Cold Storage Subsidy Scheme 2025 – Get Up to ₹10 Crore Government Grant

India’s food industry and food processing sector are transforming rapidly. Farmers, startups, and MSMEs now play a major role in making India a global food manufacturing industry.

However, preserving perishable products like fruits, vegetables, dairy, fish, and meat remains a huge challenge.

To solve this, the Government of India launched the Cold Storage Subsidy Scheme 2025 under the MOFPI Subsidy Scheme for Food Business, offering up to ₹10 crore government funding for food processing and infrastructure development.

What Is the Cold Storage Subsidy Scheme?

The Cold Storage Subsidy Scheme is part of the Pradhan Mantri Kisan Sampada Yojana (PMKSY) run by the Ministry of Food Processing Industries (MoFPI).

It provides financial support to entrepreneurs, MSMEs, cooperatives, and FPOs to set up, expand, or modernize cold storage facilities that maintain the food supply chain from farm gate to market.

The goal is to strengthen India’s food industry, reduce losses, and create new jobs through a sustainable cold chain network.

Objective of the Cold Storage Subsidy Scheme 2025

• Reduce post-harvest wastage of perishable goods
• Support the food processing industry in India
• Ensure fair pricing and steady income for farmers
• Encourage private investment and innovation
• Promote Government Grants for Food Business and boost exports

This aligns with India’s vision to make the food processing sector more efficient and profitable for every stakeholder.

Who Can Apply for the Cold Storage Subsidy Scheme?

The following can apply for this Government Scheme for Food Industry:

• MSMEs and startups registered under Udyam
• Farmer Producer Organizations (FPOs) & Cooperatives
• Self-Help Groups (SHGs) and Rural Entrepreneurs
• Private Companies and LLPs in the food manufacturing industry
• State and Central PSUs active in food processing

State-specific versions include:

• Cold Storage Subsidy in Punjab
• Cold Storage Subsidy in Haryana
• Cold Storage Subsidy in UP (Uttar Pradesh)
• Cold Storage Subsidy in Gujarat

Each state may add extra incentives along with MoFPI support.

Subsidy Amount and Financial Benefits

Additional Benefits

• 3 % interest subsidy on loans up to ₹ 2 crore
• Central loan guarantee for small food processing units
• Reimbursement of CGTMSE fee
• 25 % electricity subsidy (in Gujarat) for 5 years

This strong government funding for food processing helps new ventures lower their setup costs and scale faster.

Types of Financial Assistance Available

• Term Loan – To build or expand cold storage (tenure 5–15 years).
• Working Capital Loan – For electricity & staff costs (1–3 years).
• Equipment Financing – For refrigeration and IoT systems.
• Subsidized Loan under PMKSY / NABARD – Lower interest for food projects.

These options combine subsidy + credit support, making it one of the most useful Government Grants for Food Business.

Documents Required for Cold Storage Subsidy Scheme 2025

• Udyam /MSME Registration Certificate
• PAN & Aadhaar of applicant
• Bank Statements and ITRs for 2 years
• Detailed Project Report (DPR)
• Land ownership/lease proof (min 15 years)
• Quotation for machinery & equipment
• Environmental/FSSAI clearances (if required)

How to Apply for Cold Storage Subsidy Scheme

• Visit the SAMPADA Portal of the Ministry of Food Processing Industries (MoFPI)
• Check latest EOI (usually open till March every year) 
• Prepare your DPR with financial & technical details ️️
• Get bank loan sanction from any scheduled commercial bank or NABARDARD
• Upload documents online with application fee
• Wait for Technical & Project Committee review 
• Once approved, the subsidy is released in three installments

Benefits of Cold Storage Subsidy Scheme

• Reduces food wastage and improves supply chain
• Boosts India’s food processing sector and exports
• Ensures better prices for farmers
• Generates rural employment
• Supports startups in the food manufacturing industry
• Encourages technology adoption in storage and transport

This scheme acts as a backbone for the Government Scheme for Food Industry vision.

Interest Rate and Repayment Terms

• Interest rate: 7 % – 12 % per annum (7 % – 9 % for subsidized loans)
• Repayment period: 5 – 15 years
• Grace period: 1 – 2 years before EMI starts

These flexible terms help MSMEs and startups maintain healthy cash flow.

FAQs

Q1. What is the concept of cold storage?

Cold storage is a temperature-controlled facility used to preserve perishable foods like fruits, vegetables, dairy, and meat to extend their shelf life.

Q2. What is the Food Processing Subsidy Scheme 2025?

It is a central MoFPI Subsidy Scheme for Food Business that offers grants and low-interest loans for setting up food processing and cold storage projects.

Q3. Which Government Scheme is best for Food Business?

The Cold Storage Subsidy Scheme 2025 and PMKSY (Pradhan Mantri Kisan Sampada Yojana) are the most beneficial for the food industry in India.

Q4. What is the maximum grant available?

Up to ₹ 10 crore as grant-in-aid based on project cost and location.

Q5. Can I apply for cold storage subsidy in Punjab or Haryana?

Yes, both states have implemented the scheme along with MoFPI’s central support. You can apply through state nodal agencies or SAMPADA Portal.

Q6. Is there any deadline for 2025 applications?

Applications for the 2025 cycle are open till March 28, 2025, 5 PM under the latest EOI notification.