Government subsidy is a Really much essential thing towards the fiscal advantages of the food business. In reality, the small-scale food processing industry tremendously depends upon the different government subsidy grants and schemes.

In India, both the Central and State Governments offer en Numbers of subsidy schemes to foster the rise of small-scale businesses, especially MSME.

Actually, the food processing industry is turning agricultural products into value-added food products. Consequently, it is a highly promising business in our country. India holds the 6th place in the food and grocery market and 5th position in the retail market globally.

India is the biggest producer of milk, bananas, mangoes, guavas, papaya, ginger, and okra. Furthermore, it is the second-largest producer of wheat, rice, fruits, vegetables, tea, sugarcane and cashew nut. And the third biggest producer of cereals, carrot, coconut, chicory, nutmeg, mace, cardamom, and pepper globally. Therefore, our nation has ample resources for the food processing industry.

Here in this Guide, you will find a list of 10 best Government subsidy for small enterprise. Most of the schemes focus on the food processing industry in various sectors. Definitely, it will help you in getting the financial advantages to begin your own organization.

#1. National Horticulture Board (NHB) – Government Subsidy

The National Horticulture Board (NHB) provides capital investment subsidy (subcommittee under MIDD) for construction/expansion/modernization of cold storage to obtain horticultural products. The strategy is for setting up cold storage (of power above 5000 MT and up to 10000 MT) and their modernization. Essentially, it is an open-ended credit connected scheme. For availing this strategy, you will have to submit an internet application for IPA from the prescribed application format. It is available on the website:

#2. National Horticulture Mission (NHM) – Government Subsidy

The National Horticulture Mission (NHM) offers financial assistance for your cold storage (long-term storage and distribution hubs) around 5000 MT capacity. This scheme comes under the open-ended plot of NHM/ HMNEH. In fact, it is a subscheme of MIDH). And you can avail the subsidy to charge linked projects @ 35% of the capital cost of this project in the general area and 50% in case of Hilly & Scheduled region.

#3. Small Farmer Agri-Business Consortium (SFAC) Assistance

Cold storage for part of an integrated value chain undertaking. You can apply for a subsidy for a cold storage component that has more than 75% TFO (total financial cost). Aid level for subsidy for projects is 25% of capital expenditure and Rs.2.25 crore. And it’s 33.33percent and maximum ceiling up to Rs 4 crores in the event of NE, Hilly & Scheduled region.

#4. Agricultural And Processed Food Products Export

Under this scheme, you may establish a cold chain enterprise. Basically, it is a part of a way to develop the businesses relating to the scheduled products for export only. One can get a subsidy of 40%, up to a limit of Rs 75 lakh, for the cold chain unit with mechanical management systems.

#5. Credit Linked Capital Subsidy Scheme For Technology Upgradation (CLCSS)

Actually, up-gradation of the process and the corresponding Plant and machines helps SMEs to reduce the production cost.

The sole proprietorship, partnership companies, cooperative, private and public limited companies can apply this strategy. Basically, it aims at facilitating technology up-gradation by supplying the upfront capital subsidy of 15%.

#6. Government Subsidy for the Food Processing Unit

Horticulture Mission provides monetary aid for the Food processing units for horticulture products. The strategy is just for North Eastern Region and Himalayan States (HMNEH). It’s a credit-linked back-ended capital investment aid of 50% of project expenditure (ceiling quantity of project cost is Rs 8 crores ).

#7. Venture Capital By Small Farmer Agri-Business Consortium (SFAC)

SFAC provides venture capital support, such as equity for agribusiness projects. Quantum SFAC endorsement of 26 per cent of the promoter’s equity or volume of Rs 50 lakh, whichever is less in the overall sector. And it’s 40 per cent of this promoter equity or volume of Rs 50 lakhs whichever is lower in Hilly and NE regions. You’ll have to repay this enterprise capital to SFAC following the repayment of the term loan.

#8. Venture Capital By Sidbi Venture Capital Ltd. (SVLC)

SIDBI extents service to MSME through among its strategy Currently, It’s available in Bihar, Uttar Pradesh, Madhya Pradesh, Odisha, Chattisgarh, Jharkhand, Rajasthan and West Bengal. SMEs can apply for financial assistance under the scheme. The investment size is approx 5 to 40 Crore. However. That the MSME Udyog Aadhaar registration is must for implementing this scheme.

#9. Technology Upgradation And Quality Certification – Government Subsidy

Ministry of Micro Small Medium Enterprises (MSMEs) supplies the Financial Support to MSMEs in ZED (Zero Defect and Zero Effect) Certification Scheme. Basically, the plot supports the Make in India initiative. The plan will help SMEs significantly reduce waste, increase productivity, expand their market from IOP, become vendors for CPSUs, create more IPRs, create new products and processes, and more. All the small business enterprises in the production task and using Udyog Adhar Memorandum may apply.

#10. Pradhan Mantri Kaushal Vikas Yojana (Pmkvy) – Government Subsidy

Under this Scheme, you can get the training and assessment fees from the Authorities. However, you will find help according to the National Skills Qualification Framework (NSQF). Aside from providing training, TCs will even impart training in Soft Skills, Entrepreneurship, Financial and Digital Literacy.

#11. Setting Up/Up-Gradation of Quality Control/Food Testing Laboratories

Generally, food testing guarantees it complies with National standards as well as international standards for exports. Additionally, there is a need for testing of imported food products to guarantee they have the requisite standard and food solutions.

Under the scheme, Central/State Government associations Government universities (including deemed universities) and all other implementing agencies/private sector organizations/universities (including deemed universities) are entitled to get financial aid for setting up of food testing laboratories.

We hope this wide list of Government subsidy schemes will Assist you in receiving financial assistance for your small business.

Disclaimer: The information provided here is compiled from various sources and the government schemes may change during the course of time. Therefore, readers are advised to check each scheme individually at their own part. In no event shall the Computuype Media be liable for any direct, indirect, punitive, incidental, special, consequential damages.
The picture is for representational purposes only. Pic courtesy: UNIDO