Punjab Market Fee Waiver: Food Processing

Under Clause 12.9 of the Industrial and Business Development Policy 2022, Punjab waives the statutory levies charged on each tonne of agricultural raw material purchased by a processor within the state. These cover market fee, rural development fee and other statutory charges. New food processing units receive a full exemption for a maximum of 10 years starting from the date of commercial production, or until the benefit equals 100% of their Fixed Capital Investment, whichever occurs first.

Units already in operation are extended the same benefit, calculated against the Fixed Capital Investment made towards their expansion.

For processors purchasing paddy, maize, potato or milk at volume, such fees represent a recurring percentage of procurement value. The waiver therefore flows directly into gross margin on every batch.

1. Obtain approval for the food processing project as an eligible unit under the Industrial and Business Development Policy 2022. 2. Note the date of commercial production and the Fixed Capital Investment (or expansion FCI) — the benefit is limited by both. 3. Submit the exemption application through the Invest Punjab Business First portal, attaching the DPR, FCI details and procurement plan. 4. As procurement takes place, file claims supported by raw material purchase records and mandi fee assessments. 5. The exemption remains in force until either 10 years have passed or the FCI ceiling is reached.

The department operates a non-competitive route. It first establishes that the unit qualifies as an eligible food processing project, then checks the Fixed Capital Investment figure and the date on which commercial production began. Throughout, the exemption is monitored so that neither the 10-year period nor the 100%-of-FCI ceiling is breached.