Bakery Unit: ₹5.36 lakh Cost, Subsidy & Real Prices (2026)

As per the government model report, the basic Bakery Unit (₹27.7 lakh/year sales) costs ₹5.36 lakh. A small bakery making bread, biscuits and cakes. 15–35% margin money subsidy (PMEGP) — up to ₹1.34 l

 · 4 min read
Bakery Unit for ₹5.36 lakh, about ₹1.34 lakh subsidy
Bakery Unit · Basic unit
₹5.36 lakhto start
₹27.7 lakh/year salesCapacity
15–35%Subsidy
90%Bank loan up to
In 60 words

As per the government model report, the basic Bakery Unit (₹27.7 lakh/year sales) costs ₹5.36 lakh. A small bakery making bread, biscuits and cakes. 15–35% margin money subsidy (PMEGP) — up to ₹1.34 lakh support; your share is about ₹54 thousand. The report's selling prices look higher than today's market, so check profit with your district's prices.

Source: KVK Dhenkanal (ICAR) – Project Profile on Bakery Products · Utkrishi Team · 01-10-2026

01Where will the money come from?

Total cost ₹5.36 lakh

₹54 thousandYour share10%
₹3.48 lakhBank loan65%
₹1.34 lakhSubsidy25%

From your pocket only ₹54 thousand — the subsidy is credited to your loan account.

What does the money go into?

  • Machinery₹3.5 lakh
  • Working capital₹1.86 lakh

02How much will it earn?

We are not showing profit yet. The selling prices in the government report look higher than today's market, so the estimate could be wrong.

Profit depends on these 3 things

  • Raw material/input prices in your district
  • At what price and to whom you will sell
  • How many days a year and at what capacity the unit runs

Send us your district's prices — we will work out the real numbers.

035 steps to start

  1. Get trainedLearn the work, find buyers
  2. Prepare the siteShed/room, power, water
  3. Get a DPR madeProject report as the bank needs it
  4. Apply for loan + subsidy15–35% margin money subsidy (PMEGP)
  5. Produce and sellAfter fixing numbers with your prices
Watch the video: Bakery Unit
Watch on YouTube @utkrishi

04Who is it right for?

People living near a town or city
People who can supply shops every day
Youth and women's groups trained in baking

053 mistakes that cause losses

Trusting the report's high profits
Not building a network for daily fresh supply
Not adding the rising cost of maida, ghee and gas

06Frequently asked questions

Why is daily supply important?

Bread and cakes stay fresh only a few days, so regular supply to nearby shops decides the business.

What government support is there for the Bakery Unit?

15–35% margin money subsidy on project cost (higher for rural/special categories), with a bank loan.

How much can the Bakery Unit earn?

The report's prices look high; we work out the numbers with your district's raw-material and selling prices.

Bakery Unit — Want to start?

Tell us your district and budget — an expert will suggest the next step for free.

Chat on WhatsApp+91 86250 77758Full details →

Learn first: ₹99 masterclass · Instagram · Facebook · YouTube

Source: KVK Dhenkanal (ICAR) – Project Profile on Bakery Products · KVIC – PMEGP
Last checked: 01-10-2026. Figures are based on government model reports and are indicative; get fresh quotes and local prices before the DPR. The bank decides the loan/subsidy — we help you prepare. Depends on the scheme continuing.
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Utkrishi Team

Utkrishi – एग्री बिज़नेस, DPR, सब्सिडी और बैंक लोन में मदद। +91 86250 77758