CHENNAI: The State government on Monday invited applications to establish 100 value addition centres for agricultural produce, aimed at enhancing farmers’ income by preventing wastage and promoting value-added production.

Agriculture and Farmers’ Welfare Minister MRK Panneerselvam announced that under the 2025–26 Agricultural Budget, a special scheme has been introduced to encourage entrepreneurs and enterprises to launch agro-based value addition and processing units.

As per the scheme, entrepreneurs can avail a capital subsidy of up to Rs 1.5 crore, with a 25% subsidy for general applicants and up to 35% for women, Scheduled Castes, Scheduled Tribes, and enterprises in backward regions as defined under the MSME classification. Additionally, a 5% interest subsidy for five years will be offered to all eligible beneficiaries.

District-level agricultural marketing officials have been directed to create wide awareness about the scheme and invite maximum applications. The proposed projects should focus on secondary or tertiary processing of agricultural and horticultural produce, particularly perishable commodities such as fruits, vegetables, and flowers, with export potential.

Applicants must contribute at least 5% of the project cost, while the remaining amount can be availed as bank loans. District consultants will assist in preparing detailed project reports (DPRs) and facilitate loan approvals.

The minister urged aspiring entrepreneurs to utilise this opportunity and contribute to TN’s vision of establishing 100 modern value addition units.