Provision of Rs. 75 Crores for Chief Minister’s Agriculture and Food Processing Scheme

The Chief Minister’s Agriculture and Food Processing Scheme is a 100% state-sponsored initiative aimed at uplifting farmers by promoting the food processing industry in the state. The scheme seeks to encourage the establishment of projects based on modern technology through farmer participation, increase the value of agricultural products, modernize projects to enhance food quality, and save energy. Accordingly, a provision of Rs. 75 crores has been made in the budget resolution for the year 2024-25 for this scheme.

Scheme Objectives:

• Establishment of new food processing industries and the upgradation, expansion, and modernization of existing ones.
• Value addition, cold chain and storage infrastructure, post-harvest pre-processing centers, and integrated value chains related to crop-based food processing industries.

Eligible Industries:

• Processing industries for cereals, pulses, fruits, vegetables, oilseeds, spices, medicinal and aromatic plants.
• Jaggery, wine, dairy, and animal feed industries.
• Special emphasis is placed on agriculture, processing, and value addition of bulk grains.

Eligible Beneficiaries/Institutions:

• Individual Beneficiaries: Individual entrepreneurs, capable progressive farmers, unemployed youth, women, new entrepreneurs, partnership projects, partnership firms (LLP), etc.
• Group Beneficiaries: Farmer Producer Groups/Organizations/Companies, Self Help Groups (SHGs), Producer Cooperative Societies, Government Institutions, and Private Institutions.

As per the government’s definition of family (husband, wife, and their children), only one beneficiary per family is eligible under the scheme.

An applicant can avail of the benefits of the Chief Minister’s Agriculture and Food Processing Scheme only once. However, the benefit for upgradation, expansion, and modernization of a project that has already received assistance from other schemes will continue to be available.

Financial Assistance:

• 30% subsidy on the total cost of plant and machinery and technical civil work, with a maximum limit of Rs. 50.00 lakhs.
• The expenditure ratio for subsidies on plant and machinery and construction (technical civil work) is 60:40, respectively.
• Bank Loan Linked Subsidy as per the “Credit Linked Back-ended Subsidy” in two equal phases:
  • Phase I: After completion of project construction.
  • Phase II: After the project reaches full capacity production.

Current Status of the Scheme:

Between 2018-19 and 2023-24, a total of 584 beneficiaries received Rs. 201.47 crores as a subsidy. In the year 2024-25, a grant of Rs. 75 crores has been approved for 207 projects.