storage, including cold storage;

Maximum Grant Ceiling is 50 Crore


6. Food Testing Lab

In the interest of consumer safety and public health, there is a need for testing food products in order to ensure that it complies with domestic standards as well as international standards for exports.

For Lab Equipment's grant-in-aid @50% for General Area, 70% for Difficult Area (North East States, Himalayan States, ITDP Areas) and @ 100% for Universities/ Colleges. For Technical Civil Work & Furniture's grant-in-aid @ 25% for General Areas and @ 33% for North East States, Himalayan States, ITDP Areas.


7. Mega Food Park

This Scheme is based on the “Cluster” approach and envisages the creation of state of art support infrastructure in a well-defined Agri / horticultural zone for setting up of modern food processing units in the industrial plots provided in the park with the well-established supply chain.

The scheme envisages a capital grant of 50% & 75% of the project cost

Minimum Area Require 50 Acre

Maximum Grant Ceiling is 50 Crore


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