Andhra Pradesh Food Processing Policy 4.0: A Complete Guide
India’s food processing industry is one of the fastest-growing sectors, and Andhra Pradesh is positioning itself as a key destination for investment through its New Andhra Pradesh Food Processing Policy (4.0). This forward-looking policy (2024–29) offers a comprehensive package of financial incentives and infrastructure support for entrepreneurs, MSMEs, cooperatives, and large enterprises.
If you’re looking to start or expand your food business in India, understanding the AP Food Processing Policy 2024–29 PDF is essential. This guide explains all major incentives available under the scheme to help you make the right decision.
Why Andhra Pradesh?
Andhra Pradesh offers:
- One of the most progressive food processing subsidy frameworks in India.
- Strong infrastructure: cold chains, food parks, logistics hubs.
- A government committed to agri-value chain development.
- Special focus on FPOs, SHGs, SC/ST entrepreneurs, and women-led businesses.
Eligibility Criteria
This policy applies to:
- New enterprises are establishing food processing units in Andhra Pradesh.
- Existing businesses expanding or modernizing facilities.
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Cooperatives, FPOs, and SHGs are looking to scale operations.
Key Incentives at a Glance
1. Micro Enterprises
- 35% capital subsidy (max ₹35 lakh for new units)
- 20% subsidy for expansion/upgradation (up to ₹20 lakh)
- 25% subsidy on waste processing units (up to ₹25 lakh)
- 35% subsidy (max ₹5 Cr) for food testing labs
- Power tariff subsidy @ ₹1/unit for 6 years
- 100% net SGST reimbursement for 6 years (up to 5% turnover)
- 75% audit cost + 25% equipment subsidy (max ₹20 lakh)
- Exporters get 1% local procurement subsidy (up to ₹15 lakh)
2. Small Enterprises
- 35% capital subsidy (up to ₹3.5 Cr)
- ₹1 Cr support for expansion or modernization
- ₹2.5 Cr waste processing subsidy
- ₹5 Cr subsidy for food testing labs
- ₹1/unit power reimbursement for 6 years
- Skill upgradation: ₹10,000/person (max 20)
- ₹1.5 Cr local procurement support
3. Medium Enterprises
- Capital subsidy: 35% (up to ₹8 Cr)
- Expansion: 20% subsidy (up to ₹5 Cr)
- Waste processing support: ₹5 Cr
- ₹15 Cr support for meat/feed units
- Audit & equipment support: ₹50 lakh
- EPF reimbursement: ₹1 lakh/year for 3 years
4. Large Enterprises
- New units: 15% subsidy; Expansion: 10%
- ₹25 Cr subsidy for modern meat/feed units
- SGST and power benefits for 5 years
- Audit and equipment cost reimbursement
5. FPOs, SHGs & Cooperatives
- Capital subsidy up to ₹5 Cr (new) and ₹3 Cr (expansion)
- Waste units: 50% subsidy (max ₹2 Cr)
- Feed units: 50% subsidy (max ₹15 Cr)
- An additional 10% subsidy for Women, SC/ST, and specially-abled entrepreneurs
Download the Official Policy
For detailed eligibility norms, subsidy limits, and procedures, download the AP food processing policy PDF here:
AP Food Processing Policy 2024–29 PDF
How Does It Compare with Other States?
When compared to other Indian states, Andhra Pradesh offers the most inclusive and diversified subsidy model for the food processing industry. Especially for cooperatives and small farmers’ organizations, the tailored incentives are unparalleled.
What’s in It for You?
Whether you’re planning a food testing lab, setting up an organic food processing unit, or expanding your Agri-export business, this policy ensures you benefit from:
- Financial cushioning via direct subsidies
- Access to affordable land and utilities
- Favourable tax reimbursements
- Fast-track approvals
Who Should Apply?
- Entrepreneurs launching a food startup
- MSMEs expanding cold storage or packaging facilities
- FPOs aiming to build food clusters
- Large-scale processors diversifying product lines
- Exporters seeking local procurement subsidies
Contact Finraja Consultancy for Assistance. →
Our team can help you with:
- Subsidy application filing
- Project report creation
- End-to-end compliance
- Ongoing support till disbursal
Conclusion
The Food Processing Subsidy in Andhra Pradesh, under the Andhra Pradesh Food Processing Policy 4.0, presents a golden opportunity for businesses across the value chain. With massive financial support and a streamlined approach, Andhra Pradesh is truly a hotspot for food processing innovation in India.
FAQs
Who is eligible for the food processing subsidy in Andhra Pradesh?
Any new or existing business establishing or expanding a food processing unit, along with cooperatives and FPOs.
How much subsidy is offered for food testing labs?
Up to ₹5 Cr depending on the enterprise size.
Can I download the policy PDF online?
Yes, the AP Food Processing Policy 2024–29 PDF is available for download on the official government website.
Is there special support for women-led businesses?
Yes, women, SC/ST, and specially-abled entrepreneurs get an additional 10% subsidy.
Ready to Apply or Need Help?
Looking to apply under this scheme or confused about eligibility?
