Jehanabad/Patna: An opportunity has opened up for organisations looking to establish an oil processing unit in Bihar’s Jehanabad district, with the government offering a subsidy of up to ₹9.90 lakh under the National Mission on Edible Oils-Oilseeds.
The scheme aims to strengthen oilseed production and processing at the local level while creating better market opportunities for farmers. The online application process began on August 15, 2026, and eligible applicants can submit their applications until September 15, 2026.
₹9.90 lakh subsidy on ₹25 lakh project
Under the scheme, a 10-tonne-capacity oil processing unit will be established in Jehanabad.
The estimated project cost has been fixed at ₹25 lakh, against which financial assistance of up to 33% will be provided. The maximum subsidy available is ₹9.90 lakh.
However, the subsidy calculation will not cover expenses related to land purchase or construction of sheds and buildings. These costs will have to be borne separately by the applicant or concerned organisation.
Who can apply?
The scheme is targeted at specific categories of organisations involved in agriculture and oilseed processing. Eligible applicants include:
- Farmer Producer Organisations (FPOs)
- VCPs
- Registered startups involved in oilseed processing
- Cooperative societies
The initiative is intended to promote organised oil processing and strengthen the link between oilseed production, processing and market access.
How will the oil mill benefit farmers?
Farmers in the region cultivate oilseeds such as mustard and sesame, but the absence of adequate local processing facilities can limit their access to better markets.
The proposed oil mill is expected to facilitate local procurement and processing of oilseeds, potentially providing farmers with additional marketing options and reducing dependence on distant processing facilities.
The initiative could also encourage rural entrepreneurship and create employment opportunities linked to oilseed processing.
Documents required for application
Applicants will need to upload several documents while submitting their online applications, including:
- Detailed Project Report (DPR)
- Aadhaar card
- Bank account details
- Bank loan approval-related documents
- Registration certificate of the applicant organisation
Applicants have been advised to keep the required documents ready before beginning the online application process.
Application deadline September 15
The online application window opened on August 15 and will remain available until September 15, 2026.
Interested and eligible applicants can apply through the Agriculture Department’s official online system.
The District Agriculture Officer, Jehanabad, has highlighted the scheme as an opportunity to strengthen oilseed production and processing in the district while supporting farmers’ incomes.
With the application window limited to one month, eligible FPOs, startups and cooperative societies interested in establishing an oil processing unit will need to complete the application process before the deadline.
