Government Grant up to ₹5 Crore for Food Business – MOFPI Scheme 2025

India’s food manufacturing industry is one of the fastest-growing sectors, offering massive opportunities for entrepreneurs and farmers. However, setting up a food processing unit or expanding production requires heavy investment in machinery, cold storage, and technology.

To support these businesses, the Ministry of Food Processing Industries (MoFPI) has introduced a series of Government grants for food business owners and MSMEs. Under the MoFPI Subsidy Scheme 2025, eligible food entrepreneurs can receive up to ₹5 crore as a grant, helping them scale operations and modernize their infrastructure.

What Is the MoFPI Grant Scheme 2025?

MoFPI full form: Ministry of Food Processing Industries.

The MoFPI Grant Scheme 2025 is a food subsidy and grant-in-aid program by the Government of India under the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY).
It provides financial assistance to individuals, MSMEs, FPOs, startups, and cooperatives engaged in the food processing industry.

The scheme’s purpose is simple to promote value addition, reduce wastage of agricultural produce, and strengthen India’s food infrastructure from farm gate to retail outlet.

Objective of the Government Grant Scheme 2025

• Encourage investment in the food processing sector.
• Support establishment of modern food processing units across India.
• Promote innovation, packaging, and sustainable production methods.
• Increase farmers’ income by building a strong supply chain.
• Reduce post-harvest losses through cold chain and preservation infrastructure.

In short, the scheme aims to make India a global hub for processed foods while boosting rural employment and exports.

Who Can Apply for the MoFPI Grant?

The scheme is open to a wide range of entities:

• Individuals, Proprietorships, and MSMEs in the food manufacturing industry.
• Private or Public Limited Companies, LLPs, and Partnership Firms.
• Farmer Producer Organizations (FPOs) and Self-Help Groups (SHGs).
• Cooperatives and Startups in the food processing sector.
• SC/ST entrepreneurs and projects in hilly, North-Eastern, or tribal areas.

This inclusiveness ensures both rural and urban food businesses can benefit from the MoFPI Subsidy Scheme for food business.

Subsidy Amount and Financial Benefits Explained

Under the MoFPI Subsidy Scheme 2025, entrepreneurs can receive:

• 35 % of total project cost — for general areas
• 50 % of total project cost — for SC/ST entrepreneurs, FPOs, and difficult regions
• Maximum grant: ₹5 crore per eligible project

The grant covers expenses related to building the food processing unit, installing modern machinery, automation systems, testing labs, and packaging lines.

This subsidy on food processing industry helps reduce the initial capital burden and encourages faster business expansion.

Benefits of MOFPI Grant Scheme 2025

• Financial relief: Up to 50 % subsidy on project cost
• Cold Chain support: Helps maintain food quality and shelf life.
• Infrastructure growth: Develops new processing, storage, and packaging facilities.
• Technology upgradation: Supports automation and energy-efficient equipment.
• Farmer empowerment: Better market prices through value addition.
• Employment generation: Creates thousands of jobs in rural India.
• Export promotion: Boosts India’s processed-food exports globally.

Cold Storage and Infrastructure Support Under MoFPI Scheme

The Cold Chain Scheme for Food Business is a key component of MoFPI grants.
It provides financial assistance for:

• Setting up integrated cold-chain networks (farm gate → consumer)
• Building pre-cooling units, cold storage rooms, IQF lines, and refrigeration transport
• Creating distribution hubs and value-addition infrastructure

The scheme reduces post-harvest losses and ensures perishable food products reach markets safely and efficiently especially helpful for sectors like dairy, fruits & vegetables, meat, and seafood.

Documents Required for MoFPI Subsidy 2025

Applicants need to prepare and upload the following documents on the SAMPADA Portal:

1. Detailed Project Report (DPR)
2. Business Registration Certificate (Udyam/MSME)
3. Bank term-loan sanction letter
4. Land ownership or lease documents (15 years minimum)
5. Quotations for machinery & equipment
6. Financial statements and IT returns
7. PAN, Aadhaar of promoters
8. Proof of category (SC/ST/FPO, if applicable)

How to Apply for MoFPI Scheme 2025

Follow these simple steps:

• Visit: https://www.sampada-mofpi.gov.in
• Register your business and select the relevant scheme.
• Upload DPR & documents with cost details and loan approval.
• Technical Committee review: Minimum 60 % score required (45 % for SC/ST).
• Project Approval Committee (PAC) gives final clearance.
• Sanction Letter issued → Submit Bank Guarantee.
• Subsidy released in installments as the project progresses.

Interest Rates, Repayment & Project Timeline

• The MoFPI subsidy is a grant, not a loan — so no repayment is required.
• However, for projects with bank loans, interest rates usually range from 7 % to 10 % per annum.
• Projects must be completed within 18 months from approval.
• Subsidy disbursal occurs in three phases, linked to project completion milestones.

Conclusion

The MoFPI Subsidy Scheme 2025 is a major opportunity for entrepreneurs in the food processing sector to grow with government support.

With up to ₹5 crore in funding, modern infrastructure assistance, and cold chain development, this program can transform India’s food processing landscape.

If you own a food startup, MSME, or FPO and wish to set up a food processing unit, apply today to benefit from this Government grant for food processing businesses.

FAQs

Q1. What is the concept of cold storage in food business?
Cold storage refers to temperature-controlled warehouses used to store perishable food items like fruits, vegetables, dairy, and meat to prevent spoilage and extend shelf life.

Q2. What is the food processing subsidy scheme 2025?
It’s a MoFPI grant scheme that offers 35–50 % subsidy (up to ₹5 crore) for setting up or expanding food processing units in India.

Q3. Which is the best government scheme for food business?
The MoFPI Subsidy Scheme under PMKSY is considered the best because it offers high funding, modern infrastructure support, and special benefits for MSMEs and FPOs.

Q4. Is the MoFPI subsidy available for cold chain projects?
Yes, the Cold Chain Scheme for Food Business provides financial assistance for cold storage, reefer vans, and value-addition facilities under the same program.

Q5. How can I apply for the MoFPI Subsidy Scheme 2025?
You can apply online via the official SAMPADA Portal with your project report, loan approval, and required documents before the EOI deadline.