Agro & Food Processing
Overview of India
₹84,520 crore
(US $ 15.5 billion)
contribution to the GDP in 2012-13
8.4%
year-on-year growth rate from 2008-13
₹23,846 crore
(US $ 3.9 billion)
Foreign Direct Investment inflow to the sector during 2013-14
5th
in the world in exports, production, and consumption
1st
in the world in production of banana, mango, papaya, chickpea, garlic, ginger, and okra
2nd
in the world in production of sugarcane, rice, potatoes, groundnut, dry onion, green pea, pumpkin, gourds, cauliflower, tea, tomatoes, lentils, wheat and cow milk
₹2,28,092 crore
(US $ 37.7 billion)
worth of processed food exports during 2013-14
12%
of India’s total exports is processed food exports
42
mega food parks
set up with an investment of Rs 9,800 crore
121cold storage projects
set up to develop supply chain infrastructure
Destination Andhra Pradesh
Agriculture
2nd
in India in production of paddy, groundnut and maize
Horticulture
1st
in India in production of mango, papaya, lemon, chilli and turmeric
Livestock
1st
in India in egg production and a strong position with respect to milk and meat production
Fisheries
2nd
in India in fresh water fish production and overall fish/prawn production
23.3%
of GSDP of the state in 2013-14
comes from agriculture and agriculture related activities
60%
of the population in state
engaged in agriculture and agriculture related activities
10 lakh acres
of land bank available for setting up manufacturing facilities
Andhra Pradesh Food Processing Society (APFPS)
established to support entrepreneurs
Mega and integrated food parks
planned to be developed in the state
Inland Container Depot (ICD)
to be set up at Chittoor and Kakinada Port
1st
in ease of doing business
by World Bank
Excellent logistics and reliable infrastructure available
Skilled labour workforce available
Drivers of Growth
100%
Foreign Direct Investment
permitted in agriculture and agriculture related activities
Focus on supply chain infrastructure development
Grants and subsidies
Available from GoAP for setting up and modernization of food processing units
Rising income levels and a growing middle class
increased demand for branded and packaged food
Key Policy Targets
₹5,000 crore
(US $ 0.8 billion)
worth of new investments to be created by 2020
50,000
employment opportunities
to be created in the sector by 2020
Key Fiscal Incentives
For ultra, mega, integrated food parks
  • Grant of 50% of project cost for setting up mega food parks, limited to INR 50 crore
  • Grant of 50% of project cost of setting up integrated food parks, up to INR 20 crore
  • VAT/CST/GST reimbursement for integrated food parks during construction period for 2 years, up to INR 2 crore
Power subsidy
  • INR 1.50 per unit for food processing units including cold chains, cold storage units, ripening units for 5 years from date of commencement of commercial production
Capital subsidy
  • 25% of project cost (includes plant & machinery, technical civil works), limited to INR 5 crore for establishment of new food processing units
  • 25% of new/ upgraded equipment cost limited to INR 1 crore for technology upgradation
  • 50% for setting up primary processing centers (PPCs) and primary collection centers
Interest subsidy

7% per annum on term loan for fixed capital investments, for a period of 5 years up to:

  • INR 2 crore for food processing units and cold chain infrastructure
  • INR 1 crore for setting up primary processing centers (PPCs) and primary collection centers (PCCs)
  • For integrated food parks that avail loans from NABARD, interest subsidy will not be applicable
VAT/CST/SGST
  • 100% reimbursement of net VAT/CST/SGST for 5 years
  • For medium units – 75% of net VAT/CST/SGST for 7 years
Partners
Existing
Heritage
Super Spinning Mills Limited
Pepsi
Kellogs
Mondelez International
AS
Godrej
Agrovet
Godfrey Phillips
Pennar Aqua Exports
Upcoming
Avanti
Ruchi
Olam
Malpuri Aqua
Charoen Pokphand Group
Penver

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