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Are You Ready to Start Your Own Food Processing Business, Come To Kerala

The government of India has set a target to increase the share of processed food in Indian food basket – 25% by 2025. The Vision 2015 of the Central Government aims to invest 1, 10,000 Cr in the food processing sector. In line with that Kerala government has setup ‘State Food Processing Mission’ (SFPM) under the guidelines issued by Ministry of Food Processing Industries, Govt. of India.

Kerala Industrial Infrastructure Development Corporation is the state nodal agency to implement SFPM.

The state government has launched various schemes to make Kerala a food processing hub. The schemes under SFPM are:

  1. Scheme for Technology Up-gradation / Establishment / Modernization of Food Processing Industries


  • Assistance up to 25% (maximum 50.0 lakhs) of eligible plant, machinery and technical civil works.
  • The financial grant will be released in two installments.
  • The scheme can be availed for establishing new units as well as existing units.


  •  At least 10% of the Bank Term Loan of the project cost is mandatory.
  • Application shall be submitted two months before commercial production.
  • Public and Private sectors both are eligible to apply.
  • The packaged/aerated water units are not eligible for this scheme.
  1. Scheme for Cold Chain, Value Addition and Preservation Infrastructure for Non-Horticultural Products


  • Assistance up to 35% (Maximum 2.0 Cr) of the bank appraised project cost.
  • In addition to it, interest subsidy 6% against term loan for a period of 5 years.
  • Grant in aid will be released in three installments.


  • The eligible sectors include: Dairy, Meat, Aquaculture and Marine. It also includes any sector not dealing in non-horticulture sector.
  • Term Loan shouldn’t be less than 25% of the project cost.
  • The net worth of the individual should be more than or equal to 1.5% of the grants allocated.
  • Commercial production should not begin prior to submission of application.
  • and Private both sectors are eligible.
  1. Scheme for setting Up/Modernization of Abattoirs


  • Assistance up to 50% (maximum 15.0 Cr) of cost of eligible plant, machinery and technical civil works. The only building portions where abattoir used for production will be covered under this scheme.
  • Grant in aid will be released in four installments.


  • Copy of Appraisal report by a bank should be submitted.
  • Application should be submitted by Project promoter. The promoter could be Local Bodies/Public undertakings/Cooperatives/Boards under Govt.
  • The projects can be either implemented as Gov. funded projects or public-private projects.

For more information and to avail these schemes, CLICK HERE

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PC: dailymail.co.uk

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