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Jharkhand’s Food Processing Industry Policy- A Vision for a Business Hub

With an aim to create favourable ambience to set up Food processing Units in the state through competent infrastructure, balanced economic development and attracting investment from both India and abroad, the state government of Jharkhand announced its Food Processing Industry Policy of 2015. The agenda is to provide maximum benefits to all stakeholders in agricultural as well as food processing and other allied sectors to establish the state as the leading state in the country in the Food Processing Sector.


  • To increase production thereby reducing wastage, increase farmers’ income and increase exports
  • To financially aid new food processing units as well as technology upgradation/expansion/modernization of existing ones
  • To provide complete cold chain and preservation infrastructure facilities from the production site to the market
  • To create linkages between producers and the markets by having good supply chain


The policy will be operative till March, 2020.

Strategy to implement the policy:

  • Developing infrastructure facilities
  • Creating favourable atmosphere for individuals to set up food processing units
  • Promoting capital investment for the industries
  • Promoting technology upgradation for existing u nits in the said sector
  • Value addition to food products
  • Providing financial Grant-in-aids and other concessions/subsidies to the units
  • Developing market for the produce
  • Promoting viable exports

Main highlights:

Processing Units (New Unit, Modernization, Upgradation, Expansion & Diversification)

All the eligible food processing units including new units as well as those existing ones want to modernize/upgrade/diversify/expand in this section are provided with some financial grants. The conditions for eligibility as well as the quantum of assistance are given here. 

Cold Chain, Value Addition and Preservation Infrastructure

The Policy of Cold Chain, Value Addition and Preservation Infrastructure will have the following aspects-

  1. Minimal Processing Centre at the Farm Level will have facilities for Weighing, Sorting, Grading, Packing, Pre-Cooling, Chilling, Cold Storage and Individual Quick Freezing (IQF)
  2. Mobile Cooling Trucks or Reefer Trucks as may be suitable for transport of Horticulture & Non-Horticulture produce
  3. Distribution Hubs with Multi Product Cold Storage/Variable Chilling/Freezing Chambers, Packing Facility, IQF and Blast / Plate Freezing etc.
  4. Irradiation facility

Here the detail of eligibility of the units and quantum of assistance for the cold chain is given here.

Primary Processing Centres / Collection Centres in Rural Areas

Various components for this are as follows-

  1. Minimum Processing Facilities at the Farm Level which may include facilities for Weighing, Cleaning, Sorting, Grading, Packing, Pre-Cooling, Controlled Atmosphere (CA) or Modified Atmosphere (MA), Cold Storage, Dry Warehouses and IQF
  2. Mobile Pre-cooling Trucks and Reefer Trucks whichever may be suitable for transportation of the fresh Agricultural Produce, Horticulture, Dairy, Meat, Fish Produce.

The eligibility of the units and amount of grants are given here.

Mega Projects in Food Processing

The Policy of Mega Projects in Food Processing refers to any project which requires large scale investments to develop the food processing industry in the state as well as making it as the hub of Food Processing industries in the country. The Bank Appraised Project Cost for such projects must be more than Rs. 30 Cr. (excluding working capital).

However, there is some basic eligibility condition for the units in order to be called a mega project. This eligibility condition and amount of grants are given here.

For more information and downloading the respective forms, click here.

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