Industry Overview
Milk processing plays a vital role in the dairy industry by transforming raw milk into various value-added products such as pasteurized milk, flavored milk, and dairy-based beverages. The demand for processed milk has grown exponentially due to urbanization, changing dietary preferences, and the need for safer and longer-lasting milk products. Entrepreneurs can capitalize on this trend by adopting modern processing technologies, catering to both domestic and export markets.
Government Subsidy Schemes for Milk Processing Business
To encourage the growth of the milk processing industry, the government offers several subsidy programs:
- Dairy Entrepreneurship Development Scheme (DEDS): Provides financial aid for setting up processing units.
- Cold Chain and Value Addition Infrastructure: Supports the development of storage and processing facilities.
- PMFME Scheme: Offers branding and marketing assistance for milk-based products.
These schemes aim to reduce operational costs and promote the establishment of efficient processing facilities.
Eligibility Criteria for Milk Processing Subsidy
To access government subsidies, businesses must adhere to specific requirements:
- Business Registration:
- Register as a legal entity, such as an MSME or private company.
- Obtain an FSSAI license for food safety compliance.
- Detailed Project Report (DPR):
- Submit a DPR covering production capacity, raw material sourcing, and financial projections.
- Location Preference:
- Rural or semi-urban units may receive additional incentives.
- Financial Documentation:
- Provide past IT returns, bank statements, and proof of investment.
- Standards Compliance:
- Ensure adherence to FSSAI regulations on cleanliness, safety, and product labeling.
Meeting these requirements ensures eligibility for government incentives and promotes sustainable operations.
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!
