The Department of Horticulture and Food Processing (DoHFP)

Welcomes you to

Uttar Pradesh Food Processing Industry Policy 2023 portal

We thank you for your interest in exploring collaborations with us.

The Food Processing Policy 2023 (FPP 2023) has been creatively formulated keeping in mind the requirements of entrepreneurs of this sector and is a paradigm shift from all previous policies.

Introduction to Food Processing

Food processing industry is the linkage between agriculture and industry. Food processing industry accounts for 32% of India’s food market, 14% of manufacturing GDP, 12% of exports and 6% of total industrial investment. In India the food processing is about 10% of the produce, with minimum 2% for fruits and vegetables and maximum for milk i.e. more than 35%. The tertiary level of food processing in Uttar Pradesh is 6%. The target of FPP-2023 is to take it to 20% in the next 5 years.

Potential opportunities in Uttar Pradesh

Uttar Pradesh is one of the major producers of horticultural crops and food grains in India, which serves as a lucrative base for the food processing industry.
Ranks 1st in production of fruits and vegetables, food grains, milk, sugarcane, potato, peas, mango, gooseberry and watermelon amongst all states.
Has 35% of total country’s wheat production, holds a 35% share in Sugarcane output, ranks 2nd in sugar production in the country,
The largest exporter of meat and has 15 modern integrated abattoirs and 35 meat processing units,
Export potential for the state.
Meeting the demand arising out of change in food habits and lifestyle.

Key Highlights of FPP 2023

1. Capital Subsidy:

1.1 Upto 35% of incurred expenditure on plant, machinery and technical civil work for Food Processing Industries (FPIs) subject to maximum of Rs. 5 Crores.

1.2 In case of expansion and modernization / up-gradation, capital subsidy will be 25% subject to maximum of Rs. 1 Crore.

2. Permission to purchase land (agricultural) for more than 12.5 acres for FPIs.

3. Exemption from charges of 2% of the value at circle rate as fees for non-agricultural use declaration for FPIs.

4. Fees for Exchange of government owned land coming under the scope of the project site will not be applicable for FPIs.

5. Conversion of Land Use (CLU): : 50% fees will be waived off on CLU

6. External Development Charges (EDC): Rebate of 75% on external development charges for FPI.

7. 100% re-imbursement of stamp duty by DoHFP for the land purchased for the establishment of food processing industry.

8. The entire State of Uttar Pradesh will be considered as a single unified market for food processing industries with respect to payment of mandi fees and cess. License holders of any mandi in the state will be eligible to work in other mandis of the state as well.

8. Exemption from Mandi Fees and cess for agricultural produce procured from other states for processing in Uttar Pradesh.

9. Exemption from Mandi fees and cess for agricultural produce directly sold to processing units by farmers in Uttar Pradesh.

10. Sponsoring studies for certifying / declaring an area disease free i.e.- potato – Agra & Kannauj; Durum wheat-Bundelkhand.

11. Subsidy on solar power projects for electricity supply to processing units: 50% subsidy on solar power utilities in rural areas and 90% subsidy for women entrepreneurs in the same category.

12. 25% Freight Subsidy on exports excluding Nepal, Bangladesh and Bhutan.

13. Scheme for value addition and cold chain infrastructure:

Subsidy of 35% for infrastructure pertaining to Cold Chain and Value Addition and a subsidy of 50% up to Rs. 10 Crores for frozen storage/deep freezer, value addition and processing infrastructure.
Infrastructure for Agro processing clusters: Minimum 5 food processing units with minimum investment of Rs. 25 crores, a grant of 35% of the eligible project cost subject to maximum of Rs. 10 crores will be provided as grant.

14. Scheme for Creation of backward and forward linkages: The admissible grant will be 35% of the eligible project cost subject to maximum of Rs. 5 crores.

15. Interest Subsidy for purchase of Reefer Vehicles and Mobile Pre-Cooling vans: Reimbursed for a period of five years, subject to maximum limit of Rs. 50 lacs.

17. Support for modern technology adoption to food processing start-ups engaged in Agricultural value chain development, coverage/production/productivity estimation and evidence-based decisions – up to Rs. of 5 crores.

18. Promotion of decentralized processing and storage: SHGs/FPOs/Framers will be eligible for assistance in the form of grant, based on their projects; subject to a maximum limit of 50% of the total project cost or Rs. 50 lacs.

19. Support under value addition & cold chain infrastructure and Creation of backward and forward linkages as per the guidelines of PM Kisan Sampada Yojna.

Our vision

Our vision is to transform the state of Uttar Pradesh into the most preferred investment destination in India with regards to Food Processing by acting as an effective investment policy driver and facilitator in providing world-class infrastructure and business environment within the state.

Our Mission

We aim at attracting investment in the state through proactive contribution in policy formulation for rapid development of Food Processing industries and infrastructure. We facilitate resolution of problems of prospective and existing food processing entrepreneurs by providing them advisory services and taking up their issues at the appropriate level in the Government of Uttar Pradesh and other public bodies, institutions and organizations.

We look forward to working with you to place Uttar Pradesh on the Global Food Processing Map.

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