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Agri & Rural Infra15/08/2026 1 min read

Subsidy for Agri-Processing Units: PMKSY & State Policies Explained

Detailed analysis of PMKSY subsidies for agri-processing units. Get up to 50% subsidy on plant and machinery for food processing projects.

Value addition in agriculture is a priority sector for industrial growth. Setting up units for processing fruits, vegetables, or spices can unlock massive subsidies under the PMKSY (Pradhan Mantri Kisan SAMPADA Yojana).

1. PMKSY - Unit Scheme

This scheme provides capital subsidy for setting up new units or modernization of existing food processing units.

  • General Areas: 35% of eligible project cost.
  • Difficult Areas (NE, Hilly, ITDP): 50% of eligible project cost.
  • Maximum Limit: Up to ₹5.00 Crores per project.

2. Eligible Components

  • Plant and Machinery (Processing line, IQF, Blast Freezer).
  • Technical Civil Works (Cold room, specialized flooring).
  • Quality Testing Lab equipment.

3. Step-by-Step Application Process

  1. Selection of location and land procurement.
  2. Detailed Project Report (DPR) preparation by qualified consultants.
  3. Sanction of term loan from a scheduled bank.
  4. Online application on the MOFPI / State portal.

Frequently Asked Questions