Select Language

Agro & Food Processing Policy 2015-2020

Key Highlights

  • India’s largest producer of Mango, Papaya, Lemon, Tomato, Chilli, Turmeric, eggs, fish, and prawns
  • India’s 2nd largest producer of paddy, groundnut, and maize
  • Over 3,000 food processing units in the state
  • Ultra mega food parks planned at Kurnool and Krishna districts
  • Top ranked state in marine exports
  • Upcoming aqua mega food park at Bhimavaram,West Godavari
  • Multi-product food park at Chittoor
  • Spices park at Guntur
  • Dry spell mitigation through deployment of 15,000 rain guns

Agro & Food Processing Policy

Key Policy Targets 2020

Key Initiatives

  • Develop commodity-based clusters in State
  • Promote innovation, research & development in the industry
  • Undertake capacity building and enhance competitiveness of food processing industry

major clusters / parks

  • Ultra Mega Food Park to be developed in Kuppam with state-of-the-art infrastructure
  • Development of Mega and Integrated Food Parks proposed
  • Inland Container Port (ICD) at Chittoor and Kakinada ports
  • Proposed Mango Development Board (Tirupati) and Banana Development board

Key Fiscal Incentives



  • Grant of 50% of project cost for setting up Mega Food Parks, limited to ₹ 50 crore
  • Grant of 50% of project cost for setting up Integrated Food Parks, upto ₹ 20 crore
  • VAT/CST/GST reimbursement for Integrated Food Parks during construction period for 2 years, upto ₹ 2 crore
POWER SUBSIDY ₹ 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
  • 25% of project cost (includes plant & machinery, technical civil works), limited to ₹ 5 crore for establishment of new food processing units
  • 25% of new/upgraded equipment cost limited to ₹ 1 crore for technology upgradation
  • 50% for setting up Primary Processing Centres (PPCs) and Primary Collection Centres (PPCs), limited to ₹ 2.5 crore
  • 35% for setting up of cold chain for agriculture/horticulture/dairy/meat produce, upto ₹ 5 crore
INTEREST SUBSIDY 7% per annum on term loan for fixed capital investments, for a period of 5 years upto:
  • ₹ 2 crore for food processing units and cold chain infrastructure
  • ₹ 1 crore for setting up Primary Processing Centres (PPCs) and Primary Collection Centres (PCCs)
  • For Integrated Food Parks that avail loans from NABARD, interest subsidy will not be applicable
  • For micro & small units – 100% reimbursement of net VAT/CST/SGST for 5 years
  • For medium units – 75% of net VAT/CST/SGST for 7 years

Existing Partners

Upcoming projects