The Yogi Adityanath-led Uttar Pradesh government is preparing to generate large-scale employment in rural areas by expanding food processing units across villages. The initiative aims to empower farmers and local youth while boosting the state’s agricultural economy.
The government has already presented its plan before the NITI Aayog, outlining a strategy to connect farmers and rural youth with 62,122 food processing units. According to a state spokesperson, Uttar Pradesh offers one of the most promising ecosystems for food-related investments, supported by a rapidly growing food retail sector.
Officials explained that the government’s multi-dimensional, rural-focused approach will not only create job opportunities by linking people to processing units but will also strengthen the village economy by establishing new units alongside existing ones. The state’s rich agricultural diversity and favorable climate make it well-suited for developing a robust food processing industry.
To tap this potential, the administration has allocated ₹40 crore under the Uttar Pradesh Food Processing Industry Policy, 2017. The policy includes capital investment subsidies, interest subventions, and other support measures to encourage growth in the sector. Authorities have set an ambitious target of attracting over ₹20,000 crore in investments and creating more than three lakh jobs in the coming months.
In addition, Chief Minister Yogi Adityanath has directed officials to identify unused land in large mandis (wholesale markets) for setting up processing units at an estimated cost of ₹5 crore each. These facilities are expected to provide employment for rural youth while enabling farmers to become more self-reliant. To encourage entrepreneurs, the state has also offered a five-year exemption from mandi duty.
The government is tailoring units according to local crop production patterns. For instance, maize-based processing units are being prioritized in western and central Uttar Pradesh, while in Purvanchal, districts like Kushinagar will see banana-chip units and other regions will focus on potato-based facilities.
Through these measures, the state aims to build a stronger link between agriculture and industry, ensuring that farmers benefit directly while rural communities gain new employment opportunities.
