Patna: Bihar is promoting oilseed processing and value addition by offering a subsidy of up to ₹9.90 lakh for setting up new oil processing units. The Agriculture Department has invited applications under the National Mission on Edible Oils–Oilseeds, with the deadline set for September 15.
The scheme aims to encourage enterprises, Farmer Producer Organisations (FPOs), startups and cooperative societies to invest in oil processing while creating better income opportunities for farmers.
33% Subsidy for New Oil Processing Units
Under the scheme, eligible applicants can receive 33% of the project cost or a maximum subsidy of ₹9.90 lakh, whichever is lower, for a new oil processing unit with a capacity of 10 tonnes.
Applications opened on August 15. Interested applicants can submit their applications online through the DBT portal or Bihar Agriculture App by September 15.
The government expects the expansion of processing facilities to strengthen Bihar’s oilseed value chain and encourage local processing of crops such as mustard.
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Who Can Apply?
The subsidy is available to several categories of applicants involved in agriculture and food processing.
- Government and private enterprises
- Farmer Producer Organisations (FPOs/VCPs)
- Registered startups
- Cooperative societies
However, the assistance applies only to new 10-tonne-capacity oil processing units.
The subsidy does not cover expenditure on land, electricity, manpower or other operational costs. FPOs must also have been registered and operational for at least two years to qualify.
Applicants are required to contribute at least 15% of the project cost from their own funds, making their own financial participation an important eligibility condition.
Bihar Focuses on Oilseed Production
The initiative forms part of Bihar’s wider efforts to increase oilseed production and processing through Saat Nischay-3 and the National Mission on Edible Oils–Oilseeds.
The government is supporting farmers not only through processing infrastructure but also through measures aimed at improving oilseed cultivation. These include efforts to provide improved varieties of seeds and promote procurement of oilseed crops such as mustard at the Minimum Support Price (MSP).
The state also provides assistance for irrigation through the diesel subsidy scheme during periods of drought or inadequate rainfall.
Creating More Value for Farmers
The push for oil processing can give farmers opportunities beyond selling raw oilseeds. Local processing can add value to agricultural produce and potentially create new business and employment opportunities around oil extraction and related activities.
For FPOs and cooperatives, the subsidy could also encourage investment in processing infrastructure and help them participate more actively in the agricultural value chain.
By linking oilseed production with processing facilities, Bihar is seeking to build a stronger local ecosystem around edible oil production. The initiative could also support the state’s broader objective of increasing agricultural value addition and improving income opportunities for farming communities.
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