Karnataka allocates Rs 500 Cr for food startups to encourage organic farming

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Government to increase subsidies to 50 per cent

Chief Minister of Karnataka B S Yediyurappa has presented the state budget for 2021-22 on March 8, 2021.

Key highlights for the food processing and allied sectors include:

  • Grant of Rs 50 crore has been set aside to provide a top-up subsidy of 15 per cent from state govt to increase the 35 per cent subsidy given by the Centre to Food Processing and Post-Harvest management units under Atmanirbhar Bharat Nirbhar to 50 per cent.
  • To encourage organic farming, Rs 500 Cr will be allocated for the benefit of food startups.
  • A new food park will come up in Vijayapura.
  • Karnataka government to increase reservation for farmers’ children from 40 to 50 per cent in agriculture University
  • For small food processing units, government to increase subsidies to 50 per cent.
  • For the development of bio-technology industries and innovative startups and to encourage the production of light food items utilising the bioactive compounds available from fish and sea weed, Advanced Bio-tech Innovation Centre for Aqua-Marine will be established in Mangaluru at an estimated cost of Rupees six crore. In the financial year 2021-22, Rs 6 crore is allocated for this purpose.

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