Leveraging the synergy between primary and secondary sectors, the government is promoting Food Processing sector in a big way.

Food processing, including infrastructure such as cold chain and marketing, helps farmers get a higher return for their produce and the consumer also benefits with higher availability of quality food items without having to pay a higher price, Secretary Food Processing in Industries Department Girija Shankar told The Hindu .

Food processing industry at lower investment has good potential for generating employment, apart from making agriculture sustainable. The AP Food Processing Policy 2015-2020 has been drawn up after studying the best policies available in the country and today it is one of the best policies available.

The Department conducted road shows on the policy and has been able to attract a large number of investors and after due diligence Memorandum of Understanding (MoU) is being signed with 64 companies at the ongoing Partnership Summit. The proposals with an outlay of Rs. 5,000 crore have the potential to create direct employment for at least 60,000 persons, the Secretary said. The Policy set a target of attracting Rs. 5,000 crore investments and generating employment for 50,000 persons over the next five years. The AP Food Processing Society, under the Department, carried out due diligence and worked with the investors before finalising the proposals to be signed in the presence of the CM. Significantly, nearly all the investments are being made by companies from within India.

The Policy has drawn up a number of industry-friendly features, including declaring Food Processing Industry a Public Utility under Industrial Disputes Act. The investors would be reimbursed costs like the land conversion fees, registration fee and stamp duty. During the duration of the policy investors can avail a power tariff subsidy of Rs 1.5 per unit.

Taxes like VAT/CST/SGST would be reimbursed depending upon the scale of operations.

The investors would also be given interest subsidy. There are fiscal incentives to investors proposing to establish Mega Food Parks, the Secretary said.