Food Processing Industry (FPI) Subsidy in Jammu & Kashmir | FPI Subsidy Rate

Updated on December 16, 2024 12:25:39 PM

The Ministry of Food Processing Industry (MoFPI) of Government of India implemented the FPI subsidy plans specifically designed to promote the business initiations in the Food Processing Industry in Jammu & Kashmir. The agricultural sector of Jammu & Kashmir is prominently altered by the topography and climatic conditions and produces distinct agricultural goods. The agricultural development of Jammu & Kashmir will result in benefits like job opportunities for the residents of the region and support the economic growth of the state.

The Ministry of Food Processing Industry (MoFPI) of the Government of India has instituted the FPI subsidy plans, as an initiative to promote the food processing sector in Jammu & Kashmir, that are provided to businesses based on the amount of investment they make on their businesses. In this article, you will learn about how the incentive and financial support aids in the growth of the agricultural sector of the state and what are the advantages of the Food Processing Industry (FPI) subsidy provided in Jammu & Kashmir.

Some of benefits that the FPI subsidy in Jammu & Kashmir offers to the businesses are listed below:

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

Under the Food Processing Industry (FPI) subsidy rate in Jammu & Kashmir the maximum subsidy amount is granted to businesses to ensure that the scheme aids in prevention of exploitation or unfairness of the intermediary. The FPI subsidy rate in Jammu & Kashmir is categorized under 9 categories which are:

• Capital Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  State Capital Investment Subsidy: 30% of cost	Upper limit of Rs. 60 Lakhs to 300 Lakhs Upper limit of Rs. 30 Lakhs to Rs. 150 Lakhs	On cost of plant and machinery On cost of manufacturing & services sector
  Subsidy on Pollution Control Devices: 60% of the cost	Subject to a maximum of Rs. 50 Lakhs	On cost of pollution control devices

• Interest Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  NA	On a loan of maximum Rs. 1 Crore	Interest Subvention will be provided for a period of 5 years availed for the establishment of a 500 MTs Walnut Processing Unit in the private sector

• Air Freight Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  50%	Subject to a maximum of Rs. 5 Lakhs per year per unit	For registered Micro and SSI Units for any destination within the country

• Air Freight Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  50%	Upper limits of Rs. 2 to 6 Lakhs	Only on the expenditure incurred on the equipment

• Subsidy on Purchase and Installation of Diesel Sets

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  100%	Maximum limit of Rs. 40/45 Lakhs	On Diesel Sets of 10 KW to 2000 KW

• GI (Geographical Indication) Certification

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  1st Year:50%	Rs. 15 lakhs	During the 1st year on the expenses incurred
  2nd Year:30%	Rs. 10 lakhs	During the 2nd year on the expenses incurred
  3rd Year:10%	Rs. 5 lakhs	During the 3rd year on the expenses incurred

• Quality Control and Testing Equipment

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  100%	Upper limit of Rs. 35 Lakhs	On the cost of such equipment

• Pre-investment Studies/Feasibility Reports

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  100%	Subject to a limit of Rs. 2.00 Lakhs	Only at the time of execution of the project

• Incentive to Farmer Producer Organizations (FPOs) Agro/Food Cooperatives

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  NA	Maximum of Rs. 50 Lakh will be provided	Interest Subvention for a period of 3 years on the working capital limited

The Food Processing Industry (FPI) subsidy rate in Jammu & Kashmir is designed to promote the agricultural sector and enhance the food processing sector in the region. Here are the key features of the Food Processing Industry (FPI) subsidy rate in Jammu & Kashmir:

• 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.
• Frequent disbursement of loans: The loan and FPI 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: When no revenue is being generated at the start of the project implementation, interest charged on the portion of the loan that has been paid out is calculated using simple interest during the 'moratorium' period. Compound interest is applied to all agricultural term loans (ATL) once the moratorium period is over although the interest is diminishing over time.