Chief Minister Agriculture and Food Processing Scheme: 30% Subsidy on Agro & Food ProcessingScheme StatusScheme Status

The Chief Minister Agriculture and Food Processing Scheme has been implemented in Maharashtra since 2017-18 and extended till 2026-27 (as per Government Resolution dated 17 May 2022). The scheme aims to support modern technology-based agro and food processing projects, improve the quality of agriculture produce, encourage exports, generate skilled manpower, and create employment opportunities in rural areas through small and medium units.

Objectives

  • Promote value addition in agriculture produce by encouraging modern technology-based projects.
  • Modernize food processing projects to save energy and enhance product quality.
  • Promote market development and exports of processed food products.
  • Develop trained manpower in the agro-food sector.
  • Prioritize employment generation through rural food processing industries.

Benefits

Scheme Components

  • Component 1: Establishment, upgradation, and modernization of agro & food processing units.
  • Component 2: Development of cold chain infrastructure including pre-processing centres and integrated cold chains.

Financial Assistance

  • 30% subsidy on civil works and machinery for food processing units (up to ₹50.00 lakhs).
  • Credit Linked Back-Ended Subsidy released in two phases:
  • After completion of the project
  • After full commercial production
  • Loan amount should be at least 1.5x the subsidy amount

Eligibility

  • Must be 18 years or older
  • Must possess a valid Aadhaar Card or PAN Card
  • Should have a good CIBIL score
  • Must hold 7/12 and 8A certificates or lease documents
  • Individuals, businesses, or groups interested in food processing can apply

Application Process

Offline Application

  • Applicant (entrepreneur) prepares a project proposal and obtains bank loan approval
  • Submit the proposal to the District Superintendent Agriculture Officer
  • A pre-project feasibility study is conducted by the Department of Agriculture
  • Submit required documents including CA certificate, original bank loan papers, and blueprints
  • Project gets in-principle approval from Commissionerate-level Project Approval Committee
  • Subsidy disbursed in two phases to the bank’s reserve fund account upon completion of project phases and commencement of commercial production

Documents Required

  • Beneficiary Application (Annexure II)
  • Bank Loan Sanction Letter (Original)
  • Bank Appraisal (Original)
  • 7/12, 8A (Original) or Agreement / Lease Papers
  • PAN Card and Aadhaar Card
  • Udyam Registration Certificate
  • Detailed Project Report (Original)
  • Flow Chart of the project
  • Notarized Construction Agreement (Annexure-III)
  • Construction Blueprint and Budget (Bank Attested)
  • Machinery Quotation (Bank Attested)
  • Pre-project Feasibility Study Report (Annexure-V)
  • Recommendation of District Level Project Implementation Committee (Annexure-VI)
  • Audit Reports for the last three years (only for upgradation/expansion/modernization projects)

Frequently Asked Questions (FAQs)

Q: Which food processing industry can be started under this scheme?
A: Any agro-based or food processing unit that aligns with scheme objectives is eligible.

Q: Is this a state-sponsored scheme?
A: Yes, this scheme is initiated by the Government of Maharashtra.

Q: Can farmers with shared land apply?
A: Yes, if documentation like 7/12, 8A, or lease agreements are valid.

Q: Can we take benefit of the same component in consecutive years?
A: No, repeat benefits for the same component are not allowed in consecutive years.

Q: Where can we apply for the scheme?
A: Applications can be submitted to the District Superintendent Agriculture Officer.

Q: Is a bank account and loan detail mandatory?
A: Yes, a loan is necessary as it’s a credit-linked subsidy scheme.

Q: How many components can be applied for in one application?
A: Applicants can choose multiple components if eligible, subject to scheme conditions.

Q: What is the application fee?
A: There is no official fee, but applicants may need to notarize some documents.

Q: Can we apply for any type of food product processing?
A: Yes, as long as it falls within the agro and food processing domain.

Q: What is the subsidy benefit?
A: 30% subsidy up to ₹50 lakh for eligible construction and machinery costs.

Q: What are the benefits of food processing in agriculture?
A: Improved income, reduced waste, longer shelf life, and increased employment.

Sources and References

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