Cotton Bags Manufacturing: Industry Overview
Cotton bags have become a leading alternative to plastic bags, particularly in the retail and fashion industries. These eco-friendly bags are reusable, durable, and biodegradable, which has led to increased demand. With growing environmental consciousness, businesses and consumers alike are making the shift to cotton bags for their everyday use, making this industry a promising sector for new and existing manufacturers.
Subsidy Benefits for Cotton Bag Manufacturers
Subsidies for cotton bag manufacturers help reduce the financial burden of setting up production units, purchasing raw cotton and machinery, and expanding business operations. These subsidies can also be used to invest in sustainable practices, such as using organic cotton and adopting eco-friendly dyeing techniques. Financial aid ensures that manufacturers can meet the increasing demand for eco-friendly and stylish cotton bags.
Who Can Apply for Subsidy?
• New businesses entering the cotton bag manufacturing industry.
• Existing businesses seeking to scale up production or diversify product offerings.
• SMEs focusing on sustainable and eco-friendly manufacturing processes.
• Manufacturers targeting both domestic and international markets for eco-conscious consumers.
Eligibility and Document Requirements for Subsidy
1. Business Registration: Proof of business registration (partnership deed, incorporation certificate).
2. Manufacturing Setup: Documentation of the manufacturing facility, including machinery and production capacity.
3. Financial Records: Profit & loss statements, balance sheets, and tax records from the past 2-3 years.
4. Eco-Friendly Practices: Evidence of the use of sustainable materials, such as organic cotton or eco-friendly dyes.
5. Tax Compliance: GST or VAT registration and compliance documents.
6. Subsidy Application Form: A detailed form explaining how the subsidy will be used for business expansion and sustainability.
Why Choose Dhannaseth for Your Cotton Bag Manufacturing Subsidy?
Dhannaseth is dedicated to supporting cotton bag manufacturers with the resources they need to thrive. Our experienced team will guide you through the subsidy process and help you unlock funding to boost production, implement sustainable practices, and meet the growing demand for eco-friendly bags

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!