Rajasthan Agro-Processing and Agri Marketing Promotion Scheme

The Rajasthan government launched the “Rajasthan Agro-Processing, Agri-business & Agri-export Promotion Policy – 2019” and the associated Scheme to implement it with a view to boosting value-addition, processing, marketing & export of agricultural produce in the State. The Scheme under the Policy is applicable to setting up new agro-processing and agri-business units or expansion, modernization or diversification of existing units. It is run by the Department of Agriculture & Farmers’ Welfare (through the Rajasthan State Agricultural Marketing Board and other nodal agencies) in the State of Rajasthan. The purpose is to increase processing capacity, reduce wastage, improve farmer incomes, build infrastructure in agro-business value chains, and boost exports from the State. Your business as an MSME/start-up in Rajasthan can benefit from capital subsidies, interest subsidies, freight/distribution support, and other incentives under this Scheme.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

The Scheme covers new units in eligible agro-processing, agri-business and agri-export sectors as well as expansion, modernization or diversification of existing units in these sectors.
Capital Investment Subsidy: For farmers or their organisations, subsidy amounting to 50 % of expenditure on plant, machinery and technical civil work (max limit ₹100 lakh) when setting up new unit; for other entrepreneurs/non-farmer organisations, subsidy is 25 % (max ₹50 lakh) for new/expansion/modernisation.
Additional Incentives: Extra benefits for units located in mega food parks/agri-clusters, or for special categories, e.g., higher subsidy in certain zones.
Interest Subsidy on Term Loans: Supporting agri-processing units via interest subsidy on term loans for new/expansion projects under the scheme.
Freight/Logistics Subsidy and Export Support: Subsidy for transport/freight for export of fresh fruits/vegetables/processed agri products, and other export-oriented incentives.
Sector Coverage: The eligible sectors include processing of fruits & vegetables, spices, cereals/consumer food products, oilseeds, pulses, herbal/medicinal/aromatic products, milk/dairy, meat/poultry/fish and agri-waste processing.
Negative/Ineligible Sectors: Some sectors are excluded — e.g., tobacco / pan-masala containing tobacco, bottling of potable liquor, beef meat processing units, soft drinks manufacturing, etc.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Capital investment subsidy	• Farmers or farmer organisations: 50 % of plant & machinery + technical civil work expenditure (max ₹100 lakh) • Other entrepreneurs/non-farmer: 25 % subsidy (max ₹50 lakh)	Example: If you are a farmer organisation setting up a new processing unit with plant & machinery + technical civil work costing ₹2 crore, you may get subsidy of 50% i.e., ₹1 crore (within max ₹100 lakh). If a non-farmer entrepreneur does similarly, subsidy would be 25% i.e., ₹50 lakh up to the max.
Interest subsidy on term loan	Interest subsidy for specified term for eligible units – amount varies by category.	Example: If you avail a term loan of ₹1 crore for your agro-processing unit, you may get interest subsidy (say 5 %) for a specified period, lowering your effective interest cost.
Freight/Logistics/Export subsidy	Subsidy for export freight / transportation of fresh/processed produce, and logistics support for domestic/ export marketing.	Example: If you export processed spice from Rajasthan by sea or air, you may get freight subsidy as a percentage of cost, improving your export competitiveness.
Own contribution / project cost	Your own investment plus other costs not eligible for subsidy (such as land, margin money etc). Some costs excluded from subsidy calculation.	Example: In determining eligible subsidy, costs of land, administrative building, furniture, working capital margin are not counted. So if your total cost is ₹2 crore but land cost is ₹20 lakh, eligible cost may be ₹1.8 crore for subsidy calculation.

Eligibility Criteria

Who can apply:

New agro-processing units or existing units in Rajasthan undertaking expansion/diversification/modernisation as per the eligible activity list.
Farmer organisations, FPOs, SHGs involved in agro-processing may qualify for higher subsidy categories.
The enterprise must adhere to the eligible sector list (e.g., fruits & veg processing, cereals, spices, feed, herbal products) as specified in the policy.

Who cannot apply:

Units in ineligible sectors or those not listed in the policy’s annexure of eligible sectors.
Units set up outside the geographical boundaries of Rajasthan or not registered as required under state industrial/agri-policy norms.
Units that fail to comply with conditions (e.g., start-up timelines, investment thresholds, employment obligations) — details as per policy.

Documents Required

Application form as specified by the nodal agency/policy.
Project report/business plan including plant & machinery cost, civil work cost, production or marketing plan.
Unit registration certificate .
Detailed cost break-up of plant & machinery and technical civil work.
Financials or proof of farmer organisation status .
Any approvals/clearances required (environment, fire, etc) if applicable.
Documents for marketing linkage or export .

Application Process for the Scheme

Option 1: Apply with Bullit

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Option 2: Apply via Government/Nodal Agency

Visit the official website of the nodal agency (e.g., Rajasthan State Agricultural Marketing Board or Department of Agriculture & Farmers’ Welfare, Rajasthan.
Register your agro-processing/agribusiness unit under the policy scheme; fill the application form for the relevant incentive (capital subsidy/marketing support).
Submit documents: project report, unit registration, investment details, plant & machinery cost, etc.
Upon approval, implement the project, then claim the subsidy as per guidelines.

Option 3: Liaise via District Industries or Agriculture Offices

Visit your local District Industries Centre or Agriculture Department office for guidance on scheme components, eligible sectors, and application process.
Seek assistance in preparing DPR/plant list and get verification/compliance support.

Power Combos with The Scheme