Rajasthan Government Updates | Food Park Development Policy Approved; Boosting Agro Industries in Rural Areas
UdaipurTimes, August 8, 2026 | Rajasthan Government Policy Updates: The Cabinet and Council of Ministers of the Government of Rajasthan, approved the Rajasthan Agriculture and Food Processing Policy, 2026, the Rajasthan Food Park Development Policy, 2026 to strengthen the rural economy by enhancing farmers' income, introducing a Tree Outside Forest Policy. These decisions were taken in the meeting chaired by Bhajan Lal, the Chief Minister of Rajasthan as the Chief Ministers Office in Jaipur on August 7.
Minister for Industries and Commerce Col. Rajyavardhan Rathore announced that the Cabinet has approved the Rajasthan Agriculture and Food Processing Policy, 2026 to encourage investment in agriculture and horticulture.
Rajasthan Agriculture and Food Processing Policy
The policy seeks to promote agriculture and food processing industries across the State, encourage entrepreneurship in rural areas, enhance farmers' incomes through value addition to agricultural produce, strengthen supply chains and establish an efficient marketing system for processed agricultural products.
The policy covers processing industries relating to fruits and vegetables, spices, cereals, oilseeds, pulses, medicinal products, minor forest produce, honey, dairy products and animal feed, besides infrastructure projects such as silos and cold storage facilities.
Shree Anna Promotion Agency
To promote Shree Anna (millets), a dedicated Shree Anna Promotion Agency will be established.
Under the policy, capital subsidy will be provided as follows:
- 60 percent on loans up to ₹50 lakh;
- 50 percent on loans ranging between ₹50 lakh and ₹1 crore;
- 40 per cent on loans exceeding ₹1 crore, subject to a maximum subsidy of ₹1.5 crore.
An additional 5 per cent capital subsidy has been provided to encourage participation by Farmer Producer Organisations (FPOs), entrepreneurs from Tribal Sub-Plan (TSP) areas, Scheduled Castes, Scheduled Tribes, and women entrepreneurs.
Subsidies for cold storage facilities, silos and export-oriented infrastructure will be extended in accordance with the provisions of the Rajasthan Investment Promotion Scheme (RIPS), 2024. Agriculture and food processing projects will also be eligible to apply for capital subsidy under the MSME Standard Package of RIPS 2024.
Food Parks Across Districts on a Cluster Basis
Col. Rathore further informed that the Cabinet has also approved the Rajasthan Food Park Development Policy, 2026 to promote agricultural processing, trade and exports.
Land has already been allotted for the development of food parks at several locations across the State. The new policy provides a comprehensive framework for the establishment, operation and management of world-class food parks.
Under the policy, food parks will be developed in a phased manner across every district on a cluster-based model. Integrated facilities for preservation, storage, processing and transportation of food products will be established, while producer groups and farmers will be connected with processing units and markets through a strengthened supply chain. The initiative is expected to generate employment opportunities in rural areas while strengthening the State's economy.
The policy classifies food parks into four categories based on land ownership and development parameters. Preference will be accorded to developers who are MoU holders under the Rising Rajasthan Global Investment Summit-2024 for food park development or those willing to establish an anchor food processing unit with a minimum investment of ₹10 crore within the proposed food park.
