Short Description
The Uttar Pradesh Food Processing Industry Policy 2023 is a five-year strategic framework (valid until 2028 or until a new policy is introduced) designed to transform the state into a national food processing hub. Administered by the Department of Horticulture & Food Processing, it offers substantial financial incentives to reduce post-harvest losses and double farmers' income
Objective
The primary goal of the Uttar Pradesh Food Processing Industry Policy 2023 is to transform the state into a national leader in food processing by creating a robust value chain from "farm to fork"
Core Objectives
The policy is built around several key economic and agricultural targets:
Enhancing Farmer Income: Ensure fair and remunerative prices for agricultural produce by linking farmers directly to processors.
Reducing Post-Harvest Losses: Minimise wastage of perishable commodities through the development of cold chain and storage infrastructure.
Promoting Value Addition: Increase the percentage of processed agricultural and horticultural produce to capture higher market value.
Job Creation: Generate large-scale employment opportunities in rural and semi-urban areas by incentivising the setup of new food processing units.
Boosting Exports: Enhance the state's export potential for processed food products through transport and freight subsidies.
Investment Growth: Attract significant domestic and Foreign Direct Investment (FDI) into the agro-processing and allied sectors.
Balanced Regional Development: Provide extra incentives for units in backward regions like Purvanchal and Bundelkhand to ensure uniform economic growth.
Benefits / Subsidy
The policy provides extensive subsidies for setting up, modernising, or expanding food processing units:
Capital Subsidy:
New Units: 35% of expenditure on plant, machinery, and technical civil work, capped at ₹5 crore.
Expansion/Modernisation: 25% to 35% subsidy, capped at ₹1 crore.
Special Regions: Units in Purvanchal and Bundelkhand may receive an additional 10% capital subsidy.
Interest Subsidy:
Micro/Small Units: 100% interest reimbursement for 5 years, up to ₹50 lakh.
Other Units: 7% interest subvention for 5 years, up to ₹50 lakh.
Tax & Fee Exemptions:
Stamp Duty: 100% exemption on land purchased for food processing units.
Mandi Fees: 100% exemption from Mandi fees and cess for raw materials sourced directly from farmers or from outside the state.
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Infrastructure & Logistics Support
Cold Chain & Storage: 35% subsidy for cold chain infrastructure and 50% for frozen storage/deep freezers, capped at ₹10 crore.
Agro-Processing Clusters: Grants of 35% (up to ₹10 crore) for clusters with at least 5 units and a minimum investment of ₹25 crore.
Solar Power: 50% subsidy for solar plants (up to 75 kVA) in rural areas, increasing to 90% for women entrepreneurs.
Export Freight: 25% reimbursement of transportation costs from UP to destination ports (excluding Nepal, Bangladesh, and Bhutan)
Eligibility
To qualify for incentives under the 2023 policy, applicants must meet the following general and sector-specific requirements:
Eligible Entities:
Individual entrepreneurs and proprietorship firms.
Partnership firms and Private Limited Companies.
Farmer Producer Organisations (FPOs) and Farmer Producer Companies (FPCs).
Self-Help Groups (SHGs) and Cooperative Societies.
Micro, Small, and Medium Enterprises (MSMEs).
Project Types:
New Units: Setting up completely new processing facilities.
Expansion/Modernisation: Existing units increasing capacity by at least 25% or upgrading technology.
Location: The unit must be physically located within the state of Uttar Pradesh.
Sectors Covered:
Fruits, vegetables, spices, and honey processing.
Dairy, milk products, and cattle feed.
Cereals, pulses, and oilseed milling.
Poultry, meat, fish, and marine products.
Bakery, confectionery, and ready-to-eat (RTE) products.
Cold chain infrastructure, including reefer vehicles and frozen storage.
Documents Required
Project Documentation:
Detailed Project Report (DPR): Outlining project cost, means of finance, production process, and employment potential.
Land Documents: Proof of ownership or a registered lease deed (minimum 15-30 years depending on the project).
Bank Appraisal/Sanction Letter: For projects seeking credit-linked subsidies.
Legal & Tax Identifiers:
PAN Card (Individual/Firm) and Aadhaar Card of promoters.
GST Registration Certificate.
Udyam Registration (for MSMEs).
FSSAI License/Registration.
Financial Records:
Audited Balance Sheets and Income Tax Returns (ITR) for the last 3 years (for existing units/expansion).
Chartered Accountant (CA) Certificate for investment in plant and machinery.
Technical Certificates:
Chartered Engineer Certificate for technical civil works and machinery specifications.
No Objection Certificates (NOCs) from the Pollution Control Board (if applicable) and local authorities.
