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Sector profile

Agro-industries

Agro-industries such as flour, rice, pulse and oil mills, sugar and jaggery units, and agri-input businesses sit between the farm and the consumer. Their economics are shaped by seasonal procurement, which makes working capital and incentive timing central to the project structure.

Worker operating a flour mill machine in India
Photo: Surya Prakash.S.A. via Wikimedia Commons, CC BY-SA 3.0

Importance to the Indian economy

Agriculture, forestry and fishing contributed ₹23.67 lakh crore of GVA in 2023-24 at constant 2011-12 prices (MoSPI data, as reproduced by MoFPI). Agro-industries convert part of this output into storable, tradeable products.

India's agricultural exports were US$ 52.55 billion in 2025-26, up from US$ 51.12 billion in 2024-25 (Department of Commerce, via PIB). Processing and grading capacity near the farm gate is what allows produce to meet export standards.

Uttar Pradesh's large farm economy gives agro-processing projects a deep raw-material base, provided procurement finance and storage are planned for the season.

The last three years in official data

Figures as published by the Government of India source linked against each year. We do not estimate or fill gaps.

GVA of agriculture, forestry and fishing₹ lakh crore, constant 2011-12 prices

Bars start at zero and are scaled to the largest value shown.

YearValue (₹ lakh crore, constant 2011-12 prices)
2021-22₹21.70 lakh crSource: MoFPI Annual Report 2024-25, Table 2.1 (based on MoSPI National Accounts)
2022-23₹23.06 lakh crSource: MoFPI Annual Report 2024-25, Table 2.1 (based on MoSPI National Accounts)
2023-24₹23.67 lakh cr (1st revised estimate)Source: MoFPI Annual Report 2024-25, Table 2.1 (based on MoSPI National Accounts)
India's agricultural exportsUS$ billion

Bars start at zero and are scaled to the largest value shown.

YearValue (US$ billion)
2023-24US$ 48.15 bnSource: PIB, 1 Feb 2025 (PRID 2098447)
2024-25US$ 51.12 bnSource: PIB, 10 Jun 2026 (PRID 2271100)
2025-26US$ 52.55 bnSource: PIB, 10 Jun 2026 (PRID 2271100)

The 2023-24 figure is from an earlier release and may since have been revised by the Department of Commerce.

What is not shown, and why: A three-year GVA series beyond 2023-24 was not available in the source we used.

UP incentives for this sector

The Uttar Pradesh policy that applies to this sector, with the main incentives as stated in the policy or on Invest UP. Rates, caps and eligibility conditions are summarised; the policy text and its guidelines decide each case.

In force

Uttar Pradesh Food Processing Industry Policy 2023

Policy period up to 2027

IncentiveSupport (as per the policy)
Capital subsidy, new units35% of plant & machinery and technical civil works, up to ₹5 crore
Agro-processing clusters (at least 5 units and ₹25 crore)35%, up to ₹10 crore
Backward and forward linkages35%, up to ₹5 crore
Grants for SHGs and FPOs50%, up to ₹50 lakh
Check validity

Uttar Pradesh Agriculture Export Policy 2019 (as amended 2021, First Amendment)

Listed on Invest UP; documents last updated 29 Oct 2022. We could not verify the end date.

IncentiveSupport (as per the policy)
Farmer export clusters₹10 lakh (50–100 ha) rising in steps to ₹40 lakh (300–350 ha), paid on cluster registration and export
Ecosystem supportTransport subsidy for agri exports; mandi fee and development cess exemption on specified produce; packaging and traceability support

Applicable across sectors. A manufacturing project of ₹50 crore or more can also be evaluated under the UP Industrial Investment & Employment Promotion Policy 2022 (valid to 3 Nov 2027), and an MSME unit under the UP MSME Promotion Policy 2022. As a rule only one state policy can be used for the same investment, so compare the sector policy with these general policies on your own numbers before applying. Central schemes can often be combined with state support: see subsidy stacking.

Sources

Scheme terms change; verify on the official portal; last checked 4 Oct 2026. This page is general information for planning, not a guarantee of eligibility, sanction or disbursement. See our Terms of Use & Disclaimer.

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