Agro-food based food processing industries under Gramodyog Vikas Yojana (GVY)
The Agro-Based & Food Processing Industries vertical is one of the key industry verticals under GVY (which itself is a sub-scheme of the umbrella Khadi Gramodyog Vikas Yojana ) run by the Khadi & Village Industries Commission under the Ministry of Micro, Small & Medium Enterprises. Launched to promote village-industries & micro-units in rural areas, this vertical aims to convert locally available agro-raw materials into value-added food products, to provide sustainable income, generate employment, reduce post-harvest losses and promote self-employment in rural settings.
Key Features
- Value Addition of Local Agro-raw Materials: The scheme encourages utilisation of locally available raw materials such as fruits, vegetables, oilseeds, pulses, spices, palm products , bamboo/cane etc and converting them into processed/packaged food items within village or semi-rural settings.
- Skill Development & Training in Food Processing: To enable you to adopt modern food processing technologies, good manufacturing practices , packaging, hygiene, etc, the scheme offers training programmes.
- Provision of Machines, Tool-kits, Equipment for Micro-Units: After training, assistance is provided in the form of machinery, tools, equipment / kits needed to set up a micro-food-processing unit so you can move from traditional processing to more efficient methods.
- Support for Setting up Units & Forward-Backward Linkages: The scheme emphasises reducing perishable losses, setting up processing on-farm or near raw-material source, and ensuring that there are linkages to market, packaging, certification etc.
- Inclusive Targeting: The scheme makes you eligible if you are an unemployed youth, farmer, artisan, part of an SHG, from SC/ST/women category, subject to age limit and other criteria. This fosters inclusion.
Financial Assistance
Eligibility Criteria
Who Can Apply:
- Indian citizen, age between 18–55 years
- Valid Aadhaar card or government identity with address proof.
- Individuals, SHGs, FPOs, rural youth, farmers or artisans willing to engage in agro-food processing under villages/blocks as identified by KVIC.
- Preference given to marginalised categories.
- One person per family eligible under certain sub-components – typical scheme norm.
Who Cannot Apply:
- Applicants who have already availed benefits for the same purpose/activity under another government scheme may be ineligible.
- Non-Indian citizens.
- Persons without valid identity/address proof.
- Applicants unwilling to abide by scheme norms or use the equipment for intended purpose.
- Applicants outside the age bracket (<18 or >55) unless state variations.
Documents Required
- Aadhaar card or any valid government identity proof with photo.
- Age proof (to establish eligibility 18–55 yrs).
- Address proof .
- Bank account details of beneficiary or group.
- Project proposal/purpose – nature of processing activity , raw material source, expected output, employment plan.
- Self-declaration that you haven’t availed assistance for the same purpose under another scheme.
- For SHG/FPO: registration certificate, list of members, authorised signatory.
- Training acknowledgement .
- Any state-specific forms or consent letter as required by state field office.
Application Process for the Scheme
Option 1: Apply with Bullit
Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: Farmers, rural youth, SHGs, FPOs preferring expert assistance to apply and follow-through.
Option 2: Government/KVIC Process
- Monitor your local/state field-office of KVIC for notification/advertisement for ABFPI activities under GVY.
- Attend awareness/training camps organised by KVIC/State Office .
- Collect application form and submit filled form with required documents to the designated field office.
- Upon selection, attend training programme, receive machinery/tool-kits as per guideline and commence processing unit.
- Comply with monitoring, maintain records and adhere to usage norms as required by implementing agency.
Option 3: Through SHG / Group / FPO Application
- Self-Help Groups , Farmer Producer Organisations or artisan groups can jointly apply under ABFPI for setting up processing units.
- Submit group registration, list of members, project plan for processing activity, and other supporting documents.
- On selection, the group/training + machinery support is provided; members can share infrastructure, raw material sourcing, processing and marketing