U.P. Food Processing Policy 2017

Policy perspective and execution

According to a survey made by Government of India and based on various reports, level of processing and value addition in the food processing sector of India is very low in comparison to other countries.  Level of processing in the country is 10 % whereas the same is 06 % in Uttar Pradesh, while this level is much more in other countries. There is an acute need of capital investment in the state and country in this field. Government of India has aimed to make this percentage up to 20 in next 05 years. The same level is also proposed to be achieved in Uttar Pradesh.

  • Vision:  To establish Uttar Pradesh as an advanced state in the field of food processing and to ensure all round development of state as well as to make efforts in the improvement in life styles of all stake holders. 
  • Mission : Major aim are to provide suitable and profitable value of the products of farmer through Uttar Pradesh Food Processing Industry Policy-2017, Value addition in the raw products, to encourage the establishment of food processing industries in the state, to provide processed product to the consumers on competitive price, to create new opportunities of employment, to ensure capacity and skill building of available man power and manage extra man power according to the need.
  • Execution of the policy: This policy will be in effect till next 05 years from the date of its notification. In case, if any such situation arises at any stage wherein amendment in the policy or encroachment of the policy is required, then only Hon’ble Council of ministers will be authorized to recommend any such amendment or encroachment.
  • Areas covered under food processing sector

Industries related with the following, will be included in the food processing industries:-

  • Fruits and vegetables, Flowers, Spices, Honey, Medicinal and aromatic crops, and Mushroom processing.
  • Agro products like, food grains, processed products of Pulses and Oil Seeds.
  • Agro products like Milk Powder, Baby Milk Food, Malted Milk Food, Condensed Milk, Ghee and other dairy products, Poultry and Eggs, Meat and processing of meat products.
  • Fish processing.
  • Bread, Oilseeds, Meal (Food), Breakfast, Sweets (including Coco processing and chocolate production), Malted extracts, Protein Isolates, Food having higher protein, Veining Food and processing of extruded food products.
  • Specialized packaging for food processing industries.
  • Reefer vehicles/mobile pre-cooling van.
  • Creation of agro processing cluster based infrastructure and post-harvest management based infrastructure.

Areas of priority

Development of establishment facilities
For development of the food processing industries in the state, there is an acute need of quality establishment facilities. Establishment facilities which are covered in the Industrial Investment and Employment Encouragement Policy-2017 will also be available for food processing industries.

Earmarking of food processing zones

Food processing zones will be earmarked according to the availability and compatibility of local raw material, for establishment of the food processing industries in various districts of the state. Priority will be given to establish compatible food processing industries in these areas.  Establishment of Food Park, mega Food Park will also be encouraged in these areas.  Efforts will be made to develop Food Park with the objective to provide suitable value of the crops to the farmers.

Development of Food Processing Park, Mega Food Park and Cold Chain Facility

For area wise all round development of the state, cluster based food processing parks will be established in the specific areas by state government with the help of UPSIDC (Uttar Pradesh State Industrial Development Corporation) and private sector, wherein the facility of packaging, export and research will be available. Establishment of mega food parks and cold chain based series will be emphasised on the suitable places in the state. Mega projects in the food processing are meant with such projects wherein the investment of Rs. 50 Crore or more is vested.

To provide friendly atmosphere for establishment of food processing industry  

(1) To satisfy the basic needs of entrepreneurs for establishment of food processing industries, state government will vigilantly make efforts. (2) Provision which are related with labour Department, Department of Energy, Department of Environment, Department of Commercial Taxation, Department of Agro Marketing and Foreign Trading  and other departments under the improvement in industrial atmosphere and under the simplification of rules and processes as described in Uttar Pradesh Industrial Investment and Employment Encouragement Policy-2017, will also be available for food processing industries which are to be established in the state. (3) Under the e-governance, computerization of the offices of  food processing department will be strengthened so that exchange of information be easy through the internet and entire information can be provided to the entrepreneurs at a single place. These centers will act like the bridge to strengthen the forward and backward linkages.

Implification of processes

(1) Implementation of the facilities available under the policy will be made after simplification by the Department of Horticulture and Food Processing, Uttar Pradesh. (2) Single Window System will be developed by the Department of Horticulture and Food Processing like Udyog Bandhu for the convenience of investors and it will be managed to provide the available information to the investors for establishing the food processing industries at region and district level too.   

Encouragement of Capital Investment

Capital investment will be attracted in the state under permissible concessions and through the grants prescribed in this policy to establish food processing based industries by various schemes of state and center government. Already established food processing units in the state will be encouraged for technical modernization/upgradation and expansion of existing capacity, through various schemes. 

Employment Generation

Efforts will be made to generate the employment by encouraging the establishment of food processing industries and capital investment as well as by making the unemployed people technically skilled through food processing sector of the state. For generation of self-employment, training will be arranged in the rural areas and this (food processing) will be developed as cottage industry. These will be linked up with groups/F.P.O./Committees for further marketing of their products. Food processing training programs will be linked with Livelihood Mission and Skill Development program.

Financial Grants and Concessions

To attract the investment in the Food Processing sector and to develop the industries as well as to make them competitive, appropriate steps will be taken by the state government in which undermentioned concessions and financial grants will be provided :-

Establishment of food processing units:

Investment Grant:-

(A) To establish food processing based units in all the districts under the policy, 25 percent of total civil work cost, a maximum of Rs. 50 lakh will be provided as grant on expansion and modernization/upgradation. Entrepreneur will not having the compulsion to get loan if has the funds available for project from the known sources. (B) Under the Pradhan Mantri Kisan Sampada Yojna of Government of India (Agro-Marine Processing and Agro Processing Cluster Development Scheme), the units to be established in Uttar Pradesh based on fruit and vegetable processing (New/Expansion and Modernization/Upgradation) will be provided with 10% additional capital investment loan of the cost of plant machinery and technical civil work.  (C) Mega Food Park projects of Uttar Pradesh which are approved under Pradhan Mantri Kisan Sampada Yojna of Government of India, wherein minimum capital investment is of Rs. 50 Crore or more, will be provided 10% additional grant by the state government on the project cost as approved by the Government of India.

Facility provisioned in (A) 7.1.1 will not be permissible for the proposals covered in (B and C)

Interest Factor:
(A) 100 percent reimbursement will be made of the interest on the loan taken from the banks/financial organizations for plant machinery, technical civil work and spare parts, for a maximum of 05 years, established by the micro and small food processing units under the scheme.    (B) Reimbursement will be made for the units having limit upto the Rs. 50 Lakh per unit, at the rate of 07 percent or actual rate of interest, whichever is lower, on the loan taken from the banks/financial organization for technical civil work and spare parts’ cost, for 05 years, against the establishment done by other food processing units. But capital factors proposed in 7.11 (A) and maximum amount to be paid as reimbursement of rate of interest will be permissible and subject to only upto Rs. 250 Lakh as proposed in 7.12 in case the loan taken from banks / financial organizations. Interest factor for Reefer vehicles/Mobile Pre-Cooling Van:

In view of the need of the mission, reimbursement of rate of interest of the loan which was taken from the banks/financial organizations against Reefer Vehicles/Mobile Pre-Cooling Vans, will be made  at the rate of 07 percent or actual, whichever is less for maximum 05 years on the capital limited upto Rs. 50 Lakh under the scheme.  

Creation of establishment facilities for running the degree/diploma/certificate courses in the food processing subject

Maximum grant amount of Rs. 75 Lakh will be provided on the expenses for creation of establishment facilities like Modern Library, Pilot Point, Laboratory Equipment in the Universities/government institutions for running the degree/diploma/certificate courses in food processing technology in the government areas.

Food Processing Skill Development

  • Cooperation will be provided till the establishment of industries, organizing the training for the entrepreneurs in the Development and Research Institutes, to conduct the programs related with entrepreneurship development. This facility will be provided to the selected entrepreneurs for practical training, selected through the top companies of the country providing the entrepreneur development training.
  • Transfer of technology will be made in the rural areas by organizing 03 days Food Processing Training/Camps in the Nyay Panchayats of the state.
  • One month’s intensive training of the selected candidates after the training at Nyay Panchayat level will be provided at training centers available at the government food processing and training centers of districts.  By adopting new scheme, establishment of the small food processing industries in the rural areas will be encouraged and for this purpose grant of 50% of the cost of unit establishment (pre decided) or maximum upto Rs. 01 Lakh will be provided.
  • Government Food Science Training Centers will be strengthened and developed as excellence center of food processing centers.  As per need, these centers will be operated on P.P.P. model.

Food Processing Encouragement Activities :

Various seminars/meetings/seller-buyer meets will be organized with the objective to provide information on the schemes related with food processing/facilities/concessions and latest techniques being used in this sector, to the entrepreneurs/Gardeners/youth on state/region/district/development block level.

Standardization Encouragement Provision

With the objective of categorization and standardization of products of food processing, nationally/internationally accepted quality/environmental certification and accreditation like I.S.O. 14001, I.S.O. 22000, H.A.C.P.P./Sanitary/Phytosanitary certification etc, an amount of a maximum of Rs. 1.50 Lakh, will be granted by the state government as reimbursement against the 50 % of actually paid Fee and testing charges.

Patent./Design Registration Process :

Fee paid by the food processing industries on account of registration of patent/design to the authorized organizations/institutes, will be reimbursed only 75% and upto a maximum of Rs. 1.50 Lakh for one time only.

Market development and brand encouragement provision:

The following grant and concessions will be provided to the food processing units established in the state for marketing development and brand encouragement: (1) Food processing units established in the state will be granted 50% of unit cost upto a maximum of Rs. 02 Lakh per beneficiary against forwarding the sample of their product to other countries in order to encourage the export. This grant will be limited to “One country and one sample”. (2) 25%, upto a maximum Rs. 10 lakh per year for the period of 03 years per beneficiary will be granted against the actual transportation cost of the sample upto airport/sea port with the objective of encouragement the export of sample produced and processed in the state.    (3) 20%, upto a maximum of Rs. 20 lakh per year for the period of 03 years will be granted for encouraging the exports of the products produced and processed in the state against the FOB value.

Assistance for preparing back able projects to establish the food processing industries:

Grant of 50 % of actual expense upto a maximum of Rs. 05 Lakh per beneficiary will be payable to the entrepreneurs against preparing the D.P.R. for back able projects to establish food processing or related industries.

Other facilities

Relevant layers of provisioned facilities related with food processing industries will be applicable in the Uttar Pradesh Industrial Investment and Employment Promotion Policy-2017 time to time and these will be made available by the concerned departments.

Institutional strengthening and effective use of working institution

  • Modernisation and strengthening of the food processing centers/offices will be done which are located at each district and region comes under Department of Horticulture and Food Processing.
  • Directorate, Horticulture and Food Processing will be the nodal agency for execution and monitoring of the policy. A separate cell will be constituted in the directorate for this purpose.
  • Nominated nodal agency will also work for assistance available with other sources like Ministry of Food Processing Industries, Government of India, APEIDA, N.H.B., Agriculture, M.I.D.H, Kaushal Vikas Mission, AAYUSH and help entrepreneurs to get assistance from these sources.

Execution and monitoring of the policy

  • State level empowered committee: A state level empowered committee will be constituted under the chairmanship of Chief Secretary/officer represented by them for execution and monitoring of the provisions contained in the policy. Principal Secretary/Secretary of the departments will be the members of this committee. Principal Secretary/Secretary, Food processing will be the convening secretary of this committee. Representatives of the industrial federations will be Invited Members of this committee.  
  • Region Level Monitoring Committee: A region level monitoring committee will be constituted under the chairmanship of Regional Commissioner for execution and monitoring of the policy, under which all the D.Ms and C.D.Os. will be the member alongwith officers of related departments. Principal Science Training Center/ Food Processing Officer will be Member Secretary of the committee.
  • Project Execution Committee at District level:  Under this policy, implementation of proposals of capital investment will be done through Manager, Zila Udyog Kendra. A district level committee will be constituted for execution and monitoring of the policy under the chairmanship of D.M. under which officers of the related departments will act as members. Manager, Zila Udyog Kendra will be the member secretary of this committee.  District Horticulture Officer and Food processing officers will be ex-officio members of this committee.
  • Nodal agency/Nodal department: (1) Department of horticulture and Food Processing will be the nodal department for execution and monitoring of the policy. Directorate of Horticulture and Food processing will be nodal agency for execution and monitoring of the policy. 11. If any unit applied under miscellaneous policy which has already got grant/assistance by any other agency of Government of India,  then the same will be assisted with the amount permissible according to the levels except 7.1.1 (B & C) after deduction of the amount which has already been granted in same heads. Unit/Institution will have the right to get grant from the government of India or other scheme/department other than this policy. All the related departments will ensure timely execution of the policy by issuing necessary government orders and manuals.
S.NO. Subject Download
1. Revised UP Food Processing Industry Policy 2017 | Size: 496KB | Lang: English | Uploading Date: -29/11/2019 Download
2. Revised Guidelines of Uttar Pradesh Food Processing Industries Policy 2017 | Size: 6.66MB | Lang: English | Uploading Date: -29/11/2019 Download