Food Processing Industry (FPI) Subsidy Rate in Assam

Updated on December 16, 2024 12:25:38 PM

The Food Processing Industry (FPI) of Assam has high-potential and specializes in turning raw agricultural resources into edible foods. Assam is widely renowned for its diverse agricultural, rich cultural heritage, strategic location, has agricultural resources, productive climate, and distinctive regional cuisine. People who reside in Assam can benefit greatly from the agriculture sector in terms of job opportunities and economic growth.

In Assam, the primary agricultural link of agricultural raw materials is the Food Processing Industry. To ensure safety, growth and diversity in Assam, the food processing industry of the Indian government instituted financial aid to facilitate the economy's supply chain for consumable foods in a controlled manner.

You will learn about how the incentive aids in the state's agricultural sector and what advantages the subsidy programs of Food Processing Industry (FPI) subsidy provide in Assam in this article.

Here are the benefits that the subsidy in Food Processing Industry (FPI) in Assam offers:

1. Economic Development: The subsidy has a positive impact on the economy of Assam as it supports small-scale industries making it easier to transport goods within the country.
2. Cost Reduction: The FPI subsidy helps to lower the transportation costs, which makes goods and services cheaper for businesses and consumers alike.
3. Market Expansion: Local businesses can use the subsidy to expand markets beyond one region. This allows the businesses to compete in bigger markets.
4. Employment Generation: The FPI subsidy helps to create jobs by supporting small-scale industries. This leads to employment of locals and improves their living standards.
5. Encouraging Entrepreneurship: The subsidy also makes it easier for new businesses to start up and helps in creating a more lively and varied local economy.

Under the Food Processing Industry (FPI) subsidy rate in Assam, the maximum subsidy amount is granted to ensure that the program aids in prevention of exploitation or unfairness of the intermediary. The subsidy rate in Assam is categorized in 6 types:

• Interest Subsidy

  Maximum subsidy Rate	Maximum subsidy Amount	Limitations
  2% on the outstanding working capital loan	Subject to a ceiling of Rs. 50 lakh	For five years (should not exceed 100% of investment in plant and machinery) and Interest subsidy shall be available only on outstanding working capital loan availed from Bank/Financial Institution.

• Freight/Transport Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  75% of actual cost of the vehicle for transportation of green leaf by partnership/cooperative/company of STG or SHG	Limited to Rs.2 lakh	Only in case of partnership/SHG consisting of minimum 5 members
  	Limited to Rs.3.50 lakh	Only in case of 10 members or more

• Subsidy on Generating set

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  To encourage the MSMEs to be listed in BSE &NSE, Govt. will provide subsidy at 30% of the cost of Public Issue expenses	Subject to a limit of Rs. 20 lakhs	On cost of generating set, taxes and transportation only. However, the capacity of the DG set should be equivalent to the power sanction to the unit by the competent authority.

• Financial assistance to MSMEs listed in Stock Exchange

  Maximum Subsidy Rate	Maximum Subsidy Amount
  To encourage the MSMEs to be listed in BSE &NSE, Government will provide subsidy at 30% of the cost of Public Issue expenses	Subject to maximum of Rs. 5 lakh

• Assistance for Environmental Compliance

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  Subsidy at 50% on capital cost	Max of Rs. 25 lakh per unit	For setting up of effluent treatment plant

• Credit-linked capital subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitation
  35% of the eligible project cost	Maximum ceiling INR 10 lakhs per unit	Eligible project cost comprises cost of plant and machinery and technical civil work, but excludes cost of land/ rental or lease work shed. However, technical civil work should not be more than 30% of the eligible project cost.

The Food Processing Industry (FPI) subsidy rate in Assam is designed to promote agricultural development and enhance the economic status of farmers in the region. Here are the key features of the Food Processing Industry (FPI) subsidy rate in Assam:

• Frequent disbursement of loans: The loan and subsidy will be disbursed in phases over 3-5 years with intervals of 3-6 months to match the implementing period.
• Disbursement of loan will be simple: Interest charged on the portion of the loan that has been paid out is calculated using simple interest during the 'moratorium' period, when no revenue is being generated at the start of the project implementation.
• Improve in prospect buyer: Various types of benefits or discounts can be offered to potential buyers such as individuals, food processing industries (FPI), exporters, etc., in order to serve as effective facilitators.