Food Processing Policy 2022


Odisha is known for its 10 Agro-climatic zones and 8 major soil types, which are favorable for the production of a variety of crops, vegetables, fruits and spices. Odisha is also a leading producer of milk which stood at 23.73 Lakh MT during 2020-21. Odisha’s Food processing sector has immense potential for growth and employment; hence the Government of Odisha is ready to provide the required infrastructural and institutional support and fiscal incentives to boost value addition in the sector.


To catalyze the development of the competitive Food Processing Industry by facilitating the creation of an enabling environment and related infrastructure for sustainable, equitable and inclusive growth of the sector with a view to add value & reduce wastage and thereby maximizing employment opportunities and increasing the income of farmers.

Objective & Strategy

The Odisha Food Processing Policy, 2022 aims to increase the flow of private sector investments across the value chain from farm gate to market. The Policy provides fiscal & non-fiscal incentives, infrastructure development, skill development and cluster approach for the development of the sector. The Policy also aims the creation of infrastructure by promoting the establishment of Food Processing Parks and common infrastructure near the existing food processing clusters.

Nodal Agency

The MSME Department, Govt. of Odisha has been designated as the nodal agency for the administration of the Policy. The Director of Industries, Odisha along with Regional or District Industries Centers (RICs)/ (DICs) shall be the implementing agency for the purpose of this Policy.

Ease of Doing Business

  • Single window clearance authority is laid down at the district and state level to provide clearance to projects in the food processing sector
  • Exclusive industrial clusters/parks for food processing industries at a strategic location
  • Setting up of common facility centers in identified clusters
  • Directorate of Export Promotion & Marketing, Odisha will set up a Food Testing Laboratory with accreditation from National Accreditation Board for Testing and Calibration Laboratories (NABL) at Cuttack, Berhampur, Balasore and Rourkela
  • Online system for submission of application forms for various clearances and tracking of the application
  • Development of Agri Export Zones (AEZ) for food processing industries

To encourage the growth of food processing units in the State, the government shall offer financial support to the enterprise as outlined in the sub-sections below. This will be applicable only in respect of the units operating in Odisha. New and existing food processing enterprises undertaking Expansion/ Modernization/ Diversification, with investment in Plant & Machinery up to Rs.50 crores, shall be eligible for the following:

Incentive Name Incentive Particulars
Capital Investment Subsidy (CIS)
  • 30% up to Rs. 3.5 crores made in Plant & Machinery for General Food Processing Enterprise
  • 35% up to Rs. 4 crores made in Plant & Machinery for enterprises owned by SC, ST, persons with disabilities, women, technical entrepreneurs (degree/diploma in food technology, B.Sc. Agriculture, BSc Horticulture, B.Sc. Veterinary Science or similar qualification in food processing sector)
  • Additional CIS 5% up to Rs. 50 lakhs made in Plant & Machinery over and above the limits specified in S. No. 1 and 2 mentioned above for enterprise set up in Industrially backward districts and in designated IDCO industrial estates, industrial areas, designated Aqua parks or along Biju Expressway Highway corridor
  • 30% up to Rs. 5 crores made in Plant & Machinery for anchor industry
  • Additional CIS 25% up to Rs. 25 lakhs of the cost of setting-up Captive solar power plant, over and above the limits specified in S. No. 1,2 and 3 mentioned above for enterprises with Captive solar power plant
Assistance for Reefer Vehicles
  • Credit linked back ended subsidy @ 35% of the cost of standalone new reefer vehicles/ mobile pre-cooling vans up to a maximum of Rs. 25 lakhs shall be provided for carrying & transporting both Horticulture & non-Horticultural produce.

Note: Capital Investment Subsidy (CIS)- For the enterprises set up by SC, ST, persons with disabilities, Women, Technical entrepreneur (degree/diploma in food technology, B.Sc. Agriculture, B.Sc. Horticulture, B.Sc. Veterinary Science or similar qualification in food processing sector) their stake in shareholding shall be 51% or more individually or jointly on the date of commencement of commercial production.