62 food processing units coming up in AP

About 62 food processing industries with an investment of Rs 524.33 crore are under active implementation in Andhra Pradesh, according to a report recently submitted to the Centre by the state industries department.

Among the major investment proposals, Vayhan Coffee Limited is setting up operations with an investment of Rs 64.86 crore while Sagar Sugars, Heritage Foods, Acalmar Oils and Fats Limited, Crown Beers International are either expanding or newly setting up plants with an investment ranging from Rs 30 crore to Rs 39 crore each.

Currently, there are 930 food processing industries covering edible oil, fruit processing, milk and food products, and seafoods operating in the state. The combined investment in these units is about Rs 3,572 crore, according to the report.

Though the state is the second largest producer of fruits and vegetables and ranks first in the production of mangoes, chillies, turmeric, oil palm and citrus in the country, the size of the food processing industry is still very small compared with the actual potential, the government feels.

To meet this gap, the state government has been trying to tap various incentive schemes available under the Union ministry of food processing industry (MFPI) to promote new units and agri-based export zones across the state.

So far, the state-level nodal agency has recommended 314 applications to MFPI for sanction of Central grant to the tune of Rs 64.38 crore. Of this, Rs 13.97 crore has been sanctioned to 47 units and 267 applications seeking a grant of Rs 50.41 crore are still pending with the ministry, the report stated.

The food processing sector, which posted a growth of 6.5 per cent in 2005-06, contributes 19.36 per cent of the total industrial production in Andhra Pradesh. The state contributes 25 per cent to the total Indian seafood exports and is stated to be the country's largest egg and poultry meat producer.