From Coffee to Honey, Kodagu Gears Up for Food Processing Industry Growth

Kodagu gets 75 of 5,000 food units announced in State budget. (Image used for representation purpose only.)

Madikeri: Shivaprakash, Managing Director of the Karnataka State Agricultural Produce Processing and Export Corporation (KAPPEC), said Kodagu district has immense potential in food processing industries such as coffee, pepper, cardamom, cocoa, arecanut, honey, and paddy.

He stressed that entrepreneurs should file more applications under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PM-FME) scheme to take advantage of available subsidies and expand their ventures.

Speaking at an awareness programme in Madikeri on Thursday, Shivaprakash said Kodagu could even secure Geographical Indication (GI) tags for its unique products, further boosting its market presence. He explained that the scheme offers a subsidy of up to ₹15 lakh, covering 50% of project costs, which can be utilised for setting up new units or expanding existing ones. Flour mills, oil mills, bakeries, banana-based products, turmeric and coconut processing, snacks, pickles, chapati making, coffee powder, masalas, chocolates, honey, and fruit and vegetable processing were listed among viable ventures.

Kodagu Deputy Commissioner Venkat Raja, who inaugurated the event, urged residents to make full use of the support being extended by both Central and State governments for setting up small-scale industries. Referring to the Atmanirbhar Bharat Abhiyan, he pointed out that individuals could even begin enterprises from their homes, thanks to the 50% subsidy support. He emphasised the need for branding and market linkages to ensure wider reach of local products and underlined the importance of women’s participation in entrepreneurship, which he said would help boost economic growth and create jobs in the district.

The Deputy Commissioner also appreciated the exhibition of locally produced items such as bakery products, coffee, mushrooms, spices, millet-based foods, and chapatis organised on the sidelines of the event.

B.S. Chandrashekar, Joint Director of Agriculture, shared that 160 applications had been filed from the district under the PM-FME scheme so far, with only seven rejected. Since its launch in 2020-21, loans worth ₹15.2 crore have been sanctioned against a target of ₹18.13 crore, benefiting 89 entrepreneurs in Kodagu.

In the 2025-26 State budget, Chief Minister Siddaramaiah announced the setting up of 5,000 small food processing units across Karnataka, backed by an allocation of ₹206 crore. Of this, Kodagu has been given a target of 75 units.

Lead Bank Manager Gangadhara Nayak, CFTRI Senior Technical Officer Raghavendra, NABARD representatives, and other experts spoke on the opportunities in value addition and market expansion. On the occasion, the Deputy Commissioner released the PM-FME scheme brochure and distributed cheques to beneficiaries.

To advertise on The Kodagu Express website, kindly call us at 9108795369 or mail us at thekodaguexpress@gmail.com 

Join The Kodagu Express WhatsApp Group: CLICK HERE 

Follow us on Instagram and X(Twitter)