Subsidy
UP Food Processing Industry Policy
The Uttar Pradesh Food Processing Industry Policy 2023 is the most relevant state policy for flour and rice mills, oil and solvent plants, bakeries, beverages, dairy products, spices and fruit and vegetable processing. It is administered by the Directorate of Horticulture & Food Processing for the policy period up to 2027.
Main financial incentives
| Incentive | Support | Limit |
|---|---|---|
| Capital subsidy: new units | 35% of plant & machinery and technical civil works | Up to ₹5 crore |
| Capital subsidy: expansion / modernisation | 25% | Up to ₹1 crore |
| Interest subsidy (5 years) | 100% for micro and small units; 7% for others | Up to ₹50 lakh |
| Cold chain | 35% capital subsidy | As per policy |
| Value addition / frozen storage | 50% capital subsidy | Up to ₹10 crore |
| Agro-processing clusters (at least 5 units and ₹25 crore) | 35% | Up to ₹10 crore |
| Backward and forward linkages | 35% | Up to ₹5 crore |
| Reefer vehicles | Interest reimbursement for 5 years | Up to ₹50 lakh |
The Invest UP summary page describes the capital subsidy as 25–35%; the figures above follow the policy document. We confirm the applicable rate against the policy and guidelines GO for each application.
Land, fees and other support
- 100% stamp duty exemption on land for the unit, waiver of the non-agricultural declaration fee, and concessions on change-of-land-use and development charges (the exact concession is confirmed against the GO, as the policy document and web summary differ).
- Mandi fee exemptions, with the whole state treated as one market for the purpose.
- Rural solar plants up to 75 kVA: 50% subsidy, or 90% for all-women units.
- Export freight support of 25% (excluding exports to Nepal, Bangladesh and Bhutan).
- Grants of 50%, up to ₹50 lakh, for SHGs and FPOs.
How to apply
- Applications are filed online through the Online Incentive Management System on Nivesh Mitra.
- Plan the claim before ordering machinery: eligible cost heads, quotations and the civil works classification all affect the subsidy amount.
- Only one state policy can be used for the same investment, so compare this policy with the MSME Promotion Policy before applying.
Sources
Scheme terms change; verify on the official portal; last checked 2 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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