The major incentives for agro-industries under the agribusiness policy

2016
Subsidy on investment to agro and food processing industries
• Capital Investment Subsidy @25% of eligible project cost subject to maximum Rs. 50 lakhs for
setting up / expansion & diversification / modernization for agro and food processing units
• Capital Investment Subsidy @25% of eligible project cost subject to maximum Rs. 500 lakhs for
Cold Chain, Food Irradiation Processing Plants, Pack Houses, etc.
• Capital Investment Subsidy @25% of eligible project cost subject to maximum Rs. 250 lakhs for
creating Primary Processing Centers / Collection centers in rural areas
• Subsidy @25% of eligible project cost subject to maximum Rs. 50 lakhs for Reefer Vans
Assistance of Back Ended Interest Subsidy on the Term Loan for Agro and
Food Processing Units
• Interest Subsidy @7.5% on the Term Loan with maximum amount of Rs. 150 lakhs for a period of 5
years for setting up / expansion & diversification / modernization of Agro and Food Processing Units
• Interest subsidy @7.5% on the Term Loan with maximum amount of Rs. 400 lakhs for a period of 5
years for setting up Infrastructure Project in Agro & Food Processing Sector such as Controlled
Atmosphere Cold Storages, Food irradiation Processing Plants, Silos, Pack houses, Food Parks,
Reefer Vans etc
Additional Subsidy for Special Classes (Subject to terms and conditions)
o 1% additional interest subsidy will be provided to SC/ST, physically challenged and women
entrepreneurs
o 1% additional interest subsidy will be provided to entrepreneurs below 35 years of age
Freight Subsidy will be available to Micro, Small and Medium Enterprises
(MSME)
• To ensure maximum benefit of globalization to the farmers of Gujarat, it is essential to encourage
exports of agro and processed food products from the state. Considering this aspect in mind,
provision for providing assistance for actual air freight and sea freight paid by any person, group or
institute (legal entity) is made under Agri Business Policy 2016
Air-Freight Subsidy
o Under this, assistance of 25% of actual air freight paid by any industrial entrepreneur subject to
maximum Rs. 10 lakhs per year per unit will be granted for export of any fresh or processed
horticulture, milk, poultry or fish products from Cargo Complex at Ahmedabad International Airport
o 40% of actual air freight paid up to maximum Rs. 15 lakhs per year per unit for export of organic
produce
Sea-Freight Subsidy
o Under this, assistance of 25% of actual sea freight paid by any legal entity subject to maximum Rs.
10 lakhs per year per unit will be granted for export of any fresh horticulture produce from Cargo
complex of Gujarat state
o Assistance of 25% of actual sea freight to every unit paid by subject to maximum Rs. 10 lakhs per
year per unit will be granted for export of any fresh horticulture produce
o 40% of actual sea freight paid subject to maximum Rs. 15 lakhs per year per unit for export of
Organic Fresh Horticulture produces
o The subsidy shall be granted for a maximum period of 5 years per unit
 Sample Testing
o If samples are required to be sent in foreign country for exporting edible agro products and
expenditure is incurred for getting sample passed for export, assistance of 25% of actual legal
expenditure (except expenditure incurred for purpose of traveling etc) incurred on it shall be granted
limited to Rs. 2 lakhs per annum and maximum limit per beneficiary will be Rs. 5 lakh in 5 years
Assistance for ‘Quality Certification Mark’

Micro, Small and Medium Enterprises (MSME) agro units are required to obtain Quality Certification
Mark for export purpose

For this 50% (maximum of Rs. 5 lakh) assistance of expenditure incurred will be granted for obtaining
certification mark from institute approved by Quality Council of India such as ISO / HACCP / FSSAI /
FPO Mark / India Organic Certification Mark / Agmark etc.

50% of the fees payable to recognized International Certification Authority and 50% cost of testing
equipment and machineries required for that certification totaling up to maximum amount of Rs. 10
lakhs assistance will be granted

Financial Assistance for Skill Enhancement

Assistance will be provided to Agro and Food Processing units / infrastructure projects at the rate of
50% of training fee paid, subject to a maximum Rs. 10,000 per employee on obtaining industry
recognized skill certifications from recognized institutions (both Government and private institutions).
The assistance under this incentive will be subject to an overall ceiling of Rs. 50,000 per year per unit
maximum for a period of three years

Reimbursement of VAT and Sales Tax

The eligible Agro and Food Processing units and infrastructure projects will be provided
reimbursement of net tax paid by them under Section - 13 of Gujarat Value Added Tax Act against
their output tax liability. The reimbursement will be limited to a ceiling of 70% of the eligible fixed capital
investment made by the unit for maximum period of 5 years subject to terms and conditions

Encouragement in Electricity Rate and Duty

• The Agro and Food Processing units and infrastructure projects will be provided reimbursement of
subsidy on the electricity bills from the beginning of commercial production to five years. The subsidy
will be reimbursed as Rs. 1 per unit of the electricity bill to the unit subject to conditions
• The Agro and Food Processing units and infrastructure projects will be given 100% reimbursement
in electricity duty along with the subsidy on electricity cost for 5 years subject to conditions
Refund on Registration Fee and Stamp Duty
• The Agro and Food Processing units shall be eligible to get 50% refund on stamp duty / registration
fee / conversion fee paid for the sale, lease or transfer of land for the project
• 100% reimbursement of stamp duty / registration fee / conversion fee paid for setting up for
infrastructure project in agro and food processing sector