Boost to food processing in AP under PM scheme

Vijayawada: Andhra Pradesh Food Processing Society (APFPS) has signed a Memorandum of Understanding (MoU) with State Bank of India (SBI) for upgrading and establishing in AP minimum of 7,500 micro food processing units during 2023–24 under the Prime Minister Formalisation of Micro Food Processing Enterprises (PMFME) scheme.

Under the MoU, SBI will provide collateral free loans of up to ₹10 lakh to eligible beneficiaries under PMFME, subject to their creditworthiness.

The MoU was signed between APFPS CEO Sridhar Reddy and SBI deputy general manager V. Hema in the presence of principal secretary (Food Processing) Chiranjiv Choudary.

Speaking on the occasion, Sridhar Reddy said their partnership with a financial powerhouse like SBI will provide not only a significant boost to micro food processing enterprises in Andhra Pradesh but also create jobs and stimulate economic growth in Andhra Pradesh.

Chiranjiv Choudary underlined the importance of regular monitoring to ensure fulfilment of the intended goals.

Officials said loans under PMFME scheme will be available at 9 per cent interest, with an additional 3 per cent interest subvention where applicable. There will be a moratorium of three months when the food processing units are stabilising.

SBI officials said in addition to collateral-free loans and financial support, the bank will provide necessary working capital loans to ensure successful operation of the enterprises. They said the bank will also support promotion of food processing in collaboration with Farmer Producer Organisations (FPOs).

APFPS deputy CEO D. Ramesh, SBI assistant general manager S. Krishna, PMFME state lead Subhash Kiran and APFPS manager V. Srinath were present.