Govt's major drive on food processing industry

The Andhra Pradesh Industries Commissionerate has taken up a vigorous campaign in all the districts to woo entrepreneurs to set up food processing industries and boost exports of processed food items and to check the flood of foreign food items into the country and state.

At a seminar on 'Awareness Programme on Food Processing Policy' organised by the District Industries Centre in association with Agri Gold Foods and Spices here on Thursday, Industries joint director B Suresh Babu said that industrialists needed to send just an application for a food processing industry of their choice and it would be immediately sanctioned, without the hassles of inspections.

The new industries would be charged a power tariff of Rs 1.75 per unit for five years, dispensing with the existing tariff of over Rs 3.50.

"Once a food processing unit is sanctioned, both the Central and the state governments would heap on the entrepreneur many 'step-wise' subsidies and incentives instead of the present one or two subsidies. Market cess will not be collected from them. The State Finance Corporation will give them liberal loans with reduced interest rates," he added.

"The following food processing industries were identified as having enormous export potential. Processing of fruits and vegetables, fruit based ready to serve beverages, tissue culture laboratories, green houses, green house nurseries, mushroom laboratories and modern and scientific seed production have been spotted as eligible for subsidy under horticulture," he said.

"Food grain milling processing and units for blending alcohol with fuels have been selected under agriculture. Dairy products, processing of poultry, eggs, meat and meat products are marked for subsidy under animal husbandry. Fish processing units including that of shrimps have been chosen under fisheries," he added.

Suresh Babu said eligible agro food processing industries included bread, oilseed meal (edible), breakfast foods, biscuits, confectionery including cocoa processing and chocolate, oil expellers and refining, malt extract, protein isolates, high protein foods, weaning foods and extruded and other ready to eat food products.

"Non-packed food items served in hotels and restaurants have been omitted from the subsidy list. The allied industries, declared eligible for subsidy, are cold storages, refrigerated transport vehicle containers, biotechnology units and industries manufacturing packaging, canning, and bottling, additives, preservatives, colours and fragrances for processed food industry," he said.

The state government also gives entrepreneurs 10 per cent additional subsidy, reimbursement of 50 per cent stamp duty incurred on land registration, interest subsidy up to Rs 2 lakh on working capital and interest subsidy up to Rs 2 lakh against 50 per cent of installed export capacity, he said.

The other sops are subsidy for mechanised grading, sorting and sizing machines, up to Rs 3 lakh for packaging of export products, up to Rs 2 lakh subsidy for mechanising dryers, refund of input tax on exports and freight subsidy up to Rs 2 lakh per annum.

Small units with an investment up to Rs 15 lakh can get single window clearance from the District Industries Centre and large and medium units with investment over and above Rs. 15 lakh can get clearance from the Commissionerate of Industries in Hyderabad.

Committees have been formed at the district and State levels to expedite clearance of applications from entrepreneurs, he added.

"The Central government is keen on developing food processing industries on a massive scale as the World Trade Organisation (WTO) pact removed barriers on imports and exports of processed food items, opening up domestic market to unhygienic foreign processed foods, and our exporters to stiff competition in the international market. The Central subsidies vary from 25 per cent to 50 per cent, ranging from Rs. 35,000 to Rs. 4 crore."

"The government has solicited cooperation of non-governmental organisations and private companies for successful implementation of the programme," he said.

"The backward and forward linkages play an important role in the development of food processing units. While the backward linkage helps entrepreneurs to get supply of raw materials through contract farming, the forward linkage will find customers for their products through reputed consultants," he added.

The Centre will also provide training, technology upgradation and research and development for the benefit of entrepreneurs."