Scheme for Food Processing Industries

Government of India has come with various schemes for entrepreneurs and farmers from all over the country and are in food processing industry.

The Ministry of Food Processing Industry(MOFPI) helps these farmers and entrepreneurs by granting them loans, capital fund and subsidy etc.
Schemes initiated by GOI are listed below:

Mega Food Park

This scheme helps the farmers by providing them a mechanism that links their agricultural production directly to the processors and retailer to ensure maximum value addition, minimising the wastages, increasing farmer’s income and creating job opportunities in the rural areas. This is based on a “cluster” approach and foresee a well-defined horticulture processing zone having state of the art processing facilities and established supply chain. These include Collection Centres, Primary Processing Centres (PPC), Central Processing Centres (CPC) and Cold Chain infrastructure.


One-time capital grant of 50% of project cost (excluding land cost) subject to a maximum of Rs.50 crore in general areas and 75% of project cost (excluding land cost) subject to a ceiling of Rs.50 crore in difficult and hilly areas, i.e., North-East Region including Sikkim, J&K, Himachal Pradesh, Uttarakhand and ITDP notified areas of the states.

Modernisation of Abattoirs

This scheme includes establishment of modern abattoirs and modernisation of the existing ones which will include up scaling of infrastructure.


This scheme provides a grant of 50% of cost of plant and machinery and technical civil work and other eligible items subject to a maximum of Rs.15 crore in general areas and 75% for the same in difficult areas (NE states including Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand and Integrated Tribal Development [ITDP] notified areas of the States) per abattoir .

National Mission on Food Processing

It is centrally sponsored scheme which is carried out by state/UT governments. This main objective is to decentralize the implementation of food related schemes for substantial participation of State/UT government so that farmers get the benefits easily without hassle.


It is a centrally sponsored scheme in all the states in the ratio of 75:25 (Government of India and states) except for North Eastern states, where the ratio is 90:10. All the UTs are funded on 100% grant basis.

Research and Development, Quality Assurance, Codex and Promotional Activities

TQM (Total Quality Management) which includes quality control, quality system and quality assurance should function together for 100% success. R&D for development and up gradation of products, processes and technologies are required in the processed food sector.


Central/State Government and its organisations/Universities (including deemed universities) are eligible for grant-in-aid of the entire cost of laboratory equipment required for labs and 25% of the cost of technical civil works to house the equipment, and furniture and fixtures associated with the equipment for general areas and 33% for difficult areas (J&K, Himachal Pradesh, Uttaranchal, Sikkim, North-eastern States, Andaman & Nicobar Islands, Lakshadweep, Integrated Tribal Development Projects (ITDP) area).
All other implementing agencies/private sector organisations are eligible for grants-aid of 50% of cost of laboratory equipment and 25% of cost of technical civil works to house the equipment and furniture and fixtures associated with the equipment for general areas and 70% of the cost of lab equipment and 33% of technical civil works for difficult areas.
This includes 5% of grant amount as professional fees for the Programme Management Agency (PMA) engaged in providing advisory and implementation services to food testing/quality control laboratories and follow-up actions. When the Ministry establishes/sponsors such food testing laboratories, there would be no ceiling to financial assistance and the amount to be approved is decided on a case to case basis with the approval of competent Authority.
The food testing facilities so created should be accessible to public and made available to the food processing units for testing their products in and around the area at specified rates.

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