Food Processing Industry Subsidy in Rajasthan | FPI Subsidy Rate

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

The FPI Subsidy in Rajasthan is instituted by the Ministry of Food Processing Industries (MoFPI) of the Government of India in the food processing industry to promote the business in the state. Any new business that is started in the state is eligible to redeem FPI subsidy in Rajasthan which offers reimbursement based on the amount of investment business owners made over equipment, establishment, transport and more. The FPI subsidy in Rajasthan applies for 6 food parks in Rajasthan including one mega food park in Ajmer and other fives in Alwar, Kota, Jodhpur and Sri Ganganagar.

The FPI Subsidy in Rajasthan can be redeemed for two Agri Export Zones - first for coriander in Kota, Baran, Jhalawar & Chittorgarh and other for cumin in Nagaur, Barmer, Jalore, Pali and Jodhpur. The FPI subsidy in Rajasthan is designed for the expansion of businesses and to create job opportunities and more to boost the growth of economy and sales.

The Ministry of Food Processing Industry (MoFPI) implemented the FPI Subsidy in Rajasthan to boost the economic development of the state by attracting investments and generating employment. The FPI subsidy in Rajasthan aids in lowering operational costs, expanding business beyond local regions, creating job opportunities and encouraging entrepreneurship for further development of the Food Processing Industry in the state. Some of the benefits of the FPI subsidy in Rajasthan for development of the Food Processing Industry (FPI) are written below.

1. Cost Reduction: The FPI subsidy in Rajasthan lowers transportation costs for businesses, making it sustainable and cost-efficient for both businesses and consumers.
2. Encouraging Entrepreneurship: The FPI subsidy provides incentives to businesses looking to start up new ventures, creating a more lively and varied local economy.
3. Job Creation: The FPI subsidy creates jobs for locals and decreases unemployment, resulting in a rise in living standards.
4. Economic Development: The subsidy impacts the local economy positively by supporting businesses to improve the import and export of goods.
5. Market Expansion: Local businesses can benefit from the FPI subsidy to expand their markets beyond local regions and compete in larger markets.

The FPI Subsidy in Rajasthan offers a maximum subsidy amount to ensure that the scheme assists to avoid exploitation or unfairness of the intermediary in the Food Processing Industry. The FPI subsidy in Rajasthan is categorized under 7 programs which are:

• Capital Subsidy

  Capital Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  50% of the cost of development of new prototype	Subject to a maximum of ₹20 lakh for each undertaking in a year	Only for Research & Development

• Incentive for Project Development - Capital Subsidy

  Incentive for Project Development - Capital Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  50% of the cost of development of the DPR	Maximum ₹10 lakh	For a period of 5 years

• Sending agri-products for test marketing abroad - Capital Subsidy

  Sending agri-products for test marketing abroad - Capital Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  40% of the actual cost	Subject to a maximum of ₹50,000 per beneficiary for one sample of one commodity to one country	Not Specified

• Interest Subsidy

  Interest Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  5% Interest Subsidy	Not Specified	Only for enterprises engaged in post-harvest crop activities and not having VAT/CST liability for 5 years

• Freight/Transport Subsidy

  Freight/Transport Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  Not Specified	Maximum limit is ₹15 lakh per beneficiary / per year	Only for transportation of fruits and vegetables beyond a distance of 300 km and will also be available for 3 years

• Freight/Transport Subsidy

  Freight/Transport Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  20% of FOB (Free On Board) value	Subsidy of ₹4.50 per kg subject to a maximum of ₹10 lakh per beneficiary per year	Only one, whichever is less for a maximum period of 3 years

• Upgradation of Individual Micro Food Processing Units

  Upgradation of Individual Micro Food Processing Units

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  Credit-linked capital subsidy at 35% of the eligible project cost	Maximum ceiling of ₹10 lakh per unit	The beneficiary contribution should be a minimum of 10% and the balance should be loan from a bank

You can learn about the above listed category of FPI subsidy to know the maximum subsidy rate, maximum subsidy amount and the limitations of the subsidy plan which are tabulated below.

The FPI subsidy in Rajasthan aims to enhance the economic development of the state and financial standing of local businessmen in the region. The following are some of the features of FPI subsidy in Rajasthan:

• Simple Loan Disbursement: During the "moratorium" phase, the initial stage of the project without any revenue generation, the interest on the disbursed loan is calculated using simple interest. After the moratorium phase is over, compound interest is applied which progressively lowers.
• Improved Prospect Buyer: The FPI subsidy in Rajasthan aids various intermediaries such as consumers, food processing industries and exporters by offering benefits that attract more potential buyers.
• Frequent Loan Disbursement: Loans and subsidies are distributed in phases over a period of 3 to 5 years, with disbursements at intervals of 3 to 6 months to align with the implementation of the project.