Andhra Pradesh Targets ₹30,000 Crore to Become Global Food Processing Hub

Andhra Pradesh is accelerating its push to become a global food processing hub , leveraging its agricultural strength, expanding infrastructure and investor-friendly policies to attract ₹30,000 crore in investments and create three lakh jobs . The state government believes that greater value addition to farm produce will not only boost exports but also improve farmers' incomes and generate large-scale rural employment.

Speaking at the 17th Food World India 2026 conference, jointly organised by FICCI and Deloitte , Industries, Commerce and Food Processing Minister T.G. Bharat said Andhra Pradesh is positioning itself as a long-term growth partner for investors with a strong focus on technology-driven manufacturing and efficient governance.

Bharat said that while sectors such as Artificial Intelligence (AI) and space technology are shaping the global economy, food processing is expected to become one of the biggest economic opportunities of the coming decade. He noted that the global food processing industry is valued at around $8.1 trillion , with India contributing nearly $543 billion . Of this, Andhra Pradesh accounts for approximately $49 billion , or nearly 9% of India's food processing economy, while also having the highest number of registered food processing industries in the country.

The minister highlighted the state's strong agricultural ecosystem, noting that Andhra Pradesh leads India in the production and exports of fish and shrimp and ranks first in the production of chillies, lemons, cocoa, oil palm, papaya and eggs . It is also a leading producer of rice, mangoes, bananas and spices , ensuring a steady supply of quality raw materials for food processing industries.

He said expanding food processing capacity is crucial for reducing post-harvest losses, increasing value addition, improving farmers' earnings and strengthening agricultural exports . The sector also creates employment across cold-chain logistics, warehousing, packaging and manufacturing , making it a key driver of rural industrialisation.

Emphasising the government's commitment to investors, Bharat said Andhra Pradesh has moved beyond "Ease of Doing Business" to "Speed of Doing Business" , offering single-desk approvals , faster clearances and dedicated project handholding. The state is supported by nearly 1,000 kilometres of coastline , six operational ports , seven airports , nine plug-and-play food parks , 1.72 million metric tonnes of cold storage capacity and 3.35 million metric tonnes of warehousing capacity , providing a strong logistics backbone for export-oriented industries.

Over the past two years, the government has approved 29 mega food processing projects worth ₹11,800 crore , while the recent Partnership Summit secured MoUs worth ₹8,000 crore with 30 additional companies . Major firms, including Reliance Consumer Products, Godrej Agrovet, Mother Dairy, ITC, 3F Oil Palm, Sneha Farms, IB Group and Hangyo Ice Creams , have already established or expanded operations in the state.

Inviting domestic and global investors, Bharat said the new Food Processing Policy aims to transform Andhra Pradesh into a globally competitive processing and export hub by promoting AI-enabled manufacturing, precision agriculture, digital supply chains and smart logistics . He urged industries to view the state not merely as an investment destination but as a long-term partner in India's rapidly growing food processing sector .