Fried Onion / Paste Unit: Cost, Subsidy, Income (2026)

As per the government model report, the basic Fried Onion / Paste Unit (500 kg/day) costs ₹20.3 lakh. Fried onion and onion paste for hotels and caterers. 35% subsidy, max ₹10 lakh (PMFME) — up to ₹6.

 · 4 min read
Fried Onion / Paste Unit for ₹20.3 lakh, about ₹6.23 lakh subsidy
Fried Onion / Paste Unit · Basic unit
₹20.3 lakhto start
500 kg/dayCapacity
35%Subsidy
90%Bank loan up to
In 60 words

As per the government model report, the basic Fried Onion / Paste Unit (500 kg/day) costs ₹20.3 lakh. Fried onion and onion paste for hotels and caterers. 35% subsidy, max ₹10 lakh (PMFME) — up to ₹6.23 lakh support; your share is about ₹2.03 lakh. The report's selling prices look higher than today's market, so check profit with your district's prices.

Source: NIFTEM PMFME DPR – Processing of Onion Paste · Utkrishi Team · 01-10-2026

01Where will the money come from?

Total cost ₹20.3 lakh

₹2.03 lakhYour share10%
₹12 lakhBank loan59%
₹6.23 lakhSubsidy31%

From your pocket only ₹2.03 lakh — the subsidy is credited to your loan account.

What does the money go into?

  • Building/civil₹5.18 lakh
  • Machinery₹8.81 lakh
  • Other/remaining cost₹3.8 lakh
  • Working capital₹2.48 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 + subsidy35% subsidy, max ₹10 lakh (PMFME)
  5. Produce and sellAfter fixing numbers with your prices
Watch the video: Fried Onion / Paste Unit
Watch on YouTube @utkrishi

04Who is it right for?

People linked to hotel and catering supply
Entrepreneurs in onion areas
People with food processing experience

053 mistakes that cause losses

Trusting the report's high selling prices
Underestimating oil and packing costs
Supplying without testing shelf life

06Frequently asked questions

Who are the buyers?

Hotels, restaurants, caterers and ready-to-cook companies.

What government support is there for the Fried Onion / Paste Unit?

35% of eligible cost (machinery, technical civil work), max ₹10 lakh; linked to a bank loan, not on working capital.

How much can the Fried Onion / Paste Unit earn?

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

Fried Onion / Paste 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: NIFTEM PMFME DPR – Processing of Onion Paste · PIB – PMFME
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