Agro, Food processing and Dairy
Sector Overview :
The Uttar Pradesh Agro & Food Processing Industry Policy-2022 and Uttar Pradesh Food Processing Industry Policy 2023 aims to capitalise on the state's agricultural abundance to foster a dynamic, technologically advanced, and sustainable food processing sector. With Uttar Pradesh leading in the production of milk, food grains, sugarcane, and ranking third in fruits and inland fish production in India, the region presents substantial growth opportunities for the food processing industry.
  1. Overview
  2. Objectives
  3. Enablers
  4. Fiscal Incentives
  5. Dairy
Sector Overview
1
• 1st in India  in Milk, Food Grain, and Sugarcane production.
• 3rd in India in Fruit production and inland fish generation.
• A robust base with 15 Agro & Food Processing Parks/clusters, 250 Regulated Markets, and 225 Rural Markets.
Objectives
2
• Affirm fair & remunerative price of the produce to the growers.
• Ensure Value addition to the price of raw produce.
• Promote setting up of food processing industries.
• Easy availability of processed food products to consumers at competitive prices .
• Generation of new employment opportunities in the sector.
Enablers
3
• A liberal FDI regime allowing 100% foreign direct investment.
• A robust supply chain is expected to channel 25% of agricultural produce into the food processing industry by 2025, fostered by schemes like PM SAMPADA Yojana.
• Rich agro-climatic diversity across nine zones, supporting varied agricultural specialties.
• A strong R&D ecosystem and numerous training institutes aimed at skill development in food processing
Investment and Fiscal Incentives
4
Under UP Agro & Food Processing Industry Policy-2022
  • Capital Investment Subsidy of 25% upto Rs 1 Crore on plant machinery and technical civil work in setting up, expansion and modernisation/up gradation of the food processing units
  • Interest Subsidy of 100% for 5 years to micro and small food processing industries,,and of 7% for 5 years for establishments other than micro and small food processing industries subject to Rs 50 Lakh.
  • Interest Subsidy for purchase of reefer vehicle/ mobile cooling van of 7% for 5 years
  • Export promotion incentive of 50% reimbursement of expenses incurred on exporting processed food samples for test marketing; and reimbursement of 25% of transportation cost up to INR 10 lakhs p.a. for 3 years. Also 20% reimbursement of Free On Board value up to Rs 20 lakhs per beneficiary p.a. for 3 years.
  • Patent registration fee reimbursement @75% and Quality certification fee reimbursement @50% for internationally accepted quality certification
Dairy
5
Under UP Agro & Food Processing Industry Policy-2022
  • Amounting to 35% of incurred expenditure on plant, machinery, and technical civil work for FPIs subject to maximum of Rs. 5 Cr
  • In case of expansion and modernization / upgradation, capital subsidy will be 25% subject to maximum of Rs. 1 Cr.
  • Permission to purchase land (agricultural) for more than 12.5 acres for FPIs.
  • Exemption from charges of 2% of the value at circle rateas 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 directly sold to processing units by farmers.
  • Sponsoring studies for certifying / declaring an area disease free i.e.- potato – Agra & Kannauj; Durum wheatBundelkhand.
  • 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 Cr 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 cr, a grant of 35% of the eligible project cost subject to maximum of Rs. 10 cr 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 cr.
  • Interest Subsidy for purchase of Reefer Vehicles and Mobile Pre-Cooling vans: Reimbursed for a period of 5 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 cr.
  • 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.
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