Bihar government has declared Food Processing industries as a priority sector keeping in view the availability of Raw material and market. Accordingly the Govt. has announced the various schemes and assistance for this sector.

Following Cereals, Fruits & Vegetables have been identified for potential processing opportunities:- CerealsFruitsVegetables 1. Rice1. Mango1. Potatoes 2. Maize2. Guava2. Chilly 3. Pulse3. Banana3. Peas 4. Oilseed4. Litchi4. Tomatoes 5. Wheat5. Makhana 6. Amla Accordingly the State Government has announces various incentives and schemes for this sector as follows:- 100% exception of stamp duty. 5% subsidy on Technical consultancy. 50% subsidy on DG set. 35% upfront subsidy on total Project Cost.

1. Linked Capital Subsidy Scheme (CLCSS):- Under this scheme 15% up Credit front subsidy is given for selected upgrade technology on the cost of plant & machinery up to Rs.1 crore. 2. Credit Guarantee Fund Trust for Micro & small Enterprises (CGT- MSE) :- Under this scheme, Govt. of India, Ministry of MSME is taking guarantee and provides collateral free loan up to Rs.1 crore to the new enterprises. 3. Cluster Development Programme for Micro & Small Enterprises (CDP-MSE):- under the scheme, following cluster (food processing industries) have been taken up for their development – a) Litchi Cluster, Muzaffarpur b) Makhana Cluster, Darbhanga c) Food processing cluster, Muzaffarpur d) Rice mill cluster, Buxar

In the Litchi and Makhana cluster, soft intervention have been completed and hard intervention like common facility center will be set up shortly for the processing and preservation of Litchi and Makhana through modern technology and machineries. In rice mill cluster, Buxar, a solvent extraction plant at the cost of Rs. 10 crore grant from Govt. of India, Ministry of MSME will be set up. For this purpose, Diagnostic Study Report and Detailed Project Report is going to be prepared under the approval of Ministry of MSME.

4.National Award:- National Award comprising of Cash reward of Rs.1 Lakh, a trophy and a certificate for the Bakery Product under Food Processing Industries of MSME sector is conferred every year. The National Award is also conferred in the following segment – Entrepreneurship (Manufacturing and Services separately) Research & Development Innovation Quality Product, and Lean Manufacturing. 5.Entrepreneurship-cum-Skill Development Programmes (ESDPs):- Around 500 educated youth are imparted training every year on the following food products – a) Jam, Jelly, Sauces, Squash b) Pickles and Murabbas c) Paper based Noodles d) Bakery Products. e) Namkeen, Mixture & Chips/Wafers f) Spice Grinding g) Ginger Processing h) Milk Processing.

1. National level Food Testing Laboratory is required to be set up in Patna to cater to the quality needs of food processing Industries in Bihar. 2. Technical Consultancy Cell with renowned Food Technologist should be set up by State / Central Govt. 3. Food Technology Park and Export Processing Zone should be set up in Bihar and necessary infrastructure should be created. 4. For preservation and minimizing wastage, adequate storage facilities including cold chamber transporting system needs to be created. 5. Time to time Govt. Policies and incentives should be reviewed and revised keeping in view the need of the hour. 6. RTI of NMCP of Rs. 1 Crore for I.F.C. opening 7. CLCSS 8. MSE-CDP.

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