Food Processing


Bihar, fundamentally an agrarian economy, has a large agricultural and animal production base offering abundant supply of raw material to be processed for human consumption. Despite these natural advantages, the level of food processing is very low and there is scope to improve the food processing levels to meet the increasing requirements of the state's growing population, while at the same time offering a sustainable consumption market..

Further, the rising income and changing life style in the cities as well as rural Bihar is changing the consumption demand towards processed food. Therefore, the state offers a substantial opportunity for the food processing industry and is expected to play a leading role in the industrialization drive of this state. Some of the strategic advantages in this sector across key product offerings are listed below.

The food processing units discussed below shall be considered under the High Priority Sectors for the purpose of availing the incentives under this policy.


Investment Opportunity

Maize Processing

  1. Maize based Feed units (Cattle Feed, Fish Meal, Poultry Feed)
  2. Maize related food products
  3. Starch Manufacturing Unit and other maize related products except primary processing like grading sorting etc.

Fruits & Vegetable (F&V) Processing

  1. All kinds of F&V processing units (including units for manufacturing dehydrated and frozen F&V items using IQF/Blast Freezer/Spiral Freezer, etc.)
  2. Dehydration and powdering of vegetables like onions, mushrooms, etc.
  3. Unit for processing litchi (e.g. units for manufacturing litchi pulp, juice, pulp slabs, jam, jelly, beverage, nectar, candies, powder, etc.)
  4. Unit for processing local variety (varieties from Bihar) of mangoes into pulp, juice, pulp slabs, jam, jelly, beverage, nectar, candies, powder, etc. (units using mango pulp imported from other states or countries shall not be considered under the priority sector. )
  5. Unit for banana processing (e.g. banana chips, pulp, powder, baby food, jam, jelly, banana flower vegetables, banana trunk vegetables & pickles, etc.)
  6. Unit for makhana processing (e.g. unit for producing makhana pops, making flavoured and/or roasted makhana snacks, RTC kheer, baby food etc.)
  7. Natural Honey Processing
  8. Processing and value addition of Spice and Herbs grown in Bihar.

Note: There should be sufficient value addition to the agriculture produce. Units which carry out activities like washing, grading, sorting, cleaning, grinding and packing only shall not be considered under this sector. Accordingly all such units should also have the integrated processing/value addition and packaging facility like canning/ tinning, bulk packing, coding and labelling etc.

Poultry and Fish Processing

(a) Poultry and fish processing units (e.g. fresh, chilled, and frozen fish; fish fillets and pieces; fish cured or smoked and fish meal fit for human consumption; edible offal of poultry; dried eggs; etc.)

Note: The end product for such units should be ready to the extent for consumption/sale in the retail market or for industrial sale. Units manufacturing products that are intermediary in nature shall not qualify under this category. Accordingly all such units should also have the integrated packaging facility like canning/ tinning, coding and labelling etc.

  1. Agriculture raw materials used by the units should primarily be grown in Bihar.
  2. Units purely engaged in washing, sorting, cleaning, and packaging those do not generate any substantial value addition shall not be considered under the high priority sector.
  3. Units/ enterprises set up for the purpose of packaging/ repackaging of food items imported from other states or countries shall not be considered under the high priority sector.
  4. If a unit/ enterprise is setting up two or more kinds of facilities in an integrated manner/for captive use purpose, the facilities would be treated as a single project and combined cost of the facilities would be considered for grant calculation purposes. The classification of the units/ enterprises into priority or non-priority would be as per the nature of the main/mother facility, i.e. the core facility.
  5. In case a unit migrates from non-priority sector to high priority sector or from priority sector to high priority sector through capacity expansion and/or facility addition etc., it would enjoy the incentives as per the high priority sector for the portion that falls under the high priority sector.
  6. Units for manufacturing any food item fit for human/ animal consumption which does not contain any F&V or any processed/preserved items (like pulp concentrate, extract etc.) made from F&V as its main ingredient would be considered under the non-priority sector.
  7. The above list of units/ enterprises is only indicative and the State Government may suitably revise the list under the high priority sector from time to time.