Punjab Market Fee Waiver: Food Processing
By Department of Industries & Commerce, Government of Punjab
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Quick Answer
Food processing units in Punjab pay no market fee, rural development fee or other statutory levies on raw material for up to 10 years.
About this subsidy
Clause 12.9 of Punjab's Industrial and Business Development Policy 2022 removes the statutory levies that sit on top of every tonne of agricultural raw material a processor buys in the state — market fee, rural development fee and other statutory charges. New food processing units get a 100% exemption for up to 10 years from the date of commercial production, or until the benefit reaches 100% of their Fixed Capital Investment, whichever comes first. Units already operating get the same treatment measured against the Fixed Capital Investment made in the expansion. For a processor buying paddy, maize, potato or milk in volume these fees are a recurring percentage of procurement value, so the waiver goes straight to gross margin on every batch.
Eligibility
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Subsidy providers
The Department of Industries & Commerce is the Government of Punjab's department that runs the Punjab Start-up Cell. The Cell is headed by the Director of Industries and Commerce and acts as a single point of contact for the state's startup policy. The department is based at…
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What You Get
A 100% exemption from all taxes and fees paid on the purchase of raw material for food processing. It runs for up to 10 years from the date of commercial production, or until the cumulative benefit equals 100% of Fixed Capital Investment — whichever comes earlier. For an already operational unit the cap is measured against the Fixed Capital Investment made in the expansion rather than the original plant.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Non-competitive. The department confirms the unit is an eligible food processing project, verifies Fixed Capital Investment and the commercial production date, and tracks the exemption against both the 10-year and 100%-of-FCI limits.
Application Process
- 1
Eligibility approval
The department approves the food processing unit or its expansion under the policy.
Provider - 2
- 3
- 4
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
Which levies are exempted?
All taxes and fees paid for the purchase of raw material — including market fee and rural development fee.
How long does the exemption last?
Up to 10 years from the date of commercial production, or until it reaches 100% of Fixed Capital Investment, whichever is earlier.
Do existing units qualify?
Yes, for expansion — the cap is then measured against the Fixed Capital Investment made in the expansion.
Who is eligible?
Food processing units in Punjab under the Industrial and Business Development Policy 2022.
Sources
Data on this page is compiled from official program and provider references.
