Key Policy Highlights

Uttar Pradesh Food Processing Industry Policy 2023:

  • Subsidy:
    • Amounting to 35% of incurred expenditure on plant, machinery and technical civil work for FPIs subject to maximum of Rs. 5 Crores.
    • In case of expansion and modernization / up-gradation, capital subsidy will be 25% subject to maximum of Rs. 1 Crore.
  • Permission to purchase land (agricultural) for more than 12.5 acres for FPIs.
  • Exemption from charges of 2% of the value at circle rate as fees for non-agricultural use declaration for FPIs.
  • Fees for Exchange of government owned land coming under the scope of the project site will not be applicable for FPIs.
  • Conversion of Land Use: 50% fees will be waived off on CLU
  • External Development Charges: Rebate of 75% on external development charges for FPI to be setup in UP on a land where no developmental work has been done by Authorities.
  • 100% exemption from stamp duty for the land purchased for the establishment of food processing industry.
  • Exemption from Mandi Fees and cess for agricultural produce procured from other states for processing in Uttar Pradesh.
  • Exemption from Mandi fees and cess for agricultural produce directly sold to processing units by farmers.
  • Sponsoring studies for certifying / declaring an area disease free i.e.- potato – Agra & Kannauj; Durum wheat-Bundelkhand.
  • 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.
  • 25% Freight Subsidy on exports excluding Nepal, Bangladesh and Bhutan.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • Support under value addition & cold chain infrastructure and Creation of backward and forward linkages as per the guidelines of PM Kisan Sampada Yojna.

Nodal Agency: Horticulture Department

Image of Uttar Pradesh  Food Processing Industry