Pe 7) ra fa} < 4 a < [+4 pS Qa Pa r¢ im [e) re Zz 7 = 2 a i) 4 ° oO‘Andhra Pradesh occupies premier position in the country’s agribusiness industry with major contribution in agriculture, horticulture, dairy, poultry, fisheries and marine production. Around 60% of the state's population is employed in agriculture and related activities. Government of Andhra Pradesh (GoAP) accords top priority to the development of Food Processing industry for catalyzing growth of agriculture and allied sectors, promoting entrepreneurship, generating employment and improving standards of living. Food Processing Policy 2015-20 aims to make Andhra Pradesh the most preferred destination for Food Processing industries and generate new employment opportunities for at least 50,000 personnel and attract new investments of at least & 5,000 crore in the sector by 2020 in Andhra Pradesh. Development of the Food Processing industry is predicated on base of high raw material production, conducive climatic conditions and fertile river systems. Andhra Pradesh is number one in India in production of mango, papaya, lemon, tomato, chili, turmeric and eggs, and amongst the top three states in terms of production of banana, cashew, coconut, milk and meat. Apart from high raw material production, Andhra Pradesh also boosts of robust infrastructure, excellent logistics, large land banks and abundant skilled manpower. Food Processing Policy 2015-20 proposes a holistic package of incentives encompassing the complete value chain of food processing industry. The Government seeks to establish integrated Food Parks in all districts of Andhra Pradesh. A commodity-based cluster development approach for food processing industry, based on the food production strengths of respective geographies will be adopted. There will also be thrust on Research & Development, Quality Certifications and skill development initiatives in the sector. | am certain that the Food Processing Policy 2015-20 would provide a fillip to the sector and propel it as engine for growth, innovation and entrepreneurship. Join us as we embark on the growth trajectory of Sunrise Andhra Pradesh. Hon'ble Chief Minister of Andhra Pradesh24X7 AAGR ANU AP APERC APFPS. APSSDC CFTRI CIPET DIC ETP FDI FIPB FPO GDP GLP GMP Go GoAP Gol GsDP Ha HACCP. TALA 24 hours a day; 7 days a week Average Annual Growth Rate Acharya Nagarjuna University Andhra Pradesh Andhra Pradesh Electricity Regulatory Commission Andhra Pradesh Food Processing Society AP State Skill Development Corporation Central Food Technological Research Institute Central Institute of Plastics Engineering & Technology District Industry Centers Effluent Treatment Plant Foreign Direct Investment Foreign Investment Promotion Board Farmer's Producers Organization Gross Domestic Product Good Laboratory Practice Good Manufacturing Practice Government Order Government of Andhra Pradesh Government of India Gross State Domestic Product Hectare Hazard Analysis & Critical Control Points Industrial Area Local Authority LIST OF ABBREVIATIONSINTRODUCTION TO ANDHRA PRADESH Oe oR oN cee eco aa) Penn ou ee Ree COLE ae Poe Re eee eee ree ea a nog 4% of country’s population, residing in 4.9% of country’s geographical area LT eae Ca ect Cee ce bauxite, and a number of minor minerals), fertile land and river basins, water resources, extensive canal system and conducive agro-climatic conditions. The State has the second longest coastline in India and is also rere ae ee ee aU et acs 06 | Food Processing Policy 2015-20 Pe ne RRs fares Mem (Ch ge ec Co Eo WE Race POE ret) a and 2012-13, the average annual GSDP growth eee Ur Ne Musee EOC Ea ge cnc eat na ae) ee eee RRP RCC OSES BUT el aes Coc PP aD 25,20,030 crore and the target for GSDP in PES ROR el Ree eC ony See La eenwi 2.1 Market Overview Phe ire Peta ets A eat ae eRe g years, Availability of raw materials, changing lifestyles and appropriate fiscal policies have given a considerable thrust to industry's growth Soa ae eee Rica a Cue eet UR rece Sere Rasa Rec importance to reduce wastage of agricultural raw materials, ed pee ee ie tree et seer enn aire Re eee tee eee eae ete aad See Sueur tae Men en Rss Ter cc Mee ULM an re eae ee ie cen acy Bee eee ete ee eee megane a nag Oe nae ete ecko Coa Me ei Cr Gee ae) LTURAL VALUE eee ete ayPee eae cA es ecu ti Bree ie ieee au hee Ree al is acd Boe RCo ea ater ed Pac Pet tne ee oe ee aR kg Ce ea een ACCC ke eR Rm Ree alle) PSC! PRC eer Oot ese Man PES Ter et) Rec ae eee eure ace EPAT| constituting 12.1% of India’s total exports. Export of processed food & related commodities (USS million) Set 36,212 sites Ere Ed aed Pr) ren Eo) ae fos} ics} co o ceed 2010-11 2011-12 Bree) ae rae ee Ne ote Dea era sri eect Ae eee uta tek: tures Peete ad eC nn uit ReMi etre TRUE eI? DR eae eg eed et ‘excellent infrastructure facility in food processing sector opens up various opportunities for private investors. Ce eset eR Ree ea Reset ie) ee ela el eel ee Rl) Cee cd Se OC ean se Rue ae ce Serco Cee nome eee a. Considering very low processing levels in India, MoFPI has rolled out several initiatives to increase processing levels from 15% in Pie RS abs b. Special fund of £2000 crore has been set up in NABARD, announced in the Budget of 2014-15 to provide affordable credit Ores eee ene Rs ec ec eS ee ee REYr © | ‘Tn 3 jf = |. 100% FDI is permitted,via automatic rout jost fgod Bs eee aCe Es nd Dee rad SEL et cas Pee eademer Banana, Oil Palm, oe ac ee ir Dasey A. solotedievargidy cae cata decane ay Gye eee ye Cot Ae eS ara Peat tat ae ede Brice i) eal Cte at aan se ee a | Renae eect Se ae at nS Pe tava Maia edeoo nuit was cola ‘ We cagaun’ Cring au tits bale acd Wid ye ea A Pe eae Meg rf “A CEN PO eae te a | A Meare rore pene et cen erin Mave ec Wa Sy AMC occh uch. bs feet Ree au Pte i a cu al tle tones aie ee oon ans i) \ er athe iy Me UCU ’ ‘ . scare Vey aan i Cee oan ee ne aSNe. ener ieee eae Andhra Pradesh is also popularly known as the ‘Rice Bow! of India’ owing to the large amount of rice grown in coastal plains of this cic Andhra Pradesh ranks second in India in production of Paddy, feta EUS eee eet tat ae Ie ae Andhra Pradesh in groundnut is much lower than the national average productivity. Crop Area (in Mion ied 258 | 13.91 EF) aa a Cora ee) cr) cr) 2 ney Cees) GO Po a ee cr 68.50 iG Rank in India iii. Andhra Pradesh ranks first in India in production of Chili and Turmeric. SNe. Crop Area Production Prodi ‘al Rankin India % Contribution Rank in Ind (inMilion (aMilion in AP Average intormsof —tolndia's—_in torms of Ha) Me). (Tonee/Ha) Productivity Preduction Production Productivity (Tones / Ha) es ere) Ey) ry 4 rd A a oy io Ex ol rar] 4 Caen testo Oe oa Ren occa ote Pees eR eee ee cee Cre ET ere ou na kes ee toe Papaya, Lemon and Tomato. Area Production Productivity National_Rank in India (inMilion Gn Millon interms ) M Product Menge ry Paz) oD zy 1 oe rene cy rd 4 ed ed ro cx) ol cao Cee Ey Py fl ore Oe ry 7 2 oma’ Coenen rz) g oe Oren 35 302 Fy Onion Oe) 18 nz) G % Contribution rr Pa Pro 179% crea eo rer 5.0% Rank in India PVT Macrae i. Andhra Pradesh ranks first in India in Egg production, and has strong position with respect to milk and meat production. a India (Production in AP anki india millon M.T) (Production in {intorms of Production million MTs.) Hi Ey eta rr Hi Fy ie A Or Fy 5 a a Crevit) 5 Deez) CU Congr eee ee Eee Me Re eR ee ee cc i. Andhra Pradesh enjoys a diverse agro climate (5 agro climatic zones) with 8.45 million hectares of net cultivable area and an extensive irrigation network. ii, The State has a large and diverse raw material base suitable for food processing Eta Caza CC i. State's fertile river systems like Godavari, Krishna, Tungabhadra, Vamsadhara and Penna can easily meet needs of Agriculture and Food Processing Industry. ii, Andhra Pradesh is also a pioneer in use of water saving technology like drip and Pet eae eeu oer o eeeeen seeRee ee eeea 7 af . a nr ene hcas Sera a Pe eee aes eee kerr eee eee ieee Lie] jing the food processing industry through a aoa government departments. eect ieee Sie eR] jon, research & development in the industry and ensure ST roa eA RC Coa * Vee sgt Peat nae teay ee accede ee ee eae aera es at te Ge SC DAT Aquaculture & Marine production is covered under the purview of ean Le Mare eRe Re Ce Cm ue eel Ra 24 | Food Processing Policy 2015-20 Food Processing Policy 2015-20 | 2510| EASE OF DOING BUSINESS The Government shall introduce a set of initiatives that will ease the compliance procedures for new and existing food processing companies. a) Labor Concessions: Subject to applicable laws, the Government will give permission to the food processing industry for 24x7 (three shifts) operations, employment of women in the night shifts, flexibility in employment conditions including working hours for women and shorter or longer shift timings and hiring of contract workers. Food processing will be declared to be a ‘Public Utility’ under the Industrial Disputes Act, 1947 in order to prevent flash strikes. b) Single Desk Clearance: GoAP has created an e-platform for facilitating all industrial clearances in 21 working days. This platform shall integrate requisite pre/post commencement services and clearances provided by multiple state agencies/departments through the investment lifecycle. Other similai ives as per the Industrial Policy 2015-20 would be applicable to the food processing sector. ee eee eee]11| FOOD PARKS Eyl emer oR egR oN oN i lege eRgelers ace] districts of Andhra Pradesh. These Integrated Food Parks will ee eee een ed i. Integrated Food Park: The Minimum area of each Food Park will be Seem Roc ere Reece cee POE ened eet a eet Ree Reh eecace ESOS ay ue eee an Oa TRS AOR eet ices nee Teper GATT CNT CE eee ce ae ea omnia S4-('Koigel ce Pe erent et acre. htt eee oC Once) eee ae Ce cee a eae ee) plug-and-play facilities to industry. For this park, incentives eters Roe ic ete > The grant of 50% as per the clauses 11(a), (i), (ii) and (iii) above, would be PCE ets os Cae teen O EeOe Cte ee uc mandatory requirements in an Integrated Food Park: Pe ace eee Tce Ta ccaet ag Paco n es Maecenas MCUEe eRe nag ens Benya Pe ae Me noe a Peery) ¢) The other eligible / desirable components for Green UN Ss ec Re ea i. Central Processing Center (based on specific cluster) |. Multi Chamber cold storage Tc aot ace 4d) The developer must also establish an Anchor Unit in the Food Park to be eligible for this incentive. The components to be included in the project cost for Food eet Re aa ecient oe other eligible/desirable components (if applicable), but excluding cost of land, ee en eee Re eR SCC E aes €) Units established in the Food Park, including Anchor Unit, will be eligible for all Cement Se Se Ts clea reno oa f) GoAP to provide VAT/CST/GST reimbursement for Integrated Food Parks during ete | eae eae ee I Rae Ree mene an Maurer Er aS oa etc) ee eon eer eee sont Rete ann fee eee eee DC een cur eee ce cee Cnc oe Cee een ean UC MLR tea Dee cat colo 2015-20 will be applicable to the food processing sector.7 ce. +, -- ee in es aoe Ree oe oan Ra elec i ca ry ” Bani) a gers a . b - 7 oa ae = os 5 pe a Ua LR x a . . Ee — . ee SE en ae vi : a = . ees ie ce a eee ee v co “OER Oa p ca , = A Spices, Vegetables Krishna, Guntur Pe a ot ; : ‘ > a Pe hones ty b . Ce a a ee eae x Sige Va Pa i eck ue ay is hinges EN OT aa ad . r Be cet ei ce cen pS Cicer: fous SS i ee eee 5 eS ee EE RC Ce meu Cre oa aaa Kumool Pe q ro ' Kurnoe! Fa Orc ad cere ae Cae h ' or. r oon Co x i i ceo fr %* arma, be Ere ae J Peon geete i tiee) We Beene Rea Rt aa ical practices, Vi oe Cot ecR a Cuctced Owe ese unease art i f cae a oe \P shall encourage high density, cr Soke rs , Se eis co Meek i z a in the identified clu “e +h) G Se ne te mtn bi he a a " ae 38 | Food Processing Policy 2015-2013| INFRASTRUCTURAL SUPPORT PR oa gelele terete em Se een A gee ig) B. Power: Food processing industry requires uninterrupted power supply. Pte Neri N Ceuta lig Pee Ere N Et Rea CLG unt Roe) lees a) Reis etoN amc a eae are ee a cae) s including cold chains, cold storage units, ripening units for a period of = | eee te teen Re Ree Tce aoe Seder oc Sea Op a cen eons (Oe Nee oie rae ee ae nn electricity demand charges during the closure period. ii. Electricity duty will be exempted for captive power plants for Se ee ee en ceed Cee Ree one ed aCe es Pa a os fl " . Ce enc oem oeCots AY =) For the purpose of availing incentives under this Policy, a minimum of 10% Oe ame eek Rl: ie Me RC MCR emits a) Land Conversion charges If conversion of land for setting up Food Processing unit is permitted DR ens cae i cry GRU ee Nee coe eeconna Rao cam b) Capital subsidy Pees ect eT IC capital subsidy to an extent of 25% of project cost (includes plant & Buea y oe hk ec ce eR SNe eee aC oS ee he Pee Re GR ie Cet ee ce Pe CER cata ae a oo Ete) iil, GoAP will provide capital subsidy of 50% for setting up Primary Processing Centers (PPCs) and Primary Collection Centers (PCCs) limited Ona Tacos iv. GoAP will provide capital subsidy of 35% for setting up of cold chain for Se yy eee aera et oe Read cece Nae ese eee ce ea keyg under this Policy, only if capital subsidy has not been claimed under any, GE ae a ue mie en ae ae eRe a Ree ee production within 12 months for MSMEs, and within 24 months for large ioe ec gee te We er Sere Uo OM ieas a 7 aces eee een es cae cea Interest subsidy of 7% per annum on the term loan taken for fixed capital investment, for a period of 5 years from the commencement of RMU uT Mao For Primary Processing Centers (PPCs) and Primary Collection Centers {PCCs), GoAP will offer interest subsidy of 7% per annum on term loan taken for fixed capital investment, for a period of 5 years from the commencement of operations, with a maximum limit of 1 crore. IR Mo ele CR aC aT Cor oD ee oy will not be applicable. Food Processing Policy 2015-20 | 43x OR an UL De ae aoc une ge Pao eee Pe eee eae Reh Cena eel eee ee sea area tee at Regu UR ue eee COMES L Roly reimbursed for a period of 7 years from the date of ‘commencement of commercial production or up to realization of Seabees ie orn oc elec Mee A oR Role A UO oe Ll Ce eee a aCe commencement of commercial production or up to realization of 100% fixed capital investment, whichever is earlier, Osea eee Tee hic uC od RUEy industry on purchase or lease of land meant for industrial use. ii. 100% reimbursement of stamp duty for lease of One et Reece es il, All the reimbursements shall be processed within 6 months ) APMC cess/fees PCR Te On oe eRe on eae Rm CoC ees ce agriculture / horticulture produce directly from farmers. This will Pee eee ee ear are Ree een eS mics eee ee)15| SKILL DEVELOPMENT INITIATIVES a) GoAP has set up APSSDC on lines of the National Skill Development Corporation (NSDC), a not-for-profit company under the Companies Act, 2013. APSSDC will provide funding to build scalable, for-profit vocational training initiatives. It will also enable support systems such as quality assurance, information systems and train the trainer academies either directly or through partnerships b) Universities in the state will be encouraged to commence courses in food packaging, food testing & quality, procurement, food processing and such allied fields. ©) GoAP will encourage setting up of training centers in commodity-based cluster development initiatives of the state. Additionally, GoAP will reimburse 50% of cost involved in skill upgradation and training local . manpower limited to 25,000 per person in such training centers. Food Processing Policy 2015 Seen‘b) GoAP will provid rete 7 Dense) Een e]naan Ee versity (ANU) in Guntur, Tirupati and Andhra Univers Ve ee eae Ete)My mm y He My I, ih ea TI F Fr ie ill Hh yy i] ey a OIRS ys s — LS Gree eee Tae Preset! r Cee yee ene eee eee ~ Food Processing Policy 2015-20 | 5520| SETTING UP OF MANGO DEVELOPMENT BOARD AND BANANA Pe) Sas BOARD Andhra Pradesh is home to a variety of mangoes. The State ranks at No. 1 fel eee RC MPN Clea la Lele Co le ACMI Le-1c-16) Poe ARE UUNE Ne ae eect ene Cee ei eae OM a wea erat sc ML) ee eigen hie eur cra es RRR mere PARC n ancien We: emia iar oo a Peyeias will explore with Ministry of Agriculture, Gol for setting up a Mango Seas Development Board at Tirupati on the lines of commodity boards like Spices Board, Coconut Board etc a ooo E ea Pee Lo eee Icy| ee eee eee ee eee eke Ronen eae ie ea na tae nee ee ee highlighted below: | acs) Palp, Concentrate, Juice, Squash, Tandra/ bar, Pickle, Ja, Jelly, Candy, Dehydrated Slices, Mango Frozen, ete EARLY ee ee ee Meee ae Earn Papaya Puree, RTS ice, Fickle, Jam, Jelly, Squesh, Concentrate, Tuy Fray ete EC ee et ae ee Eat Pore ei) mc coon Water, Mk, Milk Powder, Desiccated Coconut, Chips, Candy, Flour ete Poors Pete te POMEGRANATE | RTS Juice, Jam, Jelly Frozen Avil, Pm EL ees ac) Concentrate, Tamarind Slabs Pulp, Paste, Concentrate, ete Pars) ooo meena ENTE ere ieee ERS oul Diced Carrot aru Seo eee eng Sree Ren eee Pee Powder, Turmeric Dried Rhizomes, Curcumin cele ae Ae Ue CoC ace 2.SUGARCANE | Raw Sugar, Juice Ema Sn eek es Beh Uo ee Reda hae ake Eid Sere ee note ea ree | a cen ced Mill, Curd, ete. al EGG Eerie b) MEAT, CHICKEN | Meat processing, Chicken processing Eee Loca Annexure II - LIST OF INELIGIBLE FOOD PROCESSING INDUSTRIES ccs h ci b) Packaged Drinking Water Cenc Cs an Mc Lae ST ene Brod Peta ce elena ay h) Pan Masala, Supari, Gutka i) Groundnut Oil Expellers, excluding Refineries tence es Nae geese ace 1 et Ray eee LeeCocoaC. Other incentives Cnet rtg © Milk, Milk Products, Vegetables, Nuts and Fruits (Fresh Pe ros iy Oe ee hc eae Ce ees erecta Pree ess De nee Mee etn installation of cold storage, cold room or refrigerated vehicle, for the preservation, storage, transport or eee ere tee een ee ed ‘© Pasturing, drying, evaporating, ete. machinery used in Ped ner '* Machinery for the preparation of meat, poultry fruits, nuts or vegetables and on presses, crushers and similar machinery used in the manufacture of wine, cider, fruit eee ee Sd eee 10% to 6% Setting up and operating a cold chain facility Setting up and operating warehousing facility for storage of agricultural produce Be ay pent ee allowed only for the Tetueaar tl Pet ee eee eee er pdyeien beelit) ' ’ ' eS Setting up and operating a warehousing facility for eat eee ee Le en ee packaging of fruits or vegetables, meat & meat product, poultry, marine or dairy procluets for the first 5 years’ of Sie ees cl ree eects Sas oon Cen g earn’ Oe Re Rec mc oun Se ee RC eee caer eee eee eae Dee es Dee eu ee meu Cee ee ere ced Pe eect ene te Oe ee Coe ces Neue ae cree teed De eee eo ae waxing, retail packing, labeling of fruits and vegetables © Services by way of transportation by rail or a vessel and Ce a ey agricultural produce and food stuff including flours, rice, pulses, tea, coffee, jaggery, sugar, milk, milk products, ee eee eee eee ered iho ble project cost Pi aera peo 62 | Food Processing Policy 2015-20 Cees Es)