UP Government Announces 33% Subsidy on Oil Mill Units for Farmers

Key Highlights:

• 33% subsidy or max ₹9.90 lakh on oil mill setup.

• Applications open from 14th to 31st August 2025.

• FPOs and cooperatives must meet eligibility conditions.

• Registration on official portals is mandatory.

• Beneficiaries selected through an online lottery.

The Uttar Pradesh government has launched a new scheme to support farmers income growth and promote value addition in agriculture. Under this initiative, Farmer-Producer Organizations (FPOs) and cooperative societies will get a 33% subsidy or a maximum of ₹9.90 lakh for setting up 10-tonne oil extraction units in the state.

Applications Open Till 31st August

The Agriculture Department has invited applications from eligible FPOs and cooperative societies between 14th August and 31st August 2025. Interested organizations must apply online through agridarshan.up.gov.in or upfposhaktiportal.up.gov.in. Without registration, applicants will not be eligible for the scheme.

This initiative has been launched under the National Mission on Edible Oil (Oilseeds) and aims to boost oilseed production, encourage processing at local levels, and ensure better prices for farmers.

Key Subsidy Conditions

The subsidy will only be provided to registered FPOs and cooperative societies that meet certain conditions:

• Must have at least 3 years of operational experience.

• Should have a minimum of 200 farmer members.

• Online registration on the respective portals is compulsory.

Eligibility Criteria for FPOs

• Must be registered under the Companies Act or Cooperatives Act.

• At least 3 years of experience in operations.

• 200 or more farmers should be registered as members.

• Average annual turnover should be above ₹9 lakh in the last three years.

• Must have at least ₹3 lakh equity (shares) in the organization.

• Registration on the Shakti Portal is mandatory.

Eligibility Criteria for Cooperative Societies

• Must be registered under the Co-operative Society Act.

• At least 3 years of work experience in oilseed production, purchase, sale, or processing.

• A minimum of 200 farmer members should be registered.

• Average annual turnover should be above ₹9 lakh in the last three years.

Selection Through Online Lottery

Additional Agriculture Director (Oilseeds/Pulses), Anil Kumar Pathak, informed that if applications exceed the target, the final selection of beneficiaries will be made through an online lottery system. The process will be conducted in front of a district-level committee to ensure transparency.

Scheme to Boost Farmer Income

This scheme, implemented for the year 2025-26, is expected to help farmers get better returns for their oilseed crops, reduce dependency on external processors, and strengthen Uttar Pradesh’s agricultural economy.

Also Read: Government to Launch National Mission on Natural Farming with ₹2481 Crore Investment

CMV360 Says

The UP government’s subsidy scheme for oil mill units is a major step towards boosting farmers income and promoting value addition in agriculture. By supporting FPOs and cooperative societies with financial aid and transparent selection, the initiative will not only strengthen oilseed processing but also empower farmers with better prices and opportunities in the 2025-26 season.