Government Offering ₹3.50 Lakh Subsidy for Setting Up an Oil Expeller Unit – Complete Details for Farmers

Krishi Dunia

• 06 Dec, 2025 12:30 PM IST ,
• Updated Sat, 06 Dec 2025 06:54 PM

Farmers, here’s a major opportunity! If you want to start a low-risk, low-investment business alongside farming—one that ensures steady income throughout the year—the Bihar government has launched an excellent scheme for you.

You can now set up your own oil expeller (oil pressing) unit with a one-time investment, and the government will provide a subsidy of up to ₹3.50 lakh, directly transferred to your bank account.

This initiative aims to promote oilseed processing in rural areas, create local employment, and boost farmers’ income. If you cultivate mustard, groundnut, sunflower, sesame or other oilseed crops, this scheme can open the door to a reliable and profitable business.

Let’s understand who is eligible, how much profit you can earn, and how to apply.

₹3.50 Lakh Subsidy Under the Scheme

According to the Agriculture Department, if a farmer or organisation installs a 10-ton capacity oil expeller unit, the government will provide a 33% subsidy on the approved project cost of ₹9,90,000.
This means a grant of approximately ₹3.50 lakh will be sent directly to the beneficiary’s bank account through DBT.

The subsidy is applicable only for machinery and processing equipment.
No grant will be provided for land purchase, building construction, or shed development.

Who Can Apply? – Eligibility Criteria

This scheme is not restricted to individual farmers. A wide range of applicants can apply, including:

• Individual farmers
• Farmer Producer Organisations (FPOs)
• Farmer groups (VCPs)
• Cooperative societies
• Government and private enterprises
• Start-ups involved in oilseed processing

All applicants must submit project details and upload required documents on the official online portal.

How Profitable Is an Oil Expeller Unit?

An oil pressing unit is considered a stable and sustainable business.
Mustard, sunflower, sesame, linseed, and groundnut seeds can be processed to produce oil and oil cake, both of which have strong and consistent market demand.

A 10-ton capacity unit can produce substantial quantities daily, enabling farmers to supply local markets, mandis, and retail shops.
According to experts, such a unit can easily generate ₹40,000 to ₹60,000 per month, depending on scale and market demand.

How to Apply Online – Step-by-Step Process

To take advantage of this scheme, applicants must complete the process online. Here’s how:

1. Visit the official website: dbtagriculture.bihar.gov.in
2. Go to the Scheme section on the homepage and select the Oil Expeller Subsidy option.
3. The application form will open. Fill in details such as applicant name, address, unit capacity, machinery cost, bank details, and other required information.
4. Upload the necessary documents and submit the form.
5. After submission, you will receive an acknowledgment receipt for future reference.

The government has announced that applications are open from 3 December to 15 December.