India being an agrarian economy, processing of agricultural produce is of vital importance. It not only helps in value addition, but also in employment generation and exports of agri-produce. NCDC has been promoting cooperatives involved in processing of Foodgrains, Plantation Crops, Oilseeds and Fruits & Vegetables by providing financial assistance to meet the needs of these cooperatives.

Eligible Cooperative Societies:

NCDC provides assistance to primary, district and state level cooperatives.

Activities Assisted:

  • Establishment of processing units in Agri and allied sectors

  • Expansion/modernisation/rehabilitation/diversification of existing units.

  • Margin money for raising working capital / Working capial assistance.

  • Strengthening of Share Capital base.

  • Construction of packing and grading sheds.

  • Assistance for purchase of Transport vechicle.

Mode of Funding

Financial assistance is provided through the State Govt. or directly to the eligible cooperatives.

Quantum of Assistance

Varies from activity to activity and upto 80-95% of the total cost for most of the activities. However, in case of strengthening of share capital base/margin money/working capital assistance, the quantum of assistance can be upto 100%.

For detailed pattern of assistance please click at the link provided.

Norms for direct funding

Cooperatives operating for minimum three years & broadly fulfilling following criteria are eligible:

  • Net worth should be positive

  • There should be no erosion in share capital.

  • Cash profit in last three years and net profit in two years

  • Should be in a position to provide 1.25 to 1.5 times security.

For detailed norms of Direct Funding please click at the link provided.

NCDC is a implementation agency for the following Centrally sponsored/ Central sector Scheme:

Mission for Integrated Development of Horticulture (MIDH) / National Horticulture Board (NHB) / National Horticulture Mission (NHM)

Mission for Integrated Development of Horticulture (MIDH) is a Centrally Sponsored Scheme for the holistic growth of the horticulture sector covering fruits, vegetables, root & tuber crops, mushrooms, spices, flowers, aromatic plants, coconut, cashew, cocoa and bamboo. Under MIDH, while primary/ minimal processing units will be promoted under NHM, large scale processing units will be promoted by Ministry of Food Processing Industries (MFPI), out of their ongoing Schemes. However, food processing units in Himachal Pradesh, Jammu & Kashmir and Uttarakhand will be promoted under HMNEH sub scheme of MIDH.

Credit linked back ended subsidy @ 35% of project cost in general areas and @ 50% of project cost in Hilly, North East & Scheduled Areas, is provided under MIDH/NHB/NHM schemes for undertaking primary processing activities.

The details of cost norms, pattern of assistance, operational guidelines, etc. may be seen at websites like

PM Formalisation of Micro Food Processing Enterprises Scheme (PM-FME Scheme)

In order to provide necessary thrust to the unorganised food processing segment of the country, Ministry of Food Processing Industries, Government of India has launched PM Formalisation of Micro food processing Enterprises (PM-FME) Scheme. It is a landmark initiative under Aatma Nirbhar Bharat Abhiyan to support Micro Level Food Entrepreneurs, FPOs/SHGs/ Cooperatives. The scheme would formalize 2,00,000 Micro Food Processing Enterprises with an outlay of Rs.10,000/- Crore, over five years from 2020-21 to 2024-25. The National Cooperative Development Corporation (NCDC) is a partner Institution under PM-FME Scheme.     

The Scheme has provisions for supporting Cooperatives involved in food processing sector through a credit-linked grant @35% of the eligible project cost, for capital investment for upgradation of their existing processing activities and also for establishing new processing units.

The scheme will be implemented through state governments and it offers huge opportunities to cooperatives to develop forward and backward linkage in the agro value chain and connect with national and international markets. This will not only help in enhancing income of the farmers but will also create employment opportunities for local youths.

Further details regarding operation guidelines of PM FME scheme can be checked from MoFPI’s website and

Sanctions & Releases of Processing and F&V Divisions during 2022-23

                                                                                                (Rs. in crore)


Sanctioned Amount

(FY 22-23)

Disbursed Amount

 (FY 22-23)

Cumulative disbursement

till 31.03.2023

Processing and F&V




Common Loan Application Form for availing assistance under the scheme of NCDC can be downloaded from NCDC’s website.

For further details, please contact or write to:

Processing Division
National Cooperative Development Corporation
4, Siri Institutional Area, Hauz Khas
New Delhi – 110 016
Tel No.: +91-011-20862512, 20862866, 20862490, 20862801
Fax: +91-011-26962370, 20862619, 26602568
Website: Email:

Regional Directorates of NCDC:
Bengaluru, Bhopal, Bhubaneswar, Chandigarh, Chennai, Dehradun, Gandhinagar, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Patna, Pune, Raipur, Ranchi, Shimla, Thiruvananthapuram