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.

Potentials

• 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.

Aim

• 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

Objective

• 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.

Policy

• 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