Subsidy for Food Processing: The exercise to make Uttar Pradesh a hub of food processing has started. In this episode, under the UP Food Processing Industrial Policy-2023, the way has been paved for providing technical assistance along with financial help like subsidy and loan. According to the latest report, this policy will be implemented for the next 5 years. The state government believes that there is a need to increase the capacity of food processing in comparison to the production capacity of agriculture in Uttar Pradesh. The food processing sector is expanding in different areas of India, which means that commercial production of ready-to-eat food products is being done in the industrial unit of food processing.
Best UP in Agriculture Production
The Food Processing Industrial Policy of UP clearly states that the state ranks first in the production of mangoes, peas, sugarcane, milk, and potatoes, while in terms of processing it is at number three for mangoes, fourth in terms of peas. But, it has been ranked fourth for milk, second for sugarcane, third for wheat and sixth for potato. From the increasing production of agriculture here, it can be inferred that there is a lot of potential to increase processing in the state.
financial grant to farmers
According to the provisions made in UP’s Food Processing Industry Policy-2023, 2% fee exemption has been provided for converting agricultural land into non-agricultural land. If any reserved land is coming in the middle of the project, then the proponent will have to give land equivalent to 25% of the circle rate of the reserved land to the government in lieu of the land, although from now on this 25% charge is being waived off.
There is also a provision to give an additional 50 percent exemption in the charge for changing the land use. Apart from all these, there is a scheme of 75% exemption in external development charges, 100% exemption in stamp duty.
If for the food processing unit, exemption of mandi fee and cess on agricultural products brought from other states will also be given. According to this new policy, those who sell their produce directly to the food processing unit will also be given exemption in market fee and cess.
Subsidy for Food Processing Unit
Under the UP Food Processing Industrial Unit Policy 2023, a subsidy of 50% is given on the installation of a solar power plant up to 75 KVA. At the same time, a provision of 90% subsidy has been made for women entrepreneurs.
Subsidy of up to 25% will also be provided for transportation of food processed products from production to the place of export or to reach the ports, although this scheme will not be applicable for transportation of products to Nepal, Bangladesh and Bhutan.
Grant to Self Help Group-Farmer Producer Organization
35% subsidy on capital expenditure or grant up to a maximum of Rs 5 crore will be given for the food processing unit. If you want to expand or modernize the plants already installed in the unit, then you will get the benefit of 35% subsidy or a maximum grant of Rs 1 crore.
There is a provision of 35% subsidy or expenditure up to Rs 10 crore for cold chain and value addition infrastructure and 50% subsidy for deep freezer, frozen storage. Apart from all these, 50% subsidy or grant up to a maximum of Rs 50 lakh will be given to self-help groups, farmer producer organizations and farmers to promote storage, marketing and processing.
Disclaimer: Some of the information given in the news is based on media reports. Farmer brothers, before implementing any suggestion, do consult the concerned expert.
Read this also- 13th installment may be canceled for lakhs of farmers, get e-KYC done by February 10
