GOVERNMENT OF ANDHRA PRADESH

ABSTRACT
Industries & Commerce Department – Andhra Pradesh Food Processing Policy
2020-2025 – Orders – Issued.
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INDUSTRIES & COMMERCE (PROGRAMME.III) DEPARTMENT
G.O.Ms.No.93 Dated:30.12.2020.
Read the following:-

1. G.O.Ms.No.57, Industries & Commerce (FP) Department,

dt.24.07.2015.
2. G.O.Ms.No.39, Industries & Commerce (P&I) Department,
dt.10.08.2020.
3. Minutes of Meeting (23-11-2020) approved by Hon’ble Chief
Minister, Govt. of Andhra Pradesh.

***
O R D E R:

In the G.O 1st read above, orders were issued evolving Food Processing
Policy of Andhra Pradesh State 2015-2020.

2. In the G.O 2nd read above, orders were issued for Industrial Development
Policy 2020-2023.

3. As the Food Processing Policy 2015-2020 expired, the Government of

Andhra Pradesh decided to formulate a fresh Food Processing Policy duly keeping
in view of the advantages of Andhra Pradesh like conducive agro climatic
conditions, diverse raw material base, excellent infrastructure, large Land bank
and abundant availability of skilled manpower etc., has accorded top priority to
industrial growth as a means to mitigate poverty and unemployment.

4. After detailed examination and discussions with stake holders concerned

Government approved the Food Processing Policy 2020-25 detailed below:

4.1. Aim of Food Processing Policy

The State intends to be the most preferred destination for Food

Processing Industry. AP Food Processing policy will have Farmer Centric
Vision with better price realization to the farmer.

4.2 Policy Targets

Ø Make Andhra Pradesh one of the most preferred destinations for food
processing sector.
Ø Minimizes procurement losses taken up by different Government
procurement agencies.
Ø Aims at productivity enhancement of different crops suitable for food
processing and also encourages cultivation of promising processing
varieties.
Ø Promotes packaging industry in the State.
 Ø Reduce post-harvest losses by promoting and enhancing food
processing infrastructure by increasing farmer's income.
Ø Create additional employment opportunity.
Ø Strengthening and upgradation of existing food processing industries.

4.3 Policy Objectives

• To promote Innovation, Research & development for focus crops and

ensure continuous technology up gradation by promoting new
Technology Transfer to enterprises.
• Appropriate crop planning to ensure regular supply of raw material to the
Food processing industry.
• Produces quality produce by encouraging Good Agricultural Practices
(GAP).
• To support FPOs/Cooperatives for creation of common infrastructure
along the value chain, ensures backward and forward linkages, branding
& marketing etc.
• To enhance marketing strategies by tie-up with existing dominant players
in food industries.
• To establish Agro Processing clusters closer to production areas that is
potential.
• To encourage transition from the unorganized sector to the formal sector
by enhanced compliance with food quality and safety standards.
• To impart entrepreneurship, and skill development training to youth by
establishing skill development and incubation centers in Food Processing
sector.
• Backward linkages with Rythu Bharosa Kendras/primary processing
centres for supply of raw material needed for the industry.
• Establishing market linkages/ forward linkages with commodity online
platforms.

4.4 Rythu Bharosa Kendram (RBK): with Primary Processing Centre

For the first time in India, Government of Andhra Pradesh

envisaged a new concept of Rythu Bharosa Kendras (RBKs) in all the
Village Secretariats to serve as a single point of contact / single window
system to cater to all the day to day needs of the farming communities.

The RBKs will offer up to 13 different kinds of infrastructure services

for farmers at the village level, depending on the local crop patterns and
requirements. The services include godown facility, drying platforms for
drying agricultural produce, Collection centres, cold storages, custom
hiring centres, primary processing centres, assaying equipment (to
determine the quality of produce), bulk milk cooling units, procurement
centres and e-marketing. Cattle sheds and infrastructure for aqua farmers
is also set to come up in a few select villages, as per the Government’s
plans.

4.5 Farmer Producer Organization –FPOs

The collectivization of producers, especially small and marginal farm

holders into producers’ organization is emerging as the effective possible
 pathway to address improved access to investments, technologies,
knowledge support, inputs and markets. The Government of Andhra
Pradesh has identified Farmer Producer Organizations (FPOs) as the
appropriate institutional mechanism around which farmers would be
mobilized and their collective capacity of production and marketing can be
leveraged by strengthening their capacities. AP Food Processing Society
will create a conducive environment for procurement of produce from
FPOs and also create suitable infrastructure in Agro Food Processing
Clusters so that the FPOs can plug & play their products. Government also
envisages providing minimum support price to the FPOs and also creates a
healthy and competitive viable environment for Food Processing

4.6 Focus Crops:

The Agriculture production system in Andhra Pradesh is multi

cropped with diversifies systems of both Agriculture and Horticulture
Crops. Among these crops, Government has identified some focus crops
that play major role in Food Processing sector of Andhra Pradesh.
Government is planning to promote crop wise clusters so that value chain
development and secondary Food Processing can be taken up.

4.7 Parliamentary Constituencies & Lead Crops / Products

Andhra Pradesh has 25 parliamentary constituencies spread in 13

districts of the State. Efforts are made to identify major lead crop /
product of each constituency so that emphasis can be given on these lead
crops/ product when establishing the Secondary Processing units in these
constituencies.

4.8.Thrust Areas

•Development of Agro Processing Clusters & Secondary Food Processing Units

• Formalization of Micro Food Processing Enterprises
• Development of Skill Development & Incubation Centres
• Development of Food Testing Laboratories
• Development of Seed Processing Industries
• Development of Meat Food Processing Industries
• Promotion of Food Processing in Dairy Sector
• Strengthening of Value Chain and secondary processing in Fisheries Sector

4.9. Development of Secondary Food Processing Clusters

The scheme aims at development of modern infrastructure to

encourage entrepreneurs to set up secondary food processing units based
on cluster approach. The scheme is to be implemented in areas of
Horticulture /Agriculture/ Dairy and Aqua production identified through a
mapping exercise. These clusters will help in reducing the wastage of the
surplus produce and add value to the Horticulture / Agriculture/ dairy and
Aqua produce that will result not only in ensuring MSP (Minimum Support
Price) and but also helps in higher incomes to the farmers and create
employment at the local level. Government will create the necessary core
infrastructure and enabling infrastructure in the secondary food Processing.
 Crop specific units along with required machinery will be established.
Secondary food processing units to be established in big way to process the
surplus produce of the crops that are procured by the different procurement
agencies such as RBKs and MARKFED. The procurement agency shall supply
raw material to secondary food processing industry. Secondary food
processing units will be established either by Government or by credible
and eligible players who can handle/can consume large volumes of raw
material produced and they will operate the secondary processing unit on
plug & play model. Such players will operate and maintain the processing
units and provide all necessary forward linkages. Government will enter into
MoAs with the eligible players.

4.10. Development of Skill Development & Incubation Centres

Government of Andhra Pradesh will encourage setting up of Skill

Development & Incubation Centres with the following objectives:

• To impart entrepreneurship, and skill development training to youth

• To provide mentoring, hand holding and technology support with
facilitation to promote new Technology Transfer to enterprises.
• To work with premier research institutions like IIFPT for development of
skill development and incubation centers

4.11 Development of Food Testing Laboratories

Government of Andhra Pradesh will setup of Food Testing Laboratories

with the following objectives:

• To analyze the samples received from food processing industries and

other stakeholders
• To reduce the time taken for analysis of samples by reducing
transportation time of samples.
• To ensure compliance of domestic / international standards on food.
• To establish surveillance system for monitoring the quality and
consumption of food.

4.12 Support to Food Processing Industries

• All the incentives and other initiatives laid down in AP Industrial Policy
2020-23 are applicable and implemented in AP Food Processing Policy
2020-25.

4.13 Handholding and promotion of FPOs (Farmers Producers

Organizations) in Food Processing sector

• 35% investment subsidy on fixed capital Investment limited to Rs.50

Lakhs for MSEs. The subsidy will be released only after 3 years of
continuous operation with at least 80% efficiency in all parameters i.e
employment, production etc.,

• 100% reimbursement of Stamp duty for Lease of Land/Shed/Buildings

and mortgages and hypothecations.
 • 50% rebate in land cost limited to 20 lakhs in Industrial Estates/Industrial
Parks for MSEs.
• 25% Land conversion charges for the industrial use limited to 10 lakhs for
MSEs.
• Fixed power cost reimbursement @ 1.25 per unit for 5 years from the
date of commencement of commercial production.
• 100% reimbursement of Stamp duty and transfer duty paid by the
industry on purchase of land meant for industrial use.
• Interest subsidy of 3% on the term loan taken on the fixed capital
investment for a period of 5 years from the date of commencement of
commercial production for MSEs.
· Reimbursement of 100% net SGST to Micro and Small Enterprises for a
period of 5 years from the date of commencement of commercial
production or up to realization of 100% fixed capital investment,
whichever is earlier.
· Reimbursement of 75% net SGST to medium enterprises for a period of 5
years from the date of commencement of commercial production or up to
realization of 100% fixed capital investment, whichever is earlier.
· Reimbursement of 50% SGST to large enterprises for a period of 5 years
from the date of commencement of commercial production or up to
realization of 100% fixed capital investment,

4.14 Nodal Agency

Andhra Pradesh Food Processing Society shall be the nodal agency to

implement the policy and will coordinate with other Departments,
Government of India (GoI) and other agencies and facilitate
entrepreneurs and investors in availing incentives provided under this
policy and from Government of India.

4.15 Policy validity

Food processing policy will be reviewed by a committee as and when

required.

4.16 Supersession

This policy supersedes any previous policy regarding food processing

sector by the state.

The detailed policy document is appended at Annexure-1

The Policy will come into operation from date of issue of this order and shall
remain in force for five years.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

POONAM MALAKONDAIAH
SPECIAL CHIEF SECRETARY TO GOVERNMENT

To
The Chairman, Andhra Pradesh Food Processing Society, A.P. Vijayawada.
The Chief Executive Officer, A.P. Food Processing Society, A.P. Vijayawada.
Copy to
All the PS to Principal Secretaries / Secretaries to Government, Govt. of A.P
All Heads of the Department, Government of Andhra Pradesh.
All the Collectors, Government of Andhra Pradesh.
All Departments in A.P. Secretariat, Andhra Pradesh.
The Secretary, Government of India, Ministry of Food Processing Industries,
Panchsheel Bhavan, August Kranti Marg, New Delhi-110 049.
The P.S. to Principal Secretary to Chief Minister.
The P.S. to Minister for ( Agriculture / Horticulture / Marketing/ Fisheries /
Animal Husbandry) Government of A.P.
The P.S. to the Chief Secretary.
The P.S. to the Secretary to Government & CIP., Industries & Commerce
Department.
The Government Pleader for Industries & Commerce, High Court of A.P. for
information.
SC/SF

//FORWARDED::BY ORDER//
SECTION OFFICER
 'NAVARATNALU'

'NAVARATNALU' - a agship programme of AP Government

planned to address the socio economic disparities in AP.
It is a tool for welfare and development. Food processing
sector is identied as one such potential tool in
YSR Rythu Bharosa envisaged under NAVARTNALU. Food
processing sector aims at doubling of formers income as it
creates opportunities for quality produce and value addition,
there by reaping maximum benets by the farmers.

INITIATIVES UNDER YSR RYTHU BHAROSA

Rs. 13,500 to be credited to the farmer accounts every year

Government to pay premium for crop insurance

Interest free loans to farmers

Free Bore wells for farmers

9 Hours free power for Agriculture

Power at Rs.1.50 per unit for Aqua farmers

Rs. 3000 Crs price stabilization fund and guaranteed minimum support price

Cold storages and warehouses in all constituencies and Food Processing units
wherever required

Rs. 4 subsidy on each Litre of milk

Road tax waiver for Agriculture tractors

Rs. 7 lakhs through YSR insurance scheme to the families of farmers who die

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2
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 5888 240

95 396

16348 lakh nuts

2809

2121
15263

849
1050

5076
365

1808
1002

Shrimp 2241
1182

659
29

332
2171 cr.no

SPSR Nellore 13710

850

YSR 480 1144

Fish
2992

Produce Production
Cereals 168.67 Lakh MT
Pulses 11.87 Lakh MT

Oil seeds 8.96 Lakh MT

Fruits 175 Lakh MT

Vegetables 77.30 Lakh MT

Spices 16.69 Lakh MT

Sheep and Goat 231 lakhs

Milk 152 Lakh MT

Fish 42 Lakh MT

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 Farmer Producer Organization -FPOs

RBK

Marketing
Primary Linkages
Processing

Secondary
Processing

Handling
Village level
and
Storage (Micro food
enterprises)
e – marketing
platform
Harvesting

Constituency
Technology level (Agro
Processing
Inputs Clusters)

Rythu Bharosa Kendram (RBK): as Primary Processing Centre:

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 17.34
1.46
0.76

9.58
0.224 0.052
0.76 0.96 5.25
402 cr .no
24.49 0.019
18.91 0.76
4.39
1.93 26.49 2.34

0.82
9.22
0.008 0.007 0.006
651 cr.no
0.31

331.46 cr.no 2.74 0.29

3621
Lakh nuts 7663
Lakh Nuts
1.49 14.08

EAST GODAVARI
1127 Lakh Nuts
Orissa -
Telangana - KRISHNA WEST GODAVARI
0.30

0.26
VISAKHAPATNAM
Paddy, Maize, Ginger, Mango
Jowar, Orange, Chillies, Ground Nut, Maize

KURNOOL
0.26

1.08 0.89

0.52

2.37
1.66

7.94
1.86
VIZIANAGARAM 1.56

2.45
327

5888 240
0.22

ANANTHAPURAM 95 396
0.02

16348 lakh nuts

2809
6.10
0.81

0.17
11.69
2121
0.259
15263

3.43 849

7.03 15.58 1050

1.4
8.93
5076
365
SRIKAKULAM
3.97
6
0.96 0.48
1808
1002
9.37 0.16

Shrimp 2241
1182

CHITTOOR 29
659
0.05

0.013

0.06 0.30 332

2171 cr.no 2103
0.75
18.19
SPSR Nellore
0.52
14.60 850 13710
0.95
12.55
2.04
3.41

YSR Kadapa 480 1144

226. cr.no

Fish
2992
1.45

YSR KADAPA PRAKASAM

0.61
1.37
4.34 1.36

0.33
14.74
18.22 3.19 0.57
4.0
3.76
5.02
0.52 28.81
0.40 1.51 cr.no
15.72
0.78 4.56
0.25 0.0003
1.32

Karnataka -
0.66
1.817 0.86 Tamilnadu -
Vegetables, Sunower, Sapota,
1.98
Ground Nut, Tomato, Banana, Sapota
GUNTUR
2.10 16.10 cr.no

Tomoto, Pomegranate 0.14

SPSR NELLORE 14.84
0.50
Tamarind, Turmeric

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About the Scheme:

farmers produce

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Objectives:

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







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Secondary Processing proposed

Fishing Harbours

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II. Medium Large and Mega Industries

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 Major Institutions related to Food Processing
Oraganization

INDIAN INSTITUTE OF HORTICULTURAL RESEARCH,

Bangalore, Karnataka (www.iihr.ernet.in)

NATIONAL RESEARCH CENTRE ON MEAT,

Boddupal, Hyderabad (www.nrcmeat.org.in)

CENTRAL INSTITUTE OF FRESHWATER AQUACULTURE,

Boddupal, Hyderabad (www.nrcmeat.org.in)

INDIAN INSTITUTE OF FOOD PROCESSING TECHNOLOGY,

Thanjavur, Tamil Nadu (http://www.iicpt.edu.in/)

INTERNATIONAL CROPS RESEARCH INSTITUTE FOR THE SEMI-ARID TROPICS, (ICRISAT),

Hyderabad, Telangana (http://www.icrisat.org/)

INDIAN INSTITUTE OF SPICES RESEARCH,

Kozhikode (Calicut), Kerala (http://www.spices.res.in/)

CENTRAL INSTITUTE OF BRACKISHWATER AQUACULTURE,

Chennai, Tamil Nadu (http://www.ciba.res.in/)

CENTRAL INSTITUTE OF FISHERIES EDUCATION,

Mumbai, Maharashtra (www.cife.edu.in/)

INSTITUTE OF BIOTECHNOLOGY, ACHARYA N. G. RANGA AGRICULTURAL UNIVERSITY,

Hyderabad, Andhra Pradesh (www.angrau.ac.in)

CENTRAL FOOD TECHNOLOGICAL RESEARCH INSTITUTE,

Mysore, Karnataka (www.cftri.com/)

NATIONAL INSTITUTE OF NUTRITION,

Hyderabad, Andhra Pradesh

DIVISION OF NUTRITION, ST. JOHN'S INSTITUTE,

Bangalore, Karnataka (http://www.sjri.res.in/)

INDIAN INSTITUTE OF PACKAGING (IIP)

Mumbai, Maharashtra.

Major Institutions related to Food Processing in A.P.

Oraganization

SPICES BOARD, Guntur

COCONUT DEVELOPMENT BOARD, Vijayawada

INDIAN INSTITUTE OF OIL PALM RESEARCH, Pedavegi West Godavari

NATIONAL HORTICULTURAL RESEARCH AND DEVELOPMENT FOUNDATION, Kurnool

ACHARYA N. G. RANGA AGRICULTURAL UNIVERSITY (ANGRAU), Guntur

DR.Y.S.R. HORTICULTURAL UNIVERSITY. (YSRHU) West Godavari.

SRI VENKATESWARA VETERINARY UNIVERSITY (SVVU),Tirupati

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Dr (Smt) Poonam Malakondaiah, IAS
Special Chief Secretary to Government,
Industries and Commerce (Food Processing & Sugars)
Agriculture & Cooperation, Animal Husbandry, Dairy Development &Fisheries
Department, Government of Andhra Pradesh

Sri L.Sridhar Reddy

Chief Executive Ofcer,
Andhra Pradesh Food Processing Society
Phone No.: 0866-2972223
Email: apfps@yahoo.com

Dr (Smt.) Ch. Padmavathi,

Deputy Chief Executive Ofcer,
Andhra Pradesh Food Processing Society
Phone No.: 0866-2972223
Email: apfps@yahoo.com

ANDHRA PRADESH FOOD PROCESSING SOCIETY

Vijayawada Ofce Address: D. No. 48 - 11/1-5/8, Gadde Sambasiva Rao Street
Sri Rama Chandra Nagar, Vijayawada - 520008 Phone No.: 0866-2972223
Email: apfps@yahoo.com Website: www.apfps.com

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