Onion Dehydration Unit for ₹30 lakh: Cost & Subsidy (2026)

As per the government model report, the basic Onion Dehydration Unit (500 kg onion/day) costs ₹30 lakh. A plant to make onion flakes and powder. 35% subsidy, max ₹10 lakh (PMFME) — up to ₹10 lakh supp

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Onion Dehydration Unit for ₹30 lakh — understand the risk first
Onion Dehydration Unit · Basic unit
₹30 lakhto start
500 kg onion/dayCapacity
35%Subsidy
90%Bank loan up to
In 60 words

As per the government model report, the basic Onion Dehydration Unit (500 kg onion/day) costs ₹30 lakh. A plant to make onion flakes and powder. 35% subsidy, max ₹10 lakh (PMFME) — up to ₹10 lakh support; your share is about ₹3 lakh. At the report's prices this unit is still in loss in year 3 — don't start without changes.

Source: NIFTEM PMFME DPR – Onion processing unit · Utkrishi Team · 01-10-2026

01Where will the money come from?

Total cost ₹30 lakh

₹3 lakhYour share10%
₹17 lakhBank loan57%
₹10 lakhSubsidy33%

From your pocket only ₹3 lakh — the subsidy is credited to your loan account.

What does the money go into?

  • Building/civil₹2 lakh
  • Machinery₹20 lakh
  • Other/remaining cost₹8 lakh

02Income or loss?

The government model shows a loss. At the report's prices this unit is still in loss in year 3. Go ahead only with cheap raw material, a fixed buyer or your own brand.

Profit depends on these 3 things

  • Raw material/input prices in your district
  • At what price and to whom you will sell
  • How many days a year and at what capacity the unit runs

035 steps to start

  1. Get trainedLearn the work, find buyers
  2. Prepare the siteShed/room, power, water
  3. Get a DPR madeProject report as the bank needs it
  4. Apply for loan + subsidy35% subsidy, max ₹10 lakh (PMFME)
  5. Produce and sellAfter fixing numbers with your prices
Watch the video: Onion Dehydration Unit
Watch on YouTube @utkrishi

04Who is it right for?

FPOs in onion areas
People with firm orders from exporters
Entrepreneurs with large capital and experience

053 mistakes that cause losses

Producing without a confirmed buyer
Raw material becoming costly when onion prices rise
Underestimating power and fuel costs

06Frequently asked questions

Why does this model show a loss?

At the government report's prices, onion and drying costs are higher than the selling price. You need cheap season onions and a confirmed buyer.

What government support is there for the Onion Dehydration Unit?

35% of eligible cost (machinery, technical civil work), max ₹10 lakh; linked to a bank loan, not on working capital.

Should I start this unit?

The government model shows a loss. Go ahead only if you have cheap raw material, a fixed buyer or your own brand.

Onion Dehydration Unit — Want to start?

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Source: NIFTEM PMFME DPR – Onion processing unit · PIB – PMFME
Last checked: 01-10-2026. Figures are based on government model reports and are indicative; get fresh quotes and local prices before the DPR. The bank decides the loan/subsidy — we help you prepare. Depends on the scheme continuing.
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Utkrishi Team

Utkrishi – एग्री बिज़नेस, DPR, सब्सिडी और बैंक लोन में मदद। +91 90961 12806