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Government of India Subsidy Schemes

The food processing sector is backed by some of India's most generous capital-subsidy and incentive schemes. Here's a clear, up-to-date guide — and how we help you claim them.

Central & State Government Schemes

Schemes we help our clients access

We advise on schemes across MoFPI, the Ministry of AYUSH, the National Horticulture Board and state food-processing policies. Subsidy percentages, ceilings and eligibility below are indicative of published guidelines — exact benefits are project-specific, so talk to us for an eligibility assessment.

MoFPI · PMFME

PM Formalisation of Micro Food Processing Enterprises

35% credit-linked subsidy

A centrally sponsored scheme (2020–21 to 2025–26, outlay ₹10,000 Cr) to formalise and upgrade micro food processing enterprises, with the One District One Product (ODOP) approach.

  • Capital subsidy 35% of project cost
  • Max grant per unit ₹10 lakh
  • SHG seed capital ₹40,000 / member
  • Also for FPOs, SHGs, Co-ops
MoFPI · PMKSY

Integrated Cold Chain & Value Addition Infrastructure

35%–50% grant-in-aid

Supports integrated cold chain, pre-cooling, IQF, cold storage, ripening chambers and reefer transport without break from farm gate to consumer.

  • General areas 35% of cost
  • North-East / difficult areas 50%
  • Max grant per project ₹10 Cr
MoFPI · PMKSY

Infrastructure for Agro-Processing Clusters (APC)

35%–50% grant-in-aid

Develops modern infrastructure and common facilities to encourage a group of entrepreneurs to set up food processing units in a cluster.

  • General areas 35% of cost
  • Himalayan / ITDP / islands 50%
  • Max grant per project ₹10 Cr
MoFPI · PMKSY

Creation / Expansion of Food Processing & Preservation Capacities (Unit Scheme)

35%–50% grant-in-aid

The most widely used scheme for individual food processing units — for setting up new units or modernising/expanding existing processing and preservation capacity.

  • General areas 35% of cost
  • North-East / difficult areas 50%
  • Max grant per project ₹5 Cr
MoFPI

Operation Greens (TOP to TOTAL)

35%–50% grant-in-aid

Stabilises supply and prices of Tomato, Onion, Potato and other notified perishables through value chain development and post-harvest infrastructure.

  • General areas 35% of cost
  • Difficult areas / FPO / SC-ST 50%
  • Max grant (post-harvest infra) ₹10 Cr
MoFPI · PLI

Production Linked Incentive Scheme (PLISFPI)

Sales-linked incentive

A ₹10,900 Cr scheme (2021–22 to 2026–27) rewarding growth in manufacturing of RTC/RTE & millet products, processed fruits & vegetables, marine products and mozzarella cheese.

  • Incentive on incremental sales
  • Min. committed investment applies
  • Branding abroad 50% reimbursed
Ministry of Agriculture · NHB

National Horticulture Board (NHB) Schemes

Credit-linked back-ended subsidy

Supports commercial horticulture, cold storage and post-harvest management infrastructure with credit-linked, back-ended capital subsidy.

  • Horticulture & cold storage projects
  • Back-ended capital subsidy
  • Ideal for farm-linked units
MoFPI · PMKSY

Food Irradiation Units

35%–50% grant-in-aid

A current MoFPI focus area — multi-product irradiation units integrated with cold chain and value-addition infrastructure to extend shelf life and enable exports.

  • General areas 35% of cost
  • Difficult areas 50%
  • Integrated with cold chain
MoFPI

Food Testing Laboratories

Grant-in-aid support

Support for setting up NABL-accredited food testing laboratories — a live MoFPI priority to strengthen quality infrastructure across the country.

  • NABL-accredited labs
  • Quality & export enablement
  • Ideal for clusters & institutions
Ministry of AYUSH · NMPB

National Medicinal Plants Board (NMPB) Scheme

30% / 50% / 75% subsidy

Support under the Ministry of AYUSH for market-driven cultivation of prioritised medicinal plants, plus nurseries, post-harvest management, primary processing, storage and marketing infrastructure.

  • Cultivation subsidy 30% / 50% / 75%
  • By species category
  • For farmers, FPOs & entrepreneurs
State Policy · Uttar Pradesh

UP Food Processing Industry Policy 2023

Capital + multiple incentives

State incentives for food processing units set up in Uttar Pradesh — capital subsidy plus interest subsidy, stamp-duty exemption, mandi-fee and transport benefits. Can be combined with central schemes.

  • Capital subsidy 35% of project cost
  • Indicative ceiling up to ₹5 Cr
  • Plus interest & stamp-duty benefits
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At a Glance

Scheme comparison

A quick side-by-side of the key capital-subsidy schemes for food processing projects.

SchemeBest ForSubsidy (General)Higher Rate*Max Grant
PMFMEMicro units, FPOs, SHGs35%₹10 lakh / unit
Unit Scheme (CEFPPC)Individual processing units35%50%₹5 Cr
Integrated Cold ChainCold storage, IQF, reefer35%50%₹10 Cr
Agro-Processing ClusterGroup of units / clusters35%50%₹10 Cr
Operation GreensTOP & perishable value chains35%50%₹10 Cr
Food Irradiation UnitShelf-life & export enablement35%50%₹10 Cr
PLISFPI (PLI)Established manufacturers scaling upIncentive on incremental salesSales-linked

*Higher rate applies to North-East, Himalayan states, ITDP areas, islands and other notified difficult regions, and to eligible SC/ST, FPO and SHG applicants. Figures are indicative of published scheme guidelines and are subject to the latest MoFPI notifications and project-specific appraisal.

Why Work With Us

We don't just tell you about subsidies — we help you claim them

Securing a government grant is a document-heavy, milestone-driven process. Our team has guided 100+ projects through MoFPI and NHB approvals across 20+ states.

  • Eligibility mapping across every applicable scheme
  • Bankable DPR that satisfies both lenders and the ministry
  • End-to-end application, sanction and grant-release support
  • Coordination with banks, state nodal agencies and MoFPI
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Up to 50%

grant-in-aid on eligible
project cost

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