Telangana aims high with food policy

Hyderabad: TS government, on Friday, released a brand new policy draft on food processing that promises to revolutionise the processed food industry in the state. The objectives of food processing policy are multi-leveled. Building a world class ecosystem across the agri food value chain that will optimize resources and reduce wastage is the primary objective. 

Development of on-site farm infrastructure for primary processing and preservation, creation, modernisation and expansion of food processing units, development of food processing clusters for key commodities with the building of food parks are a few of the other important aspects in the draft policy. Additionally, development of logistics and supply chain infrastructure for food produce and promotion of backend linkages between farmers and food processing units are the important tag-ons.

While the national target of building processed major food units as per international standards is 20 percent, TS is targeting a rise of 30 per cent. This policy also envisages employment for 1,25,000 personnel by 2022, an addition of Rs 8000 to Rs 10,000 crore to the state GSDP through food processing. 

The government’s aggressive approach towards establishing TS as the one-point window for reliable high quality agri food produce may well position TS as the food produce distribution hub for the country.

Under this policy the pattern of financial assistance is 50 per cent grant in aid up to Rs 2.5 crore as capital, 9 per cent interest subsidy in excess of 3 percent for five years as operational fund subject to compliance of industry’s best practice certifications. 

As part of the infrastructural assistance, the government will create warehouses, silos, pack houses, pre cooling units, ripening chambers, controlled and modified atmosphere storage, cold storage facilities. 

It also intends to develop supply chain and processing infrastructure for key commodities in the state through Public Private Partnership mode. 

For this the financial pattern is 35 per cent grant in aid up to 10 crore as capital, 100 per cent land lease rebate for 5 years of operations, subjected to industry's best practice certifications. 

To provide plug and play infrastructure for small and micro food processing units as well as provide institutional mechanism for producers and retailers, financial assistance of 50 percent grant in aid up to Rs 50 crore as capital for common infrastructure with an additional Rs 1 rebate for all units operating in the food park.