Government Incentives

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Government Incentives

Do you know that the Ministry of Food Processing Industry (MoFP) provide project incentives on the following schemes :

  • Mega Food Park Scheme (MFPS)
  • Integrated Cold Chain Scheme:
  • Scheme for creation of backward and forward linkage.
  • Scheme for creation/Expansion of Food Processing and Preservation Capacities (CEFPPC)
  • Scheme for Creation of Infrastructure for Agro-Processing Clusters – for setting up modern infrastructure based on cluster approach
  • Scheme for setting up/up-gradation of Food Testing Laboratory.
  • PM Formalization of Micro Food processing Enterprises (PMFME) scheme – This scheme adopts one district one product approach for value chain development & alignment
  • Operation Green – This scheme is for integrated development of Tomato, Onion, and Potato :
  • Scheme for Human Resources & Institution
    1. To develop a Course Curriculum for training modules and
    2. Assistance for creation of infrastructure facilities for skill training Centre.
    3. R&D in terms of products and processes is now a component of this scheme.

Mega Food Park Scheme (MFPS)

Objectives: The primary objective of the MFPS is to provide modern infrastructure facilities for the food processing industry along with the value chain from the farm to the market. It will include infrastructure near the farm, transportation, logistics, and centralized processing centers.

The pattern of Assistance: The Scheme provides for a capital grant at the rate of 50% of the eligible project cost in general areas and 75% of the project cost is difficult and hilly areas subject to a maximum incentive of INR 50 crores per project.

Project Components: It comprises Central Processing Centre, Primary Processing Centers, Farm proximate Collection Centres, Factory Building, Enabling Basic Infrastructure & Non-Core Infrastructure.

Farm proximate Collection Centres
Integrated Cold Chain and Value Addition Infrastructure in India

Scheme for Integrated Cold Chain and Value Addition Infrastructure:

Objectives: To minimize the post-harvest losses and enhance value addition in the agriculture produce from farm gate to the consumer end to end. This would bring efficiency in the collection of farmer produce, storage, transportation, and minimal processing. Both horticultural and non- horticultural produce are eligible for support under the scheme.

Components of the Scheme: The Scheme as the following components:

  • Farm Level Infrastructure, which may include a processing center in the catchment area of the targeted produce
  • Distribution Hub
  • Refrigerated Insulated transport
  • Irradiation facility – on a stand-alone basis.

The pattern of Assistance: The capital grant is for a maximum amount of INR 10 Crores, as under:

  • For storage infrastructure @ 35% for General Area and 50% in North East areas, Himalayan areas, etc.
  • For value addition and processing infrastructure – 50% for General Areas and 75% for the North East States, Himalayan States, etc.
  • For irradiation facilities - @ 50% for General Areas and 75% for North East States, Himalayan States, etc.

Scheme for Creation of Backward and Forward Linkage:

The objective of the Scheme: Is for setting up primary processing centers and collection centers at the farm gate (backward linkages) and modern retail outlets at the front end (forward linkages) along with connectivity through insulated/refrigerated transport. It is applicable for perishable products – horticulture or non-horticulture.

The pattern of Assistance: The maximum admissible grant for each project would be @35% of the eligible project cost for general areas and 50% for the North East States, Himalayan states, etc., subject to a maximum of INR 5 Cr per project.