Andhra Pradesh is emerging as a frontrunner in India’s food processing sector, contributing 8% of India’s GVA and 15% of food exports. The state hosts over 6,000 processing units and 450 FPOs, supported by 20.60 lakh MT of cold storage and 124 warehouses, ensuring strong farm-to-market linkages. It has excellent port, airport, and highway connectivity. The state is also a top producer of shrimp, fish, chillies, cocoa, and tropical fruits, contributing 37.7% of marine exports. With supportive policies like PLI, PMKSY, and single-window clearances, state’s food sector aims to draw over ₹30,000 crore in investments in next five years.
The state is home to over 6,000 food processing units, supported by a rich and diverse agricultural base and more than 450 Farmer Producer Organizations (FPOs) that ensure a steady supply of raw materials. State’s food industry was valued at US$ 49 billion in 2023, accounting for 9% of India’s food market (US$ 543 billion).
With five distinct agro-climatic zones, Andhra Pradesh supports the cultivation of a wide variety of crops throughout the year. The state leads in the cultivation of major horticultural crops such as chillies, cocoa, lime, papaya, mango, and banana, while remaining a key producer of maize, paddy, and groundnut.
In the livestock sector, Andhra Pradesh ranks fourth in the production of eggs, meat, and milk, making it a comprehensive agricultural powerhouse.
It holds the distinction of being the number one state in shrimp and fish production, contributing nearly 24% of India’s total fish output.
The state has invested significantly in world-class infrastructure to support the growth of food processing industries.
With extensive cold storage facilities of 20.60 lakh MT and 124 warehouses offering an additional 17.27 lakh MT of storage, Andhra Pradesh ensures seamless preservation and distribution of perishable goods. This infrastructure is supported by a robust logistics network, comprising well-developed roads, state and national highways, and railway connectivity, which enable swift access to domestic and international markets.
Strategically located on the eastern coast of India, Andhra Pradesh offers unmatched advantages for maritime trade and global exports. Its 974-kilometer-long coastline provides immense opportunities for seafood and agri exports. The state is home to major ports such as Visakhapatnam, Krishnapatnam, and Kakinada, all equipped with modern facilities for efficient import and export operations. The presence of these ports, coupled with excellent air connectivity through international and domestic airports, positions Andhra Pradesh as a natural hub for both national and international trade.
Strategic infrastructure is another pillar of the state’s success. Andhra Pradesh is home to three major industrial corridors:
Together, these corridors provide excellent connectivity, market access, and logistics, making the state a natural hub for food processing and exports.
Another key strength of the state lies in its skilled and semi-skilled workforce, trained specifically in food processing technologies. In collaboration with institutions such as the Andhra Pradesh State Skill Development Corporation (APSSDC), the state ensures a continuous pipeline of industry-ready professionals. This strong human resource base, backed by government initiatives, enables businesses to access the talent needed for innovation and growth.
Additionally, Andhra Pradesh is a power-surplus state with an installed capacity of 27 GW, of which over 40% comes from renewable sources. With a per capita power availability of 1,379 kilowatt hours in 2022, the state provides reliable and sustainable energy to fuel industrial growth.
Agriculture and allied sectors account for nearly 36.2% of Andhra Pradesh’s GSDP, significantly above the national average of 18%. The state also plays a key role in trade, contributing around 15% of India’s overall food exports.
Exporting over 2,100 agri-products, Andhra Pradesh connects to nearly 190 global markets. Major export destinations include the USA, UAE, Europe, Bangladesh, China, Vietnam, Saudi Arabia, and Japan.
The state is India’s largest exporter of marine products, contributing 37.7% of national marine exports, valued at US$ 3.04 billion in 2022–23.
Agricultural exports stood at US$ 3.09 billion (Rs 260 billion), representing 9.59% of India’s total agricultural exports. Core commodities include shrimp, rice, tobacco, spices, coffee, fruits, vegetables, and cashew, with Visakhapatnam, Kakinada, Nellore, Chittoor, and Guntur serving as the principal export hubs.
Ports such as Visakhapatnam, Krishnapatnam, and Kakinada remain central to facilitating this trade, further strengthening Andhra Pradesh’s dominance in seafood exports.
Export of processed- fruits, juices & nuts, processed meat, and processed vegetables, by Andhra Pradesh has grown from US$ 2.64 million in 2020-21 to US$ 3.59 million in 2024-25, reflecting CAGR of 6.3%.
Sources: DGCIS
From 2014 to 2024, Andhra Pradesh attracted investments of Rs 9,178 crore across 428 processing units, giving a major boost to the state’s food processing, storage, and value chain infrastructure. These investments have supported the creation of extensive facilities, including:
Currently, Andhra Pradesh hosts 9 operational food parks, which include 5 Mega Food Parks, 1 Spice Park, and 3 state-supported Integrated Food Parks, positioning the state as a leading hub for food processing in India.
Kellogs, Cargill, Cadbury, Lavazza, Schreiber, Haldiram’s, Pepsico, CPF, Premium, and Indus are among the leading investors in the state’s food processing sector.
The sector is witnessing rapid expansion, driven by urbanization, rising disposable incomes, and evolving consumer preferences. The growth is further supported by the rise of homegrown food processing companies, increasing investments in enabling technologies, and favorable policy support.
National initiatives such as the Production Linked Incentive (PLI) scheme, Pradhan Mantri Kisan Sampada Yojana (PMKSY), and 100% FDI allowance are fuelling growth and creating opportunities for both domestic and global investors.
The state provides Single Window clearance for Food Processing Units.
In its commitment to accelerating the sector, the Government of Andhra Pradesh has allocated ₹3,290 crore for the development of the food processing industry in FY 2024–25, representing a significant 30.19% increase from the previous year. The state’s strategy includes the development of 100 industrial parks dedicated to food processing and aqua-based industries, ensuring region-specific growth and infrastructure creation. Key focus areas include:
The state government emphasizes diversified post-harvest infrastructure for processing and packaging, alongside the development of multi-product food parks that adhere to international export quality standards. It is deeply committed to creating a business-friendly environment. It offers a range of incentives for food processing units, including subsidies, tax exemptions, and financial assistance.
Streamlined processes such as single-window clearances and investor-friendly regulations further ensure ease of doing business. This proactive approach has consistently placed Andhra Pradesh among the top states in India’s Ease of Doing Business rankings.
Sustainability is at the heart of the state’s food processing policies. Andhra Pradesh promotes eco-friendly and renewable energy practices, such as solar dehydration, to minimize environmental impact. With more than 8,000 MW of installed renewable energy capacity, the state has emerged as a leader in green energy adoption, aligning industrial growth with long-term ecological health.
Andhra Pradesh presents diverse opportunities across dairy, fruits and vegetables, marine products, meat and poultry, spices, and ready-to-eat food segments. The sector is projected to attract investments of over Rs 30,000 crores in the next five years, supported by government initiatives and market potential.
The Department of Industries, Government of Andhra Pradesh, and AP Food Processing Society play a pivotal role in assisting investors at every stage, from navigating regulatory frameworks to ensuring smooth operational support.
With a vision to emerge as a global hub for food processing, Andhra Pradesh is committed to fostering innovation, attracting investment, and seamlessly connecting local producers to global markets. Its unique combination of agricultural strength, modern infrastructure, skilled workforce, progressive governance, and sustainable practices make it an ideal destination for businesses seeking growth in the food processing sector.
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