Telangana evolves as India’s food processing hub

The move is being boosted from different sides with agriculture, livestock, poultry and oil palm production also increasing steadily in the State

Hyderabad: After establishing itself as a hub for technology, healthcare, innovation, electronic manufacturing and aerospace industries in the country, Telangana is now gradually proving itself to be a hub for the food processing sector as well.

Already, India’s largest ice-cream manufacturing unit in the form of Hatsun’s venture and the first unit of French flavours and beverage firm Georges Monin SAS, apart from one of the largest wet corn milling plants, one of the largest export oriented oleoresin and chilli processing units and India’s first fully integrated fresh water fish production unit, all these are operating from Telangana.

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The fish produced at the aqua hub at Rajanna Sircilla will shortly be exported to United States and other countries. Three private companies are setting up the aqua hub at Rajarajeswara Sagar with an investment of Rs.2,000 crore.

More are on the way, including a food processing unit from the multinational LuLu Group, which recently made an announcement.
All this is happening with the State government according top priority for the food processing sector ever since the State’s formation.

The move is being boosted from different sides with agriculture, livestock, poultry and oil palm production also increasing steadily in the State.

With the State government supporting the growth of agri and food production units, there is a steady flow of investments in the food processing sector. Since 2014, the food processing sector has generated fixed capital investment of Rs.6,864 crore generating over 80,000 employment opportunities. Over 3,800 units have been established across the State so far.

For the promotion of food processing sector, Telangana Special Food Processing Zones (TSFPZ) have been created across the State for establishing large scale clusters. At present, there are 14 Special Food Processing Zones with the objective being to cover about 10,000 acres.

Till March 2023, 351 acres were allotted to 77 food processing companies. This is apart from applications for allotment of 803 acres that were being evaluated.

With the State government conducting the first ever Food Conclave in April early this year, 28 announcements with commitments of Rs.7,218 crore investments and employment potential of 58,000 people across the State, too are an addition to the list.

Based on the companies’ requirements, land allotment and other things have to be finalized. Shortly, a few companies may lay foundations and a few others may announce commencement of their operations, an official from the Telangana State Food Processing Society said.

That is not all. Last month, Chief Minister K Chandrashekhar Rao has also announced that food processing industries to convert paddy into various products would be set up across the State.

He also announced establishment of rice mills under the supervision of the State Civil Supplies Corporation. Rice bran oil production mills would be established and linked to rice mills. More warehouses would be constructed as well, the Chief Minister had said.

In addition to large scale clusters, the State government was also focusing on setting up micro food processing enterprises involving small and micro entrepreneurs, especially SHGs and extending the much needed support.

Beginning from the business idea, preparation of detailed project report, securing collateral-free bank loans and installation of equipment, all support was being extended to these entrepreneurs. A seed capital amount of Rs.36.83 crore has been disbursed to 9373 SHG members through SERP and MEPMA.

Three Common Incubation Centres with Rs.8.43 crore are being constructed. These incubation facilities include millets for Hyderabad, Spice Processing in Warangal (Rural) and Mango processing in Jagtial district.