Subsidy for Oil Extraction from Oilseeds issued by Ministry of Agriculture & Farmers Welfare (Central Government).

Subsidy for oil extraction from oil seeds


Subsidy for Oil Extraction from Oilseeds- Oil Processing and extraction of oil help us obtain high quality of oil which is pure, edible and stable. Extraction of oil can be done by different ways like extraction from plant such as ghani, by hydraulic pressing, expeller pressing, etc.

To setup an oil extraction unit, the projected estimated cost will be of Rs. 60-70 Lakhs at micro level.



Financial Assistance /Benefits Available /Subsidy for Oil Extraction from Oilseeds

1. Agriculture Infrastructure Scheme:

The scheme provided financial assistance on loan/ credit guarantee availed by the entity engaged in extraction of oil from oil seeds which also includes cleaning, de-stoning, de-husking, winnowing but doesn’t include activities such as by-product utilization, refining, neutralization, bleaching.


Pattern of Assistance:

Interest Subvention Cost Credit Guarantee Cost
Loans taken for the project up to a limit of 2 crores will get interest subvention of 3% per annum for 7 years. Eligible borrowers availing loan for the project up to Rs. 2 Crore will get credit guarantee coverage as facilitated by CGTMSE. The fee charged for credit guarantee coverage will be paid by the Government for loan up to Rs. 2 Crore.


Time limit for availing benefit:

The scheme is in operation from 2020-21 and will remain in operation 2032-33. However, the loan disbursement period will be till 2025-26, i.e. the eligible person must avail bank finance till 2025-26 to take benefits under this scheme.



2.NABARD Agricultural Marketing Infrastructure Scheme:

Under this scheme, capital subsidy is available to the entities engaged in primary processing activities for extraction of edible vegetable from oil seeds through mini oil expeller (operated up to 7.5 Horse Power).


Pattern of Assistance:

S.No. Category Rate of Subsidy Maximum Limit (in Rs.)
1 For registered FPO, Panchayats, Women farmers, SC/ST. North Eastern States, UTs of Andaman & Nicobar and Lakshadweep Islands, Hilly and tribal areas.
30 Lakhs
2 For all other categories of beneficiaries. 25% 25 Lakhs


Time Limit:
The eligible entity can apply under this scheme till September 30, 2022.


If you are interested to invest your funds in projects related to Oil Extraction activity, you can avail benefits of above mentioned schemes.

Show your interest here- https://forms.gle/YGnBbV9othUqdZig9



Not only this, KIP Financial Consultancy also deal in various Warehouse projects.


KIP Launched the Warehouse Business & Subsidy Updates Plan for the investors/ businessman, who are interested or doing warehouse business.

We at KIP providing WAREHOUSE BUSINESS Services Since 2008.

To know more– https://kipfinancial.com/warehouse-business/

For joining– https://rzp.io/l/warehousebusinesssubsidy



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