Food Processing and Preservation Policy are:

  1. Create capacities in the state to process the additional production expected across agriculture, horticulture, animal husbandry, dairy, and fisheries sectors due to the significant increase in the irrigation potential of the state
  2. Provide infrastructure, financial incentives and facilitation to producers and producer collectives/FPOs/SHGs to undertake forward integration into the value chain through establishment of food processing enterprises
  3. Create rural industrial ecosystem through establishment of food processing industries leading to increased economic activity, employment and overall development of rural/remote/backward areas of the state providing entrepreneurial opportunities to the vulnerable sections of the society (women, SCs/STs)
  4. Promote creation of food processing enterprises across the state that enable large scale local demand creation for state’s produce and enable export of processed produce to other states and/or countries

The policy aims to achieve the following outcomes:

    1. Creation of 10,000 acres of special food processing zones across the state to support the additional 53 lakh acres area brought under irrigation till 2024-25
    2. Attract a total of 15,000 Crores of capital investment to establish food processing enterprises and generate direct employment for approx.70,000 personnel

 In order to achieve the aforementioned targets, the following action plan is proposed in the policy:

  1. Creation of Special food processing zones-SFPZs (200 acre to 1000 acre, each) covering a total area of 10,000 acres across the state in accordance with increased area under irrigation and the diversified production profile as per the regulated cropping pattern proposed throughout the state.
  2. Creation of dedicated special zones for integrated production and processing of meat, fish, dairy and poultry in identified areas across the state.
  3. Creation of dedicated warehousing, logistics, marketing and export-oriented infrastructure (30% of the total area in SFPZs) for key agri-food commodities of the state
  4. Creation of plug and play sheds and associated infrastructure in the SFPZs for local entrepreneurs, farmer groups, SHGs, SCs, STs and minorities
  5. Special financial benefits to enterprises to be established in the Special food processing zones with additional benefits for SCs, STs and Minorities
  6. Special financial benefits for SHGs and Farmer producer organizations for establishing new food processing enterprises and expanding/modernizing their existing food processing enterprises
  7. Tailor made incentives to large projects in food processing and retail sector that help large scale off-take of key commodities of the state and that procure large volumes from the various small and medium food processing enterprises of the state in a micro franchise model

Policy provisions:

ProvisionsFor units established in SFPZsUnits established by SCs/STs and MinoritiesUnits established by SHGs and FPOs
Capital Subsidy35% capital grant-in-aid upto Rs 5 Crores from MoFPI scheme for “Creation/Expansion of Food Processing & Preservation CapacitiesCapital grant of 15% upto Rs 20 lakh (over and above 35% capital grant available from MoFPI)Capital grant of 15% upto Rs 20 lakh (over and above 35% capital grant available from MoFPI)
Power RebatePower rebate of Rs 2 per unit for 5 years
Interest Subvention75% of the total interest payable on the term loan of the unit, not exceeding a total of Rs 2 Crores10% interest subvention of the interest payable on term loan (over and above 75%), total not exceeding Rs 2 Crores10% interest subvention of the interest payable on term loan (over and above 75%), total not exceeding Rs 2 Crores
APMC fees100% reimbursement of APMC fees for 7 years
Land Cost RebateLand cost rebate of 25% may be extended for the first 20% plots as early bird benefitsLand cost rebate of 33% upto Rs 20 lakhsLand cost rebate of 33% upto Rs 20 lakhs

To more about the T-FAPP