Honey Processing Unit for ₹20.6 lakh: Cost & Subsidy (2026)

As per the government model report, the basic Honey Processing Unit (640 kg/day) costs ₹20.6 lakh. A plant to filter, heat and pack honey. 35% subsidy, max ₹10 lakh (PMFME) — up to ₹6.85 lakh support;

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Honey Processing Unit for ₹20.6 lakh — understand the risk first
Honey Processing Unit · Basic unit
₹20.6 lakhto start
640 kg/dayCapacity
35%Subsidy
90%Bank loan up to
In 60 words

As per the government model report, the basic Honey Processing Unit (640 kg/day) costs ₹20.6 lakh. A plant to filter, heat and pack honey. 35% subsidy, max ₹10 lakh (PMFME) — up to ₹6.85 lakh support; your share is about ₹2.06 lakh. At the report's prices this unit is still in loss in year 3 — don't start without changes.

Source: NIFTEM PMFME DPR – Honey Processing (640 kg/day) · Utkrishi Team · 01-10-2026

01Where will the money come from?

Total cost ₹20.6 lakh

₹2.06 lakhYour share10%
₹11.7 lakhBank loan57%
₹6.85 lakhSubsidy33%

From your pocket only ₹2.06 lakh — the subsidy is credited to your loan account.

What does the money go into?

  • Machinery₹8.36 lakh
  • Other/remaining cost₹11.2 lakh
  • Working capital₹1 lakh

02Income or loss?

The government model shows a loss. At the report's prices this unit is still in loss in year 3. Go ahead only with cheap raw material, a fixed buyer or your own brand.

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

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
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04Who is it right for?

Beekeeper groups and FPOs
People with a honey brand and sales network
People who can get lab tests done

053 mistakes that cause losses

Not checking raw honey price and quality
Selling in bulk without a brand
Not getting purity (lab) tests done

06Frequently asked questions

Why does this model show a loss?

At the government report's prices, the gap between raw honey cost and selling price is small. Profit comes only with your own bee colonies and brand.

What government support is there for the Honey Processing Unit?

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

Should I start this unit?

The government model shows a loss. Go ahead only if you have cheap raw material, a fixed buyer or your own brand.

Honey Processing Unit — Want to start?

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

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Source: NIFTEM PMFME DPR – Honey Processing (640 kg/day) · 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