Food Processing Industry (FPI) Subsidy Rate in Ladakh

Updated on June 19, 2025 02:53:20 PM

The Ministry of Food Processing Industries (MoFPI) of the Government of India implemented the FPI subsidy schemes for businesses in the Food Processing Industry with an aim to expand the business in Ladakh. The FPI subsidy plans are offered to businesses in the region as reimbursement depending on the investment amount the business owners spent over equipment, establishment, transport and more. Businesses with a desire to engage in the Food Processing Industry in Ladakh should beware that Sea Buckthorn based products are only provided in Leh region and Apricot based products are only provided in Kargil region of the state.

The FPI subsidy plans are structured by the MoFPI specifically focusing on the expansion of business to create jobs for the locals and boost the economic growth of Ladakh. This article explains about the benefits and importance of FPI subsidy programs in Ladakh for businesses.

Read the points below to understand the benefits of the FPI subsidy programs in Ladakh in the Food Processing Industry (FPI).

1. Market Expansion:Businesses in the local region can expand their range and compete in the bigger market due to the FPI subsidy.
2. Economic Growth:The local economy of the state experiences positive impact as the FPI subsidy supports businesses for improvement of import and export of goods.
3. Save Expenses:The FPI subsidy makes the transportation costs for businesses sustainable and cost efficient for both businesses and consumers in Ladakh.
4. Job Opportunities: The businesses with FPI subsidies also create job opportunities for locals which results in the rise of living standards in Ladakh.
5. Promoting Entrepreneurship:The FPI subsidy encourages business owners to expand their business beyond the local region by easing the process to start up a new business.

Under the Food Processing Industry (FPI) subsidy rate in Ladakh, the FPI subsidy offers a maximum subsidy amount to prevent exploitation or unfairness of the intermediary. The FPI subsidy rate in Ladakh is categorized under 2 classes which are:

• Credit-linked capital subsidy

  Support for setting up / upgradation of Micro Food Processing Enterprises - Credit-linked capital subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  35%	INR 10 lakhs per unit	Eligible project cost comprises cost of plant and machinery and technical civil work, but excludes cost of land/rental or lease work shed. However, technical civil work should not be more than 30% of the eligible project cost

• Credit-linked capital subsidy

  Support for setting up of common infrastructure Facilities - Credit-linked capital subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  35%	INR 3 Crore per unit	Eligible project cost comprises cost of plant and machinery and technical civil work, but excludes cost of land/rental or lease work shed. However, technical civil work should not be more than 30% of the eligible project cost

The Food Processing Industry subsidy in Ladakh was implemented with the goal to boost the economy and financial status of local businesses in the region. The following are some of the features of FPI subsidy in Ladakh:

• Disbursement of loan will be simple: During the “Moratorium” phase, initially when no revenue is generated after the project implementation, interest on the loan that has been paid is calculated using simple interest. After the moratorium phase is over, all loans have compound interest but the interest rate lowers gradually.
• Improve in prospect buyer: Various advantages are provided to potential purchasers, including consumers, food processing industries (FPI), exporters, and more to be efficient intermediaries.
• Frequent disbursement of loans: The loan and FPI subsidy in Ladakh is disbursed in phases over a tenure of 3 to 5 years with intervals of 3 to 6 months, to follow up the implementation period.