Support for Value Addition - Support to R&G units 2026

This scheme helps boost coffee quality and entrepreneurship by supporting new roasting, grinding, and packaging units with Read More... improved technology. Read less

Details

If you're looking to start or upgrade a coffee roasting, grinding, or packaging unit, the Indian government has a scheme that might just be what you need. The 'Support for Value Addition - Support to R&G Units' scheme is designed to make coffee businesses more competitive and encourage more people to get involved in the coffee sector.

What Is This Scheme?

This initiative is part of the larger 'Integrated Coffee Development Project' run by the Coffee Board, under the Department of Commerce. Its main goal is to improve the quality of coffee products and add more value to them. It does this by helping businesses adopt better technology for roasting, grinding, and packaging coffee. This, in turn, aims to increase coffee consumption within India and create more business opportunities, especially in areas where coffee isn't traditionally grown or consumed much.

Who Can Benefit From This Scheme?

The scheme is primarily for individuals, partnership firms, self-help groups (SHGs), and grower collectives who are keen on setting up new coffee roasting and grinding units.

Why This Scheme Is Important

By supporting the introduction of advanced roasting, grinding, and packaging technologies, the scheme aims to elevate the standard of coffee products available to consumers. It also plays a crucial role in fostering entrepreneurship within the coffee industry, encouraging new ventures and supporting small players, particularly in non-traditional coffee-growing regions.

Objective

This scheme helps boost coffee quality and entrepreneurship by supporting new roasting, grinding, and packaging units with improved technology.

Benefits

Roasting Units, Gourmet roasting units 1Kg to <10Kg/batch, and small roasting units with a capacity of less than 25 kg capacity are eligible for subsidy support of 40% of the machinery cost with a ceiling of ₹10,00,000.

For the SHGs, women entrepreneurs, SC/ ST, Minorities, and differently-abled beneficiaries, subsidy support is @50% of the machinery cost with a ceiling of ₹10,00,000.

Support for gourmet roaster units would enable the roasting of specialized blends in smaller quantities. This may also help to encourage a large number of small players/ new entrepreneurs to take up this venture in non-traditional coffee-drinking areas.

Disbursement of subsidyThe subsidy shall be released to the applicant’s bank account through PFMS in cases where the application is complete in all respects and only after approval of the post-installation inspection report submitted by the Coffee Quality Division, Coffee Board, Bengaluru.

Sources and references

Guidelines

And Application Form

Eligibility Criteria

To be considered for this scheme, you need to meet the following criteria:

Applicant Type: You should be an individual, a partnership firm, a self-help group (SHG), or a growers' collective interested in starting a coffee roasting unit.
New Units Only: The scheme is exclusively for setting up brand-new roasting and grinding units.
Business License: Your unit must have a valid business license issued by the relevant local authorities.

What Machinery Can Get Subsidy?

For new roasting and grinding units, subsidies are available for combinations of the following machinery:

Roasting machine, grinding machine, and packaging machine.
Roasting machine and packaging machine.
Grinding machine and packaging machine.

Important Note: The scheme does not cover subsidy for identical machinery or more than one unit of each type (roasting, grinding, packaging).

Priority Consideration

Applications are processed on a first-come, first-served basis. Ensure your application is complete, and remember that support is subject to the availability of funds.

How To Apply

The Coffee Board facilitates the application process for this scheme. While the exact steps and portal link should be confirmed on their official website, generally, the process involves submitting a complete application with all required documents. Once your unit is installed and inspected, the subsidy is released to your bank account.

Official Contact Information

For the most current application procedures and details, it's best to directly contact or visit the Coffee Board:

Coffee Board, Bengaluru

Coffee Quality Division

(Specific address and contact details should be obtained from the official Coffee Board website)

Documents Required

To apply for the scheme, you'll need to gather the following documents:

A copy of the blueprint or layout plan for your proposed R&G unit.
A clear photocopy of your photo identity (e.g., Aadhaar Card, PAN Card, Passport, Driving License, Election Photo ID Card).
The original tax invoice or cash bill from the machinery supplier.
Attested copies of bills for freight, installation, commissioning charges, and insurance, if these are part of the total machinery cost.
A copy of the machinery's warranty certificate.
A notarized copy of the lease agreement, rent agreement, or ownership document for the premises where the unit will be located.
A copy of your local municipal license.
A copy of your bank passbook, showing your name, account number, bank name, branch address, and IFSC code.
Photographs of the newly installed machinery for which you are claiming the subsidy.
For SC/ST and differently-abled applicants: A caste/community/disability certificate (showing 40% or more disability) issued by a competent authority.

FAQ’s

Who is eligible to apply for the coffee unit subsidy?

Individuals, partnership firms, self-help groups (SHGs), and grower collectives interested in establishing new coffee roasting and grinding units are eligible. Your unit also needs to have a valid business license from the local authorities.

What is the maximum subsidy amount available?

The maximum subsidy amount is ₹10,00,000. This limit applies to both the general category applicants and the special categories like SHGs, women entrepreneurs, SC/ST, minorities, and differently-abled beneficiaries. The percentage of subsidy varies for these groups.

Can I get a subsidy for buying just a roasting machine?

Yes, the scheme supports combinations of machinery. You can apply for a subsidy if you are getting a roasting machine and a packaging machine together, or a grinding machine and a packaging machine together, in addition to the option of getting all three (roasting, grinding, and packaging).

How is the subsidy amount paid out?

The subsidy is transferred directly to your bank account through the Public Financial Management System (PFMS). This happens after your application is complete and the Coffee Board approves the inspection report of your installed machinery.

Does this scheme apply to existing coffee units?

No, this scheme is specifically designed for the establishment of new R&G units. It is not applicable for upgrading or expanding similar machinery in existing units.

What is the difference in subsidy percentage for special categories?

For Self-Help Groups (SHGs), women entrepreneurs, SC/ST, minority, and differently-abled beneficiaries, the subsidy is 50% of the machinery cost. For other eligible applicants, it is 40% of the machinery cost.

What if I want to apply for more than one type of machine, like two roasting machines?

The subsidy scheme is not applicable for acquiring more than one machinery of each type (e.g., two roasting machines). It covers combinations of roasting, grinding, and packaging machines for a new unit.

How are applications prioritized?

Applications are considered on a first-come, first-served basis, provided they are complete and funds are available. So, it's important to submit all your documents correctly and on time.

What kind of business license do I need?

You need to have a valid business license from the respective statutory authorities in your area. This shows that your unit is legally permitted to operate.