Telangana Food Processing And Preservation Policy

The Food Processing and Preservation Policy is an initiative by the state to leverage its agricultural resources. This policy seeks to amplify the capabilities of the state in processing the output from the agriculture, horticulture, animal husbandry, dairy, and fisheries sectors, especially with the growth in the state’s irrigation potential. It envisions the development of rural areas by integrating producers into the value chain through various incentives and infrastructural provisions.

Policy Objectives

01.

Process the augmented production from various agricultural and allied sectors due to increased irrigation.

02.

Offer infrastructure, monetary incentives, and support for producers, collectives, FPOs, and SHGs to establish food processing enterprises.

03.

Boost rural economic activities and employment through the food processing industry, targeting the upliftment of vulnerable groups like women, SCs, and STs.

04.

Encourage the establishment of food processing enterprises for local demand fulfillment and enhancing export potential.

Action Plan

  1. Develop Special Food Processing Zones (SFPZs) ranging between 200 to 1,000 acres each, summing up to 10,000 acres in alignment with the state’s cropping pattern.

  2. Set up special zones dedicated to the integrated production and processing of meat, fish, dairy, and poultry.

  3. Dedicate 30% of the SFPZs’ total area to warehousing, logistics, marketing, and export-oriented functions.

  4. Establish “plug and play” infrastructure in the SFPZs for local entrepreneurs and marginalized groups.

  5. Offer exclusive financial advantages to units in the SFPZs with added incentives for SCs, STs, minorities, SHGs, and Farmer producer organizations.

  6. Customized benefits for large-scale food processing and retail projects that procure in bulk from the state’s small and medium food processing enterprises.

Policy Provisions

Capital Subsidy

35% capital grant-in-aid up to Rs 5 Crores with additional grants for SCs/STs, minorities, SHGs, and FPOs.

Power Rebate

A rebate of Rs 2 per unit for 5 years.

Interest Subvention

Up to 75% of the total interest on the term loan capped at Rs 2 Crores, with additional subvention for targeted groups.

Land Cost Rebate

Discounts on land costs, with special provisions for early bird benefits and targeted groups.

APMC Fees

Full reimbursement for 7 years.

Investment Size

INR 200 Cr.

Employment Generated

500 people

Location & Area

Mallepally, Sangareddy district, over 40 acres