The Agro/Agri Processing Industry in Rajasthan is one of the fastest-growing sectors, adding value to agricultural products and creating massive opportunities for farmers, entrepreneurs, and MSMEs. With the launch of the Rajasthan MSME Policy 2024 and Rajasthan Investment Promotion Scheme (RIPS 2024), this sector now enjoys significant government support, subsidies, and incentives to build a competitive, sustainable, and globally relevant industry landscape.
What Is Agro/Agri Processing?
Agro-processing involves converting raw farm produce—such as grains, pulses, spices, dairy, and fruits—into value-added products like packaged foods, oils, snacks, and dairy items. This transformation is achieved through techniques such as preservation, grading, packaging, and complex processing, creating products with new utility, shelf life, and market demand.
In Rajasthan, this sector plays a crucial role because:
- The state leads in mustard, bajra, guar gum, pulses, and spices.
- Agriculture contributes 29% to Rajasthan’s GSVA.
- Rajasthan ranks third in India for organic farm output.
How Does the Industry Work?
Agri processing enterprises typically source raw materials from local farms and cooperatives, then utilize technology-driven operations for cleaning, grading, preservation, and manufacturing:
- Primary Processing: Basic cleaning, sorting, grading, and packaging.
- Secondary Processing: Advanced activities such as milling, extraction, baking, or conversion into ready-to-eat or packaged foods.
- Supply Chain: Warehousing, cold storage, logistics, and marketing channels for domestic and export markets.
- Compliance & Standards: Maintaining food safety, quality certifications (FSSAI, BIS, ISO), and sustainable practices.
Infrastructure in Rajasthan
- Agro Food Parks – Kota, Jodhpur, Sri Ganganagar, Alwar.
- Mega Food Parks – Bikaner & Ajmer.
- Agro-processing clusters – Jaipur, Jodhpur, Tonk.
- 415+ industrial areas spread across the state
(Clusters often develop around abundant raw material zones, facilitating shared infrastructure like testing labs, cold storage, or transport hubs.)
Benefits of the Agro-Processing Industry
- Higher Farmer Income – Value addition ensures better returns.
- Employment Generation – Jobs in farming, processing, packaging & logistics.
- Export Opportunities – Processed foods reach global markets.
- Reduced Post-Harvest Losses – Cold chains and storage facilities.
- Sustainability – Waste reduction and eco-friendly production.
Rajasthan MSME Policy 2024 (Direct Benefits for Agro/Agri Processing Industry)
The policy offers a holistic package of fiscal and non-fiscal incentives:
1. Asset Creation Incentives
- Capital Subsidy: Agri and food processing enterprises get a special incentive of 50% of capital investment up to ₹1.5 crore per unit.
- Investment Subsidy: 75% reimbursement of State GST (SGST) paid for 10 years.
2. Additional Subsidy for Social Inclusion
- Extra 5% subsidy for Farmer Producer Organizations (FPOs), SC/ST or women-led enterprises, and those in Tribal Sub-Plan areas.
3. Assistance for New and Expanding Units
- Interest Subvention: Additional interest subsidy on term loans for plant and machinery:
- Up to ₹5 crore: 2% extra
- ₹5–10 crore: 1% extra
- ₹10–50 crore: 0.5% extra
- Collateral-free Loans: 100% reimbursement of Annual Guarantee Fee for collateral-free loans up to ₹5 crore under CGTMSE scheme (for 7 years).
4. Technology Upgradation & Acquisition
- Up to 50% reimbursement (max ₹5 lakh/unit) for acquiring advanced technology/software from premier institutes (IISc, IITs, NITs, CSIR, NID).
5. Cluster Approach and Common Facility Centers
- Cluster-level development: State support for setting up Common Facility Centers (CFCs), shared infrastructure, and R&D, with RIICO land offered at 25% of industrial rates.
6. Quality Enhancement
- Up to 50% reimbursement (max ₹3 lakh) for certifications—FSSAI, BIS, ISO, ZED, and IPR (patents, trademarks, copyrights).
7. Sustainable Practices & Green Technologies
- 50% reimbursement (up to ₹1 crore/unit) on cost of environmental projects (ETPs, zero liquid discharge, waste management), clean production tech, and renewable energy.
- 100% electricity duty waiver for captive renewable energy for 7 years.
8. Skill Development
- 50% reimbursement of employee training cost for six months (₹20,000/month for micro, ₹30,000 for small, ₹40,000 for medium units).
9. Market Development
- Financial support for participation in fairs and exhibitions—up to ₹1.5 lakh for international, ₹1.12 lakh for national events, and reimbursement of stall rent and travel for two personnel.
- Support for digitization and e-commerce adoption—up to ₹50,000 per unit, and a 75% reimbursement of platform fees (up to ₹50,000).
10. Ease of Establishment and Doing Business
- No approval, inspection, or NOC required for the first five years under the Rajasthan MSME Act, 2019—accelerating new business setup.
Non-Fiscal Initiatives & Ecosystem Support
- Infrastructure: Plots reserved for MSMEs in RIICO industrial areas. Support for developing private and greenfield clusters.
- Digitalization: Online portal for scheme applications and policy implementation.
- Capacity Building: Sector-specific training, technology mentorship, and awareness campaigns.
- Government Procurement: Prioritized procurement from local MSMEs, reserved item lists, and bid security relaxations.
- Export Promotion: Training on export procedures and market intelligence, support from District Export Promotion Councils, and participation in global expos.
How to Benefit: Action Steps for Entrepreneurs
- Assess eligibility: Check your enterprise’s category, social inclusion status, and cluster location.
- Plan financials: Align your investment for maximum subsidy and loan benefits.
- Adopt modern tech: Tap into tech acquisition and quality enhancement incentives.
- Join clusters: Network with other processors for shared infrastructure benefits.
- Apply online: Use government portals to file and track applications.
- Train staff: Utilize reimbursed training programs to upskill workforce.
- Leverage market development: Export, attend exhibitions, and adopt e-commerce for wider reach.
Conclusion
The Agro/Agri Processing sector in Rajasthan stands to gain immense benefits under the MSME Policy 2024, driving not only rural prosperity and job creation but also state-wide economic resilience. With massive capital subsidies, tax reimbursement, technology support, market linkages, and a simplified regulatory regime, Rajasthan is set to become a national leader in agro-based value addition. Entrepreneurs, FPOs, and startups in this sector are urged to proactively leverage these provisions for transformational growth.
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