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Now Farmers Can Get Grant of Rs 2 Cr 60 Lakh on Establishing Agro-Based Industry, Get Maximum Benefit

Know about the eligible agricultural industries and their corresponding government grants for setup. Explore diverse options and receive detailed insights about funding opportunities for setting agribusiness industry.

Now Farmers Can Get Grant of Rs 2 Cr 60 Lakh on Establishing Agro-Based Industry, Get Maximum Benefit
Now Farmers Can Get Grant of Rs 2 Cr 60 Lakh on Establishing Agro-Based Industry, Get Maximum Benefit

Expanding agricultural enterprises offer a spectrum of industries, each accompanied by government grants tailored to nurture growth. From establishing a dairy farm, or pioneering sustainable aquaculture, the government provides financial support to catalyze once initiatives.

The government is placing a distinct emphasis on agriculture and its associated sectors. It currently extends a remarkable 70% subsidy to unemployed youth, including farmers, who venture into agriculture-related industries. Furthermore, interest subsidies on loans are also in place. This presents an excellent opportunity for both rural and urban youth to initiate agro-based enterprises.

The article offers detailed insights into eligible industries, benefits, necessary documentation, and the application procedure.

Aim for Agro-Industry

In a bid to enhance farmer’s earnings and boost rural employment prospects, the Rajasthan state government is actively promoting the establishment of agriculture-related industries. This drive is being realized through the implementation of the Agricultural Processing, Agribusiness, and Agricultural Export Promotion Policy Scheme, effective in December 2019.

The policy empowers farmers within the state to obtain substantial profits by initiating businesses like cold storage units, milk chilling plants, and pack houses, all while availing valuable subsidies. Moreover, an array of agriculture-centric industries receives governmental support, with significant subsidies being allocated to facilitate this growth.

Under the policy's provisions, farmers are eligible for grants of up to Rs 2 crore 60 lakh to establish agro-based industries. This financial aid is allocated based on the industry's project cost, providing a considerable boost to aspiring entrepreneurs and enhancing the economic landscape.

Type of Agro-based industries on which Subsidy will be Provided

The domain of agro-based industries is rich and varied, encompassing numerous sectors that receive subsidies to catalyze growth. The following points outline the spectrum of industries eligible for support:-

  • Food Processing
  • Oilseeds Production
  • Rice and Flour Milling
  • Pulses Processing
  • Herbal, Medicinal, Flower, and Aromatic Products
  • Minor Forest Produce Processing
  • Honey Processing
  • Non-Food Processing
  • Food Flavors and Colors
  • Other Agricultural and Horticultural Products


The scope extends further:-

  • Mushroom Production
  • Bio-fodder Production
  • Agricultural Waste Plates Processing

For Animal Husbandry

  • Milk Processing
  • Meat, Poultry, and Fish Processing
  • Cattle Feed, Poultry Feed, and Fish Meal Production
  • Collection and Primary Training Processing Center
  • Cold Storage and Cold Chain
  • Pack House and Food Irradiation Processing Plant
  • Agro-Processing Clusters under Reefer Van Scheme

Also Read:- PM Kisan 15th Installment: 11 Cr Farmers to get Benefit, Know the Status & Beneficiary List

Varied Segments with Substantial Grants

The state is extending a significant grant of Rs 2 crore 60 lakh to rural youth, including farmers, facilitating the establishment of agricultural industries.

Dr. Prithvi, the Government Secretary of the Agriculture and Horticulture Department, elaborates that this scheme's structure caters to different categories:-

  • Farmers and Their Organizations, Scheduled Caste, and Scheduled Tribe Farmers: These groups are eligible for a generous 75 percent of the industry's cost, provided they venture into new agro-processing with a capital cost of up to Rs 5 crore. The grant is capped at an impressive Rs 1 crore 50 lakh.
  • This category receives a substantial grant of 50 percent of the industry's cost, with a maximum cap of Rs 1 crore 50 lakh.
  • The policy's nuanced approach ensures that various segments of society can capitalize on these grants, fostering a dynamic landscape of agricultural industries across the state.

Interest Subsidy Incentives for Financial Ease

Alongside the capital grant provided for initiating processing units, there's also an offer of interest subsidy on loans. The provision entails a 6 percent interest subsidy for farmers, enabling them to ease their financial burden. This subsidy has the potential to reach up to one crore rupees.

Similarly, for the other category of entrepreneurs, a substantial interest subsidy of 5 percent is available, with a maximum grant of Rs 50 lakh. This strategic approach further encourages and supports individuals in their pursuit of agro-based industries, contributing to the overall economic growth of the region.

Post-Industry Establishment Government Assistance

The state government extends further support to encourage business activities and enhance the international market presence of the state's production. This encompasses several aspects:-

Electricity Charge Exemption: The government provisions a notable exemption of Rs 2 lakh annually on electricity charges for five years.

Solar Power Plant Grant: Entrepreneurs setting up a solar power plant will receive a grant of Rs 10 lakh.

Patent and Design Registration: An incentive of up to Rs 2 lakh annually is allocated for patenting materials and registering designs.

Quality Certification Encouragement: The government offers a certification grant of Rs 2 lakh for each quality certification obtained.

Application Process

  • Choose an industry from the scheme's list of eligible options.
  • Entrepreneurs and farmers aiming to establish processing units can apply through the Rajkisan Sathi portal ( with the necessary documentation.
  • Provide comprehensive information about the industry you intend to establish. The loan and subsidy amounts will be determined based on the project's particulars.
  • For further insights into the scheme, individuals can reach out to the nearby Horticulture Department office.

Also Read:- Paramparagat Krishi Vikas Yojana (PKVY): Financial assistance of Rs 50,000 - Registration, Eligibility, & Verification


The Rajasthan state government's Agricultural Processing, Agribusiness, and Agricultural Export Promotion Policy Scheme stands as proof to its dedication to uplifting rural communities and promoting agricultural ventures. This initiative not only stimulates economic growth but also strengthens the state's position in the global market. This scheme presents a golden opportunity for individuals to establish thriving agro-industries, contributing to the overall progress of the region's agricultural landscape.

Also Read:- Earn in Lakhs, get Bumper Subsidy of 50 % from Mini Dal Mill Machine Scheme

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