Food Testing Laboratories Under MOFPI: A Practical Look at Why This Scheme Exists

The Indian food processing industry has evolved significantly over the years. Earlier, success was measured by how much you produced and how quickly you sold it. Today, the focus has shifted to something far more critical—trust.

Buyers want verified quality, exporters need compliance certificates, regulators demand accurate test reports, and consumers expect transparency about what they eat. This growing emphasis on food safety has made reliable food testing no longer optional, but essential.

To address this need, the Ministry of Food Processing Industries (MOFPI) provides financial assistance for setting up independent Food Testing Laboratories under the Pradhan Mantri Kisan Sampada Yojana (PMKSY). The Expression of Interest (EOI) window opened on 21 November 2025 and remains open until 5:00 PM on 20 January 2026, giving eligible entities a defined timeline to submit their proposals.

This scheme is less about paperwork and more about building a safer, more trustworthy food ecosystem in India.

Why Food Testing Has Become So Important

Food testing laboratories do a job that often goes unnoticed until something goes wrong. They check food samples for contamination, adulteration, pesticide residue, heavy metals, microbial presence, and even nutritional values.

In many parts of the country, food processors still depend on labs located far away. Samples travel long distances. Reports take time. Sometimes, a simple delay causes missed export deadlines or regulatory issues.

MOFPI’s focus on setting up more laboratories is meant to solve this exact problem. When testing facilities are available closer to production hubs, businesses save time, reduce risk, and comply better with regulations.

What the Government Is Actually Trying to Fix

The intention behind this scheme is not complicated. India needs more quality testing labs, especially in regions where such facilities are limited.

Through this support, MOFPI aims to:

• Improve the availability of modern food testing infrastructure
• Reduce waiting time for test reports
• Support food processors, exporters, startups, and MSMEs
• Encourage compliance with FSSAI, NABL, and global standards
• Bring more private players into food safety services

In the long term, this helps Indian food products gain stronger acceptance in domestic as well as international markets.

Who Can Apply for This Scheme?

The scheme is open only to private sector entities. This includes:

• Proprietorship firms
• Partnership firms
• LLPs
• Private Limited Companies

One condition is very clear:
The laboratory must be independent and commercial.

Existing labs are not eligible. In-house laboratories set up by food manufacturers for their own use are also not allowed. The government wants third-party labs that can serve multiple food businesses in a region.

How Much Financial Support Is Available?

MOFPI provides capital subsidy support up to ₹5 crore per project, depending on eligibility and approvals.

The assistance broadly covers:

Food testing equipment

• 50% subsidy in General Areas
• 70% subsidy in Difficult Areas and for SC/ST categories

Technical civil work and furniture

• Limited to 2% of the project cost or ₹15 lakh

NABL accreditation and Certified Reference Material

• 100% reimbursement of actual cost

Laboratory Information Management System (LIMS)

• Mandatory for all projects
• 100% eligible cost supported

The structure ensures that laboratories are not only equipped but also compliant and digitally traceable.

Expenses That Are Allowed – and Those That Are Not

This part is important while preparing the project report.

Eligible expenses include:

• Food testing equipment costing more than ₹1 lakh
• Essential technical civil work related to equipment
• NABL registration fees and reference materials
• LIMS software and implementation

Expenses that are not allowed:

• Land purchase and non-technical civil work
• Vehicles
• Working capital and operating costs
• Taxes on machinery
• Small-value equipment
• Pre-operative and service-related expenses

Key Conditions Applicants Should Keep in Mind

• Promoter contribution: ( 20% for General Areas, 10% for Difficult Areas / SC / ST / Women-led units )
• A bank term loan is compulsory
• Promoter net worth should be at least equal to the subsidy amount
• Expenses before the EOI date are not considered
• NABL accreditation must be obtained within the given timeline
• SC/ST and women-led projects must maintain a minimum 51% ownership

These conditions help filter out non-serious proposals.

How Applications Are Evaluated

Applications are assessed using a marking system that looks at:

• Availability of land or building
• Financial viability (IRR, DSCR)
• Size of the project and equipment profile
• MSME or women entrepreneur status
• Location advantage in underserved districts
• Technical presentation before the approval committee

Only projects that score the required marks are approved.

Final Word

Food testing is no longer an optional support activity. It is a core requirement for anyone involved in food processing, exports, or branded food products. The MOFPI Food Testing Laboratory scheme gives entrepreneurs a structured opportunity to enter this space with government backing.

If planned properly, a food testing laboratory can grow into a regional support system for manufacturers, exporters, regulators, and consumers. More importantly, it plays a quiet but critical role in improving food safety across the country.

Planning to apply under the MOFPI Food Testing Laboratory scheme?
Speak with SDS Fin Advisory LLP for expert guidance on feasibility, subsidies, and application execution—so your project is compliant, bankable, and approval-ready.

FAQs – Food Testing Laboratory under MoFPI

Is this scheme meant only for government labs?
No. This scheme is specifically designed for private sector entities.

Can an existing food testing lab apply?
No. Only new laboratories are eligible.

Can a food manufacturer set up a lab only for internal use?
No. In-house or captive laboratories are not allowed.

What is the maximum subsidy amount?
Up to ₹5 crore per project, based on the eligible cost and approval.

Is NABL accreditation compulsory?
Yes. NABL accreditation must be obtained within the prescribed timeline.

Is LIMS mandatory?
Yes. LIMS is compulsory and fully supported under the scheme.

Is a bank loan required?
Yes. A term loan from an RBI-approved institution is mandatory.

Can state subsidies be combined with this scheme?
Yes, provided there is no duplication for the same expense.