Business Opportunities in Food Industry in Karnataka

Food Processing Industry in Karnataka

Home to Silicon Valley of India-Bangalore, Karnataka is one of the top performing Indian states in the IT industry. Karnataka with its diverse agro-climatic zones is also one of the largest producers of agricultural produce in the country. The state has 10 agro-climatic zones and 6 soil types which make it a heaven for agriculture.    

The state ranks first in the production of sunflower, sapota, finger millet, cucumber, coffee, ragi and capsicum in India. Karnataka ranks second in the production of ginger, onion, tomato, pepper, maize and watermelon in the country. Apart from agriculture, Karnataka is also one of the leading producers of animal products like mutton and pork. It is also one of the top producers of fisheries, eggs and milk in India.         

Organic Farming in Karnataka

Karnataka is a pioneer in organic agriculture. Karnataka is the first state in India to come up with a separate policy for organic farming, way back in 2004.It is the third-largest state in certified organic produce. The state government aims to convert 10% of the land under cultivation to organic farming by 2022. The government is providing certificates to farmers practicing organic farming through Karnataka State Organic Certification Agency to promote organic farming in the state.

The demand for organic products has been increasing over the past few years with growing awareness about the benefits of consumption of these products. For instance, the usage of organic ginger which is seen as an immunity booster has increased exponentially recently during the covid-19 pandemic. The growing market for organic products is creating new opportunities for entrepreneurs in the processes organic foods segment.     

Food Industry in Karnataka

Food Processing Infrastructure

Supporting the food processing industries in the state, Karnataka has a robust ecosystem and world-class infrastructure comprising of cold chains and food parks. The state has 110 acre integrated mega food park in Tumkur. The state also has 150+ cold storage units with a capacity of 300k+MT.

Government Initiatives

The state government has come up with several to help industries, particularly MSMEs in the food processing industry. Here is the list of some of the initiatives:  

  • Investment promotion subsidy at 35% of the value of fixed assets
  • 100% exemption on entry tax for 3 to 5 years
  • Upto 80% SGST reimbursement for 5 years
  • 6% interest subsidy on terms loans
  • Upto 100% exemption on stamp duty
  • Complete exemption on electricity duty for 8 years
  • 75% subsidy on cost of ETP (Max. INR 50L)

Focus Sectors in Food Industry in Karnataka

The food processing industry in Karnataka is backed by the rich agricultural and animal products base. Therefore, food processing has emerged as one of the fast-growing industries in the state with huge potential in the future. Some of the major sub sectors in the food processing industry in Karnataka.

  • Diary Processing
  • Coffee Processing
  • Fisheries
  • Horticulture

Karnataka with its rich agriculture base provides great business opportunities in the food processing industry for MSMEs and large scale industries alike. While it is not a big deal for large industries to foray into food processing, small entrepreneurs find it challenging due to lack of expert guidance.

Register Now

If you are a small entrepreneur planning to start food industry in Bangalore or Karnataka, then kindly register with SolutionBuggy. We provide you access to trusted and verified food experts who can guide you right from product identification to plant setup. Till date, we have completed more than 100consulting projects in Karnataka, helping entrepreneurs in the state to explore business opportunities in the food industry.


Considering the rich raw material base of the state and business friendly policies by the state government, food processing has been a constantly growing sector in Karnataka.   

Some of the major sub sectors in the Karnataka food processing industry are dairy processing, coffee processing, fisheries and horticulture.   

A large IT crowd which is very open to try out new food sectors and cuisines. The growing urban population in the state and rise in the standards of living of people in rural areas would help the food processing industry grow manifold across India. So, the future of the food industry in Karnataka looks promising.

The state government is providing various incentives such as tax exemptions, stamp duty exemptions, electricity charges reimbursement, etc.  

It is advisable for MSMEs to seek guidance from experts to start food industry. Register with SolutionBuggy and get access to trusted and verified food consultants who can help you easily start the food industry.   

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