24 October 2026
ADVERTISEMENT
ADVERTISEMENT

UP’s Food Processing Policy Offers Up to ₹5 Crore Capital Subsidy to Boost Farm-to-Industry Value Addition

Uttar Pradesh’s Food Processing Industry Policy 2023 offers capital subsidies, land and mandi-fee concessions, cold-chain support and export incentives to promote food processing across the state.
Indian Masterminds Stories

Lucknow: Uttar Pradesh’s Food Processing Industry Policy 2023 provides a package of financial and regulatory incentives for enterprises involved in processing agricultural and horticultural produce, with a focus on value addition, cold-chain infrastructure, market access and exports.

The policy, notified on February 2, 2023, is administered through the state’s Horticulture Department and is intended to support new food-processing units as well as eligible expansion and modernisation projects.

New Units Eligible for Up to ₹5 Crore Capital Subsidy

Under the policy, new food-processing units can receive a capital subsidy of 35% of expenditure on plant, machinery and technical civil work, subject to a maximum of ₹5 crore.

Read Also: UP Rolls Out Leather and Footwear Policy With Investment Incentives and Industry Support

For expansion, modernisation or technological upgradation of existing units, the policy provides a 25% capital subsidy, capped at ₹1 crore.

Key financial support includes:

  • 35% subsidy for eligible cold-chain and value-addition infrastructure.
  • 50% subsidy, up to ₹10 crore, for frozen storage/deep-freezer, value-addition and processing infrastructure.
  • 35% grant, up to ₹10 crore, for eligible agro-processing clusters.
  • 35% grant, up to ₹5 crore, for creating backward and forward linkages.
  • Interest subsidy for reefer vehicles and mobile pre-cooling vans for five years, subject to a ₹50 lakh ceiling.

Land and Mandi Fee Concessions

The policy also provides several concessions intended to reduce the cost of setting up food-processing units.

Eligible projects can receive 100% exemption from stamp duty on land purchased for establishing food-processing industries. The policy also provides concessions relating to land-use conversion and external development charges.

Food-processing units can also receive exemption from mandi fees and cess for agricultural produce procured from other states for processing in Uttar Pradesh and for produce directly sold by farmers to processing units.

Support for Solar Power, Exports and Technology

The policy includes incentives for rural food-processing units adopting solar power. It provides a 50% subsidy for solar-power utilities in rural areas, rising to 90% for women entrepreneurs in the specified category.

For exports, the policy provides a 25% freight subsidy on eligible transportation costs from Uttar Pradesh production facilities to destination ports, excluding exports to Nepal, Bangladesh and Bhutan.

The policy also provides support of up to ₹5 crore for food-processing startups adopting modern technology for agricultural value-chain development, production and productivity assessment, and evidence-based decision-making.

Who Can Benefit From the Policy?

The framework covers a range of food-processing activities and supporting infrastructure, including processing units, cold chains, pack houses, ripening chambers, refrigerated transport and other value-chain facilities. It applies to new units and qualifying expansion or modernisation projects.

The policy also provides assistance for decentralised processing and storage, under which SHGs, Farmer Producer Organisations and farmers can receive project-based grants subject to the prescribed limits.

Policy Targets Greater Value Addition to Farm Produce

The policy was framed against Uttar Pradesh’s large agricultural production base, covering commodities such as wheat, sugarcane, potatoes, mangoes, milk, meat and vegetables.

Its stated objectives include increasing value addition to agricultural produce, reducing post-harvest losses, creating employment, improving market access and expanding exports of processed food products. These are policy objectives rather than claims of outcomes already achieved.

Read Also: UP Clears ₹286 Crore Agriculture Package to Modernise Farms, Boost Storage and Allied Sectors


Indian Masterminds Stories
Join our WhatsApp Channel
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
IDAS
Richa Gupta IDAS Repatriation: Centre Approves Early Return of 2010-Batch Officer to Parent Cadre
golden-chariot
Golden Chariot Luxury Train Fully Booked for First Time After Revamp for 2026–27 Season
expo-bhadohi-yogi-adityanath
UP’s GCC Expansion Plan: 15 MoUs, Five Investor Letters Expected at Lucknow Summit
Sajjan Yadav, IAS
Who Is Sajjan Singh Yadav? Meet the IAS Officer Set to Succeed Atal Dulloo as Jammu and Kashmir Chief Secretary 
Gujarat Rooftop Solar Project
Gujarat to Install 2.5 MW Rooftop Solar Systems at 800 Agriculture Department Offices
BPCL Bina Petrochemical Expansion
BPCL Showcases BEPOLY at India Chem 2026, Highlights ₹49,000 Crore Bina Petrochemical Expansion
Indian Overseas Bank EASE 8
Indian Overseas Bank Achieves Rank 1 ‘Top Improver’ Under EASE 8.0 for Banking Service Improvements 
BSNL
BSNL Appoints Arvind Kumar as Director (Consumer Mobility) Until April 2031
ADVERTISEMENT
ADVERTISEMENT
Videos
Gajendra Singh Shekhawat
How India Plans to Boost Tourism, Create Jobs and Ease Overcrowding : Gajendra Singh Shekhawat on the Road to 2047
Dr Saket Badola IFS
Beyond Tigers and Safaris: How Corbett Literature Festival Wants to Change the Conservation Conversation
PK Jena
Why Technology Cannot Replace Human Connection in Governance: P.K. Jena
ADVERTISEMENT
UPSC Stories
IA&AS Lokesh Datal
‘Dreams Don’t Change Lives, Daily Habits Do’: IA&AS Officer Lokesh Datal on UPSC and Discipline
IA&AS officer Lokesh Datal shares his UPSC journey, clearing the exam in his fourth attempt, building...
Mavis tak
From Dropping Out of School to Becoming an IPS Officer : How a Father’s Unwavering Support Helped Mavis Tak Achieve Success
For Mavis Tak, becoming an IPS officer once seemed like a distant dream. Despite financial struggles...
Bhikan Rojekar UPSC
He missed MBBS by 1 mark in 2016; Maharashtra’s Bhikan Rojekar secures UPSC AIR 812
Bhikan Rojekar secured AIR 812 in UPSC CSE 2025 in his third attempt. Read how the son of a farm labourer...
CSR NEWS
NLC India CSR Dispensary
NLC India Builds ₹1.23 Crore Dispensary in Tamil Nadu’s Ramanathapuram Under CSR Initiative
Inaugurated on October 17, 2026, the new facility at Sri Ramakrishna Math in Keelanagachi aims to strengthen...
MGL CSR initiative
MGL Donates 30-Seater Hydraulic-Lift Bus to NIEPID Davangere Under MGL Saksham CSR Initiative
Inaugurated by MGL Vice President Sanket Dhotre on October 15, 2026, the accessible bus is expected to...
EIL CSR-
Engineers India Distributes Assistive Devices to 55 Divyangjans in Gurugram Under CSR Initiative
EIL’s CSR initiative provides motorised tricycles, hearing aids, wheelchairs and other aids to promote...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
IDAS
Richa Gupta IDAS Repatriation: Centre Approves Early Return of 2010-Batch Officer to Parent Cadre
golden-chariot
Golden Chariot Luxury Train Fully Booked for First Time After Revamp for 2026–27 Season
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Gajendra Singh Shekhawat
Dr Saket Badola IFS
PK Jena
ADVERTISEMENT
ADVERTISEMENT