Food processing units likely to create win-win situation for farmers, traders

Chief Minister YS Jagan Mohan Reddy wanted synergy between agriculture and food processing industry, which would be mutually beneficial.

Published: 15th July 2021 09:33 AM  |   Last Updated: 15th July 2021 09:33 AM   |  A+A-

Express News Service

VIJAYAWADA: In a bid to create an agriculture and food processing ecosystem in the state to enhance the income levels of farmers and at the same time provide employment, 25 food processing units are going to be set up in 25 parliamentary constituencies in the state with an estimated cost of Rs 2,600 crore.

The food processing department has already invited Expression of Interest from major players in the food processing sector and till date, 25 big companies have evinced interest and more are expected as the deadline is July 19.

Chief Minister YS Jagan Mohan Reddy wanted synergy between agriculture and food processing industry, which would be mutually beneficial. Accordingly, proposals were prepared for each Parliamentary constituency in the state, based on the speciality of the particular constituency. 

Srikakulam district is famous for cashew and thousands of farmers are dependent on it. Now, it has been proposed to set up a cashew processing industry with a capacity of 22,000 to 28,0000 metric tonnes per annum. Cashews, bits, dry nuts/shell, cashew nut shell liquid and  ethanol will be produced at the unit. 

Similarly, Vizianagaram and Bapatla will have a maize processing unit to produce starch, glucose, germ, fiber, animal feed, flakes and ethanol. The proposed unit will have a grinding capacity of 450-600 metric tonnes per day.  A coffee processing unit with a capacity of 35,000 metric tonnes per annum has been proposed in Visakhapatnam, while a Tribal Products Processing Unit (hone, tamarind, jackfruits, pineapple etc) has been proposed in Araku. 

Anakapalli is famous for jaggery production, and a jaggery and confectionery unit with a capacity of 25 metric tonnes has been proposed. Amalapuram, famous as Konaseema, is known for its coconut groves. A coconut processing unit (desiccated coconut, coconut milk, coconut oil, virgin coconut oil, cold press oil, seed cakes, coir, cocopeat etc) will be set up with a processing capacity of 2-3 lakh nuts per day. 

Rajahmundry and Kadapa will get a banana puree unit, banana powder, plates, peel fertilisers and stem fiber products, chip units. Narasapuram will also have a banana processing unit. Integrated fruit processing units (mango, guava, papaya, pomegranate and other fruits), pulp, fruit powder and IQF unit will be set up in Eluru, Rajampet. An integrated juice and beverage, pulp manufacturing unit (sweet orange) will be set up in Anantapur while Kakinada will have a mango jelly unit with a production capacity of two metric tonnes per day.

Guntur and Ongole will have a red gram processing unit, while Narasaraopet will get chilli and turmeric processing unit. Nellore will have a millet processing unit while a Ready to Eat, Ready to Serve and Ready to Cook foods manufacturing unit with a capacity of 20 metric tonnes per day will be set up in Tirupati. A tamarind processing unit with a 25,000 metric tonnes per annum capacity will be set up in Chittoor. 

Groundnut processing unit (Peanut butter, oil extract, protein extract, nutribar and chikky making) with a 100 metric tonne per day crushing capacity will be set up at Hindupur, while a dehydration of fruits and vegetable unit will be set up in Kurnool and a tomato processing unit (puree unit, whole peeled tomato and ketchup unit) will be set up in Nandyal. Most likely these units are expected to be grounded and operational in 12-18 months.  

Speaking to TNIE, L Sreedhar Reddy, CEO of the AP Food Processing Society, said entire infrastructure will be set up by the government while raw material will be provided by the farmers in the respective regions.  “They have to ensure that farmers get more than MSP for their produce and a revenue share,” he said. 

Role of private players, state govt 

Infrastructure will be set up by the government while raw material will be provided by farmers in the respective regions. The private companies role: operation and production, marketing

One unit in each parliamentary segment 

25 food processing units are going to be set up in 25 parliamentary constituencies in the state with an a cost of Rs 2,600 crore



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