The Government aims to maximize the value of agricultural, aqua, poultry, and livestock resources by creating a strong ecosystem for production, processing, trading, and distribution of food products. The goal is to support farmers, producers, and consumers by promoting high-quality food processing infrastructure and global standards.
This initiative also focuses on strengthening the state’s role in the national food supply chain and ensuring sustainable growth in the agri-food sector.
The policy focuses on building a strong food processing ecosystem in Telangana with the following objectives:
Support the national mission of doubling farmers’ income
Develop world-class food processing capacity for key agricultural commodities
Encourage collaboration between government, industry, and academic institutions
Establish Telangana as a reliable supplier of high-quality agri-food products
Position the state as a major food distribution hub in India
The Ministry of Food Processing Industries, Government of India, has set a national target to increase food processing levels from 10% to 20% and significantly expand investments in the sector.
Aligned with this vision, Telangana aims to:
Generate over 1,25,000 employment opportunities
Contribute ₹10,000+ crore to the state economy through food processing
Increase the capital investment in the food processing sector by ₹10,000 crore
To achieve these targets, several initiatives have been planned:
Establishment and modernization of food processing units
Development of commodity-based processing clusters
Creation and promotion of food parks
Strengthening logistics and supply chain infrastructure
Support for large-scale food processing projects
Encouraging innovation and industry best practices
Food processing is also integrated with the broader state industrial policy, which includes support for logistics, retail infrastructure, renewable energy, and skill development.
Government schemes in agriculture, fisheries, dairy, and animal husbandry further complement these efforts by improving productivity, technology adoption, and market efficiency.
The policy provides financial assistance, infrastructure support, and operational incentives for both new and existing food processing units.
Key support areas include:
Development and expansion of food processing industries
Establishment of processing clusters
Promotion of food parks
Supply chain and logistics infrastructure development
On-farm processing and preservation infrastructure
Innovation and technology adoption
The Government of Telangana encourages both new projects and expansion of existing food processing industries.
Eligible projects can receive:
Capital subsidy: 35% of project cost up to ₹4 crore
Interest subsidy: Up to 9% on term loans for 5 years (maximum ₹2 crore)
Units must meet certain conditions such as:
Compliance with recognized quality certifications like HACCP, BRC, etc.
Procurement of at least 75% raw materials from local farmers
Minimum 35% annual capacity utilization
Implementation of micronutrient fortification where applicable
Additional benefits include:
100% exemption from APMC fees for direct procurement from farmers
Classification of food processing units as seasonal industries (electricity demand relief during non-operational periods)
Electricity duty exemption for captive power plants for up to 5 years
The scheme applies to most food processing industries except:
Rice mills (except certain rice bran oil units)
Aerated beverage plants
Packaged drinking water units
Pan masala units
Traditional jaggery units
Ice factories not connected to food processing
Eligible applicants may include:
Private companies
Farmer Producer Organizations (FPOs)
Joint ventures
Cooperatives
NGOs and Self-Help Groups
Government organizations and public sector units
Individual entrepreneurs with suitable land
The government promotes the development of commodity-based clusters to strengthen the entire food value chain.
Each cluster is managed through a Special Purpose Vehicle (SPV) formed with participation from:
Government departments
Industry partners
Research institutions
Academic organizations
Cluster organizations may undertake:
Establishing demonstration facilities using advanced processing technology
Training farmers and traders in modern production, packaging, and marketing techniques
Facilitating technology transfer and access to improved crop varieties
Providing consultancy, legal support, and market intelligence
Identifying public-private partnership projects
Units located in designated clusters may receive:
Capital subsidy up to ₹10 crore
Interest subsidy on loans for 5 years
Additional ₹1 per unit electricity rebate
Potential clusters may include:
Export-focused food clusters
Organic food clusters
Health and super-food clusters
HALAL-certified food clusters
Commodity clusters may include:
Turmeric
Chillies
Maize
Dairy
Meat
Fisheries
Fruits and vegetables
To promote integrated food processing infrastructure, the government supports the development of food parks.
50% capital subsidy
Maximum support up to ₹50 crore, calculated based on land size (₹1 crore per acre)
Units established within food parks may also receive:
Additional electricity rebate for 5 years
These benefits are applicable for projects supported under the KISAN SAMPADA Scheme of the Government of India.
The policy encourages the development of modern infrastructure for handling and distributing perishable agricultural produce.
Warehouses
Silos
Pack houses
Cold storage units
Pre-cooling facilities
Frozen storage and deep freezer facilities
Irradiation and vapor treatment facilities
35% subsidy up to ₹10 crore for warehouses and storage infrastructure
50% subsidy up to ₹10 crore for advanced preservation facilities
These projects may also be developed under Public-Private Partnership (PPP) models.
Projects with:
Investment above ₹100 crore, or
Employment generation of more than 1,500 people
will be recognized as Mega Projects.
Such projects may receive customized incentives under the Telangana Industrial Policy.
The government encourages innovation and entrepreneurship in the agri-food sector through:
Venture capital support for food technology startups
Collaboration between industry and academic institutions
Participation in global and domestic certification programs
Food processing units may receive:
50% subsidy up to ₹5 lakh for obtaining quality certifications.
The state also promotes international exhibitions and technology events in Hyderabad to showcase innovations in food processing and agri-food technologies.
SS Industrial Consultancy assists businesses in:
Food processing project setup
Government approvals and licenses
Subsidy and scheme applications
Food park project development
Industrial project consulting
Hyderabad
+91 92468 22006