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Andhra Pradesh food processing society as a Nodal Agency

  • Andhra Pradesh, the eighth largest state in India, has 5 agro climatic zones  and with bountiful natural resources
  • The state has been in the forefront of promoting food processing industry and had declared a separate policy for its promotion, in April 2005.


  • Andhra Pradesh occupies a premier position in the country’s agribusiness industry with major contribution in agriculture, horticulture, dairy, poultry, fisheries and marine production.
  • Agriculture sector in the state contributes to around 23.3% to state’s GSDP (constant prices) in 2013-14.
  • The state is also a pioneer in use of water saving technology like drip and sprinkler irrigation.
  • Around 60% of the state’s population is employed in agriculture and related activities, which makes Food Processing one of the major thrust areas for the state.


  • The State intends to be the most preferred destination for Food Processing Industry.
  • The new Food Processing Policy aims to capitalize on the rich and diverse food production base of Andhra Pradesh to provide fillip to the sector.
  • To make the state one of the most preferred destinations for food processing sector.
  • To attract new investments worth 5,000 crore by 2020.
  • To create additional employment opportunity for 50,000 personnel by 2020


  • Identify and bridge existing infrastructure gaps affecting the food processing industry.
  • Promote innovation, research & development in the industry and ensure continuous technology up gradation.
  • Develop commodity-based clusters to enable a focused and planned approach to developing the food processing industry through a coordinated approach between government departments.
  • To enhance and stabilize the income levels of the farmers.
  • To make the food processing unit all season active and reduction of agricultural waste.


  • Andhra Pradesh Food Processing Society act as knowledge support center and is empowered to empanel consultants for pooling and dissemination of information in the food processing sector.
  • Andhra Pradesh Food Processing Society (APFPS) is the Nodal Agency for administering the Schemes under National Mission on Food Processing (NMFP).
  • It will support entrepreneurs by providing knowledge on incentives under various policies and programmes of Government of India and Government of Andhra Pradesh.
  • The knowledge center will take support from institutions such as CIPET, CFTRI, NIFTEM, NABARD etc,
  • The Government introduced a set of initiatives that will ease the compliance procedures for new and existing food processing companies like labor concessions and single window clearance for food processing units.
  • Credit at 9.5% interest to processing units set up in food parks from National Bank for Agriculture and Rural Development.
  • National Mission on Food Processing provides grant to promoters for establishment or modernization of food processing units.
  • To provide integrated cold chain and preservation infrastructure facilities.

Government Incentives

  • 100% reimbursement of stamp duty and transfer duty on land meant for industries or mortgages.
  • There are fiscal incentives like fixed power reimbursement of Rs 1 per unit and 25% of VAT reimbursement for 5 years and 100% reimbursement of Non-Agricultural Land Assessment tax.
  • 50% reimbursement of the cost involved in the skill up gradation.

Source: APIndustries

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