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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

IncentiveSupportLimit
Capital subsidy: new units35% of plant & machinery and technical civil worksUp to ₹5 crore
Capital subsidy: expansion / modernisation25%Up to ₹1 crore
Interest subsidy (5 years)100% for micro and small units; 7% for othersUp to ₹50 lakh
Cold chain35% capital subsidyAs per policy
Value addition / frozen storage50% capital subsidyUp to ₹10 crore
Agro-processing clusters (at least 5 units and ₹25 crore)35%Up to ₹10 crore
Backward and forward linkages35%Up to ₹5 crore
Reefer vehiclesInterest reimbursement for 5 yearsUp 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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