Policy Environment

Incentives for Agri & Allied Sectors

1. Special Incentives for Agro & Food Processing

   1. Capital Subsidy
      • 50% of capital investment for agro & food processing units, capped at INR 1.5 crore
      • Additional 5% subsidy for FPOs owned by SC/ST/women entrepreneurs or units in Tribal Sub-Plan areas
   2. Green Growth Incentives for Agri Units
      • 50% reimbursement for environmental infrastructure (ETPs, waste management, water conservation).
      • 100% electricity duty exemption for captive renewable energy generation for 7 years.
      • 50% consent fee waiver under Rajasthan Green Rating System.
   3. Export Promotion for Agri Enterprises
      • First-time exporters eligible for freight subsidy: 25% reimbursement of freight charges via State ICDs/air cargo, capped at INR 25 lakh per annum.
   4. Interest Subvention for Agri-Processing Units
      • Additional 1% interest subvention for rural tourism and agri-processing units
      • Duration extended to 10 years for Khadi industries
   5. Eligibility for Farmer Organisations
      • Farmer Producer Organisations (FPOs) and Farmer Producer Cooperatives (FPCs) with at least 50 farmer members are eligible for incentives under RIPS 2024

2. Special Incentives for Agro & Food Processing

   1. Cold Chain & Storage Infrastructure (Capital Subsidy)
      • 20% for cold storage units (annual ceiling INR 15 crore)
      • 25% for warehouses, silos, and logistics parks
   2. Logistics Support for Agri Supply Chains
      • Reimbursement for tracking devices and logistics management software for trucks registered in Rajasthan
      • Fire detection system subsidy up to INR 10 lakh
   3. Mandi Fee & Stamp Duty Exemptions
      • 100% reimbursement of mandi fee for 7 years
      • 100% stamp duty benefit in stages as notified by the State

3. Production Linked Incentive for Ethanol

   1. INR 1.50 per litre of ethanol supplied to OMCs, capped at 100% of plant & machinery investment for 7 years

4. Skilling & Training Support for Agri MSMEs

   1. 50% reimbursement of employee training costs for 6 months Micro: INR 20,000/month; Small: INR 30,000/month; Medium: INR 40,000/month

Marketing and Mandi Facilitation

• No market fee/user charges are payable on purchase of fruits and vegetables in the market committees of the state.
• Contract farming allowed to ensure availability of adequate quality produce to processors/ buyers.
• Permission for special license to make direct purchase from farmers in the state by setting up purchasing centres in the market area.
• Processors allowed to make direct purchases at the processing centre outside the market premises.
• Permission to the private sector to establish private market yards in the state through license.
• User charges were imposed by allowing the trade of non-notified agricultural produce and food items in the market premises of the state.