Food Processing Sector Policy
Jharkhand has huge untapped potential in Agriculture, Horticulture, Fishery, Animal Husbandry and Meat Processing Industry. The wide product base, a high volume of round the year production, strategic geographical location, abundant sunlight and high domestic demand project horticulture as the thrust area for development in Jharkhand. More than 5,000,000 MT vegetables are produced in Jharkhand, which is about 6% of the total national production of vegetables, and 30%-35% of this production is surplus and available for export/ processing.
Jharkhand has set up two Food Parks and Meat park planned at BAU (Birsa Agriculture University). These food parks offer several advantages to the investors in terms of infrastructure and connectivity. The state is also investing in strengthening the cold storage network with 58 cold storage already on the ground while many cold storages are under various stages of development.
The meat sector in the State is pre-dominantly unorganized. There are very few modern abattoir and processing facilities in the State. In spite of a large livestock population, the meat industry in the State has not yet evolved to its potential. The output of meat has increased in the state from 62.48 thousand tonnes in 2019-20 to 67.25 thousand tonnes in 2020-21 indicating an annual growth of around 8 per cent. The production of meat has shown an upward trend in last nine years and accordingly state government is planning to promote Meat processing industry seeing the local demand and available ecosystem for meat processing. To facilitate further growth in this sector, Government is planning to put thrust on Meat processing and allied sector.
The state is also investing in strengthening the cold storage network with 58 cold storages already on ground while many cold storages are under various stages of development.
Incentives for Agro and Food Processing Industries (as per Jharkhand Food Processing Industry Policy 2015)
Incentives for Agro and Food Processing Industries (as per Jharkhand Food Processing Industry Policy 2015)
|
Establishment |
Grant in aid |
Fiscal Capping |
|
Agro based Food Processing and / or Meat Processing Units (New Unit, Modernisation, Upgradation, Expansion & Diversification) |
35%-45% |
INR 5 Crores |
|
Cold Chain, Value Addition and Preservation Infrastructure |
35%-50% |
INR 7 Crores |
|
Interest subvention @ 6% for 5 years and every year subsidy will be paid to the Bank /FI directly, Subject to a maximum of Rs. 2 crores |
6%-7% |
INR 2 Crores |
|
Primary Processing Centres / Collection Centres in Rural Areas |
50%-75% |
INR 2.5 Crores |
|
Mega Projects in Food & Meat Processing (more than Rs. 30 crores (excluding Working Capital)) |
35%-45% |
INR 12 Crores |
|
Interest subvention for a period of 7 years and every year subsidy will be paid to Bank/FI directly for the Mega Projects |
6%-7% |
INR 3 Crores |
|
Establishment and Modernisation of Meat and Fish Shops |
50%-75% |
INR 5 Lakhs |
