Compostable Bag Manufacturing Business: Industry Overview
As sustainability becomes a top priority for businesses worldwide, the demand for compostable bags is growing rapidly. Compostable bags are made from natural materials like cornstarch, potato starch, and other biodegradable substances that break down naturally in the environment. These bags offer a green alternative to traditional plastic bags, making them a popular choice in the retail and grocery industries. The push toward reducing plastic waste has opened up significant opportunities for entrepreneurs in the eco-friendly packaging sector.
Subsidy Benefits for Compostable Bag Manufacturers
The government provides various subsidies to encourage businesses to invest in compostable bag production, including assistance for purchasing biodegradable material processing machines, eco-friendly film extruders, and cutting machines. This helps reduce the overall production cost while contributing to environmental sustainability.
Who Can Apply for Subsidy?
• Startups in the sustainable packaging and biodegradable product industry.
• Existing manufacturers of plastic products wishing to transition to eco-friendly alternatives.
• SMEs and large manufacturers in the food packaging and retail industries.
• Environmentally-conscious businesses aiming to reduce their carbon footprint.
Eligibility and Document Requirements for Subsidy
1. Business Registration: Valid business registration for the compostable bag manufacturing unit.
2. Production Plan: Information on machinery, raw materials, and production capacity.
3. Financial Records: Tax returns, profit/loss statements, and balance sheets.
4. GST Compliance: GST registration and relevant tax filings.
5. Subsidy Application Form: A detailed business plan showcasing how the subsidy will help improve production efficiency and sustainability.
Why Choose Dhannaseth for Your Compostable Bag Manufacturing Subsidy?
Dhannaseth provides end-to-end assistance in securing government subsidies for your compostable bag manufacturing business. We offer expert advice and help streamline the application process, ensuring your business gets the necessary financial support to scale production and meet the growing demand for eco-friendly packaging solutions

To apply for the Food Processing Scheme, the following mandatory documents are required for new enterprises (Individuals/Firms) as outlined in the manual
1. PAN Card of concerned/all promoters.
2.Aadhaar Copy & Photo of all promoters/guarantors.
3. Address Proof: Any of the Officially Valid Documents (OVD) such as:
o Utility bill (not more than two months old) from any service provider (Electricity, telephone, post-paid mobile phone, piped gas, water bill).
o Property or Municipal tax paid receipt.
o Ration Card (Individual).
o Driving Licence
o Aadhaar Card.
o Voter ID Card.
4. Details of the site where the unit is to be established, including whether it is owned/rented/leased, along with proof (Lease/rent agreement should be for more than the loan repayment period).
5. Photocopy of Bank
6. Estimates and Quotation of all capital expenditure and machinery and equipment to be purchased. Statement/Bank Passbook for the last 6 months.
For existing enterprises with a turnover of less than 1 crore, similar documents are required, including PAN Card, Aadhaar, address proof, and site details.
If you need more specific information or additional documents, please let me know!