Uttar Pradesh Food Processing Industry Policy 2023

Is UP Food Processing Policy 2023 open? Key facts at a glance

UP Food Processing Policy 2023 (Uttar Pradesh): 35% capital subsidy up to ₹5 Crore (new units); 100% interest subsidy for micro and small units, up to ₹50 lakh.

Last verified: 20 Oct 2026. How we check our information

What is UP Food Processing Policy 2023?

Official notification (PDF)

What are the key benefits of UP Food Processing Policy 2023?

• Capital subsidy: 35% of plant, machinery and technical civil work for new units, up to ₹5 crore; up to ₹1 crore for expansion, modernisation or upgradation — 25% under para 17(xiv) of the policy, though the implementation guidelines GO of 11 April 2023 (para 3(13)) states 35%, so confirm the rate with the Directorate.
• Interest subsidy: 100% for micro and small units for five years; 7% subvention for other units; both up to ₹50 lakh (para 17(xviii)).
• Cold chain and value addition infrastructure: 35% (50% for processing infrastructure and irradiation) up to ₹10 crore; primary processing and collection centres: 35% up to ₹5 crore (paras 17(xv)–(xvi)).
• Full interest on loans for reefer vehicles and mobile pre-cooling vans for five years, up to ₹50 lakh (para 17(xvii)).
• Solar plants up to 75 kVA for units outside industrial areas: 50% of cost (90% for units owned and run by women) (para 17(xii)).
• Export freight: 25% of transport cost from the unit to the destination port abroad (not for Nepal, Bangladesh or Bhutan) (para 17(xiii)).
• Stamp duty exemption on land for the unit (the 2023 guidelines GO says the stamp duty is reimbursed from the food processing budget after State Level Empowered Committee approval); mandi fee and cess exemptions on produce brought from outside the State or bought directly from farmers (para 17(viii)–(x)).
• Agro-processing clusters of at least five food processing units with at least ₹25 crore investment: 35% of project cost, up to ₹10 crore (guidelines GO para 3(14)(b)).

What could a unit get under UP Food Processing Policy 2023?

The ceiling the scheme sets. What a particular unit receives depends on its project cost, location and the conditions on this page, so no rupee figure is worked out here.

Up to the scheme’s limits: 35% capital subsidy up to ₹5 Crore (new units); 100% interest subsidy for micro and small units, up to ₹50 lakh

Illustrative only: this is the scheme’s maximum, not an estimate for your unit. Source: Food Processing Industry Policy 2022–2027 (English version, Dept. of Horticulture & Food Processing; Invest UP: Policy 2023); guidelines GO No. 32/2023/293/58-2-2023-4/2022, 11 April 2023 (Hindi, Invest UP go_161025.pdf).

Who can apply for UP Food Processing Policy 2023?

• New food processing units, and existing units expanding, modernising or upgrading, anywhere in Uttar Pradesh.
• SHGs, FPOs and farmers can get grants for decentralised processing and storage, up to 50% of project cost or ₹50 lakh (para 17(xxi)).

Eligible business types

MSME categories covered

Eligible industries

How do I apply for UP Food Processing Policy 2023?

1. Applications are invited by advertisement for a set period; apply online on the Nivesh Mitra portal with the common application form and the departmental form for the component (Forms A–I of the 2023 guidelines), uploading the documents as PDFs.
2. The State Nodal Agency pre-appraises applications within 30 days of the closing date; the Appraisal Committee and then the State Level Empowered Committee, chaired by the Agriculture Production Commissioner, decide, and the State Nodal Agency issues the letter of comfort or sanction.
3. Attach land records, a detailed project report certified by a chartered accountant, the bank appraisal report and loan sanction letter, a building plan certified by a chartered architect or civil engineer, and a plant and machinery list with capacity and cost certified by a chartered mechanical engineer.
4. The project must start commercial production within 18 months; the grant is paid in two instalments, after 50% of the work and after commercial production.

Which documents are needed for UP Food Processing Policy 2023?

• Detailed project report with plant, machinery and technical civil work costs
• Udyam Registration and FSSAI licence
• Land documents
• Bank sanction letter and loan statements (for the interest subsidy)
• Bills and payment proof

Can UP Food Processing Policy 2023 be combined with other schemes?

This scheme can be combined with the following for higher total benefits:

Why are UP Food Processing Policy 2023 applications rejected?

• Same incentive claimed under another State policy (the MSME Policy 2022 allows benefits under one policy only)
• Expenditure on land or non-technical civil work counted
• Export freight claimed for Nepal, Bangladesh or Bhutan

Subsidy Setu's DPR preparation process addresses all common rejection points before filing.

Frequently asked questions about UP Food Processing Policy 2023

Is UP Food Processing Policy 2023 open?

Yes, it is open for applications. Status last verified: 20 Oct 2026.

Who can apply for UP Food Processing Policy 2023?

Micro, Small, Medium enterprises (Manufacturing).

What is the maximum benefit under UP Food Processing Policy 2023?

35% capital subsidy up to ₹5 Crore (new units); 100% interest subsidy for micro and small units, up to ₹50 lakh.

How do I apply for UP Food Processing Policy 2023?

1. Applications are invited by advertisement for a set period; apply online on the Nivesh Mitra portal with the common application form and the departmental form for the component (Forms A–I of the 2023 guidelines), uploading the documents as PDFs. 2. The State Nodal Agency pre-appraises applications within 30 days of the closing date; the Appraisal Committee and then the State Level Empowered Committee, chaired by the Agriculture Production Commissioner, decide, and the State Nodal Agency issues the letter of comfort or sanction. 3. Attach land records, a detailed project report certified by a chartered accountant, the bank appraisal report and loan sanction letter, a building plan certified by a chartered architect or civil engineer, and a plant and machinery list with capacity and cost certified by a chartered mechanical engineer. 4. The project must start commercial production within 18 months; the grant is paid in two instalments, after 50% of the work and after commercial production.

Related schemes