The Capital Subsidy scheme provides financial support to new enterprises in the food processing sector, for primary, Secondary and Tertiary Food processing units. Subsidies vary based on the type of enterprise (e.g., FPOs, SHGs, Micro, Small, Medium, Large) and investment size. Read More
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Andhra Pradesh Food Processing Policy 2024–2029: Subsidy & Incentive Guide
Andhra Pradesh Government has introduced a renewed Food Processing Policy aimed at boosting the food processing sector in the state. These include capital subsidies for new enterprises, technology upgrades, waste processing, quality certification, and many more.
Download the AP Subsidies Booklet
Explore government incentives, capital subsidies, and policy benefits available for industries in Andhra Pradesh.
Following are the objectives of the scheme
- Reduce Post Harvest Losses: Establishes infrastructure such as cluster-based processing facilities and cold chains to minimize waste, improve market access, and increase farmer incomes.
- Product Perfection, Cluster Development, Storage, and Value Addition: Focuses on quality enhancement and value addition through cluster-based storage and processing, providing raw material access and shared facilities for better competitiveness.
- Technology Upgradation, Technology Transfer, and Market Assistance: Supports technology adoption through partnerships with research institutions and offers market assistance for both domestic and international reach.
- Organic Production Processing: Promotes eco-friendly organic processing with financial and technical support to tap into the growing organic food market, ensuring compliance with international standards.
- Waste Processing and Industrial Ecology: Encourages waste-to-value practices and sustainable systems to foster a circular economy, reducing environmental impact in food processing.
- Food Safety and Quality: Promotes adherence to food safety standards with quality control, certification, and traceability systems, enhancing consumer trust and market reach.
- Research and Innovation: Establishes a corpus for R&D in food processing, supporting innovation and productivity to position Andhra Pradesh as a leader in food processing technologies.
- Quality Certification and Traceability: Emphasizes national and international certification and traceability to boost product integrity, export potential, and consumer trust.
- Skill Development: Partners with institutions to provide vocational training in food processing, quality control, and packaging, creating localized job opportunities and reducing migration.
- Focus on Attracting FDI and Exports: Aims to attract foreign investment and expand exports by offering incentives, enhancing business conditions, and promoting Andhra Pradesh’s food products globally.
Investment Cut-off Date for eligibility of incentives under the new policy
This policy will replace the Food Processing Policy 2020-25 from the date it is officially notified. However, enterprises that are already receiving benefits under the 2020-25 policy will continue to receive those benefits until the end of the policy's term. The new policy is designed for easier navigation and provides competitive incentives. It clearly defines focus sectors while ensuring that no key areas are excluded in the new Food Processing Policy.
Subsidies under AP Food Processing Policy 2024-29
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Capital Subsidy for Primary Processing, Secondary and Tertiary Food Processing – General Category
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Capital Subsidy for Secondary and Tertiary Food Processing – Special Category (Women / Backward Castes / SC / ST / minority / specially abled / transgender entrepreneurs)
The Andhra Pradesh Food Processing Policy offers a significant incentive to promote inclusive entrepreneurship by providing an additional 10% capital subsidy for Special Category Enterprises, with increased cap limits. Special category enterprises means, enterprises that are wholly owned by women, backward classes (BC), scheduled castes (SC), minorities, specially-abled individuals, or transgender entrepreneurs who are local residents of Andhra Pradesh. Read More
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Capital Subsidy for Technology Upgradation/Modernization
The Capital Subsidy for Technology Upgradation/Modernization under the AP Food Processing Policy 2024–29 is designed to accelerate the growth of food processing enterprises by supporting their efforts to adopt advanced technology and modernize infrastructure. Whether it’s upgrading machinery, improving processing efficiency, or enhancing product quality, this scheme provides substantial financial assistance based on enterprise type and category (General or Special). Read More
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Capital Subsidy for Waste Processing
The Capital Subsidy for Waste Processing under the AP Food Processing Policy 2024–29 is designed to encourage sustainable practices within the food industry by supporting projects focused on waste management and processing. This scheme offers targeted financial assistance for both new and expansion projects, promoting resource efficiency and environmental responsibility. Subsidy levels are determined by the size and nature of the enterprise, with additional benefits extended to eligible FPOs, SHGs, and cooperatives based on their investment classification. Read More
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Capital Subsidy for Modern Abattoirs/Meat Processing/Animal Feed Units
The Capital Subsidy for Modern Abattoirs, Meat Processing, and Animal Feed Units under the AP Food Processing Policy 2024–29 is aimed at strengthening the livestock-based food industry through modernization and capacity building. This scheme supports both new and expansion projects, offering significant financial assistance based on enterprise type and scale. With generous subsidies and flexible eligibility for higher category benefits, the policy encourages cleaner, efficient, and more sustainable processing practices across the meat and animal feed value chain. Read More
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Capital Subsidy for Food Testing Laboratories
The Capital Subsidy for Food Testing Laboratories under the AP Food Processing Policy 2024–29 is designed to enhance food safety and quality compliance across the state. This initiative supports the establishment and upgradation of NABL-approved laboratories, including facilities for antibiotic residue testing, to ensure food products meet national and international standards. The scheme offers financial assistance to both new and existing food processing units, strengthening the overall ecosystem through reliable, accessible testing infrastructure. Read More
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Standard Subsidies
The AP Food Processing Policy 2024–29 extends a wide range of standard incentives to promote the growth, efficiency, and competitiveness of food processing enterprises across Andhra Pradesh. These incentives cover essential operational areas such as power tariff reimbursement, net SGST refunds, energy and water audits, skill upgradation, local procurement, and quality certification—ensuring both cost savings and improved performance. Additional benefits like stamp duty reimbursements and land conversion fee waivers further reduce the initial investment burden for new and expanding units. Read More
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Topup of Government of India schemes
The Government of Andhra Pradesh is promoting the food processing industry by enabling the convergence of various schemes from both central and state departments, while facilitating improved coordination among these departments. This approach ensures a seamless integration across the value chain, enhancing both upstream and downstream value addition. By connecting farmers, processors, and market stakeholders, the policy fosters collaboration and acess to critical resources and infrastructure. It aligns with land and industrial policies, skill development, and cluster-based strategies, creating a supportive ecosystem for value chain actors. Read More