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Government Subsidy on Food Processing

Government Subsidy on Food Processing

The Indian Food Processing industry is responsible for converting farmed crops and products into packaged and processed food products. India is ranked at number six and at number five in the global retail market in the food and grocery market.
The Indian food processing industry thankfully sources its raw materials indigenously. Here are few positive results from the Indian food industry:
• Our country is the largest producer of fruits like mangoes, bananas, papaya, guavas, and okra. It is also the biggest producer of milk and ginger.
• Our country is the second-largest producer of food crops like rice, wheat, tea, sugarcane, and cashew nut.
• Our country is the third-largest producer of spices like pepper, cardamom, nutmeg, and mace, besides carrot, coconut, and chicory.

Subsidies to food processing units
The government takes cognizance of the immense potential of the food processing industry in India and thereby has launched various subsidies, especially for units operating in the MSME sector. Some of them have been discussed here:
Small Farmer Agri-business Consortium Assistance

• Agriculture and Processed Food Products Export subsidy
• Agro Processing Cluster Scheme
• CLCSS or Credit Linked Capital Subsidy Scheme for Technology Upgradation
• Subsidy for small food businesses
• Venture Capital offered by SFAC
• Venture Capital by SVLC
• MSME Ministry financial support for technology upgradation
• Pradhan Mantri Kushal Vikas Yojana or PMKVY
• Government assistance for setting up of QC and food testing labs

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