In the world today, 40% of the coffee economy is in producing countries while the remaining 60% has been captured by the consuming countries. Over the last few years, they have improved the capabilities of processing, manufacturing and marketing coffee as an end product. Adoption of the latest technologies in roasting grinding and packaging is critical for the sustained development of the coffee value chain and the coffee market.

Coffee Board offers 40 % capital subsidy to Self Help Groups engaged in Coffee Processing

Processing, packaging and marketing of coffee in the domestic market would also provide ample opportunities for employment generation, especially through small and medium enterprises. As the modern technologies in the areas of coffee roasting, grinding and packaging are capital intensive; it inhibits the Small and Medium Enterprises (SMEs) to venture into taking up coffee value addition activities. Therefore, it is found necessary to extend appropriate support to the entrepreneurs to acquire the suitable technology to manufacture and package good quality coffee powder.

The objective of the scheme is to enhance the quality of coffee products and achieve value addition through the introduction of improved technologies in coffee roasting, grinding and packaging.


Individuals, Self-Help-Groups and Grower’s collectives, marketing co-operatives, firms, partnerships who are interested to establish coffee roasting and grinding units and also to modernize the existing units with new automated and energy savings machinery are eligible for the benefits under the scheme.

1. The subsidy under the scheme is not available in conjunction with any other scheme of the Coffee Board.
2. The applicant Unit should hold a valid license for the business from the respective statutory authorities.

Duration of the scheme:

The scheme will be in operation during the 11th Five Year Plan unless discontinued by the Government prior to the closure of the XI plan period. The date of filing application would determine priority in the release of funds.

The rate of subsidy is limited to 25% of the total cost for individuals/ firms and 40% for Self-Help-Groups and other Grower’s collectives. The total cost includes besides the basic cost of the machinery items, admissible taxes, freight, insurance and cost of commissioning. The maximum subsidy is limited to Rs.25.00 lakhs per unit.

Items eligible for subsidy:

The roasting, grinding and packaging machinery in any of the following combination is eligible for subsidy:

1. Roasting machine, grinding machine and packaging machine.
2. Roasting machine and packaging machine.
3. Grinding machine and packaging machine.

However, in respect of the existing units, the subsidy is eligible for any one type of machine viz., roasting and the grinding or packaging machines provided a grinding machine or roasting machine is considered only if a functional packaging machine is already existing or vice-versa.


Applications shall be considered on a first come first serve basis, provided the applications are complete in all respects.

The procedure of application:

The application for a subsidy should be submitted in the prescribed format after installation/commissioning of coffee machinery to the Head, Divisional of Quality Control, Coffee Board Bangalore. Units are applying for subsidy after 01/04/2008 can apply in the form-I. The applications will be processed after the inspection by Officers of the Quality Control Division on a first come first serve basis. The application will be cleared within 45 days from the date of submission. In case of delay/rejection of the application, reasons will be communicated to the applicants for further compliance.

Any unit established after 1.4.2007 is eligible for the subsidy under the scheme as per the scheme guidelines.

Disbursement of subsidy:

The subsidy shall be paid in a single installment after installation and commissioning of the machinery after the post-installation inspection report from the Boards Quality control division subsidy shall be released to the bank account number.

The following supporting documents are to be submitted by the applicant for claiming subsidy after installation & commissioning the machinery covered under the Board’s sanction order.

To apply for this subsidy and know more details –

Sushma is a seasoned business writer and content creator with over 7 years of experience in the field. She has a talent for taking complex topics and breaking them down into easily understandable language that engages and educates her readers. Her expertise allows her to cover a wide range of topics relevant to the B2B industry, providing business owners with the knowledge they need to make informed decisions and drive growth.


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