Slup Draft

Contents
Section 1................................................................................................................................................ 18
A. Agriculture Profiling of the State: ................................................................................................. 18
B. Profiling of existing micro-enterprises ecosystem in the state .................................................... 18
C. Food processing policy in the state .............................................................................................. 18
Section 2................................................................................................................................................ 22
1. Agriculture profile of the district (ODOP) ..................................................................................... 22
1. Total production and acreage of the produce in the district .................................................... 22
2. ODOP produce as a percentage of total agricultural production of the district ...................... 22
(aps.dac.gov.in, 2019-20) .............................................................................................................. 23
3. Perishable nature of the produce ............................................................................................. 23
4. Production of ODOP agriculture produce in that district compared to other districts and
states ............................................................................................................................................. 23
2. Food product (chosen as ODOP) ................................................................................................... 26
1. Total estimated production of the food product or its category chosen as ODOP .................. 26
2. Total requirement and movement of Raw material or Agricultural produce required for
manufacturing this food product. ................................................................................................. 26
3. Identifying Non-ODOP Products ................................................................................................... 26
1. Mapping of the Micro, Small, Medium, and Large Industries in the District involved in food
processing in the District (Total number of Units and details related to their size, turnover, etc.)
...................................................................................................................................................... 27
2. Number of clusters or locations(if any) wherethe processing of ODOP product happens ...... 28
3. Number of units engaged with producing the specific ODOP product and 4-5 major non-
ODOP products. ............................................................................................................................ 28
4. Approximate Level (%) of processing happening for ODOP (out of total production) in the
district ........................................................................................................................................... 29
5. Number of Self Help Groups, Farmer Producer Organizations, and Cooperatives currently
engaged in the processing of this product.................................................................................... 29
4. Profiling of existing Micro Enterprises Ecosystem for the District................................................ 29
1. Specialty of the local agricultural produce/food product, varieties available, seasonality,
uniqueness, history, etc.? ............................................................................................................. 29
2. Infrastructure ............................................................................................................................ 30
3. Support Infrastructure: ............................................................................................................. 30
4. Testing: ...................................................................................................................................... 31
5. Value Chain\Channels of movement: ....................................................................................... 31
6. Manufacturing Process: ............................................................................................................ 31
7. Marketing .................................................................................................................................. 35
8. Quantum of Sale of this product to other districts, states and exported to other countries .. 36
9. Institutional Support.............................................................................................................. 36
Section 3................................................................................................................................................ 37
1. Methodology note for primary data collection ............................................................................ 37
1.1 Individual in-depth interviews ................................................................................................ 38
1.2 Stakeholder consultation ........................................................................................................ 41
1.3 Focus group discussion ........................................................................................................... 41
2. Cluster analysis and discussion ..................................................................................................... 41
2.1 Location of the cluster ............................................................................................................ 41
2.2 Skill development required ..................................................................................................... 42
2.3 Product cost analysis............................................................................................................... 42
2.4 Problem mapping/Firm-level issues of micro-enterprises...................................................... 43
2.5 SWOT analysis ......................................................................................................................... 44
2.6 Need assessment and Gap study ............................................................................................ 44
3. Recommendations ........................................................................................................................ 45
3.1 Vision statement and Key objectives ...................................................................................... 45
3.2 Strategy for integrated development ..................................................................................... 45
3.2.2 Scope for capital investment in processing ......................................................................... 45
3.3 Proposed interventions........................................................................................................... 46
4. Key impacts ................................................................................................................................... 47
2. Key Impacts ................................................................................................................................... 53
3. Industrial Profiling ..................................................................................................................... 58
processing in the district (Total number of Units and details related to their size, turnover, etc.) . 58
2. Number of clusters or locations(if any) where the processing of this product happens; ........ 61
3. Some units engaged with producing the specific ODOP product and 4-5 major non-ODOP
products. ........................................................................................................................................... 62
district, .............................................................................................................................................. 64
5. The number of Self Help Groups, Farmer Producer Organisations, and Cooperatives currently
engaged in the processing of this product........................................................................................ 64
f. Manufacturing Process ............................................................................................................. 70
2.1 Individual In-depth Interviews .............................................................................................. 74
Output Document to be submitted .................................................................................................. 74
Output Document to be submitted - ................................................................................................ 75
Yet to conduct ................................................................................................................................... 75
Output Document to be submitted - ................................................................................................ 75
Yet to conduct ................................................................................................................................... 75
3.1 Location of the cluster .......................................................................................................... 75
Madanapally region is a suitable place to form tomatoes cluster in the district because of the
following reasons; ............................................................................................................................. 75
4. Recommendations ........................................................................................................................ 80
5. Key Impacts ................................................................................................................................... 83
EXECUTIVE SUMMARY ...................................................................................................................... 88
PROJECT METHODOLOGY ................................................................................................................. 95
1. Baseline Assessment studies: ................................................................................................... 97
Major Chilli growing states in India: ................................................................................................. 97
1.1. Agriculture Profiling of the Districts in the State .................................................................. 99
1.2. Percentage Share of Area under Agriculture and Horticultural Crops in Guntur District in
2019-20 ........................................................................................................................................... 100
1.3. Total Production of the Produce in the District and ODOP produce as a percentage of total
agricultural production of the district- ........................................................................................... 100
1.4. Perishable nature of the produce – .................................................................................... 101
1.5. Production of ODOP Agriculture Produce in that district compared to other districts and
states 101
1.6. Number of workers engaged in the ODOP cultivation ....................................................... 103
1.7. What other Major crops are being cultivated apart from the chosen ODOP Product. ...... 103
1.8. Non-ODOP produce as a percentage of total agricultural production of the district ........ 104
1.9. Perishable nature of the produce ....................................................................................... 104
1.10. Many workers engaged in the cultivation of each of the Non-ODOP products. ............ 105
2. Assessment of the existing Policy and Regulatory frameworks for FPI and FPI Micro
Enterprises in the State:.................................................................................................................. 105
3. Profiling of existing Micro Enterprises ecosystem: ................................................................. 120
3.1. Industrial Profile of the Districts in the State...................................................................... 120
3.2. Identifying Non-ODOP Products ......................................................................................... 120
3.3. District wise profiling based on secondary research .......................................................... 120
4. Detailed Cluster Study for ODOP Products - ........................................................................... 135
5. Industry and Market Analysis ................................................................................................. 135
5.1. Introduction ........................................................................................................................ 140
5.2. Nutritive Value and Health Benefits ................................................................................... 141
5.3. Global Market for the Product ............................................................................................ 144
5.4. Indian Market & Valuation for the Product ........................................................................ 145
5.5. Manufacturing Process: ...................................................................................................... 147
5.6. District Profiling................................................................................................................... 148
5.7. Industrial Profiling ............................................................................................................... 151
5.8. Cluster Actors ...................................................................................................................... 160
Guntur chilli merchants association & Chillies Exporters Association India's are established in Guntur
district for the welfare of the Chilli merchants and exporters and their activity is to see that
merchants and exporters do not face any problems in the execution of their work ......................... 161
5.9. Existing Government Schemes: .......................................................................................... 162
5.10. Cluster Map: .................................................................................................................... 164
5.11. Value Chain: .................................................................................................................... 165
5.12. Product Cost Analysis: ..................................................................................................... 166
5.13. SWOT Analysis:................................................................................................................ 167
6. Benchmarking Studies............................................................................................................. 167
7. Stakeholder Consultation........................................................................................................ 168
8. Agenda points & discussions................................................................................................... 168
9. Recommendations: ................................................................................................................. 170
Key Impacts ......................................................................................................................................... 182
7. Industrial Profiling ................................................................................................................... 187
187
7. Number of clusters or locations(if any) where the processing of this product happens; ...... 190
8. A number of units engaged with producing the specific ODOP product and 4-5 major non-
ODOP products. .............................................................................................................................. 190
district, ............................................................................................................................................ 191
10. The number of Self Help Groups, Farmer Producer Organisations, and Cooperatives
currently engaged in the processing of this product. ..................................................................... 191
8. Manufacturing Process ........................................................................................................... 202
5.1 Individual In-depth Interviews ............................................................................................ 205
Output Document to be submitted ................................................................................................ 205
Output Document to be submitted - .............................................................................................. 205
6.1 Location of the cluster ........................................................................................................ 205
There are no banana clusters in the district because of the following reasons; ............................ 205
7. Recommendations ...................................................................................................................... 209
Key Impacts ......................................................................................................................................... 212
EXECUTIVE SUMMARY .................................................................................................................... 214
PROJECT METHODOLOGY ............................................................................................................... 219
10. Baseline Assessment studies: ............................................................................................. 220
10.1. Agriculture Profiling of the Districts in the State ............................................................ 222
10.2. Percentage Share of Area under Agriculture and Horticultural Crops in Krishna District in
2019-20 222
10.3. Total Production of the Produce in the District and ODOP produce as a percentage of
total agricultural production of the district- ................................................................................... 223
10.4. Perishable nature of the produce – ................................................................................ 224
states 225
10.6. Number of workers engaged in the ODOP cultivation ................................................... 225
10.7. What other Major crops are being cultivated apart from the chosen ODOP Product. .. 226
10.8. Non-ODOP produce as a percentage of total agricultural production of the district .... 226
10.9. Perishable nature of the produce ................................................................................... 227
10.10. The number of workers engaged in the cultivation of each of the Non-ODOP products.
228
11.1. Assessment of Food Processing Policies in the State: .................................................... 228
11.2. Assessment of ongoing and proposed State Government programs in the FPI and allied
sectors: 230
11.3. Assessment of existing Regulatory frameworks for FPI .................................................. 232
11.4. Stakeholder Mapping ...................................................................................................... 232
12. Profiling of existing Micro Enterprises eco system: ............................................................ 233
12.1. Industrial Profile of the Districts in the State .................................................................. 233
12.2. Identifying Non-ODOP Products ..................................................................................... 234
12.3. District wise profiling based on secondary research ...................................................... 234
13. Industry and Market Analysis ............................................................................................. 257
13.1. Nutritive Value and Health Benefits ............................................................................... 259
13.2. Global Market for the Product ........................................................................................ 260
13.3. Indian Market & Valuation for the Product .................................................................... 261
13.4. Manufacturing Process: .................................................................................................. 265
13.5. District Profiling............................................................................................................... 269
13.6. Demographic and Socio-economic profiling ................................................................... 270
13.7. Industrial Profiling ........................................................................................................... 272
13.8. Cluster Actors .................................................................................................................. 282
13.9. Existing Government Schemes: ...................................................................................... 283
13.10. Cluster Map: .................................................................................................................... 287
13.11. Value Chain: .................................................................................................................... 288
13.13. SWOT Analysis:................................................................................................................ 290
14. Benchmarking Studies......................................................................................................... 290
15. Stakeholder Consultation.................................................................................................... 291
16. Agenda points & discussions............................................................................................... 292
17. Recommendations: ............................................................................................................. 295
Common infrastructure – ................................................................................................................... 297
Section 1.............................................................................................................................................. 305
A. Agriculture profiling of the state ................................................................................................ 305
(aps.dac.gov.in, 2019-20) ................................................................................................................ 305
B. Profiling of the existing micro enterprises ecosystem in the state ............................................ 305
C. Food processing policy in the state ............................................................................................ 305
Section 2.............................................................................................................................................. 309
1. Agriculture profile of the district ................................................................................................ 309
a. Agricultural produce chosen as ODOP ........................................................................................ 309
1. Total production and Acreage of the produce in the district ................................................. 309
2. ODOP produce as a percentage of the total agricultural produce of the district................... 309
3. Perishable nature of the produce ........................................................................................... 310
4. Production of ODOP agriculture produce in that district compare to other district and states
.................................................................................................................................................... 310
b. Food product chosen as ODOP ................................................................................................... 312
Total estimated production of the food product or its category chosen as ODOP .................... 312
2. Identifying Non-ODOP product ................................................................................................... 312
3. Industrial profiling ....................................................................................................................... 312
1.Mapping of the micro, small, medium and large industries in the district involved in food
processing in the district ............................................................................................................. 312
2. Number of clusters or locations (If any) where of this product happens ............................... 313
ODOP products ........................................................................................................................... 314
4. Approximate level (%) of processing happening for ODOP in the district .............................. 316
5. Number of Self help groups, Farmer producer organization and cooperatives currently
engaged in the processing of this product.................................................................................. 316
4. Profiling of existing micro enterprises ecosystem for the district .............................................. 317
1. Specific of the local agricultural produce/food product, varieties available, seasonality,
uniqueness, history etc. .............................................................................................................. 317
2. Infrastructure .......................................................................................................................... 317
3. Support infrastructure ............................................................................................................ 318
4. Testing ..................................................................................................................................... 318
5. Value chain\channels of movement ....................................................................................... 318
6. Manufacturing process ........................................................................................................... 320
7. Marketing ................................................................................................................................ 322
8. Quantum of sale of this product to the districts, states and exported to other countries .... 324
9. Institutional support ............................................................................................................... 325
Section 3.............................................................................................................................................. 325
1. Methodology note for primary data collection .......................................................................... 325
1.1 Individual in-depth interviews .............................................................................................. 326
1.2 Stakeholder consultation ...................................................................................................... 326
1.3 Focus group discussions ........................................................................................................ 328
2. Cluster analysis and discussion ................................................................................................... 328
2.2 Skill development required ................................................................................................... 329
2.3 Product cost analysis............................................................................................................. 329
2.4 Firm level issues of micro enterprises................................................................................... 330
2.5 SWOT analysis ....................................................................................................................... 331
2.6 Need assessment and Gap study .......................................................................................... 331
3.1 Vision statement and key objectives .................................................................................... 332
3.2 Strategy for integrated development ................................................................................... 332
3.3 Proposed interventions......................................................................................................... 333
3.3.1 For capital investment in plant and machinery ................................................................. 333
3.3.2 For common infrastructure and incubation center ........................................................... 334
3.3.3 Branding and marketing..................................................................................................... 334
4. Key impacts ................................................................................................................................. 334
Recommendations .............................................................................................................................. 340
11. Industrial Profiling ............................................................................................................... 347
347
12. Number of clusters or locations(if any) where the processing of this product happens; .. 352
products. ......................................................................................................................................... 353
district, ............................................................................................................................................ 353
15. Several Self Help Groups, Farmer Producer Organisations, and Cooperatives are currently
engaged in the processing of this product...................................................................................... 353
17. Manufacturing Process ....................................................................................................... 357
Nellore region is a suitable place to form a citrus cluster in the district because of the following
reasons; ........................................................................................................................................... 360
10. Key Impacts ............................................................................................................................. 366
Key Impacts ......................................................................................................................................... 369
15. Industrial Profiling ............................................................................................................... 376
376
17. Number of clusters or locations(if any) where the processing of this product happens; .. 381
18. Several units engaged with producing the specific ODOP product and 4-5 major non-ODOP
products. ......................................................................................................................................... 382
district, ............................................................................................................................................ 382
20. Several Self Help Groups, Farmer Producer Organisations, and Cooperatives are currently
engaged in the processing of this product...................................................................................... 383
26. Manufacturing Process ....................................................................................................... 392
Martur region is a suitable place to form a chilli cluster in the district because of the following
reasons; ........................................................................................................................................... 396
12. Recommendations .................................................................................................................. 400
13. Key Impacts ............................................................................................................................. 402
What are all required and where are we proposing........................................................................... 410
Create a marketing hub .................................................................................................................. 412
18.2. Percentage Share of Area under Agriculture and Horticultural Crops in Srikakulam
District in 2018-19 ........................................................................................................................... 417
states 418
18.8. Total Production of each of the Produces in the District in 2019-20 ............................. 419
18.10. Perishable nature of the produce; .................................................................................. 420
18.11. The number of workers engaged in the cultivation of each of the non-ODOP products.
420
19. Assessment of the existing Policy and Regulatory frameworks for FPI and FPI micro-
sectors: 422
20. Profiling of existing Micro Enterprises ecosystem: ............................................................. 425
20.2. Identifying Non-ODOP Products: .................................................................................... 425
20.4. Detailed Cluster Study for ODOP Products . ................................................................... 438
21.1. Introduction .................................................................................................................... 444
21.5. Manufacturing Process ................................................................................................... 450
21.7. Demographic and Socio-economic profiling ................................................................... 456
21.9. Cluster Actors .................................................................................................................. 467
21.10. Existing Government Schemes........................................................................................ 468
21.11. Cluster Map ..................................................................................................................... 471
21.12. Value Chain ..................................................................................................................... 471
21.13. Product Cost Analysis ...................................................................................................... 471
21.14. SWOT Analysis................................................................................................................. 472
23. Stakeholder Consultation.................................................................................................... 474
• Cashew nut import into India is increased 7% (CAGR) from the past two decades and
production of cashew nut in India is increased by 2%.................................................................... 475
Technology ...................................................................................................................................... 475
Testing facilities .............................................................................................................................. 476
25. Recommendations .............................................................................................................. 478
What are all required and where are we proposing........................................................................... 480
Create a marketing hub .................................................................................................................. 482
Executive summary: ............................................................................................................................ 487
ODOP and Non-ODOP products: ..................................................................................................... 487
1. Baseline Assessment studies: ..................................................................................................... 492
A.Agriculture profiling of the District in the state .......................................................................... 494
ODOP:.............................................................................................................................................. 495
Percentage share of Area under Agriculture and Horticultural crops in Visakhapatnam district- . 496
1.2ODOP produce as a percentage of the total agricultural production of the district- ................ 496
1.3Perishable nature of the produce- ............................................................................................. 497
1.4Production of ODOP agriculture produce in that district compared to other districts and states-
........................................................................................................................................................ 498
1.5Number of workers engaged in the cultivation of each of the ODOP products- ...................... 499
Non-ODOP....................................................................................................................................... 499
1. What other Major crops are being cultivated apart from the chosen ODOP Product- .......... 499
3Non-ODOP produce as a percentage of total agricultural production of the district .................. 499
4. Perishable nature of the produce: .............................................................................................. 500
5. Number of workers engaged in the cultivation of the non ODOP produce in the district: ........ 500
B. Assessment of the existing Policy and Regulatory frameworks for FPI and FPI Micro Enterprises
in the State: ......................................................................................................................................... 503
C. Profiling of existing Micro Enterprises eco system: .................................................................... 503
1. Industrial Profile of the Districts in the State.......................................................................... 503
2. Identifying Non-ODOP Products ............................................................................................. 504
3. Information Sources – ............................................................................................................. 504
ODOP – List of units visited ............................................................................................................. 504
4. District wise profiling based on secondary research .................................................................. 504
a. Detailed cluster study for ODOP products-How are going to do a cluster study ................... 516
1. Industry and Market Analysis ..................................................................................................... 516
Nutritive Value and Health Benefits ............................................................................................... 521
Nutrients of raw sugar (100gm) ...................................................................................................... 521
Composition of 100g of jaggery. ..................................................................................................... 521
1.3 Global Market for the Product .................................................................................................. 522
1.4Indian Market & Valuation for the Product ............................................................................... 522
1.5Manufacturing Process: ............................................................................................................. 525
................................................................. 529
2. District Profiling........................................................................................................................... 529
3.16 Environmental Impact:............................................................................................................ 541
3.17 Cluster Actors: ......................................................................................................................... 541
4.7 SWOT Analysis........................................................................................................................... 546
Common infrastructure ...................................................................................................................... 557
26.2. Percentage Share of Area under Agriculture and Horticultural Crops in Vizianagaram
District in 2019-20 ........................................................................................................................... 563
states 565
568
sectors: 570
28.1. Industrial Profile of the Districts in the State.................................................................. 570
Detailed Cluster Study for ODOP Products ..................................................................................... 590
Industry and Market Analysis ......................................................................................................... 590
28.4. Introduction .................................................................................................................... 594
28.12. Cluster Map: .................................................................................................................... 622
28.13. Value Chain: .................................................................................................................... 622
28.15. SWOT Analysis:................................................................................................................ 624
Strength: ......................................................................................................................................... 624
31. Recommendations: ............................................................................................................. 628
Common infrastructure ...................................................................................................................... 632
32.2. Percentage Share of Area under Agriculture and Horticultural Crops in West Godavari
District in 2019-20 ........................................................................................................................... 642
states 643
646
Dry Shrimp ...................................................................................................................................... 662
36. Detailed Cluster Study for ODOP Products – ...................................................................... 664
37.1. Introduction .................................................................................................................... 665
May boost brain health .................................................................................................................. 665
A good dietary source of vitamin D ................................................................................................ 666
It May help prevent asthma in children.......................................................................................... 666
Fish may improve sleep quality ...................................................................................................... 666
37.8. Cluster Actors .................................................................................................................. 682
1.1. Cluster Map: ........................................................................................................................ 691
........................................................................................................................................................ 692
........................................................................................................................................................ 692
1.2. Value Chain: ........................................................................................................................ 693
1.3. Product Cost Analysis: ......................................................................................................... 694
1.4. SWOT Analysis: ................................................................................................................... 695
2. Benchmarking Studies............................................................................................................. 696
3. Stakeholder Consultation........................................................................................................ 697
4. Agenda points & discussions................................................................................................... 698
5. Recommendations: ................................................................................................................. 699
Section 1
A. Agriculture Profiling of the State:
S.No Category Area Ha % share in Production % share in total
(lakhs) total area MT (lakhs) production
1 Agronomic crops 58.8 85% 210.2 45%
2 Horticultural 10.0 15% 257.4 55%

crops
3 Total 68.8 100% 467.6 100%
% Share in the total area of the crops % Share in total production of the crops
in the district in the state
15%
Agrnomic crops
Agrnomic crops 45%
55%
Horticultural
Horticultural
crops
crops
85%
(aps.dac.gov.in, 2019-20)
B. Profiling of existing micro-enterprises ecosystem in the state
C. Food processing policy in the state

S.No Scheme Incentives as per industries policy 2020-2023
1 Investment Subsidy Micro and Small Enterprises: 15% uptoRs. 20 Lakhs
Farmer Producers Organization (FPs):35% uptoRs. 50 Lakhs
BC/Minority Communities (Women): 35% uptoRs. 50 Lakhs
SC/ST Entrepreneurs:45% Limited to Rs. 1.00 Crore for

Women and Men
2 Interest Subvention Micro and Small Enterprises:3% for 5 Years
Farmars Producers Organization (FPOs):3% for 5 Years

BC/ Minority Communities (Women):3% for 5 Years
SC/ST Entrepreneurs:Upto 9% over and above 3% for 5

Years
3 Power cost Micro and Small Enterprises:@1.00 Per Unit for 5 Years
Reimbursement
Farmers Producers Organization (FPOs):@1.25 per unit for 5
Years
BC/ Minority Communities (Women):@1.25 per unit for 5

Years
SC/ST Entrepreneurs:@1.50 per unit for 5 Years

4 Stamp duty and 100% Reimbursement for MSEs, FPOs, BC/Minority
Transfer duty for Communities (Women) and SC/ST Entrepreneurs
purchase of land,
Lease of Land/
Shed/Buildings,
Martgage and
Hypothecation duty
5 Land Conversion 25% Land Conversion Charges uptoRs. 10 lakhs for MSEs,
Charges FPO, BC/Minority Communities (Women) and SC/ST
Entrepreneurs
6 Land Cost rebate 50% rebate in land cost uptoRs. 20 Lakhs for FPOs, BC/
Minority Communities (Women) and SC/ST Entrepreneurs.
7 SGST Reimbursement FPOs, BC/MinorityCommunities (Women) and SC/ST
(for a period of 5 Entrepreneurs:Reimbursement of 100% net SGST for 5 Years
Years)
8 Quality Certification / SC/ST Entrepreneurs:100% of cost incurred limited to Rs. 3

Patent Registration lakhs
9 Seed Capital SC/ST Entrepreneurs:25% of machinery cost for micro units
Assistance
10 Other Common 16.2% of Plots for SC Entrepreneurs
Initiatives
6% of plots for ST Entrepreneurs in industrial parks
Parameter Andhra Pradesh, Vijayawada
Name of Policy: • Incentives for Micro and Small Enterprises

Nodal Agency • Industries & Commerce Department – Andhra Pradesh
Stamp duty and Transfer duty Reimbursement of 100% stamp duty and transfer duty
paid by the industryon purchase of land meant for
Industrial use & ease of
land/shed/buildings,mortgages and hypothecations
Uninterrupted Power GoAP is committed to supplying uninterrupted 24x7
quality power to allindustries operating in the
stateFixed power cost reimbursement @ ₹1.00 per
unit for five yearsfrom the date of commencement of
commercial Production.
Subsidy on Fixed Capital 15% Investment Subsidy on Fixed Capital Investment
limited up to ₹20lakh, whichever is lower. The subsidy
Investment
will be released only after 3 yearsof continuous
operation with at least 80% efficiency in all
parameters i.eemployment, production, etc.
Interest Subsidy Interest subsidy of 3% on the term loan taken for fixed
capital investment bynew Micro and Small enterprises
for 5 years from the date ofcommencement of
commercial production.
SGST Reimbursement of 100% of net SGST accrued to state
for a period of 5years from the date of
commencement of commercial production or up
torealization of 100% fixed capital investment,
whichever is earlier.
Land conversion charges Reimbursement of 25% land conversion charges for
Industrial use limited to ₹10lakhs.
Name of the Policy • Incentives for Medium Enterprises, Large and Mega
Industries
Uninterrupted Power 100% Reimbursement of net SGST accrued to the

State for 5 years or100% fixed capital investment,
whichever is lower, from the date of commencement
ofcommercial production, linked to employmentIf
direct employment generated is < 1000 SGST
reimbursement is 50%, for 1000 to 2000 is 75% and
for 2000+ is 100%
Name of Policy: Special Package for Women Entrepreneurs belonging
to
Scheduled Caste /Scheduled Tribe /Backward Classes
/Minority Communities
stamp duty and Transfer duty 100% reimbursement of Stamp duty and transfer duty
industrial use & Lease of Land/Shed/Buildings
andmortgages and hypothecations.
Rebate in land cost 50% rebate in land cost limited to 20 lakhs in Industrial
Estates/Industrial Parksfor MSEs.
Land conversion charges 25% Land conversion charges for industrial use limited
to 10 lakhs for MSEs.
Power cost reimbursement Fixed power cost reimbursement @ 1.25 per unit for 5
years from the date ofcommencement of commercial
production.
Subsidy on Fixed Capital 35% investment subsidy on fixed capital Investment
limited to Rs.50 Lakhsfor MSEs. The subsidy will be
Investment
released only after 3 years of continuousoperation
with at least 80% efficiency in all parameters i.e
employment,
production etc
Interest Subsidy Interest subsidy of 3% on the term loan taken on the
fixed capital investmentfor 5 years from the date of
commencement of commercialproduction for MSEs.
SGST Reimbursement of 100% net SGST to Micro and Small
Enterprises for aperiod of 5 years from the date of
commencement of commercial productionor up to the
realization of 100% fixed capital investment,
Reimbursement of 75% net SGST to medium
enterprises for a period of 5years from the date of
Reimbursement of 50% SGST to large enterprises for 5
yearsfrom the date of commencement of commercial
production or up torealization of 100% fixed capital
investment, whichever is earlier.
Plots for SC Entrepreneurs 16.2% of plots for SC Entrepreneurs and 6 % of plots
for ST Entrepreneurs inthe industrial parks will be
reserved and allotment will be done as per theAPIIC
allotment guidelines
(MSME AP, 2020)
Section 2
1. Agriculture profile of the district (ODOP)
1. Total production and acreage of the produce in the district
Horticultural crops in the district (2019-20)

Category Area ( Lakh Ha) Production (Lakh MT)
Fruits 1.52 39.17
Vegetables 0. 39 12.33
Total 1.91 51.51
Agronomic crops in the district (2019-20)
Total 7.77 8.25
Total agricultural crop production in the district (2019-20)
Total 9.68 59.77
Area and production of the agricultural crops in Anantapur district
5977342
5151455
Area
Production
777027 825887 968851

191824
Agronomic Horticulture Total
2. ODOP produce as a percentage of total agricultural production of the district

Groundnut is grownin the area of 4.08 ha in Ananthapuram district which is 42% of the total
agricultural area in the district and the production of the groundnut crop in the district is
3.43 MT which is 6% of the total agricultural production in the district.
Commodity Area ( Lakh Production % of area % of Production

Ha) (Lakh MT)
Groundnut crop 4.08 3.43 42 6
Other Agricultural 9.68 59.77

crops
% of Groundnut crop area in the % of Groundnut crop production in

total agricultural crop area in the the total agricultural crop production
disitrict in the disitrict
6%
Groundnut Groundnut
42%
Agricultural Agricultural
58% production
production
94%
3. Perishable nature of the produce

The perishable nature of the Groundnut and its value-added products are listed below:
S.No Name of the produce Shelf life period Packaging material

1 Groundnut chikki 1 month Polythene cover
2 Groundnut oil 3 months Polythene cover
3 Groundnut Kernels 6 months Polythene cover
4 Peanut butter 3 months Polythene cover
5 Groundnut milk 1 month Polythene cover
4. Production of ODOP agriculture produce in that district compared to other

districts and states
In 2019-20, the Groundnut crop is cultivated in the area of 6.61 Lakhacres in Andhra
Pradesh with the production of 8.49 Lakh MT. 62% of the total area under the groundnut
crop is contributed by the Anathapuram district with 40% of the total production of the
groundnut crop in the state. Ananthapuram is followed by Chittoor with 16% of the total
area under the groundnut crop and 24% of the total crop production and Kurnool district
contributes 14% of the area under the groundnut crop in the state with 20% of the total
production.
% of area under the groundnut crop in % of groundnut crop production from
each district each district
0%
1%
0% 0% 0% Srikakulam 1% 0% Srikakulam
0% 1%
1% 0% 0% 0% 1%
Vizianagaram Vizianagaram
1%
Visakhapatnam 1%
0%
4% Visakhapatnam
14% East Godavari East Godavari
16% 20%
West Godavari West Godavari
3% Krishna 24% Krishna
Guntur Guntur
Prakasam Prakasam
41% 6%
62% SPSR Nellore SPSR Nellore
Chittoor Chittoor
YSR Kadapa YSR Kadapa
Ananthapuram Ananthapuram
District Area (Ha) Production Share in the Share in the

(MT) area production
Srikakulam 4896 7359 1% 1%
Vizianagaram 1504 2472 0% 0%
Visakhapatnam 2063 3125 0% 0%
East Godavari 151 96 0% 0%
West Godavari 2166 5232 0% 1%
Krishna 1492 6185 0% 1%
Guntur 3211 11709 0% 1%
Prakasam 3027 9415 0% 1%
SPSR Nellore 8955 36469 1% 4%
Chittoor 108269 204027 16% 24%
YSR Kadapa 21827 52818 3% 6%
Ananthapuram 408630 343519 62% 40%
Kurnool 95073 166896 14% 20%
Andhra Pradesh 661264 849323 100% 100%
In 2019-20, 9.95 millionTones of groundnut cropswere produced in India. Gujarat,

Rajasthan, Tamilnadu, Andhra Pradesh, and Karnataka are the top 5 producers of the
groundnut crop in India. The top five producing states in India contribute almost 87% of the
total crop production in India with Gujarat alone contributing upto 47% of the total crop
production in India.
Sr No. State Production(000 Tons) Share(%)

1 Gujarat 4,645.52 46.68
2 Rajasthan 1,619.33 16.27
3 Tamil Nadu 1,033.00 10.38
4 Andhra Pradesh 848.79 8.53
5 Karnataka 502.81 5.05
6 Madhya Pradesh 350.66 3.52
7 Maharashtra 308.99 3.11
8 Telangana 265.37 2.67
9 West Bengal 156.1 1.57
10 Uttar Pradesh 88.55 0.89
11 Orissa 43.29 0.44

12 Chattisgarh 41.82 0.42
13 Jharkhand 28.78 0.29
14 Punjab 3.56 0.04

15 Haryana 3.36 0.03
16 Tripura 3.36 0.03
17 Manipur 2.35 0.02
18 Nagaland 2.15 0.02
19 Uttarakhand 1.09 0.01
20 Arunachal Pradesh 0.91 0.01
21 Bihar 0.86 0.01

22 Goa 0.43 0
23 Kerala 0.15 0
24 Pondicherry 0.06 0
25 Himachal Pradesh 0.05 0
Total production 9,951.34
(APEDA Agri Exchange, 2019-20)

2. Food product (chosen as ODOP)
1. Total estimated production of the food product or its category chosen as ODOP
Enterprise Response Turnover % share
% Share of the enterprises from the
count (lakhs)
total turnover of the ODOP processing
in the district
Micro 183 8755.298 91%
9%
Small 15 904 9%
Micro
Small
Total 198 9659.298 100% 91%
2. Total requirement and movement of Raw material or Agricultural produce

required for manufacturing this food product.
Only 4% of the total crop produced in the district is processed. The majority of the crop
produced in the district is used for the seed purpose and exported to other districts and
states for processing, seed purpose, raw consumption, and flour purpose.
Category Number of units Quantity of processing per Total processing

(Approximately) year per unit (tons)
Decorticators 100 96 9600
Oil expeller 80 72 5760
Total 15360
Total groundnut production in Anathapuram district 343519.4
Percentage of processing out of total production 4%
3. Identifying Non-ODOP Products

From the primary survey, based on the number of food processing units operating in the
district Paddy, Millets (Including minor millets), Maize, Bengal gram, are identified as the
Non-ODOP of the district.
Crop Area(Ha) % Area Production (MT) % Production

Paddy 32540 4 165967 20
Maize 23041 3 82442 10
Millets 36996 5 27901 3
(Including minor
millets)
Bengal gram 92409 12 70878 9
% share of area of the Non ODOP crops % share of production of Non ODOP
in the district crops in the district
3%
4%
Paddy 20% Paddy
12%
maize maize
5%
Bengal gram 10% Bengal gram
Millets 58% Millets
9%
76% Other crops Other crops
3%
1. Mapping of the Micro, Small, Medium, and Large Industries in the District
involved in food processing in the District (Total number of Units and details
related to their size, turnover, etc.)
Existing food processing industries in the district:
Total 778 units are registered under the food processing category in the district. Among the
total units, 706 units are micro-enterprises, 71 are small units and 1 is medium processing
unit. The total turnover from these food processing units in the district is 13802.8 lakhs and
58585 employees are working in these food processing enterprises.
Category Number of Sum of Total Investment (Rs. Employment

enterprises Lakhs)
Partnership 24 1474.68 369
Micro 13 510.68 148
Small 11 964 221
Private Limited 10 2496.84 311
Company
Medium 1 730 61
Micro 2 36 31
Small 7 1730.84 219
Proprietary 170 3900.98 1190
Micro 146 1854.25 879
Small 24 2046.73 311
Proprietory 60 1126.76 628
Micro 56 888.47 557
Small 4 238.29 71
Public Limited 1 30 8
Company
Small 1 30 8
Self Help Group 3 11 9
Micro 3 11 9
Others 510 4762.554 3343
Micro 486 1797.704 2718
Small 24 2964.85 625
Total 778 13802.814 5858
(District industries center, 2021)
2. Number of clusters or locations(if any) wherethe processing of ODOP product

happens
There are currently no clusters in the district. Food processing units in the district are
dispersed all over the district but there is the possibility to form the cluster as there is a
large number of units processing the ODOP produce of the district and abundance
availability of the raw material. As the NarpalaMandal and DharmavaramMandal contains
more decorticator units there is possible to make these mandals as the cluster.
3. Number of units engaged with producing the specific ODOP product and 4-5
major non-ODOP products.
Row Labels Non ODOP
% share of the category of units in the total
Partnership 4 enterprises
Proprietorship 115
Pvt. Ltd 5
Society/SHG 4 10%
Micro 128
Partnership 1 Micro
Proprietorship 6 Small
Pvt. Ltd 5
90%
Society/SHG 2
Small 14
Grand Total 142
4. Approximate Level (%) of processing happening for ODOP (out of total
production) in the district
Only 4% of the total crop produced in the district is processed. The majority of the crop
produced in the district is used for the seed purpose and exported to other districts and
states for processing, seed purpose, raw consumption, and flour purpose.
Category Number of units Quantity of processing per Total processing

(Approximately) year per unit (tons)
Decorticators 100 96 9600
Oil expeller 80 72 5760
Total 15360
Total groundnut production in Anathapuram district 343519.4
Percentage of processing out of total production 4%
5. Number of Self Help Groups, Farmer Producer Organizations, and Cooperatives

currently engaged in the processing of this product.
There are no Self-help groups (SHGs), farmer producer organizations (FPOs),and
cooperatives involved in the ODOP processing in the district.
4. Profiling of existing Micro Enterprises Ecosystem for the District
1. Specialty of the local agricultural produce/food product, varieties available,

seasonality, uniqueness, history, etc.?
Seasonality:
Groundnut crop is raised moistly as rain-fed Kharif crop, being sown from May to June,
depending on the monsoon rains. In case of delayed monsoon, it is sown in late August or
early September.
The variety is grown in the region
S.No variety Year of Duration Yield/Qty/Ha Special feature

release
1 K-6 2005 105-110 18-24 Tolerant to leaf spots

2 Kadirilepakshi 12 -15
Uniqueness and history:
There is no uniqueness and history associated with the crop and the district in the state.
There is no GI tag provided to the ODOP crop in the district.
2. Infrastructure
a. Essential Machinery or facilities required for the production of the product

Machinery, Warehouse facilities are the essential infrastructure required for processing and
storing the raw material and processed products like Oil, Flour,peanut Chikki,peanut
butter,etc.
b. Existing level of Mechanization for ODOP processing within the district, in other
districts, and States.
Below are the machinery listed are used for manufacturing the ODOP products of the
district. Apart from the machinery, vehicles are required in the movement of the raw
material from the farmers, distributors, and retailers and processed products to the
wholesalers, retailers, and consumers.
S. No Decorticator
1 Vibrator Pre-Cleaner machine
2 Decorticator machine
Peanut butter
1 Peanut roasting machine
2 Peanut grinder
3 Food paste filling machine
4 Jar capping machine
Roasted peanut
1 Pan roaster
2 Automatic seasoning system
Peanut oil
1 Expeller
2 Solvent extraction
3 Cross tube boiler
c. Additional infrastructure and amenities required.

Warehouses and testing facilities are the other essential infrastructure required for the
ODOP processing enterprises in the district. There are no testing facilities for the processing
units in the district. There are warehouses for the few enterprises in the district but the
majority of the units requested for the warehouses in the primary survey.
3. Support Infrastructure:
There are good transport facilities to the processing units to connect the forward and
backward linkages in the district and there are no water and power supply shortages to the
processing units. There are good road and rail transport facilities in the district to connect
with neighboring districts also. Distributors, groundnut decorticators, and oil expellers will
purchase the required raw material either from the farmers directly in the market yards or
through the wholesalers or distributors who will future purchase the raw material from the
farmers. There are no common facilities in the district with respect to testing facilities,
warehouses, transportof raw and processed products.
4. Testing:
There are no testing facilities available for the food processing enterprises in the district.
The majority of the processing enterprises are selling the product without the testing
certificate. The oil expeller units have the FSSAI license numbers to sell their produce to the
retailers and the wholesalers in the district.
5. Value Chain\Channels of movement:

S. No Particulars Purchasing price/kg Selling price/Kg
1 Farmer 62
2 Decorticators 62 105
3 Oil expellers 105 210
4 Wholesalers 210 230
5 Retailer 230 250
6 Consumer 250
6. Manufacturing Process:
a. Product Range
From the primary survey it is observed that the ODOP processing units in the district are
processing different products like
➢ Groundnut oil
➢ Peanut chikki
➢ Groundnut flour
➢ Groundnut decortications
Other possible processed products for the ODOP produce of the district are
➢ Peanut butter
➢ Groundnut milk
➢ Roasted peanuts
b. Production Process and Technology

Groundnut oil extraction:
Groundnut Chikki preparation:
Preparation Mixing of Cooling

Groundnut Roasting
of syrup nuts in and Packing
kernel of nut
jaggery syrup cutting
Groundnut decorticator:
Shelled Gravity
Pre- Decorti Separat Deston Color Packagi
ground separat
Cleaner cator or er sortex ng
nut or
Groundnut flour:
Drying
Peanut
Peanut (50°C, 48 Peeling Grinding Blending Sieving
flour
hours)
Technology:
Oil extraction machinery
S.No Machine Machine description

1 Vibratory Pre- This machine is used to remove foreign impurities like husk,
cleaner machine stone, plastic from the harvested peanuts. The VibroSifter
machine works on the principle of gyratory vibrations. The
material is separated based onits particle size.
2 Groundnut This machine divides the groundnut into two parts that are in
Decorticator the kernels and outer shell of the groundnuts by shearing action.
Machine
3 Cross Tube Boiler The feed water is fed to the cross drum through a feedwater
inlet. Then this water comes down through the down-comer
pipe and enters into an inclined water tube placed in the hot
chamber. Here, the water becomes hot and steam is produced in
the water which comes into the steam chamber.
4 Groundnut oil This machine is used to crush the groundnut kernels to produce
expeller oil. The expelling unit consists of a screw excellent shaft. Rotary
screw arrangement is made in the machine for crushing the
groundnut. The heating of groundnut seeds is achieved by
generating heat, which heats the surrounding seeds' passage.
5 Oil Filter Press An industrial filter press is a tool used in separation processes,
specifically to separate solids and liquids. The machine stacks
many filter elements and allows the filter to be easily opened to
remove the filtered solids, and allows easy cleaning or
replacement of the filter media.
6 Bottle filling This machine is used to fill oil within the bottles at sufficient
machine pressure in the required quantity.
7 Other Oil collection tank, pump, screw conveyor, bins, etc.
machinery&
equipment
7. Marketing
Groundnut decorator:
Groundnut expeller units:

8. Quantum of Sale of this product to other districts, states and exported to other
countries
NA
9. Institutional Support
➢ RKVK- RashtriyaKrishiVikasYojana
➢ Mission for Integrated Development of Horticulture
➢ National Horticulture Board
➢ State Agriculture and Horticulture Department
➢ APEDA
The above mentioned institution or the organization helping the farmers to increase the
crop yield by introducing the high yeilding crop varieties, processors by introducing new
technology and post harvest management technologies.
Section 3
1. Methodology note for primary data collection
This chapter explains the study area, sampling techniques, different tools, and techniques
used for analyzing the collected data. The methodology adopted for the present study is
presented inthe following sections.
1) Study area
2) Sampling Technique adopted
3) Nature and sources of data
4) Analytical tools and techniques used
Study Area
The study on State Level Up-gradation Plan is conducted in the entire Anathapuram district
of Andhra Pradesh State of India.
Sampling Technique and Sample Size adopted
Sampling Technique - Multistage random sampling technique was adopted.
Sample Size:
The sample size in the Anathapuram district is 341. Among the total sample surveyed 198
respondents are processing the ODOP produce (Groundnut based products) of the district
and 143 respondents are processing the Non-ODOP of the district. (Paddy, Bengal gram,
Maize, and millet-based products).
Nature and sources of data

Both primary and secondary sources of data are collected for this study.
Primary Data
Total 341 respondents involved in the food processing in the district including the individual
enterprises, FPOs, SHGs, are contacted during the primary survey for collecting the
necessary information. Other players in the value chain like farmers, distributors,
wholesalers, and retailers are also contacted during the primary survey.
Secondary information
The secondary data is collected from various sources like DICGS annual report, Spice Board,
Anathapuram Statistical Handbook, APEDA, Indiastat.com, other internet sources.
Analytical tools and techniques used

Tabulation of Collected Data, Percentage Analysis, and Graphical Solutions was used to get a
comprehensive picture and analysis of the Data. After the data has been collected, it has
been interpreted and presented to arrive at conclusions.
1.1 Individual in-depth interviews

Registration of Industries
From the primary survey, it is observed that from the total number of industries processing
the ODOP produce of the district, only 52% of the units are registered and 41% of the units
are unregistered in the district. 7% of the registration of the unit is in the process in the
district.
Enterprise Response Percentage

count
Percentage of registered ODOP
In Process 13 7 enterprises in the district
No 82 41 7%
In Process
Yes 103 52
No
52% 41%
Yes
Total 198 100
Mode of operation:
From the primary survey, it is observed that 90% of the ODOP processing units are operating
as the proprietorship, 5% of the units are operating as Private limited companies and 3% are
operating as partnership enterprises in the district. Household enterprises, SHGs, and State
government undertaking units are 1% respectively in the total units processing the ODOP in
the district.
Enterprise Micro Small Total % Share of the enterprises
Household 2 2 1
Partnership 3 3 6 3
Proprietorship 167 11 178 90
Pvt. Ltd 9 9 5
Society/SHG 2 2 1
State Govt. 1 1 1
Undertaking
Total 183 15 198 100
% share of the category of the units the total ODOP enterprises in the
1%
district
1% 1% 3%
5%
Household
Partnership
Proprietorship
Pvt. Ltd
Society/SHG
89% State Govt. Undertaking
Category of the ODOP processing units:
From the primary survey, it is observed that among the total ODOP processing units in the
district, 92% of the enterprises are operating at the micro-level, and 8% of the enterprises
are operating as small processing units.
category Response Response

Percentage of category of ODOP enterprises
count percentage
Micro 183 92 8%
Micro
Small 15 8
Small
Total 198 100 92%
the number of workers:
A total of 1282 members are working in the ODOP processing units in the district. Among the
total workers, 69% of the workers are male and 31% of the workers are female.
Category Number of Percentage of
workers workers
% of Category workers engaged in
Male 881 69% processing of the ODOP in the district
Female 393 31%

31%
Male
Female
Total 1282 100%
69%
From the total number of employees working in the ODOP processing enterprises, 90% of the
employees are working in the micro food processing enterprises and 10% of the total
employees are working in the small category food processing enterprises.
category Male Female Total % Share
Number of employes in different

Micro 812 337 1148 90 categories of enterprises
Small 69 56 134 10
Male
Total 881 393 1282 100 Female
Micro Small Total

1.2 Stakeholder consultation
1.3 Focus group discussion
2. Cluster analysis and discussion
2.1 Location of the cluster
(www.mapsofindia.com, 2019)
2.2 Skill development required

There is no shortage of laborers in the district for the food processing industries. The
majority of the employees working in the processing of the ODOP produce of the district are
unskilled labor who have acquired the knowledge and experience of processing by working
in the processing enterprises. The labors working in the micro and small industries require
training on handling the advanced technology and testing facilities to increase the quantity
and quality of the food production in the district.
2.3 Product cost analysis

Production:
S.No Particulars Quantity

1 Production capacity per day 300 KG
2 Working hours in day 8
3 Working days in month 25
4 Working days in year 300
5 Peanut oil minimum extraction rate taken 30% of input
6 Raw material required 300000 KG
7 Wastage 15%
8 Ground cake 165000 KG
9 Raw material (Per KG 70) 8400000
10 Sale per liter 250
Capacity utilization (40%)

S.No Particulars Amount (Rs) Lakhs
I Fixed cost
Land requirement – 1500-1800 Square feet 30000 per month
Machinery 8.00
Electricity connections and other fittings 1.00
Furniture and equipment 0.50

II Variable cost
Raw material consumed 84.00
Electricity expenses 3.65
Depreciation 1.35
Wages and labor 5.28
Repair and maintenance 1.04
Packaging cost 2.11
Less closing stock 3.25
Total cost 94.18
III Sale
Groundnut oil 95.70
Groundnut cake 7.92
Total sale value 103.62
Gross profit 9.44
Building rent 3.60
Selling and administration expenses 1.55
IV Net profit per annum 4.29
2.4 Problem mapping/Firm-level issues of micro-enterprises

S. Gaps Recommendations Costing
No (lakhs)
1 Skill development There is a lack of skilled labor in the district.
Need to provide the training to the
beneficiaries on handling the advanced
machinery to increase the quantity and quality
of the produce.
2 Manufacturing There is a lack of testing facilities in the district
practices for the ODOP processed products in the district.
3 Technologies Need to upgrade to the new technology in the 3960.5
market to increase the production quality of
the enterprises in the district.
2.5 SWOT analysis

Strength Weakness
➢ Abundance availability of raw ➢ Lack of proper infrastructure
material ➢ Lack of technology and skilled labor
➢ Health benefits associated with the in the region
consumption of the produce ➢ Lack of branding and marketing the
processed produce
➢ Unorganized supply chain
Opportunities Threats
➢ Support from the state and central ➢ Competition from the established
government to upgrade the existing branded produce
units under different schemes ➢ Perishable nature of the raw material
➢ Scope for the branding and and processed produce
marketing of the processed produce
➢ Increasing demand for the product
2.6 Need assessment and Gap study

S. No Gaps Recommendation
1 Skill development There is a lack of skilled labor in the district. Need to
provide the training to the beneficiaries on handling the
advanced machinery to increase the quantity and quality of
the produce.
2 Technology Need to upgrade to the new technology in the market to
increase the production quality of the enterprises in the
district.
3 Manufacturing There is a lack of testing facilities in the district for the
practices ODOP processed products in the district.
4 Access to finance The majority of the units in the district are facing difficulties
to get the financial benefit due to the heavy paperwork and
collateral that the financial institutions required.
Paperwork should be minimized for the food processing
institutions to acquire the financial benefit for the up-
gradation of the existing units.
5 Access to There is a need to establish an incubation center to guide
mentorship the processors in terms of the technology, marketing,
quality aspects, and financial support to increase the
quantity and quality of the goods processing
6 Infrastructure There are good road transport facilities within the district
to connect the food processing enterprises and good road
and rail transport facilities to connect with the other states.
There is a lack of storage facilities in the district for the
ODOP processors. It is suggested to have a common
warehouse facility for the processors to store the
purchased raw material and the processed goods for a
certain time.
3. Recommendations
3.1 Vision statement and Key objectives

Vision statement:
➢ Make a feasible environment for the micro food processing enterprises in the
Ananthapuram district.
Key Objectives:
➢ To provide the necessary funding for the ODOP and Non-ODOP food processing
enterprises in the district
➢ To provide the necessary training to the workers in the micro food processing
enterprises for the skill development in the district
➢ To provide branding and marketing support to the micro food processing enterprises
to increase their market share in the district.
3.2 Strategy for integrated development
3.2.1 Scope for processing

Groundnut is the major crop-growing district. 42% of the total agricultural area in the
district is under the Groundnut crop. Anathapuram district contributes 62% of the total area
under the groundnut crop and contributes 40% of the total crop production in the state.
Despite good production, only 4% of the total crop produced in the district is processing.
Groundnut decorticators and oil expellers are the major enterprises operating in the region
and other products like peanut butter, peanut milk, and chikki units can be encouraged to
increase the share of the processing in the total crop produced in the district.
3.2.2 Scope for capital investment in processing

Particulars Capital investment
Common infrastructure A common storage facility can be provided to the processing
units in the district. From the primary survey, it is observed
that many of the processing units are requesting the storage
facility of storing the raw material and the processed
products.
Common testing facilities can be provided to the ODOP
processing enterprises in the district.
Skill development There is no shortage of laborers in the district for the food
processing industries. The majority of the employees working
in the processing of the ODOP produce of the district are
unskilled labor who have acquired the knowledge and
experience of processing by working in the processing
enterprises. The labors working in the micro and small
industries require training on handling the advanced
technology and testing facilities to increase the quantity and
quality of the food production in the district.
Marketing and branding Common branding and marketing can be provided to the oil
expeller units in the district. The majority of the ODOP
processing units in the district are selling the product without
branding.
3.3 Proposed interventions
3.3.1 For Capital Investment in plant and machinery for the existing and new
enterprises
Category Number of enterprises Funds Requirement (Lakhs)
Decorticating 16 372
machine
Flour mill 8 230
Oil extraction 135 3102
machine
Packaging machine 6 119
Up-gradation 6 137.5
Machinery 171 3960.5
Warehouse 63 1601.4
Storage 63 1601.4
Vehicle 3 33
Transportation 3 33
Total 237 5594.9
% category of fund requirement
1%
27%
Machinery
Storage
Transporation
72%
3.3.2 For Groups
3.3.3 For common infrastructure and incubation centers

➢ The majority of the ODOP processing units in the district requested for the
warehouses to store the raw material and processed produce. Only if a few of the
enterprises in the district havetheir warehouses. Among the total fund requirements
from the ODOP processors in the district, 27% of the fund requirement is for the
storage facility so it is suggested to have common warehouses for the ODOP
processors in the district.
➢ There is no testing facility for the ODOP processed products in the district. A
common testing facility center can be implemented in the district to improve the
quality of the ODOP processed products.
3.3.4 Branding and marketing

Common branding and marketing can be provided to the oil extracted from the oil expeller
units in the district. The majority of the units in the region are selling the oil to the
wholesalers and distributors without any brand name who are further selling these products
on their brand name. Common branding and marketing can increase the sales and revenue
of the oil expellers' units in the region.
4. Key impacts
➢ Increase in the revenue for the ODOP processing units in the district with the up-
gradation of the existing units and branding and marketing of the processed
products.
➢ Increase in the employment generation with the skill development by providing the
necessary training to the ODOP and Non-ODOP processing enterprises in the district
➢ Increase in the number of enterprises in the food processing sector by providing
necessary support to the entrepreneurs.
➢ Increase in the quality of the processed products with the implementation of the
testing facilities in the district.
➢ Decrease in the waste of raw material and processed products with the
implementation of the warehouses in the district.
Contents
Executive Summary……………………………………………………………………………………...…3
2. Key Impacts ......................................................................................................................................... 53

3. Industrial Profiling ........................................................................................................................... 58
processing in the district (Total number of Units and details related to their size, turnover, etc.) ....... 58
2. Number of clusters or locations(if any) where the processing of this product happens; .............. 61
products. ................................................................................................................................................. 62
district, .................................................................................................................................................... 64
5. The number of Self Help Groups, Farmer Producer Organisations, and Cooperatives currently
engaged in the processing of this product.............................................................................................. 64
f. Manufacturing Process ................................................................................................................... 70
2.1 Individual In-depth Interviews .................................................................................................... 74
Output Document to be submitted ........................................................................................................ 74
Output Document to be submitted - ...................................................................................................... 75
Yet to conduct ......................................................................................................................................... 75
Output Document to be submitted - ...................................................................................................... 75
Yet to conduct ......................................................................................................................................... 75
3.1 Location of the cluster ................................................................................................................ 75
Madanapally region is a suitable place to form tomatoes cluster in the district because of the
following reasons; ................................................................................................................................... 75
4. Recommendations .............................................................................................................................. 80
5. Key Impacts ......................................................................................................................................... 83
Executive Summary
The total area under Tomatoes in The Chittoor district is 28845 hectares, with the
production of 1038420 MT respectively during 2019-20. During 2019-20, the total
production of Tomatoes in Andhra Pradesh state is 2815164 MT. The Chittoor district
contributes around 36.89% to total tomatoes production in the state followed by
Ananthapuram district 24.83% and Vizianagaram district 19.31% respectively
Among Non-ODOP produce, Paddy has the highest production of 300590 thousand tons and
contributes around 38.83% to total agriculture production in The Chittoor district in 2019-
20. Other Non-ODOP produce in the district is Groundnut, Sugarcane, and Redgram as the
production of 204027 thousand tons, 1316 thousand tons, and 455 thousand tons
respectively.
Vision Statement:To support micro-enterprises/SHGs/FPOs to up-gradation of technology

in The Chittoor district.
Objective:
• Up-gradation of existing micro-enterprises by providing technology, training on skill
development, marketing, and branding.
1.1 Strategy for Integrated Development

The total production of tomatoes in the district is 1038420 MT in 2019-20, of which only
4-5 % is processed. Andhra Pradesh state is one of the leading producers of tomatoes and
there is a good demand for processed products within and outside the country as well.
If the number can be increased to about 10-15 % of total production in the district, one
can reduce the losses that farmer incurs during bumper production. Post-harvest loss can
also be reduced by providing logistical support to farmers. This can be promoted through
the PMFME scheme.
1.1.2 Scope for Capital Investment in Processing
Particulars Capital Investment
Common Infrastructure • The Chittoor district has a good infrastructure but needs
improvement in few areas of the district.
• The district is also well connected with roadways and
railways, but the capital investment is required in few
areas where respondents asked for proper roads and
connectivity.
Skill Development • Capital investment for skill development, awareness
program, training on post-harvest management, and
handling of new machinery is required. Training on the
hygienic method of preparing the produce can be
undertaken since through primary survey it is found that
most of the small processor doesn’t maintain proper
hygiene.
Marketing and • The majority of micro-unit owners are selling processed
Branding products without proper branding at lower prices. Proper
branding of the product is required to ensure proper
marketability and increased sales.
1.2 Proposed Interventions

The summary of Funding requirements, combining various categories within the PMFME
scheme is given below and the details are provided in the ensuing section.
Category Number of Total up- Purpose out of that

Units gradation subsidy
plan - provided
average cost through
in lakhs PMFME
(Lakhs)
Category Individual – 86 183.55 Purchase of 64.24
1 Existing Machinery
and
Equipment’s
Category Groups - SHG's 1 2.13 Up- 0.74
2 gradation
and
purchase of
new
machinery
and
equipment’s
Category Common 0
4 infrastructure
Category Marketing and 0
5 Logistical support
Individual existing – During the primary survey respondents (existing individual and
potential units) expressed that they are interested in making processed tomatoes products.
During the survey respondents of individual units expressed that they need funds for up-
gradation and purchase of new machinery like automated grading, sorting, pulping
machines.
Groups – Few SHGs process tomatoes into various products on small scale. The fund
requirement for an SHG is for the purchase of new machinery, skill development, branding,
and marketing can be made. It was emerging from the primary survey that SHGs are willing
to expand and they need funds. PMFME scheme can fill this gap.
Marketing & branding-Proper packing and labeling of the processed products have to be
made so that they can sell the products in different towns and cities and increase income
from this. Through primary survey observed that majority of the respondents expressed that
they are willing to expand the production of their product if they are provided with proper
marketing facilities. Training regarding proper branding and established avenues of
marketing like online sales can be made so that they can easily market their products to
nook and corner of the country.
Training and skill development-Primary surveys indicate that small-scale processors are
interested in scaling up their production, so skill development training should be provided
for the processor regarding new technology, hygiene, and branding their products for
marketing.
2. Key Impacts
Particulars Impact
Opportunity to Increase • Through support under the PMFME scheme, there is a
processing activity possibility of increase the percentage of processing in
the district by encouraging potential entrepreneurs to
take up the processing of tomatoes.
Employment • Employment in the district can be increased by
increasing the processing units.
Income • Through proper branding and marketing and
introducing the product to new areas, income and
volume can be increased in the region.
Reduce Waste • By processing can reduce the wastage of produce
during bumper production.
Better Price • During the off-peak season the price of the product will
be below, to overcome this they can enter into
processing activity and earn a better price.
I) SECTION ONE:-
A. Agriculture Profiling of the State

B. Profiling of existing Micro Enterprises Ecosystem in the State
C. Food Processing Policy in the State
1. Whether the State has a food processing policy?
2. Incentives\subsidies being given for food processing micro-enterprises through any
specific schemes of the state.
II) SECTION TWO:-
1. Agriculture Profile of the District (ODOP)

a. Agricultural produce was chosen as ODOP
Based on the existence of micro-units and the relevant commodity is grown largely in the
district the ODOP product is identified by the APFPS department and Tomatoes is
recognized as an ODOP product.
1.1 Total Production and Acreage of the Produce in the District
The total area under Tomatoes in The Chittoor district is 28845hectares, with the
production of 1038420 MT respectively during 2019-20.
% Share of tomato Production in
2019-20
37% Chittoor
63% AP(Other district)
Source: (aps.dac..gov.in, 2019-20)
1.2 ODOP produce as a percentage of total agricultural production of the district:

Total agriculture and horticulture production in the district is 5088184 MT and
tomatoescontribute around 20% to overall agriculture and horticulture production in the
district during 2019-20.
% Share of ODOP Production to Total Agri&Horti

Crops Production in District in 2019-20
20%
Tomato
Agri & Horti production in

district
80%
1.3 Perishable nature of the produce;

The perishable nature of Tomatoes and theirvalue-added products are listed below
Sl.No Name of the produce Shelf-life of the product Packaging Material

I Tomatoes
1 TomatoesPapad 3 months Polythene Packets
2 Tomatoes Pickle (Liquid) 12 months Glass Bottle, plastic
bottle, and Polythene
Packets
3 Tomatoes pickle (Dry) 1 to 2 years Polytene Bottle and
Polythene Packets
4 Tomatoes powder 2 years Polythene Packets
5 Tomatoes Pulp 6 months to 1 year Glass and Tin bottles
6 Tomatoes Flakes 1-2 years Polythene packs
7 Tomatoes juice 3-6 months Tetra pack and glass
bottle
Source: (Indiamart.com, 2020)
1.4 Production of ODOP Agriculture Produce in that district compared to other districts
and states;
During 2019-20, the total production of Tomatoes in Andhra Pradesh state is 2815164 MT.
The Chittoordistrict contributes around 36.89% to total tomatoes production in the state
followed by Ananthapuram district 24.83% and Vizianagaram district 19.31% respectively.
District-wise Area and Production of Dried Chilli in Andhra Pradesh in 2019-20
District Area (Ha) % Share of Production % Share of

Area (MT) Production
Srikakulam 428 0.55 15408 0.55
Vizianagaram 15102 19.31 543672 19.31
Visakhapatnam 1625 2.08 58500 2.08
East Godavari 634 0.81 22824 0.81
West Godavari 309 0.40 11124 0.40
Krishna 822 1.05 29592 1.05
Guntur 696 0.89 25056 0.89
Prakasam 1335 1.71 48060 1.71
SPSR Nellore 42 0.05 1512 0.05
The Chittoor 28845 36.89 1038420 36.89
YSR Kadapa 4899 6.26 176364 6.26
Ananthapuram 19418 24.83 699048 24.83
Kurnool 4044 5.17 145584 5.17
Andhra Pradesh 78199 100.00 2815164 100.00
Source: (aps.dac.gov.in, 2019)
State wise Area and Production of Tomatoesin India 2018-19
Sl.No State Area (% Share) Production (% Share)

(Ha) (MT)
1 Andhra Pradesh 61.67 7.81 2744.32 13.89
2 Arunchal Pradesh 0.25 0.03 2.15 0.01
3 Assam 18.28 2.32 396.24 2.01
4 Bihar 45.01 5.70 941.56 4.77
5 Chhattisgarh 63.29 8.02 1087.33 5.50
6 Gujarat 46.61 5.91 1357.52 6.87
7 Haryana 34.99 4.43 753.72 3.81
8 Himachal Pradesh 11.24 1.42 481.94 2.44
9 Jammu & Kashmir 2.28 0.29 52.96 0.27
10 Jharkhand 20.11 2.55 265.26 1.34
11 Karnataka 64.25 8.14 2081.59 10.53
12 Kerala 0.64 0.08 12.6 0.06
13 Madhya Pradesh 84.53 10.71 2419.28 12.24
14 Maharashtra 45.5 5.77 1086.56 5.50
15 Manipur 3.15 0.40 33.72 0.17
16 Meghalaya 2.2 0.28 35.51 0.18
17 Mizoram 1.47 0.19 11.87 0.06
18 Nagaland 3.12 0.40 22.47 0.11
19 Odisha 91.01 11.53 1312.07 6.64
20 Punjab 9.01 1.14 224.26 1.13
21 Rajasthan 18.12 2.30 88.73 0.45
22 Sikkim 0.98 0.12 8.03 0.04
23 Tamil Nadu 29.08 3.68 887.08 4.49
24 Telangana 41.48 5.26 1171.5 5.93
25 Tripura 1.82 0.23 56.5 0.29
26 Uttar Pradesh 21.24 2.69 841.61 4.26
27 Uttarakhand 9.2 1.17 103.85 0.53
28 West Bengal 57.46 7.28 1265.25 6.40
29 Others 1.19 0.15 13.84 0.07
Total 789.18 100.00 19759.32 100.00
Source: Horticulture statistics at a glance, 2018.
Andhra Pradesh is the lead producer of Tomatoes in India with an annual production of
2744.32MT in 2018-19 followed by Madhya Pradesh (12.24%)Karnataka (10.53%) and
Gujarat (6.87%).
Based on area and production Non – ODOP crops/products chosen in The Chittoor district
are Groundnut, Sugarcane, Paddy, and Program.
contributes around 38.83% to total agriculture production in The Chittoor district in 2019-
20. Other Non-ODOP produce in the district isGroundnut, Sugarcane, and Redgram as the
production of 204027 thousand tons, 1316 thousand tons, and 455 thousand tons
respectively.
Sl. Non-ODOP Crop Production Value (Rs. % Share to Total

No ('000 Tonnes) in Crores) Agriculture
Production
1 Groundnut 204027 26.36
2 Sugarcane 1361 0.18
3 Paddy 300590 38.83
4 Redgram 455 0.06
5 Total Agriculture 774043
Production in the
district
3. Industrial Profiling
1. Mapping of the Micro, Small, Medium, and Large Industries in the District
involved in food processing in the district (Total number of Units and details
related to their size, turnover, etc.)
In The Chittoor district of Andhra Pradesh State, there are 144 large and medium scale
industries and the total capital investment of large and medium industries is INR
1638986.75 lakhs, and the value of production is INR 2478194 lakhs in 2018-19.
The major activities of the industries in the district are Food Products and Beverages,
Battery making units, Cotton industries, Pharmaceutical, Beverages, Solar power units,
Pulp, and paper-making units, and Automobile spare parts making units.
Production of Selected Industries in TheChittoor District in 2018-19.

Sl. Item Units 2016-17 2017-18 2018-
No 19
1 Coal 000Tonnes 0 0 0
2 Sugar Tonnes 15363 14325 15385
3 Cottonyarn 1000Kgs 12358 14252 17458
4 CottonFabrics 1000MTs 658 725 898
5 Jute Tonnes 0 0 0
6 Paper Tonnes 0 0 0
7 Tanning RsinLakhs 0 0 0
8 ChemicalFertilizer Tonnes 0 0 0
9 Drugs&Pharmaceuticals RsinLakhs 16275 17854 19528
10 Cement 000Tonnes 0 0 0
11 Asbestoscement 000Tonnes 0 0 0
12 FerroAlloys Tonnes 12754 17854 19528
13 Others 12882 17958 19225
14 PigIron Tonnes 248698 278956 325658
15 GraniteSlabs LakhSq.Feet 325 345 385
16 EdibleOils Tonnes 0 0 0
17 NewPrint LakhNumber 0 0 0
18 PVCPipes Tonnes 9254 10258 12254
19 Compression&TensionSprings Tonnes 0 0 0
20 ClinkenProduction 000Tonnes 0 0 0
21 FoodProducts Tonnes 88245 95240 112548
22 CementConcreteSleepers Number 0 0 0
23 Rubber(Reclaimed) Tonnes 6350 6450 6536
Source:Handbook of statistics The Chittoor district, 2019.
Working Of Factories Registered Under The Factories Act - 1948
2017-18 2018-19
NameoftheIndustry No.ofWorkers No.ofWorkers

S. No. No.
factories ofFactories
NO.
Male Female Male Female
1 2 3 4 5 6 7 8
1 MANUFACTURINGOFFOODPRODUCTS 417 19202 3808 422 18803 3752
MANUFACTURINGOFBEVERAGESTOBACCO&RELATE
2 9 842 240 7 483 93
DPRODUCTS
3 MANUFACTURINGOFCOTTONTEXTILES 29 3306 944 14 2221 695
MANUFACTURINGOFWOOL,SILK&MANMADEFIBE
4 6 440 155 3 210 70
RTEXTILES
MANUFACTURINGOFJUTEANDOTHERVEGETABL
5 1 6 5 0 0 0
EFIBERTEXTILES
6 MANUFACTURINGOFTEXTILEPRODUCTS 14 1421 3098 36 2545 4012
MANUFACTURINGOFWOOD&WOODPRODUC
7 129 794 41 127 517 23
TFURNITURE&FIXTURES
MANUFACTURING OF PAPER,
PAPERPRODUCTS&PRINTING,PUBLISHING&ALLIE
8 DINDUSTRIES 38 1932 346 36 1972 362
MANUFACTURING OF
LEATHER,PRODUCTS OF
9 LEATHER,FUR&SUBSTITUTESOFLEATH 7 381 561 5 345 480
ER
MANUFACTURINGOFCHEMICALS&CHEMICA
35 2808 271 34 1668 156
LPRODUCTS
10
MANUFACTURINGOFRUBBER,
PLASTIC,PETROLEUM&COALPRODUCTS
11 64 3868 994 61 5611 1193
MANUFACTURINGOFNON-
497 6303 162 497 6447 187
METALLICOFMINERALPRODUCTS
12
13 20 2354 255 56 6928 475

BASICMETAL&ALLOYSINDUSTRIES
MANUFACTURING OF NON-
METALPRODUCTS&PARTSEXCEPTMACHINERY&EQ
14 UIPMENT 0 0 0 0 0 0
MANUFACTURING OF MACHINERY
&EQUIPMENTOTHERTHANTRANSPORTEQUIPMENT
15 7 1062 235 11 2119 6335
MANUFACTURINGOFTRANSPORTEQUIPMENT&PART
7 2007 142 2 1585 85
S
16
17 REPAIROFCAPITALGOODS 0 0 0 0 0 0
ELECTRICITY
GENERATION,TRANSMISSION&DISTRIBUTION
18 5 305 31 6 396 31
19 REPAIRSERVICES 51 3630 130 54 5197 518
160 12432 6447 110 8677 4568

20 ACTIVITYNOTADEQUATELYSPECIFIED
TOTAL 1496 63093 17865 1481 65724 23035
Source: Handbook of statistics The Chittoor district, 2019.
There are 1481 factories are registered under Factories Act and provided employment
to around 88, 759 persons during 2018-19.
2. Number of clusters or locations(if any) where the processing of this product

happens;
There are no clusters in the district where processing happens, but there is huge potential to
form SHG clusters in the district because of the following reason
• Availability of raw material in the area (Tomatoes)

• Availability of public infrastructure such as roadways, electricity, power, etc.
• Demand for value-added tomatoes products like sauce, pickle, ketchup, etc.
• Proximity to cities like Bangalore, which provides a huge market for the produce.
3. Some units engaged with producing the specific ODOP product and 4-5 major
non-ODOP products.
Through the primary survey, we identified that there are 335 units are involved in the
processing of Tomatoes in the district. Around 1618 workers are engaged in the processing
of ODOP products of which 74.05% are male workers 25.95% are female workers.
Particulars Count of
Mode of
Operation Particulars Male Female Total
Household 1
Household 2 0 2
Partnership 14 Partnership 133 66 199
Proprietorship 310 Proprietorship 894 404 1298
Pvt. Ltd 9 Pvt. Ltd 142 61 203
Society/SHG 1 Society/SHG 2 1 3
Grand Total 335 Grand Total 1173 532 1705
NO. O F WO RK E RS E NG AG E D I N O DO P
PRO CESSI NG I N T HE DI ST RI CT
Male Female
894
404
142
133
66
61
2
1
0
HOUSEHOLD PARTNERSHIP PROPRIETORSHIP PVT. LTD SOCIETY/SHG
Non ODOP product processing in the district:
Through the primary survey, we visited and interviewed 59 respondents who are involved in
the processing of Groundnut, Sugarcane, Paddy, and Program. Around 244workers are
engaged in processing of Non-ODOP products in the district, out of which 136 are male
(55.74%) and 108(44.26%) are female.
Particulars Male Female Total

Particulars Count of Mode of Household 40 21 61
Operation Proprietorship 80 68 148
Partnership 3
Society/ SHG 16 19 35
Proprietorship 46
Society/ SHG 10 Grand Total 136 108 244
Total 59
4. Approximate Level (%) of processing happening for ODOP (out of total
production) in the district,
The total production of Tomatoes in the district is 1038420 MT in 2019-20. Out of total
production,95% (986499 MT) of production is sold within the country and the remaining 5%
(51921 MT) production is diverted for processing.
5%
Tomato sold in markets for

consumption
Value addition of tomato in
the district
95%
Source: TransGraph Analysis based on field observation and stakeholder responses.
5. The number of Self Help Groups, Farmer Producer Organisations, and

Cooperatives currently engaged in the processing of this product.
Name of the Owner Name Contact Location of Manufacturing Project The

SHG Number unit Products Cost (Rs. capacity Turno
(Address) Lakhs) of the per
(Approx) unit Annu
(MT/Day (Lakh
or
Qtl/Day
or
Kgs/Day)
Pickle K 9959802128 Maredupalli Pickle Making 100000 30 1500
Making Govindamma
Mother N. Susikamma 8179033646 KvbPuram Pickle Making 50000 10 KG 6000
Theria Main Road
Anitha A, 9550709807 KvbPuram Pickle Making 50000 15 SETS 6000
Masthanamma Main Road
Sai Baba T.Sarojamma 9515491440 KvbPuram Pickel 100000 30 SETS 1200
Main Road
Padma Sri P Seethamma 7989900162 Bc Colony Pickles 50000 1500 2000
Gousiya B Radhavani 9515063645 Police Station Pickleys 30000 5kgs 1440

Street
BibiShahera Shamshad 9493146610 Govindavaram Pappad 100000 10kgs 1500
Sri C.Sarojamma 9154471696 Yerpedu Pickele 100000 5KGS 1000

LakhsmiShg
Source: SERP

1. The specialty of the local agricultural produce/food product, varieties available,
The crop planting starts in June and ends in July,the harvesting of the crop starts in
September end and extends up to November. The crop is also planted in November and
harvesting of the crop starts from February and extends up to April. The peak arrivals
are reported in September-October and February-March. There are several varieties of
Tomatoes and the most popular among these areSaho, Shreya, 448, Omini, Rushika,
Indam-1320.
Harvest Calendar
Source: www.APEDA.in/agriexchange.com
2. Infrastructure
The essential machinery and facilities required for processing of Tomatoes (Pickle and Pulp
large scale) is listed below;
• Washing Machine
• Sorting Conveyor
• Elevator
• Crusher
• Cold/Hot Break System
• Tubular Preheater Pasteurizer
• Pulping Machine
• Vacuum Evaporator
• Filling Line-- Can Filling Machine / Bottle Filling Machine / Sachet filling Machine.
• Aseptic bag in drum filling machine
b. The existing level of Mechanizationfor ODOP processing within the district,

in other districts, and States.
In The Chittoor district,the micro-industry processes Tomatoesin the traditional way, and no
new technology is not adopted by them due to financial constraints. The below flow chart
gives the manual method of processing;
1. Tomatoes Sauce:Full ripe tomatoesare picked and is cleaned and washed in water.
Then the tomatoes are finely cut and chopped, the chopped tomatoes are heated in
a vessel for about 70-90 degrees Celsius. Pulp and water are separated, the pulp is
mixed with one-third quantity of sugar, spice bag is added to it to enhance its flavor,
cooking the whole thing into one-third of its volume and remove the spice bag, allow
it to cool and then add preservatives like vinegar or acetic acid. Pasteurization is
done and then bottled for distribution and sales.
Cooking pulp with

Fully ripe tomato washing and Cutting and Heating at 70-90
1/3 quantity of
are picked cleaning chopping Degree
sugar
Adddition of
Coking to 1/3rd Removal of spice preservatives
Putting spice bag Pasturisation
volume bag (Vineger/Acetic
acid)
Distribuion and
Bottling/Packing
sales.
2. Tomatoes pickle: Ripe tomatoesare picked for tomatoes pickle and washed in
water to clean its surface from dust and dirt. The tomatoes are then sliced and salt,
spices, and oil are added to them. It is cooked for some time. More oil is added and
is bottled and kept in sun for one or two weeks. Then it is stored and distributed to
consumers.
additiom of salt,
Ripe Tomatoes Washing Slicing
spices and oil
Bottling and
Sales and
putting in sun
distribution
for two weeks
c. Additional infrastructure and amenities are required.
During analysis of primary data, we noticed that additional infrastructure is needed in the
district for the processing of tomatoes. Tomatoes being a highly perishable commodity,
increasing the level of processing leads to a reduction in post-harvest losses and spoilage
during the bumper production period. Additional infrastructure like Pickle mixers, pulping
units, blenders, and packing units are required. Infrastructure facilities like roads and
transportation facilities can also be provided.
d. Support Infrastructure:
The mission for Integrated Development of Horticulture (MIDH) Mission for Integrated
Development of Horticulture (MIDH) is a Centrally Sponsored Scheme for the holistic growth
of the horticulture sector covering fruits, vegetables, root & tuber crops, mushrooms,
spices, flowers, aromatic plants, coconut, cashew, cocoa, and bamboo. Under MIDH, the
Government of India (GOI) contributes 60%, of the total outlay for developmental programs
in all the states except states in North East and Himalayas, 40% share is contributed by State
Governments. In the case of the North-Eastern States and the Himalayan States, GOI
contributes 90%. In the case of the National Horticulture Board (NHB), Coconut
Development Board (CDB), Central Institute for Horticulture (CIH), Nagaland, and the
National Level Agencies (NLA), GOI contributes 100%. MIDH also provides technical advice
and administrative support to State Governments/ State Horticulture Missions (SHMs) for
the Saffron Mission and other horticulture-related activities RashtriyaKrishiVikasYojana
(RKVY)/NMSA.(MIDH, 2021)
Integrated Post Harvest Management Support Under RKVY
Broad Name of
Activity Sub Activity Pattern of Assistance Scheme
Integrat Packhouse / On-farm 50% of the cost, Rs. 2.00 lakhs Sub Schemes
ed Post Collection & Storage unit per unit with a size of 9m x 6m of NHM &
Harvest HMNEH
Manage under MIDH
ment
Integrated packhouse with 35% in general areas, 50% in Sub Schemes

facilities for grading, sorting, Hilly, and scheduled areas as of NHM &
etc. credit-linked back-ended HMNEH
subsidy upto Rs. 17.50 lakhs per under MIDH
unit with size 9m x 18m
Pre Cooling Unit 35% in general areas, 50% Sub Schemes
in Hilly and Scheduled Areas, of NHM &
as credit-linked back-ended HMNEH
subsidy, Rs. 8.75 lakhs per unit under MIDH
for 5 MT capacity
Mobile Pre Cooling Unit
Cold Storage Units 35% in general areas, 50% Sub Schemes

(Construction/Expansion and in Hilly and Scheduled Areas, of NHM &
modernization) (Maximum as credit-linked back-ended HMNEH
5000 MT capacity) subsidy, (i) Rs. 2800/- per MT under MIDH
for Type 1
(ii) Rs. 3500/- per MT for Type 2
(iii) Rs. 3500/- MT for Type 2

with add on the component of
controlled atmosphere
technology
Ripening Chamber (maximum 35% in general areas, 50% Sub Schemes

of 300 MT) in Hilly and Scheduled Areas, of NHM &
as credit-linked back-ended HMNEH
subsidy, upto Rs. 0.35 lakh/MT under MIDH
Post-harvest storage and 40% of the cost, as credit-linked Sub-schemes

treatment facilities for back-ended subsidy upto Rs. of National
bamboo 10.00 lakhs Bamboo
Mission
(NBM) under
MIDH.
Integrated Post Harvest 35% of the project cost in Sub scheme

Management for Commercial general areas and 50% of the of National
Horticulture: Ripening cost in NE, Hilly, and Scheduled Horticulture
Chamber, Reefer Van, Retail areas upto Rs. 50.75 lakhs per Board (NHB)
Outlet, Pre- Cooling Unit, etc. project. under MIDH
Cold Storage Units for 35% of project cost (50% in NE, Sub scheme
Commercial horticulture Hilly, and Scheduled areas) for of National
capacity above 5000MT, as Horticulture
credit linked back-ended Board (NHB)
subsidy, under MIDH
Rs 2660/MT for Type 1,
Rs. 3225/MT for Type 2,
Rs. 3500/MT for Type 2 with

add-on components of
controlled atmosphere
technology.
Source: (RKVY, 2021)
e. Testing
During the primary survey, we observed that micro and small units that are involved in
Tomatoesprocessing are not testing their processed product. They are processing at a
small scale and marketing their produce in local markets and nearby towns with primary
packing.
Value Chain\Channels of movement

The below tables elaborates the cost involved in different stages of processing and net
profit obtained for one kg of processingtomatoes into sauce.
Farmers to Micro Units

Details Cost (INR)
Price Per Kg in INR 8
Loading and Unloading Cost per kg 0.1
Transportation per kg 0.1
Total Cost per kg 8.2
Micro Units to Market
Recovery (%) 40%
Processing Charge per Kg (labour+power) 2
Marketing Cost 1
Total Cost 11.2
After processing in Kg 0.4
Selling Price Per Kg 100
Total Amount obtained per kg (0.4*100) 40
Net Profit 28.8
f. Manufacturing Process
a. Product Range
During the primary survey, we interviewed 335 micro and small units who are involved in
the processing of Tomatoes. The product they are making is tomato pickle, tomato papad,
sauce, dry tomato powder, tomato pulp, and tomato paste.
Other possible product ranges in the district are;
• Tomato instant soup

• Chillitomatoes sauce
• Tomato chutney
• RTE products of tomatoes
a. Production Process and Technology

Tomatoes Pickle Processing Flow Chart
Blanching for 5 Peeling and

Tomatoes Washing
minues cutting
Addition of oil
Bottling and mixing with Frying with oil
and
storage spices and salt
preservatives
Technology
Majority of tomatoes processing units in the region process tomatoeson small scale into a
pickle, papad, juice, and pulp. Upgrading the technology for large-scale processing of
tomatoes can be made. The high capital infusion is necessary for upgrading machinery and
processing raw tomatoes. Tomatoes pulping unit with all modern technology can be
adopted. Farmers in the region can be encouraged to grow tomatoesthat are good for
processing rather than the normal varieties which are suitable for table purpose.
Investment required:
• Facility for tomatoes processing can be set up for 60 lakh rupees, this can process up
to 1000 Kgs per day.
• The packing unit can be set up at 10 lakh rupees.
• Cold chain logistics can be set up in different regionsfor 4 crore rupees.
Marketing
Marketing channels through which Tomatoes are marketed:
Farmer Agent Trader/wholesaler Retailer Consumer
APMC comission
Farmer Trader/wholesaler Retailer Consumer
agent
Farmer Processor wholesaler Retailer Consumer
Farmer Agent Pushcart venor Consumer
Farmer FPO Consumer
Corporate Agri business

Farmer Consumer
company
Tomatoes which is harvested on the farm is bought by an agent middleman and is supplied
to trader/ wholesaler and is supplied to the consumer through a retailer in the first channel.
In the second channel of marketing, tomatoesaremarketed through an APMC commission
agent and the product moves to the consumer through trader/ wholesaler and retailer. In
the third channel of marketing the tomatoes move to processor from farmer, the product
changes form into the finished product and is distributed through wholesaler and retailer to
consumer. In the fourth channel of marketing, agent middlemen buy the produce from the
farmer and supply it to a pushcart vendor who finally supplies it to the consumer. In the fifth
channel of marketing,the farmer sells his produce to the consumer directly through FPO’s
thereby reducing marketing costs and increased profit. In the sixth channel of marketing
corporate Agribusiness company directly buys the products through their collection center
and caters the product to the customer.
g. Quantum of Sale of this product to other districts, states and exported to other
countries
The total production of Tomatoes in the district is 1038420 MT in 2019-20. Out of total
production, 95% (986499 MT) of production is sold within the country and the remaining 5%
(51921 MT) production is diverted for processing.
h. Institutional Support
• RKVK- RashtriyaKrishiVikasYojana
• The mission for Integrated Development of Horticulture
• National Horticulture Board
• State Agriculture and Horticulture Department
• APEDA
The above-mentioned institution/organization helping farmers, traders, and processors. For
farmers, the concerned department is releasing high yield varieties, and for traders and
processors they providing post-harvest management technologies.
III) SECTION THREE - DETAILED SAMPLE STUDY TO BE UNDERTAKEN FOR EACH

DISTRICT OR PRODUCT CLUSTER
5) Study area
Study Area
The study on State Level Up-gradation Plan is conducted in entire The Chittoor district of
Andhra Pradesh State of India.

Sample Size:
The sample Size in The Chittoor district is 410. But we captured 394(ODOP and Non-ODOP)
respondents and the draft is prepared based on captured sample size.
Sl.No Particulars Number of Units
Covered
1 ODOP (Tomatoes) 335
2 Non-ODOP (Groundnut, Sugarcane, Paddy, 59
Redgram)

Primary Data
The study evaluates the Tomatoes supply chain and finds opportunities for traditional
practices, and analyses the value chain of Tomatoes from farm to market. The study also
estimates the distribution of the value-added among the value chain actors like farmers,
processors, traders, and retailers. Primary data was collected from 394 respondents
comprised of all the value chain actors, including farmers, processors, traders, retailers,
association president, machine operators, skilled laborers, Agridept, horticulture dept
officials, District industries center officials, FPO’s Self-help group members, and other
stakeholders.
Secondary Data
The secondary data is collected from various sources like DICGS annual report,The Chittoor
Statistical Handbook, APEDA, Indiastat.com, Journals and Articles, and other internet sources
to know the area, production, export, import of Tomatoes processed products.

been interpreted and presented to arrive at the conclusion
2.1 Individual In-depth Interviews

Output Document to be submitted– Excel Sheet with contact details of the
respondents.
Data Analysis through illustrations (graphs, pie charts, etc.) in relevant sections.
Excel Sheet with contact details of the respondents is already shared.
2.2 Stakeholder Consultation
Output Document to be submitted -Agenda points & discussion minutes.
Yet to conduct
2.3 Focus Group Discussions

Output Document to be submitted -Agenda points & discussion minutes
Yet to conduct
3. Cluster Analysis and Discussion

Madanapally region is a suitable place to form tomatoes cluster in the district
because of the following reasons;
• Availability of raw material in the region

• More number existing and potential clusters available in the region
• Proximity to city (Bangalore)
• Suitability of the area for the production of tomatoes
3.2 Skill Development required

The processors in the region use the traditional method of processing, skill up-gradation is
required to use new technology and machinery in the processing of the product. Training
should be provided by the concerned department regarding the new processing
technology. Skill development training for marketing and branding of the product should be
given.
3.3 ODOP Product Cost Analysis

The total cost of production of Tomatoes pulp per Kg is INR. 52 and net income generated
per Kg is INR 98 with a benefit-cost ratio of 1.88
Sl.No Particulars Cost (INR)

a) Fixed costs
Land and building charges 2.19
Processing machinery charges 1.10
Total fixed costs (1+2) 3.29
b) Variable costs
Cost of tomatoes 33.91
Transportation charges 3.31
Stocking 1.17
Waste management 1.48
Energy 3.22
Sterilization/cooling 1.67
Labor costs 2.67
Miscellaneous 1.28
Total variable cost 48.71
c) Total Cost (A+B) 52.00
Price of Tomatoes pulp per Kg 150
Total returns 98
B:C ratio 1.88
3.4 Problem Mapping/ Firm-level issuesof micro-enterprises

Sectors Gaps Recommendations Costing INR
(lakhs)
1 Skill training • Post-Harvest • Training on 5
needs Management Post Harvest
• Cold Storage Management
• Packaging of tomatoes.
Provide training
on modern
methods of
packing which
increases the
shelf life of the
produce and
marketability.
2 Manufacturing • The traditional • Provide
practices method of modern
processing into equipment like
picklesand large blenders,
papadon a small pulping
scale machines.
3 Technologies • Lack of • New machines 185
knowledge on should provide
new at a subsidized
technologies rate
and machinery • Training and
skill
development of
new
technologies is
required
3.5 SWOT Analysis
Strength: Weakness:
• This region is one of the highest • Unscientific cultivation without
tomatoes-producing regions of proper assessment of demand and
Andhra Pradesh. supply by farmers leads to a fall in
• Tomatoes have year-round demand price.
as it is one of the important • Shortage of skilled worker
vegetablesfor Indian household. • Less bargaining power in the market
• Demand for tomatoes in nearby • Less number of the cold storage
cities. facility
Opportunities: Threats:
• Demand for tomatoes throughout • Perishability of the products leads to
the year storage losses
• Growing demand for processed • Huge capital investment is required
products within and outside the to set up processing plants
country • Competition from corporate
• Availability of credit/loans from the companies in processed tomatoes
financial institutions products
3.6 Need Assessment & Gap Study

• Only 4-5 % of the total produce is processed in the area, taking suitable measures
to increase the processing in the area.
• For the Lage number of small-scale processing found in the district, there is a need
to train the processor to scale up the output.
• High cost for farmers who store the produce in cold storage, the subsidy can be
provided to store the produce.
• Variety of tomatoes suitable for processing has to be grown, at the present
majority of the tomatoes grown in the region is suitable for table purpose.
• Proper planning regarding the area under tomatoes to be cultivated has to be
planed according to demand and supply of the product to prevent loss due to low
price.
Rating of Response Count (Based on Primary Survey)
Rating 1 is considered poor and Rating 5 is considered excellent.
• Public infrastructure: Few respondents felt that the roadsare in excellent condition
(47), most of the respondents felt that even though the roads are in good condition,
there is a need for improvement in the condition of roads in few areas.
• Access to Common Facilitiesmajority of respondents felt that they do not have
proper access to good access facilities such as grading, sorting, packaging, etc. There
s a need to improve these facilities.
• Access to Testing Facilities: Most of the respondents felt that there is a need to
provide access to a testing facility in the district. Very few of the respondent (30) is
of the view that they have a good testing facility.
• Compliance to standards and the frequency of inspections from the safety

regulatorsmajority of respondents expressed that they do not undergo a frequent
inspectionfrom safety regulators, very few respondents is of the view that they have
a frequent inspection of their product and they comply with the standards.
• Skill training:Majority of the respondent felt that there is need for skill training as
the workers they have doesn’t have proper skills for the prescribed job.
• Technologies Available:The majority of the respondents felt that there is a need for
better technology in the processing of the produce.
• Access to finance:Most of the respondents felt that there is an availability of finance,

but interest subsidies and schemes are required for upgrading to new technology.
• Access to mentorship/ service:The respondents felt that they lacked good

mentorship and felt the need for better mentorship to run their business.
• Awareness ofGovt Policies among micro /small manufactures: The majority of the
respondent (micro industries ) are unaware of most of the government policy
available in the district.
• Awareness of ODOP products of the district:Majority of the respondent is unaware

of ODOP product in the district.
• Marketing/sales facilitiesmost of the respondents are in the view thatthere is a

need to providea proper marketing facility in the district.
• Facilities to workers: The majorityof the respondent felt that there is a need to
provide facilities to worker
Particulars Response Count
Rating 1 2 3 4 5 Total
Public infrastructure
such as roads for
0 67 161 60 47 335
backward and
forward linkages
Access to common
facilities such as
grading, sorting, 1 18 188 91 37 335
packaging, cold
chain facilities etc.
Access to testing
3 27 221 54 30 335
facilities
Compliance to
standards and the
frequency of 2 21 175 105 32 335
inspections from the
safety regulators
Skill training needs 5 10 120 118 82 335
Manufacturing
2 21 175 105 32 335
practices
Technologies
4 14 168 115 34 335
Available
Access to finance 5 5 189 103 33 335
Access to
6 12 232 49 36 335
mentorship/ service
Awareness on Govt
Policies among
6 14 181 105 29 335
micro /small
manufactures
Awareness on ODOP
product of the 10 14 188 103 20 335
district
Marketing / sales
7 22 212 61 33 335
facilities
Facilities to the
5 5 242 58 25 335
workers
4. Recommendations
4.1 Vision Statement & Key Objectives
Vision Statement:To support micro-enterprises/SHGs/FPOs to up-gradation of technology
in The Chittoor district.
Objective:
The total production of Tomatoes in the district is 1038420 MT in 2019-20, of which only
4-5 % is processed. Andhra Pradesh state is one of the leading producers of tomatoes and
there is a good demand for processed products within and outside the country as well.
If the number can be increased to about 10-15 % of total production in the district, one
can reduce the losses that farmer incurs during bumper production. Post-harvest loss can
also be reduced by providing logistical support to farmers. This can be promoted
throughthe PMFME scheme.

Common Infrastructure • The Chittoor district has a good infrastructure but needs
improvement in few areas of the district.
• The district is also well connected with roadways and
railways, but the capital investment is required in few
areas where respondents asked for proper roads and
connectivity.
Skill Development • Capital investment for skill development, awareness
program, training on post-harvest management, and
handling of new machinery is required. Training on the
hygienic method of preparing the produce can be
undertaken since through primary survey it is found that
most of the small processor doesn’t maintain proper
hygiene.
Marketing and • The majority of micro-unit owners are selling processed
Branding products without proper branding at lower prices. Proper
branding of the product is required to ensure proper
marketability and increased sales.


Units gradation subsidy
plan - provided
average cost through
in lakhs PMFME
Category Individual – 86 183.55 Purchase of 64.24
and
Equipment
Category Groups - SHG's 1 2.13 Up- 0.74
2 gradation
and
purchase of
new
machinery
and
equipment
Category Common 0
4 infrastructure
Category Marketing and 0
5 Logistical support
potential units) expressed that they are interested in making processed tomatoes products.
During the survey respondents of individual units expressed that they need funds for up-
gradation and purchase of new machinery like automated grading, sorting, pulping
machines.
Groups – Few SHGs process tomatoes into various products on small scale. The fund
requirement for an SHG is for the purchase of new machinery, skill development, branding,
and marketing can be made. It was emerging from the primary survey that SHGs are willing
to expand and they need funds. PMFME scheme can fill this gap.
Marketing & branding-Proper packing and labeling of the processed products have to be
made so that they can sell the products in different towns and cities and increase income
from this. Through primary survey observed that majority of the respondents expressed that
they are willing to expand the production of their product if they are provided with proper
marketing facilities. Training regarding proper branding and established avenues of
marketing like online sales can be made so that they can easily market their products to
nook and corner of the country.
Training and skill development-Primary survey indicate that the small-scale processor is
interested in scaling up their production, so skill development training should be provided
for the processor regarding new technology, hygiene, and branding their product for
marketing.
5. Key Impacts
Particulars Impact
processing activity possibility of increasingthe percentage of processing in
the district by encouraging potential entrepreneurs to
take up the processing of tomatoes.
Employment • Employment in the district can be increased by
increasing the number and sales of processing units.
Income • Through proper branding and marketing and
introducing the product to new areas, income can be
increased in the region.
Reduce Waste • By processing can reduce the wastage of produce
during bumper production.
be low, to overcome this they can enter into
processing activity and earn a better price.
Contents
EXECUTIVE SUMMARY ................................................................................................................. 88
PROJECT METHODOLOGY ............................................................................................................. 95
1. Baseline Assessment studies: ................................................................................................ 97
1.1. Agriculture Profiling of the Districts in the State.................................................................. 99
1.2. Percentage Share of Area under Agriculture and Horticultural Crops in Guntur District in
2019-20..................................................................................................................................... 100
agricultural produce of the district- ............................................................................................. 100
1.4. Perishable nature of the produce – .................................................................................. 101
1.5. Production of ODOP Agriculture Produce in that district compared to other district and
states 101
1.6. Number of workers engaged in the ODOP cultivation........................................................ 103
1.7. What other Major Agricultural crops are being cultivated apart from the chosen ODOP
Product. .................................................................................................................................... 103
1.8. Non-ODOP produce as a percentage of total agricultural produce of the district ................ 104
1.9. Perishable nature of the produce..................................................................................... 104
1.10. Number of workers engaged in the cultivation of each of the Non-ODOP products. ........ 105
2. Assessment of the existing Policy and Regulatory frameworks for FPI and FPI micro
Enterprises in the State: ............................................................................................................. 105
2.1. Assessment of Food Processing Policies in the State: ............. Error! Bookmark not defined.
sectors: .......................................................................................... Error! Bookmark not defined.
2.3. Assessment of existing Regulatory frameworks for FPI ........... Error! Bookmark not defined.
2.4. Stakeholder Mapping ........................................................... Error! Bookmark not defined.
3. Profiling of existing Micro Enterprises eco system: ............................................................... 120
3.1. Industrial Profile of the Districts in the State ..................................................................... 120
3.2. Identifying Non-ODOP Products ....................................................................................... 120
3.4. Detailed Cluster Study for ODOP Products - How are going to do cluster study. .................. 135
4. Industry and Market Analysis .............................................................................................. 135
4.1. Introduction ................................................................................................................... 140
4.2. Nutritive Value and Health Benefits ................................................................................. 141
4.3. Global Market for the Product ......................................................................................... 144
4.4. Indian Market & Valuation for the Product ....................................................................... 145
4.5. Manufacturing Process:................................................................................................... 147
4.6. District Profiling .............................................................................................................. 148
4.7. Industrial Profiling........................................................................................................... 151
4.8. Cluster Actors ................................................................................................................. 160
Guntur chilli merchants association & Chillies Exporters Association India's are established in Guntur
district for the welfare of the Chilli merchants and exporters and their activity is to see that
merchants and exporters do not face any problems in the execution of their work 161
4.9. Existing Government Schemes: ........................................................................................ 162
4.10. Cluster Map: ............................................................................................................... 164
4.11. Value Chain:................................................................................................................ 165
4.12. Product Cost Analysis: ................................................................................................. 166
4.13. SWOT Analysis: ........................................................................................................... 167
5. Benchmarking Studies ........................................................................................................ 167
6. Stakeholder Consultation .................................................................................................... 168
7. Agenda points & discussions ............................................................................................... 168
8. Recommendations:............................................................................................................. 170
EXECUTIVE SUMMARY
The geographical area of the Guntur district is 1139.1 thousand hectares, of which the net
sown area is 606.05 thousand hectares accounted for 53.2 % in 2018-19. The major
agriculture crops grown in the district are Paddy, Jowar, Maize, Red Gram, Black Gram,
Chilli, Turmeric, Cotton, and Tobacco 2018-19. The predominant fruit crops grown in the
district are Papaya, Mango, Banana, and Citrus. Food grains contribute 49% to total
agriculture production inthe district followed by Commercial crops 33%, Fruits 10%, and
Vegetables 8% respectively. The total area under Dry Chilli and Turmeric in the Guntur
district is 81.4 thousand hectares and 5.05 thousand hectares, contributing around 51% and
25% to the total Dry Chilli and Turmeric area in the state in 2018-19.The production of Dry
Chilli and Turmeric is 262.5 thousand tons and 61.02 thousand tons in the district and
contributes around 52% and 19% to total state Dry Chilli and Turmeric production in 2018-
19. Based on the existence of micro-units and the relevant commodity is grown largely in
the district the ODOP product is identified by the APFPS department and Chilli and Turmeric
are recognized as ODOP product and through primary survey identified Non-ODOP products
are Paddy, Maize, Cotton, and Black Gram. The primary survey observed that among 453
visited industries (both ODOP and Non-ODOP), 241 industries are household units followed
by 131 micro-units, 54 small units, and 22medium units.
Andhra Pradesh was the leading Turmeric producing state in India with the contribution of
36% percent of the total Turmeric production; Karnataka was the second leading chilli
producing state with the contribution of 16 percent and other Turmeric producing states are
Tamil Nadu (10%), Telangana (7%) and Orissa (5%) respectively. During 2018-19, India
exports 468500 MT of chillies and value of INR 541117.5 lakhs and also exports 133600 MT
of turmeric and value of INR 141616 lakhs.
Project Strategy & Interventions
Vision Statement & Key Objectives

Vision Statement: To support micro-enterprises/SHGs/FPOs to up-gradation of technology
in the Guntur district.
Objectives

Recommendations Related to PMFME
Under this scheme, credit link subsidies are offered by the AP FPS department against the
loans issued by the financial institutions/banks to the individual enterprises, Self-help
groups, and common infrastructure unit holders
Credit linked for subsidy for individual enterprises:
1. Subsidy Maximum of INR 10 lakhs for one unit for small and micro enterprises
2 Groups (self-help groups) – INR 40,000 to each member of the group members
3. Common infrastructure and incubation center
4. Branding and marketing
5. Training and capacity building
1 & 2:
Approximately there are nearly 110 units small and big established in the Guntur district
which process chilli and their average capacity are 5-6 tonnes per shift in a day and in a
month they process nearly 130 tonnes and the majority of the processors operates their
unit for nearly 5-6 months in a year while others operate throughout the year depending on
availability of orders in hand. If they operate 5 months their turn over would be 650 tonnes
and the price of chilli ranges from 80 to 140 depending on the quality and variety on
average if 100 is taken into account it cost nearly 6.5 crores per annum so these units come
under small and medium but not under micro units however out of these only a few units
operates lesser capacities owing to unavailability of orders and funds.
There are nearly 90-100 repackers who sell the chilli powder but out of these 100 repackers,
only 10-15 will be sold on brand remaining all are sold on unbranded. These repackers buy
the chilli powder from these units in 25kg and 50kg bags and sell it as a commodity in loose.
In every village every week mela/Santa takes place and the small vendors sell in loose in 100
grams to 1kg and these repackers who sells 1-2 tonnes in a month will be nearly 60-70% and
their turnover will be nearly 12-24 lakhs per year.
Others are self-help group members who make red chilli pickles and some self-help group
members grind chilli powder in a commercial mixie and packs in 100 grams to 1000
kilograms and sell to the customers and these are increasing year on year and these SHG
members require fund requirement as well as the repackers who buy material hand to
mouth from the processors and sells in village and Mandal wise.
Cost Attributes Amount(Rs. Comments

in Lakhs)
Credit linked subsidy for individual 10 This is the need of 20 Identified
enterprises enterprises
SHGs 0.40 Combined need of SHGs put
together
For Individuals
We have identified 20 individual enterprises (we have taken turnover criteria of 1 crore to
classify our respondents as micro-enterprises) so accordingly out of the 453 samples we
have identified 20 samples who require funds to expand their business. Since the number is
few, we are giving the details of their requirements. Summarily, they fit well into the
bracket of “Max of 35% of the total requirement, not exceeding Rs. 10 lakhs”.
No of Approx amount (Rs. in Subsidy

Sl.NO What is it for Respondents Crores) (Rs. in
Lakh)
Individual
1 Pickle Making Machine and 20 0.17 10
Packing Machine
Strategy for Integrated Development
Integration of stakeholders such as agriculture, horticulture, marketing, financial institution,

industries, associations, testing agencies, traders, farmers, and processors are necessary to
enable the above-suggested processing to happen and the cluster to develop.
Sl.NO Requirement Supporting Department/Agencies

1 Direct marketing(Producer-Processer) State Marketing Boards
2 Storage DIC and Financial Institutions required for
the establishment of required infrastructure
3 Machinery and Packaging Machine DIC and Financial Institutions required for
4 Extension Services Proper training facility from State
Agri/Horti universities
5 lab testing facility Financial Institutions required for the
establishment of required infrastructure
6 More Govt Policies Subsidies on Machinery
7 Innovation/Branding Knowledge on Building own Branding like,
Beauty of product
Natural/organic
Nutritive Value
Common infrastructure and incubation center:

Here common infrastructure does not work out since the repackersalready purchase or get
job work done with the existing units and there is no need of establishing a common
infrastructure and incubation center.
Incubation Center
Incubation Center shall be the processing cum incubation facility based on ODOP along with
2-4 allied product lines. The Incubation Center should have a minimum of three processing
lines and a maximum of five processing lines to be funded from the PMFME Scheme. The
Incubation Center will be made available for the end-users on a custom hiring basis for
startups and smaller food processing units. But it should run on a commercial basis for full
utilization of installed capacity. The Incubation Center shall have the complete processing
lines as per the standard norms. The space/area for any Incubation Centers should be a
minimum of 7000 Sq. ft.
Cost norms for setting up Incubation Center at Guntur
Particular Processing Cost in (INR crore)

Processing lines 4 1
Capacity 0.5-1 tonnes/day
As a special case, if the host institute does not have building infrastructure for Incubation
Center shall be supported by PM FME Scheme with the grant of Rs.1.0 crore (Rupees One
crore only) for construction of buildings.
Branding and Marketing:

Only a few players are selling the chilli/Turmeric powder on their brand like Priya foods,
Telugu, Aashiwad, MTR, Agri gold, Aachi, Everest, AVT, three mangoes, swastika, etc.,
majority i.e. 90% of chilli powder is being sold as unbranded. There is a huge potential and
opportunity to make branding. Self-help group members are selling their products directly
without any brand if the GOVT/APFPS train them and create awareness of the brand and its
benefits then they can improve their sales and income levels and can market their product
market expansion to the next level.
The major portion of the chilli powder/ red chilli pickle is sold on loose if they maintain
FSSAI standards and packs in silver foils the shelf life of the products increases and the
product will be very hygiene and the quality improves and it will not lose its color,
pungency, etc., Here there is huge branding potential.
Basic estimated Fund required for Training, Branding, and Marketing of Processed
Products
Particular Cost INR(lakhs)

Training and Skill Development
Grading, Cleaning, and Sorting
Quality control and Standards
Labeling/ Packaging
GunturChilli and Turmeric product awareness
/Within District 55 lakhs
Guntur Chilli and Turmeric product awareness
/Outside district
Brand/ Trade name/brand mark
Market Intelligence and Commodity price forecast
Total
Training and capacity building

Approximately 600 laborers are working in one shift for chilli processing and nearly 300-500
people are working in repacking units for packing, loading, and other purposes. The majority
of workers working in chilli processing and repacking are not aware of the FSSAI standards
and do not maintain or follow the rules so if they are given necessary training it will very
useful and supports in increasing the quality and shelf life of the product and also reduces
the loss. Awareness/training is required in blending, maintaining the moisture content,
nonvolatility percentage, understanding about the aflatoxin, packing conditions, packing
materials to be used, etc.,
Recommendations based on field observations

• GOI to provide the formal markets at reachable places to the farmers to sell their
products to save big on transportation and expenditure burdens to shift to markets,
• Taalu (white chillies) are used in blending with other chilli varieties to bring down
the cost of the product which is having good content of aflatoxin not good for the
health of humans so Govt should look and work for the usage of Tallu variety for
another purpose so the usage of Taalu will come down in chilli blending.
• Chilli/Turmeric processors do not have awareness of FSSAI standards and
adulteration is high (White chilli and Cottonseed oil are blended). State Govt should
provide counseling to the processor and re packers in this regard.
• APMC officials should seriously look into the zero business taking place, biddings
which are not recorded and take action against the management whoever is
involved in this
• APMC officials should monitor the trade happening at cold storages during the un
season
• Construction of cold storage and warehouses to deposit the produce of raw material
and finished goods. Owing to insufficient storage facilities at near places are making
the farmers/processors face the risk of selling the products at good prices. The state
govt should monitor and fix the prices for depositing the Chilli in cold storage (Price
mechanism should be developed)
• Support with financial aid to the processors since interest on unorganized loans,
compelled agreements with commission agents and local merchants are forcing
them to deliver the produced at cheaper prices which are realizing their half of the
returns that they are supposed to realize in organized markets.
• Lack of market intelligence and poor understanding of Volatile Price fluctuations,
which is affecting the benefit of farmers/processors, poor post-harvest practices like
drying, cleaning, grading, and packaging.
• The state government should create awareness among the farmers/processors
through its agencies to provide information on Chilli production and other
agricultural commodities
• GOI should monitor and fix the collection of commission charges.
• Govt should support the labor and other clerical staff working in a high pungency
atmosphere in the chilli market yard by providing medical insurance and also
provide death benefits who dies while performing the duties by tieing up with
insurance companies
Recommendation to consider Honey as a Food cluster under NON – ODOP
Honey production in Guntur district
During 1982 honey production has started in the PonnurMandal of Guntur district with a
few farmers. Initially, the DRDA govt agency supported the honey bee farmers by providing
training to them, and later after a long gap again during 2019 and 2020 under the Major
honey mission scheme KVIC department provided training for 5 days for 30 farmers and
provided 10 boxes of honey bees each. During this period the number of honey bee
producers increased from a small number to more than 110 farmers in the district at
present.
• At present in the Guntur district the honey is produced in the regions of Ponnur,
Dhandamudi, and Tenali, etc., nearly 110 farmers are producing the honey.
• At present they are importing a variety of Italian bees and in each unit, there will be
25 boxes/colonies and each box cost INR 6000 with 20000-25000 bees and the size
of the box is 16*20 *10 (inches).
• The honey bees start yielding from the 3rd month and in a year they produce honey
for nearly 7-8 months, approximately yield per box is 3-4 kgs per month and per year
it is nearly 25 kg per box. 125 boxes can be accommodated in one hectare of land.
• Weather plays a vital role in honey cultivation/production it requires shade and

sustains up to the maximum temperature of 25 degrees. Farmers generally cover the
boxes with gunny bags. Honey bees require flora of different varieties like gingely,
mustard, vegetable crops, coconut, groundnut, etc., so the farmer's keeps shifting
their colonies where they find flora
• Two laborers are required in each unit to work and they are paid a salary.
Labor working in Honey processing units in Guntur district per day
Classification of No of laboruers
No of farmers Total labour required
unit required per unit
Small 100 2 200

Medium 20 4 80
Big 10 6 60
Total 130 12 340
• After the honey is collected it is processed through Rotary and after that, it is dried
under the sun for 4-7 days to bring down moisture from 20% to 17 or 18% and later
they are packed into cans.
• At present Honey is being sold at INR 200-250 per kg in retail and in wholesale they
are selling at INR 140 per kg. They keep a margin of 30% -40%.
• There is no expiry for the honey but when stores for 2-3 years the color changes
from gold to brown.
• At present, there are no testing facilities in this region where honey is produced.
• At present, there is no marketing support for the farmers and they are selling on
their own but not on any brand.
Gaps observed
• No testing labs are available and no testing is done for the honey produced here
• No support to the honey farmers from the end of Government like providing
promotional activities.
• No financial support from the government or bankers
• No marketing support from the end of the government to promote their sales/ make
branding
• Required proper training support to the farmers to deal with diseases occurring to
the bees
• Required better price for their produce
• Cluster formation is required
PROJECT METHODOLOGY
9) Study area
Study Area
The study on State Level Up-gradation Plan is conducted in the entire Guntur district of
Sample Size:The sample size in the Guntur district is 420. But we captured 453 respondents
and the draft is prepared based on captured sample size.

Primary Data
The study evaluates the chilli /Turmeric supply chain and finds opportunities for traditional
practices, and analyses the value chain of chilli/Turmeric from farm to market. The study
also estimates the distribution of the value-added among the value chain actors like farmers,
processors, traders, and retailers. Primary data was collected from more than four hundred
respondents comprised of all the value chain actors, including farmers, processors, traders,
retailers, association president, machine operators, skilled laborers, Agridept, horticulture
dept officials, District industries center officials, FPO’s Self-help group members, and other
stakeholders.
Secondary Data
Guntur Statistical Handbook, APEDA, Indiastat.com, Journals and Articles, and other internet
sources to know the area, production, export, import of Chilli and Turmeric processed
products.

GUNTUR DISTRICT
1. Baseline Assessment studies:
Major Chilli growing states in India:
India is not only the largest producer but also the largest consumer of chilli in the world.
Chillies are the most common spice cultivated in India. Chilli is a universal spice of India. It is
cultivated in all the States and Union Territories of the country.
Indian Red Chilli Production in 2021 is expected to be around 12,32,000 Metric Tons. India is
the biggest Producer, Consumer, and Exporter of Dried Red Chillies in the world. Chilies are
valued principally for their high pungency and color. Almost all the states of India produce
the crop. The Indian Chilli growing states are Andhra Pradesh (40%), Telangana (18%)
Karnataka (20%), Maharashtra (2%), Madhya Pradesh (10%), Rajasthan (2), Tamil Nadu (5%),
and other states (3%). Indian Chilli can be grown during the entire year in one or the other
part of the country.
The main markets of Dried Red Chilli Stock in India are Guntur Market, Warangal
Market, Byadgi Market, Khammam Market, and Madhya Pradesh Market. These Local
Markets play an important role in the Export Price of Indian Dried Red Chilli.
However, the major arrival season extends from February to April. The crop planting starts
from August and extends till October for Hybrid Varieties and June 15 to July end for OP
(open pollination) varieties. While the harvesting begins from December with 5-10% of the
arrivals usually reported in this month. The peak arrivals are reported from February to
March. There are several varieties of Indian Chilly and the most popular among these are
Teja, 334, 273, Byadgi, Indam- 5, 4884, Wonder Hot, Mundu, Chapata,341, DD
(DevanurDelux), Yellow(Talu) Chilies.
India is the largest consumer of Chilly in the world. Around 85% of India's production is
consumed within the country. India exports chilies in the form of dried chilies, Chilli powder,
packed chilies, and Chilly oleoresin. Indian Chilly is mainly exported to the USA, UK, Sri
Lanka, Bangladesh, the Middle East, and the Far East
The major chilly growing districts in Andhra Pradesh are Guntur, Warangal, Khammam,
Krishna, and Prakasam. Guntur is the biggest chilli producing region, contributing 30% to the
total production of AP. Area and Production of Chilli in this area decide the prices at
National level. Chilli production in India is moving northwards on increasing demand from
diversified sectors and changing consumption patterns.
Major chilli & Turmeric growing mandals in Guntur districts:
Rising export demand coupled with higher price realization in the domestic market has
motivated farmers to bring more area under chilli cultivation.
The cost of cultivation incurred per acre is nearly INR 124460 and INR 144460 by the
farmers who possess their land and leaseholders respectively and a yield of 30 quintals are
expected per acre
Red Chilli Whole Varieties:
S4 / S334 / Sannam | S-17 / Teja | Byadgi / Dabbi / Kaddi | Dhani / Birds Eye | Wonder
Hot | Wrinkled-273 | Tomato Chilli | Indo-5 / Endo-5 / Endem-5 / US-5 | Mundu / S9 | US-
341 | Kashmiri Chilli
Red Chilli Crushed Varieties
1mm-3mm Crushed Chilli With 15% Seed | 1mm-3mm Crushed Chilli With 25% Seed | 1mm-3mm
Crushed Chilli With 40% Seed | 3mm-5mm Crushed Chilli With 15% Seed | 3mm-5mm Crushed Chilli
With 25% Seed | 3mm-5mm Crushed Chilli With 40% Seed
Red Chilli Powder Varieties
Mild Chilli Powder 25,000 Pungency | Hot Chilli Powder 60,000 Pungency | Extra Hot Chilli Powder
80,000 Pungency
• Overall the chilly growing area is increasing YOY owing to higher prevailing market price.
• Productivity is also increasing YOY due to favorable weather conditions like sufficient
rains received, groundwater capacity increased free form Virus, pest & disease, and
water availability also is very good, like in canals, bore well, etc.
Approximate cost of Chilli Cultivation per acre
1.1. Agriculture Profiling of the Districts in the State

The geographical area of the Guntur district is 1139.1 thousand hectares, of which the net
sown area is 606.05 thousand hectares accounted for 53.2 % in 2018-19.
The major agriculture crops grown in the district are Paddy, Jowar, Maize, Red Gram, Black
Gram, Chilli, Turmeric, Cotton, and Tobacco 2018-19. The predominant fruit crops grown in
the district are Papaya, Mango, Banana, and Citrus.
Sl.N Particular Unit Year State Distric

o t
(a) Gross Cropped Area In '000' 2018- 7,296.6 771
Hectare. 19 3
(b) Net Cropped Area (including fish In '000' 2018- 6,048.5 606
ponds) Hectare. 19 3
(c) Gross Irrigated Area In '000' 2018- 3,634.9 501
Hectare. 19 1
(d) Net Area Irrigated In '000' 2018- 2,795.6 413
Hectare. 19 2
1.2. Percentage Share of Area under Agriculture and Horticultural Crops

in Guntur District in 2019-20
Total agriculture production of Guntur district in 2019-20 is 4751 thousand tons. Foodgrains
contribute 49% to total agriculture production inthe district followed by Commercial crops
33%, Fruits 10% and Vegetables 8% respectively.
1.3. Total Production of the Produce in the District and ODOP produce as a
percentage of total agricultural production of the district-
The total area under Dry Chilli and Turmeric in the Guntur district is 81.4 thousand hectares
and 5.05 thousand hectares, contributing around 51% and 25% to the total Dry Chilli and
Turmeric area in the state in 2018-19.The production of Dry Chilli and Turmeric is 262.5
thousand tons and 61.02 thousand tons in the district and contributes around 52% and 19%
to total state Dry Chilli and Turmeric production in 2018-19.
Total agriculture production in the district is 4758 thousand tons and Dry Chilli and Turmeric
contributes 7% to overall agriculture production in the district during 2018-19.
1.4. Perishable nature of the produce –

Chilli and Turmeric and their value-added products are not perishable. Details of each
product are listed below
Sl.No Name of the produce Shelf-life of the product

I Chilli
1 Red Chilli Powder Upto Three Years
2 Red Chilli Paste Upto One Year
3 Red Chilli Sauces Six to Nine Months
4 Red Chilli Pickles Upto 18 Months
II Turmeric
1 Dried Rhizome Upto Three Years
2 Turmeric Powder Upto Four Years
1.5. Production of ODOP Agriculture Produce in that district compared to

other districts and states
During 2018-19, the total production of Chilli and Turmeric is 501.4 thousand tons and 316.1
in Andhra Pradesh State. Guntur and Prakasam districts contribute 52% and 15% to total
Chilli production to the state. And Guntur and Vishakhapatnam districts contribute 19% and
33% to total Turmeric Production to the state in the same year.
During 2018-19, Chilli production in India is 1515.56 thousand tons. Andhra Pradesh was the
leading Chilli producing state in India with the contribution of 33 percent of the total Chilli
production; Telangana was the second leading chilli producing state with the contribution of
24 percent and other major chilli producing states are Madhya Pradesh (14%) and Karnataka
(13%).
Chilli production Guntur district (17%) of Andhra Pradesh state is more than Madhya
Pradesh (14%) Chilli production in 2018-19 and also contributes around 17 % to overall India
chilli production in the same year.
Sl.No States Production % Share to All India Chilli Production

I Andhra Pradesh 501.407 33%
1 Guntur 262.57 17%
2 Prakasam 76.759 5%
II Karnataka 194.7 13%
Telangana 369.02 24%
Madhya Pradesh 217.5 14%
III All India 1515.56
During 2018-19, Turmeric production in India is 957.1 thousand tons. Andhra Pradesh was
the leading Turmeric producing state in India with the contribution of 33 percent of the total
turmeric production; Karnataka was the second leading turmeric producing state with the
contribution of 16 percent and other major turmeric producing states are Tamil Nadu (10%)
and West Bengal (5%).
Turmeric production Guntur district (6%) of Andhra Pradesh state is more than West Bengal
(5%) Turmeric production in 2018-19 and also contributes around 6 % to overall India
turmeric production in the same year.
Sl.No States Production % Share to All India Turmeric Production

1 Guntur 61.02 6%
2 Vishakapatanam 104.556 11%
II Karnataka 153.7 16%
Tamil Nadu 92.36 10%
West Bengal 45.4 5%
III All India 957.1
1.6. Number of workers engaged in the ODOP cultivation

According to the 2011 census Guntur district has a population of 48.88 Lakhs. The average
size of the landholdings in the district is 2.66 (Medium) ha. The total area under chilli and
turmeric cultivation is 86.5 thousand hectares with the production of 323.59 thousand tons
in the district. Approximately 32.51 thousand households are involved in chilli and turmeric
cultivation with a population of around 130 thousand. Around 3 percent of the total
population in the district is engaged in chilli and turmeric cultivation.
Non-ODOP:
The Non – ODOP crops/products chosen in the Guntur district are Paddy, Maize, Cotton,
and Black Gram.
1.7. What other Major crops are being cultivated apart from the chosen
ODOP Product.
The major agriculture crops grown in the district are Paddy, Jowar, Maize, Red Gram, Black
Gram, Chilli, Turmeric, Cotton, and Tobacco 2018-19.
Sl.No Crop Area (‘000 Ha) Production ('000Ton)

1 Paddy 246.8 1468.8
2 Maize 37.9 346.1
3 Black Gram 34.4 31.8
4 Red Gram 20.0 13.5
5 Chilli 81.0 263.0
6 Turmeric 5.1 61.0
7 Cotton 177.0 743.0
8 Tobacco 6.0 13.0
1.8. Non-ODOP produce as a percentage of total agricultural production of

the district
Among Non-ODOP produce, Paddy has the highest production of 1468.8 thousand tons and
contributes around 33% to total agriculture production of value around 2.67 crores in
Guntur district in 2018-19.Other Non-ODOP produce in the district is Maize, Black Gram,
and Cotton with the production of 346.1 thousand tons, 31.8 thousand tons, and 743
thousand tons respectively.
Sl. Non-ODOP Crop Production ('000 Value (Rs. in % Share to Total

No Tonnes) Crores) Agriculture Production
1 Paddy 1468.8 2.67 31%
2 Maize 346.1 0.61 7%
3 Black Gram 31.8 0.19 1%
4 Cotton 743.0 3.90 16%
Production
1.9. Perishable nature of the produce

Non-ODOP processed products such as rice flour, papad, flaked rice, maize starch powder,
maize flour, cotton vegetable oil, and cottonseed meal are nonperishable.
Sl.No Value Added Products Shelf Life

I Paddy
1 Papad 6 Months
2 Flaked Rice 6 Months
II Maize
1 Starch Powder 6 to 9 Months
2 Maize Flour 6 Months
III Cotton
1 Cotton Seed Oil 6 Months
2 Cotton Seed Meal 12 Months
1.10. Many workers engaged in the cultivation of each of the Non-ODOP

products.
The total area under paddy, maize, black gram, and cotton is 319.1 thousand hectares with
a production of 2589.7 thousand tons. Around 120 thousand households are involved in
paddy, maize, black gram, and cotton cultivation with a population of around 480 thousand
people. Approximately 10 percent of the total population in the Guntur district is engaged in
Non-ODOP cultivation.
2. Assessment of the existing Policy and Regulatory frameworks for FPI and FPI
Micro Enterprises in the State:
As the spice processing industry is part of the food category hence, it has to satisfy a lot of
regulations from the Andhra Pradesh state government such as follows:
Registration of firm should be done depending upon the scale of business if its Pvt. Ltd. or
partnership or single person company, the firm is registered accordingly.
GST registration is also essential to gain a GST number, which is a must.
If it is SME, then companies can register themselves and get facilities and subsidies from the
state government.
Need to obtain trade license & FSSAI,
Apply for Trademark, BIS certification, and IEC.
And t is also advisable to obtain AGMARK certification.
Stakeholder Mapping:
Nodal Agency • Industries & Commerce Department – Andhra

Pradesh
stamp duty and Transfer duty Reimbursement of 100% stamp duty and
transfer duty paid by the industry
on purchase of land meant for Industrial
use&ease of land/shed/buildings,
• mortgages and hypothecations
Uninterrupted Power GoAP is committed to supplying uninterrupted

24x7 quality power to all
• industries operating in the state
Fixed power cost reimbursement @ ₹1.00 per

unit for five years
• from the date of commencement of commercial
Production
Subsidy on Fixed Capital 15% Investment Subsidy on Fixed Capital

Investment limited upto ₹20
Investment
lakh, whichever is lower. The subsidy will be
released only after 3 years
of continuous operation with atleast 80%
efficiency in all parameters i.e
• employment, production, etc.
Interest Subsidy Interest subsidy of 3% on the term loan taken

for fixed capital investment by
new Micro and Small enterprises for 5 years
from the date of
o commencement of commercial production
SGST Reimbursement of 100% of net SGST accrued to

state for a period of 5
years from the date of commencement of
commercial production or up to
whichever is earlier
land conversion charges Reimbursement of 25% land conversion charges

for Industrial use limited to ₹10
• lakh
Name of the Policy • Incentives for Medium Enterprises, Large and

Mega Industries

Pradesh
Uninterrupted Power 100% Reimbursement of net SGST accrued to

the State for 5 years or
100% fixed capital investment, whichever is
lower, from the date of
commencement of commercial production,
linked to employment
If direct employment generated is < 1000 SGST
reimbursement is 50%, for 1000 to 2000 is 75%
and for 2000+ is 100%
SGST
Name of Policy: Special Package for Women Entrepreneurs
belonging to
Scheduled Caste /Scheduled Tribe /Backward
Classes
Pradesh
stamp duty and Transfer duty 100% reimbursement of Stamp duty and
transfer duty paid by the industry
on purchase of land meant for industrial use &
Lease of Land/Shed/Buildings and
mortgages and hypothecations.
50% rebate in land cost limited to 20 lakhs in
Industrial Estates/Industrial Parks
rebate in land cost
forMSEs.
25% Land conversion charges for industrial use
limited to 10 lakhs for MSEs.
Land conversion charges
Fixed power cost reimbursement @ 1.25 per
unit for 5 years from the date of
power cost reimbursement
commencement of commercial production.
Subsidy on Fixed Capital 35% investment subsidy on fixed capital
Investment limited to Rs.50 Lakhs
Investment
forMSEs. The subsidy will be released only after
3 years of continuous
operation with atleast 80% efficiency in all
parameters i.e employment,
production etc
Interest Subsidy Interest subsidy of 3% on the term loan taken
on the fixed capital investment
for 5 years from the date of commencement of
commercial
production for MSEs.
SGST Reimbursement of 100% net SGST to Micro and
Small Enterprises for a
period of 5 years from the date of
commencement of commercial production
or up to the realization of 100% fixed capital
investment, whichever is earlier
enterprises for a period of 5
years from the date of commencement of
commercial production or up to
Reimbursement of 50% SGST to large
enterprises for 5 years
from the date of commencement of commercial
production or up to
plots for SC Entrepreneurs 16.2% of plots for SC Entrepreneurs and 6 % of
plots for ST Entrepreneurs in
the industrial parks will be reserved and
allotment will be done as per the
APIIC allotment guidelines
HORTICULTURE:
TARGET ACHIEVEMENT
Sl.
Name of the Scheme Physical Financial Physical Financial
No.
(In (Rs. In (In (Rs. In
Ha./Nos.) lakhs) Ha./Nos.) lakhs)
National Food Security

1 10541 696.44 1673.85 24.23
Mission (NFSM)
Rashtriya Krishi Vikash

2 Yojana (RKVY)- PROPOSED 95006 1830.02 799.93 42.12
TARGET – 2nd & 3rd Year Ach.
Andhra Pradesh Integrated
Irrigation Agriculture
3 1290.18 168.58 239.51 24.10
Transformation Project
(APIIATP)
Andhra Pradesh Irrigation
4 and Livelihood Improvement 227.13 64.07 219 20.70
(APILIP-II)
National Food Security Mission (NFSM)

Assistant Target Achievement
Sl. per Unit
Component Unit
No. (Rs. In
Phy. Fin. Phy. Fin.
lakhs)
1 Plant Material Subsidy Ha 0.12 1800 216.00 166.85 24.23
2 Vermicompst Units No 0.15 4 0.60 0 0
3 Dripirrigation Ha 0.24 150 36.05 0 0
4 Drilling of borewells No 0.50 3 1.50 1 0

Supply of diesel engines/
5 No 0.25 3 0.74 1 0
Electric pumpsets
6 Machinery Tools No 29 8.93 5 0
7 Trainings to farmers’ No 0.24 15 3.60 0 0
Trainings to Extension Officials /

8 No 0.36 7 2.52 0 0
workers / input dealers
1st, 2nd, 3rd & 4th year

9 Ha. 0.05 5770 288.50 1000 0
Maintenance
1st, 2nd, 3rd & 4th year Inputs for
10 Ha. 0.05 2760 138.00 500 0
Intercropping
Total 10541 696.44 1673.85 24.23
Major Components under RKVY PROPOSED ACTION PLAN 2021-22

CHILLI CLUSTER ACTIVITIES
INPUT SUBSIDY RELEASED TO FARMERS

Calamity wise Details
Input
Extent Subsidy
Sl. No of
Name of the Natural Calamity Damaged released
No Farmers
(in Ha.) (in
Lakhs)
1 Unseasonal Rains April 2019 13.55 18 3.77
2 Unseasonal Rains May 2019 36.05 211 11.61
3 August 2019 Krishna River Floods 4685.37 9977 844.89
4 Unseasonal Rains April 11th - 2020 11.44 36 3.45
5 Unseasonal Rains April 28th to 30 - 2020 16.87 23 3.43
6 Heavy Rains, Wins & Gales May 2020 15.34 13 1.41
Krishna River Floods & Heavy Rains August
7 33.47 69 5.08
2020
8 Floods and Heavy rains September 2020 748.43 1715 134.92
9 Krishna River Floods October 2020 3317.60 7042 591.92
10 Nivar Cyclone November 2020 316.62 662 61.48
TOTAL 9194.73 19766 1661.96
Horticulture in Guntur District

SI. Crop Area in Ha. Production in Lakh MTs
No.
1 Fruit Crops 11221 4.11
2 Vegetables 8255 2.17
3 Spice Crops 83332 4.00

4 Plantation Crops 249 0.04
5 Flowers 1157 0.07
6 Others 03 0.002
Total 104217 10.392
Details of Implementing Schemes

Financial
Financial Target
achievement
SL. No Scheme For 2021-22 (In
(2020-21)
lakhs)
(In lakhs)
MIDH :Mission for Integrated Development

1 of Horticulture- 1234.73 1922.86
(GOI SHARE : STATE SHARE -60 : 40)
RKVY-RAFTAAR :Rashtriya Krishi Vikas

Yojana – Remunerative Approaches for
2 Agriculture and Allied Sectors 48.29 43.00
Rejuvenation.
(GOI SHARE : STATE SHARE -60 : 40)
3 State Development Plan - -

APILIP (JICA) :Andhra Pradesh Irrigation
4
and Livelihood Improvement Project – II
29.31 511.21
Different Components and Targets Under MIDH

Units/ Financial
Name of the
S.No. Sub-component Ha/ Nos/ Assistance Physical (Rs. In
Component
Sqmt Lakhs)
5 Integrated Post Harvest Management
1 Pack houses ( 9mX6m) Nos 2.00 31 62
2 Nos
Cold storage 140.00 6 840
Primary / Mobile / Minimal
3 Nos
processing units 10.00 3 30
Sub - Total (PHM) 40.00 932.00
6 Esst of Marketing Infrastructure
1 Rural Marketing Nos 10.00 1.00 10
Retail Markets / out lets
2 (enivironment marketing Nos
controlled) 5.25 1.00 5.25
Sub- total 2.00 15.25
Cold Storage at RompicherlaMandal

Chillidestemming unit
Different Components and Targets Under MIDH

Units/
Financial
Name of the Ha/
S.No. Sub-component Assistance Physical (Rs. In
Component Nos/
Lakhs)
Sqmt
7 Pollination support through Bee keeping
1 Honey Bee colony Nos 0.008 260 2.08
2 Bee Hives Nos 0.008 260 2.08
Equipment including
3 Nos
honey extractor 0.08 5 0.4
Sub- total 525.00 4.56
8 Horticulture Mechanization
1 Tractor up to 20 PTOH Nos 0.75 98 73.5
2 Power tiller
(1). Below 8 BHP Nos 0.40
10 4
C. Plastic mulch laying
3 Nos
Machine 0.28 6 1.68
Sub- total 114.00 79.18
Different Components and Targets Under RKVY-RAFTAAR
Assistance Proposed target (In
Sl.No Name of the Component Unit
(Rs) lakhs )
1 Permanent pendals Ha 250000 25.00
2 Plastic Crates No's 120
3 Stregthening of Vegetables
i Hybrid veg seed Ha 3000 18
ii Veg minikits Nos 60
iii Urban Vegetable farming Nos 100
4 Post Harvest management
i. Turmeric boiler Nos 1
Turmeric drum polisher Nos 10
5 HRD
Farmers with in the State
No.of
i (Rs.1000 per day per farmer 1000
Farmers
including transport.)
Exposure visits per Farmer
No.of
ii including to and fro charges 6000
Farmers
for 6 days.
One day tarining Programmes

No.of
iii with in the District (25 nos @ 400
Farmers
Rs.400/- per each)
Total 43.00
TURMERIC INITIATIVES
Andhra Pradesh Irrigation and Livelihood Improvement

Objectives :
➢ Increase the local productivity, strengthen Institutional and Marketing
capacities.
➢ Rehabilitation of existing irrigation systems, supporting integrated farming
systems, and strengthening Value Chain Development.
➢ Improvement of livelihoods of farmers and other rural communities in the state.
Food Value chain - Chilli Crop in Guntur District
FVC – Objective:
➢ To identify appropriate practices and build infrastructure

➢ For value addition to the extent that farm produce in the state is compatible as
per global standards
➢ Increase competitiveness in high-end markets
FVC Chillies – Overview

► Project Cost : Rs. 19.87 Crores.
► Project Period : 3 years
► Project Commencement : 2019-20
► Operational district : Guntur
► The scale of the project: 2000 Ha.

: 2000 Farmers
► Implementing Agencies : Dept. of Horticulture
: AP Food Processing Society
Institutional Setup
FVC – Concept, and Issues to be addressed
➢ Concept
• Increase the competitiveness of Food Products
➢ Issues to be addressed
• Quality improvement
• Food safety
• Promotion of Food Processing
• Value addition
Implementation strategy of FVC

• Selection of FPOs, area of operation, and beneficiaries.
• The baseline survey, Market survey, and value chain analysis.
• Development of Detailed Project plan
• Project planning, implementation & Monitoring
• Improve the capacities of FPOs for establishing market linkages
• Branding, Brand promotion
• Marketing promotion.
• Documentation of the activities after completion of the project
Expected outcome
• Promoting Guntur Chilli brand for increasing the exports
• Export 6000 tons from the pilot area.
• Improving the farmer's net income.
• successful projects have to be replicated and the good practices and lessons will be
reflected in the state policy so that the benefits have to be spread to the whole state
Shortlisted FPO’s and Area of Operation
CONCEPT OF CHILLI VALUE CHAIN

Preparedness and action plan for the year 2020-21 through RBK’s :
• The total number of RBK’s is 852 out of which 426 are the potential Horticulture RBK’s.
• To create awareness on recent technologies in horticulture crops.
• To create awareness on Soil fertility and IPM techniques in all Horticulture crops
• To identify the beneficiaries under different components of MIDH and RKVY Schemes.
• To upload the crop sown data through E-Marshak portal through VAA’s and VHA’s
• To create awareness on micro-irrigation and fertigation.
• To create awareness on the construction of farm ponds.
Progress of FPOs in Guntur District as on 21/08/2021

3. Profiling of existing Micro Enterprises ecosystem:
3.1. Industrial Profile of the Districts in the State

Andhra Pradesh has a fast-growing economy with strong agriculture and industrial base. The
state has the second-longest coastline and number of ports. The state has significant water
resources from the Godavari and the Krishna and abundant natural resources. The state also
has surplus power, well-connected roads, and high availability of skilled labor.
As per the Socio-Economic Survey of Andhra Pradesh, the GSDP of the state is estimated at
current price in the year 2019-20 is Rs. 9, 72,782 crores.
The industrial sector (excluding IT and ITES) contributes to around 23% of state GDP. Key
industry segments in Andhra Pradesh include Agro and Food processing, Biotechnology, Bulk
drugs, and Pharmaceuticals, Electronics, Textile, Automotive, and Auto components.
The export value from the industrial sector in Andhra Pradesh in 2018-19 is Rs. 98, 983
crores, and major contributing industries for export are Drugs & Pharmaceuticals, Marine
products, Agriculture produce and Agro-based products, Handicrafts, and Engineering
products.
In the Guntur district of Andhra Pradesh State, there are 103 large and medium scale
industries, and 4365 factories are registered under Factories Act and provided
employment of around 1,08,939 persons during 2018-19. The major activities of the
industries in the district are Food Products and Beverages, Wood and Wood Products,
pharmaceuticals, Cotton, Tobacco, pesticides, Pistons, Ammonium Nitrate, Rice mills,
Granite, Stone Crushers, Sugar, and Power.
3.2. Identifying Non-ODOP Products

Identified Non – ODOP products through the primary survey in the district are listed below
table;
Sl.No Crop Name Value Added Products

1 Paddy Rice Flour,Flaked Rice, Papad
2 Maize Maize Starch, Maize Oil, Sorbitol
3 Cotton Cotton Seed Oil, Cotton Seed Meal
4 Black Gram Black Gram Seed and Black Gram Flour
3.3. District wise profiling based on secondary research

ODOP and Non-ODOP Produce based Factories Registered under Factories Act – 1948 in
Guntur District in 2018-19
S.NO. Name of the Industry No. of Factories 2018-19

No. of Workers
Male Female
1 Cotton Ginning 539 9494 10691
2 Processing Of Fish Products 0 0 0
4 Food Products 2007 15303 10653
5 Mfg.of Beverages 29 1627 318
6 Tobacco Grading & Products 84 3089 6848
7 Mfg.textiles 86 12030 7379
Source: District Industries Centre
a. Is the district recognized with the ODOP product?
Based on the existence of micro-units and the relevant commodity is grown largely in
the district the ODOP product is identified by the APFPS department and Chilli and
Turmeric are recognized as ODOP products.
Awareness about the ODOP Product in Guntur District
The primary survey observed that among respondents 89% of them are not aware of ODOP
products in the district and 11% of the respondents are aware of ODOP products.
Particulars Response Response
Count Percentage
Yes 50 11%
No 403 89%
Total 453 100%
b. Has the product been granted Geographical Indication status by the Government
of India?
Guntur Sannam is a variety of chili pepper that grows in the districts of Guntur, Prakasam,
in India. It is registered as one of the geographical indications of Andhra Pradesh.
c. Special nature and relationship of the product with the district, uniqueness,
history, etc?
Primary survey
In the district of Guntur, chili is grown in different mandals like Amravati, sattinaepalli,
piduguralla, prathipaadu, chilakaluripeta, narasaraopeta, macherla, vinukondadachepalli,
Gurajala, Rompicherla, medikondur, atchampetu, Krosuru, Edlapaadu, Karampudi,
pedakorapadu, rentachintala and different varieties like Teja, 273, 341. DD,
syngentabyadgi 5531, 334, E- 5/ Indom 5 /c5 are cultivated by chilli cultivars from
the Guntur district of Andhra Pradesh, India. They are renowned globally and exported to
Asia, Canada, and Europe. The Guntur district is the main producer and exporter of the
most varieties of chillies and chilli powder from India to regions such as Sri Lanka,
Bangladesh, the Middle East, South Korea, the UK, the US, and Latin America. Chillies have
various colors and flavors because of the level of capsaicin in them. Guntur chillies form an
important part of curries and various popular dishes of the state of Andhra Pradesh in
India. The main trading place for the Guntur chilli is called Guntur Mirchi Yard (APMC),
which is Asia's largest dried red chilli market. Market prices for the chillies are accessible
on the National Agriculture Market or e-NAM.
d. Level of processing happening for ODOP in the district, in other districts and
outside the State.
There are nearly 80 units small and big established in the Guntur city and Mandal
surroundings and out of that nearly 10 units are not functioning for some reason. While in
the entire district leaving Guntur town and surroundings nearly 25-30 units are processing
Chilli. The arrival season commences during the January of every year and ends by May and
the processors will be busy procuring the material and depositing the same in the cold
storage. The peak season is between January and May and the lean season for two months
i.e. from June and July. Depending on the prices and the orders in hand the processors
normally procure the raw material chilli. The majority of the processors buy raw material
from the APMC and few processors buy directly from the farm gate by paying the necessary
market cess. The processors depending on the availability of orders and the labor operate
the unit every day if required they operate two shifts in a day. The majority of the units
nearly 80-90% have the capacity of processing 2-6 tonnes per shift and a few big companies
or units have 3-15 tonnes processing capacity per shift and it requires 4+1 i.e. 4 labor
unskilled/semi-skilled and one machine operator (Skill labor) for each unit apart from
loading and unloading hamalies. Unskilled/semi-skilled labor does the activity of
destemming, cleaning, grading, and other activities necessary in processing. While in big
processing units per one shift 6+1 i.e. six labor unskilled/semi-skilled and one machine
operator (Skill labor) for each unit apart from loading and unloading hamalies. In a day in
the entire Guntur district, nearly 800 tonnes of chilli are processed in one shift and nearly
620 laborers are working for one shift. During the peak season, i.e. Jan –May the processing
units will operate in 100% capacity as well as some units also operate/run two shifts
however during the lean season the units will operate in lesser capacities and quantities and
the processing activity will run throughout the year if the necessary orders are available
with processors/unitholders.
e. Mapping of the Micro, Small, Medium and Large Industries in the District (Total
number of Units)
Mode of Operation
The primary survey observed that among 453 respondents, 274 respondents are operating
business at the household level followed by 141 respondents who own the proprietorship of
the company/unit and 18 respondents are operating business with the partnership.
Count Percentage
Household 274 60%
Proprietorship 141 31%
Partnership 18 4%
Pvt. Ltd 17 4%
Other 3 1%
Total 453 100%
Classification of ODOP and Non-ODOP Processing Industries in Guntur District
The primary survey observed that among 453 visited industries, 241 industries are
household units followed by 131 micro-units, 54 small units, and 22medium units.
Count Percentage
Household 241 53%
Micro 136 30%
Small 54 12%
Medium 22 5%
Total 453 100%
The primary survey observed that among the visited ODOP and Non-ODOP processing
industries in the Guntur district, 279 industries/units are unregistered and 174
industries/units are registered.
Count Percentage
Yes 174 38%
No 279 62%
Total 453 100%
Classification of Industries by Registration in Guntur District

The primary survey observed that out of 136micro units only 119 units are registered ODOP
and Non-ODOP processing industries/units in the Guntur district followed by 39 registered
small units and 2 registered medium units in the district.
Particulars Registered Unregistered
Household 12 226
Micro 119 17
Small 39 15
Medium 2 19
Total 174 279
f. Number of clusters engaged in the processing of this product;
Chilli cluster in Guntur will support thousands of chilli farmers and also help the
stakeholders including growers, traders, processors, and exporters. A cluster, well-
identified, serves the needs of the producers, processors, and traders. A production cluster
also enables the production, value addition, and availability of a commodity at a competitive
price to consumers. It also reduces transportation costs to end markets as volumes are high
enough for bulk transport and creates a favorable trade ecosystem. Usually supporting
services such as warehouses and cold storage can be logistically established which also
ensures high utilization, the basic criterion for the profitability of storage units. Value
addition through processing is also possible in such areas due to the availability of quality
raw materials in such clusters, thus increasing employment opportunities for the local
population.
On May 16, 2020, the Union finance minister announced that the center will support setting
up chilli cluster in the state of Andhra Pradesh
g. Number of workers engaged in the ODOP processing;
Each unit requires 4+1 i.e. 4 labor unskilled/semi-skilled and one machine operator (Skill
labor) for each unit apart from loading and unloading hamalies. Unskilled/semi-skilled labor
does the activity of de stemming, cleaning, grading, and other activities necessary in
processing
While in big processing units for one shift labor required is 6+1 i.e. six labor unskilled/semi-
skilled and one machine operator (Skill labor) for each unit apart from loading and unloading
hamalies. In a day in the entire Guntur district, nearly 800 tonnes of chilli are processed in
one shift and nearly 620 laborers are working for one shift. During the peak season, i.e. Jan
–May the processing units will operate in 100% capacity as well as some units also
operate/run two shifts
Number of Workers Engaged in ODOP and Non-ODOP Processing Industries in Guntur

District
From primary survey observed that 4299 workers engaged in ODOP and Non-
ODOPprocessing industries/units in the Guntur district.
Industry Male Female Total
Household 958 927 1885
Medium 40 33 73
Micro 1032 929 1961
Small 173 207 380
Total 2203 2096 4299
h. Marketing linkages within the district, state, and outside
Chilli and Turmeric farmers usually market at Guntur markets through commission agents.
The domestic market is the major market for Chilli & turmeric including the southern states.
Chilli and Turmeric are grown in the Guntur district find a major market in Maharashtra,
Gujarat, Madhya Pradesh, and Uttar Pradesh further go to Delhi, Punjab, and Haryana for
consumption as powder. Besides the local produce, several brands of Chilli & turmeric
powder are available in these market centers which are processed in the regional markets.
The supply chain of Chilli and Turmeric follows in the below pattern
Commission
Preharvest
Farmer Agent/Trader Processor Exporter
contractor
Commission
Farmer
Agent/Trder
Processor Wholesaler Retailer consumer
Commission
Farmer Trader/Exporter
Agent
i. Level of infrastructure for ODOP processing within the district, in other districts,
and States.
Nearly 80 units small and big established in the Guntur city and Mandal surroundings and
out of that nearly 10 units are not functioning for some reason. While in the entire district
leaving Guntur town and surroundings nearly 25-30 units are processing Chilli.
Depending on the prices and the orders in hand the processors normally procure the raw
material chilli. The majority of the processors buy raw material from the APMC and few
processors buy directly from the farm gate by paying the necessary market cess.
The processors depending on the availability of orders and the labor operate the unit every
day if required they operate two shifts in a day. The majority of the units nearly 80-90%
have the capacity of processing 2-6 tonnes per shift and a few big companies or units have
3-15 tonnes processing capacity per shift and it requires 4+1 i.e. 4 labor unskilled/semi-
hamalies. Unskilled/semi-skilled labor does the activity of de stemming, cleaning, grading,
and other activities necessary in processing. While in big processing units per one shift 6+1
i.e. six labor unskilled/semi-skilled and one machine operator (Skill labor) for each unit apart
from loading and unloading hamalies. In a day in the entire Guntur district, nearly 800
tonnes of chilli are processed in one shift and nearly 620 laborers are working for one shift.
During the peak season, i.e. Jan –May the processing units will operate in 100% capacity as
well as some units also operate/run two shifts however during the lean season the units will
operate in lesser capacities and quantities and the processing activity will run throughout
the year if the necessary orders are available with processors/unitholders.
For processing turmeric, there are nearly 15-20 units small and big established in the
DuggiralaMandal surroundings of Guntur district. While in the entire district leaving
Duggirala there are nearly 4-5 units are processing Turmeric.
j. Total production value of the ODOP product manufactured in the district and as %
of total agricultural production.
In a day in the entire Guntur district, nearly 570 tonnes of chilli are processed in one shift
and it is being sold in the market as well as exported to other districts, states, and different
countries. On average the raw material cost is 1 lakh per tonne and processing and packing
cost is nearly 14000 per tonne and total turnover per shift in a day is nearly 6.5 crore.
Approximate turn over per shift in a day in Guntur dist

110 Small/Medium units @ 4 tons avg processing capacity 440
10 Big units @ 13 tons avg processing capacity 130
Total chilli processing in district (Tonnes) 570
Avg cost of chilli per tonne- 100000 57000000
Approximate processing & packing cost per tonne- 14000 7980000
Total turnover per day (INR) on one shift 64980000
Total turnover per day (crores) on one shift 6.50
k. Number of enterprises involved in the processing of this product and as a % share

of the total number of micro food processing enterprises in that district;
l. Number of Self Help Groups and Farmer Producer Organizations engaged in

theProcessing of this product
It was observed during the primary survey that there are no Farmer Producer Organizations
(FPOs) operating in the study area and the concept of Producer Organization (PO) was not
known to many farmers. During the discussions with the farmers, it became evident that
awareness about FPOs and their functioning is almost nil.
m. Sale of this product to other districts, states and exported to other countries
In a day in the entire Guntur district, nearly 570 tonnes of chilli are processed in one shift
and it is being sold in the market as well as exported to other districts, states, and different
countries. There are nearly 80-100 repackers are established in the Guntur district where
they do not have a processing unit but they procure the processed/chilli powder from the
unitholders and the same is packed into their brand and sold to the consumers/ retailers/
through a distribution network. Some repackers buy material from the processors and the
same is packed into different packages (Grams 100, 250,500 & 1kg) and sold to the
consumers/ retailers/ hoteliers/pickle makers, hotel mess, caterers, etc., However, the
majority of the repackers do not have information about Govt standards and do not follow
FSSAI standards properly and do not under the go required test, etc., They normally prefer
to buy the cheapest powder doesn’t care about the quality and standards like minimum ash
percentage, non-volatile %, moisture content, etc. Even some repackers get job work done
from the processors by supplying the raw material where the more percentage of taalu
variety (white chilli) is blended to it to minimize the price. It is observed that the big
companies also do not maintain or follow the FSSAI standards owing to the heavy and
unhealthy competition. There is no repackers association in the Guntur district.
n. Mapping the value chain aspect
In the process of Chilli value chain, chilli is made into powder and the varieties used for chilli
powder are 273, 341. DD, syngentabyadgi, 5531, Teja, 334, E- 5/Indom 5 / C 5. Normally
chilli processors blend different varieties for getting proper color, pungency and there is no
standard blending formula however the processors also mix/blend Taalu variety for
averaging the price. The majority of the processors use Taalu variety whether big or small
branded and unbranded companies.
Big processors/branded companies normally use 341 variety for pungency and color and it is
a premium variety that nearly cost 160 per kg
Some processors blend chilli varieties like Teja and 4884 for obtaining the only pungency
Some processors blend chilli varieties like Guntur Byadgi, Karnataka Byadgi (Dabbi and
Kaddi) for getting the only Color. However, some processors generally blend varieties like
341, Devanoor deluxe and 5531, etc., for getting color and pungency. Outturn/Recovery:
when chilli is processed in bulk the recovery or outturn will be nearly 90% and if it is
processed in small quantities like 200-300 kg then the recovery will be 70-80%
Normally the processors blend different varieties in the process of chilli grinding and to
make the price average they normally blend lower price varieties and Taalu (White chilli)
variety where the aflatoxin is more in the Taalu variety.
Pictorial observations:
Red chilli is being cleaned, dried, and unstemmed for further processing
While processing it is being taken thru elevators after processing/grinding

After drying it is kept for cooling and later will be packed in a different pack size
o. Understanding the Infrastructure constraints faced by Micro Enterprises:
About 110 units small and big established in the Guntur district process chilli and their
average capacities are 2-6 tonnes per shift in a day and a month they process nearly 130
tonnes and the majority of the processors operates their unit for nearly 2-6 months in a year
while others operate throughout the year depending on availability of orders in hand. If they
operate 5 months their turn over would be 650 tonnes and the price of chilli ranges from 80
to 140 depending on the quality and variety on average if 100 is taken into account it cost
nearly 6.5 crores per annum so these units come under small and medium but not under
micro units however out of these only a few units operates lesser capacities owing to
unavailability of orders and funds.
There are nearly 90-100 repackers who sell the chilli powder but out of this, 100 repackers,
grams to 1kg and these repackers who sell 1-2 tonnes in a month will be nearly 60-70% and
According to the primary observations, small unitholders are facing marketing issues unable
to market their products and expecting to expand their business in other districts and states
and they require mentorship support to excel in the trade. They are facing a skilled labor
shortage and require training for their labor and do not have testing facilities in their
mandals to test their products and some unitholders require financial support to increase
their capacities and buy packing machines
p. Mapping the market potential of FPI micro enterprises
The corporate companies who procure large quantities
• AVT McCormick INGREDIENTS PVT. LTD.

• ITC Limited
• Eastern Condiments Pvt Ltd.,
• Olam Agro India Limited
• UshodayaPvt Ltd., (Priya division)
• JAGAN -Bulk trader & etc.,
The corporate companies use to arrange contract farming for 15 to 20 years and the
relevant farmers are given the necessary guidance/counseling for applying the fertilizers and
spraying the pesticides
In the district of Guntur at the mandals of Sattanpalli, Siripuram, Medikondur,
Pedakorapadu, Ponikallu, Bandarupalli, Ravela, etc., Chilli varieties like Indo-5, 341, Local
Byadgi, Teja, 577, etc., are cultivated under Non-PRF.
q. Mapping the Firm-level issues
Raw material
Even though there is the availability of raw material chilli/Turmeric throughout the year
there is a problem with price fluctuations processors are facing big problem during the
arrivals season the prices will be lower to some extent and at that time storage is a big
problem and if processors get the space the rental charges are higher and processors have
to pay higher charges.
Machinery
Even though the majority of the processors are operating with lesser capacities from 1-5
tonnes of production a day some processors are looking for advanced technology and they
are unable to procure because of lakh of funds.
Storage :
Particularly in the Guntur district, approximately 80-85 cold storages are functioning with an
average capacity of 80000-90000 bags each and the total capacity comes to nearly 270000-
300000 tonnes. However, when the farmers get good yields/bumper crop during that year
the existing cold storages are not enough to deposit the raw material and the management
of cold storage are charging higher prices to encash the demand and situation and there is
no proper monitor system from the end of Govt
Hygiene conditions
During the processing of Chilli and Turmeric, the processors put all the processed chilli and
turmeric on the floor, and then it is packed some of the processors are not maintaining the
hygiene conditions at their units/plants
Quality and Adulteration
During the process of Chilli powder, the majority of the unit holders blend the Taalu variety
along with the different varieties of chillies, and owing to the usage of 20-40% Taalu variety
chilli to minimize the price the quality is product is not produced. Since Aflatoxin percentage
is more in Taalu variety and it is very cheaper when compared to the normal variety and
some processors even mix cottonseed oil for getting better appearance and are not
following the FSSAI standards properly.
Training:
The majority of existing labor who works in Chilli and Turmeric processing industries as well
as in repacking industry are not trained and do not have the awareness of the FSSAI
standards and they require necessary training
Costing:
Owing to the increase of raw material cost, labor expenditure, overheads, interest, and
other expenditure the cost of production of Chilli and Turmeric products are increasing YOY.
Packaging & Branding issues
The majority of the Chilli and Turmeric products produced in the Guntur district are being
sold as unbranded only a few companies are being sold on their brands like Priya, MTR,
Telugu, Aashirwad, Everest, Eastern, Agrigold, swastika, three mangoes, etc., and these
companies percentage will be nearly 15-20% only remaining 80-85% is being sold in loose in
villages, towns in swagruha outlets, in melas, in preparation of pickles, in canteens, hotel
industry, catering industry, etc., and some of the processors are following the FSSAI
standards. If it is properly packed in hygiene conditions and proper packaging material is
used the shelf life of the product will be more otherwise the color and pungency deteriorate
periodically.
Competition
There is huge and unhealthy competition in marketing the Chilli and Turmeric products even
big companies like Priya, MTR, Telugu, Aashirwad, Everest, Eastern, Agri gold, swastika,
three mangoes, etc., have entered in trade and giving huge competition with unbranded
companies which are having nearly 70-80% share. So the unbranded companies are finding
difficulty in competing with the big brands. It is learned that even some branded companies
are not following the FSSAI standards and are conducting adulteration to face the
competition.
Transportation
With increasing petrol and diesel prices the existing unhealthy competition the small
brands, unbranded companies are unable to market their product in other districts and
states with that they are not making good money.
Testing
For the processed product no regular testing is conducted in the majority of processing units
only a few companies undergo testing batch-wise. Some unitholders/processing units test
their produce at third-party labs if the buyer insists on necessary testing. Normally they
conduct this test: moisture content, non-volatile percentage, ash%, color, aflatoxin,
pungency, mixing, etc.,
In the Guntur district at Spice board, sample tests are done, and also at ITC and medical
college chilli testing is conducted.
Obtaining loans is a difficult task:
Some processors are finding difficulty in obtaining loans to expand their units and business
and are compelled to get loans at a higher interest rate from the private agencies
4. Detailed Cluster Study for ODOP Products -
5. Industry and Market Analysis

Andhra Pradesh was the leading Chilli producing state in India with the contribution of 33%
percent of the total Chilli production; Telangana was the second leading chilli producing
state with the contribution of 24 percent and other Chilli producing states are Madhya
Pradesh (14%), Karnataka (13%) and Orissa (5%) respectively.
Tamil Nadu (10%), Telangana (7%) and Orissa (5%) respectively.
During 2018-19, India exports 468500 MT of chillies and value of INR 541117.5 lakhs and
also exports 133600 MT of turmeric and value of INR 141616 lakhs.
Marketing Information in Guntur
Guntur is one of the largest cities in the state of Andhra Pradesh and the estimated
population in the city is nearly 54.25 lakhs. Chilli is majorly grown across the district and
many varieties are cultivated in the entire district like 334, 273, INDAM, Guntur Byadigi,
Teja, US 341, Devanoor deluxe, 4884, etc., During 2018-19, Chilli production in India is
1515.56 thousand tons.
There are nearly 80 units small and big established in the Guntur city and Mandal
surroundings and out of that nearly 10 units are not functioning for some reason. While in
the entire district leaving Guntur town and surroundings nearly 25-30 units are processing
Chilli. Value-addition like Chilli powder, Chilli flakes, sauce, oleoresin, etc., are made in the
district which is used in day-to-day life. There is enough demand for these value-added
products in the city and it is being manufactured by largely and also it is being sold in
different outlets like retail, wholesale, supermarkets, hypermarkets, online markets, etc.,
Chilli and Turmeric farmers usually market at Guntur markets through commission agents.
The domestic market is the major market for Chilli & turmeric including the southern states.
Chilli and Turmeric are grown in Guntur district find a major market in Maharashtra, Gujarat,
Madhya Pradesh, and Uttar Pradesh, etc.,
Particularly in the Guntur district, approximately 80-85 cold storages are functioning with an
average capacity of 80000-90000 bags each and the total capacity comes to nearly 270000-
300000 tonnes.
Marketing players:
AVT McCORMICK INGREDIENTS PVT.LTD.
ITC Limited
Eastern Condiments Pvt Ltd.,
Olam Agro India Limited
Ushodaya Pvt Ltd., (Priya division)
JAGAN -Bulk trader & etc.,
110 units small and big established in the Guntur district which process chilli and their
average capacity are 5-6 tonnes per shift in a day and a month they process nearly 130
tonnes and the majority of the processors operates their unit for nearly 5-6 months in a year
There are nearly 90-100 repackers who sell the chilli powder but out of this 100 repackers,
The supply chain of Chilli and Turmeric follows in the below pattern
Commission
Processor Trader/wholesaler Retailer Consumer
Agent/stockiest
The Guntur city is commercially divided into one town and two towns geographically
Trade is classified into General trade, modern sale &Online sale. Under general trade, there
are Wholesale and Retail sale trade and under modern sale, there will be Hypermarkets,
supermarkets while under Online sales there are big giants like Amazon, Flipkart, Bigbasket,
Grofers, etc.,
General trade is classified into ABCD and under the A segment all hypermarkets,
supermarkets are involved in trade and at Guntur city, there are nearly 100 supermarkets,
and each supermarket sells on average of 40-50kg chili powder per month of different
brands and out of this, there are nearly six hypermarkets who are operating their sales in
different locations thru different branches and approximately every hypermarket sells 150-
200 kg of chilli powder per month.
Sl.NO Chain
1 AVENUE SUPERMARTS LTD-Dmart
2 MORE RETAIL LIMITED
3 RELIANCE RETAIL LTD
4 RATNADEEP RETAIL PRIVATE LIMITED
5 SPENCERS RETAIL LTD
6 METRO CASH & CARRY INDIA PVT. LTD
7 SUPERMARKET GROCERY SUPPLIES PVTLTD-Big Basket-Online
8 USHODAYA SUPER MARKETS PRIVATE LTD
9 FLIPKART INDIA PVT LTD- Online
10 AMAZON SELLER SERVICES PRIVATE LIMI- Online
Under B segment wholesale trade is involved in Patnam bazaar and rural etc., nearly 60-80
traders are existing and on average, each trader sells 80-100kg chilli powder per month like
Under the C segment, 4500-5000 retailers are there and approximately every retailer sells
10-20 kg of chlli powder per month in the Guntur city.
Under the D segment, there are nearly 500 shops like pan shops, milk parlors, cool drink
shops, etc.,
Pickles, Spices and Masala powders, Turmeric, Daniya powder, etc., are major commodities
these segments deal with.
Major players dealing in Chilli powder and their market share in the market in Guntur
% of market share of Chilli powder brand wise in
Guntur market
4% Ashirwad
4% 5%
15% Everest
Swastik
11%
12% Priya
10% Aachi
10%
555
7% BVR
5% 17%
Eastern
Out of a total chilli brands Ashirwad, Aachi, Everest, Eastern, Priya, Swastik are top brands
and there are some local players/brands which is being sold at par or a little lower with the
major brands like BVR, 555, etc.,
Chilli Powder sales brand-wise in Guntur Urban & Rural
Chilli Powder Avg sale per month (Lakhs) in

Guntur Urban & Rural
Ashirwad
16 16 61 Everest
45 Swastik
Priya
49 Aachi
41
555
BVR
20 41 Eastern
Guntur NSR
69 28
Guntur NPR
Out of a total of 406 lakhs, the Aachi brand accounts for 17%, Ashriwad brand 15%, Everest
12%, Eastern 11% followed by Priya, BVR, and others. In an unbranded lot of quantities are
sold
One of the manufacturers M/s. UshodayaEntps (Priya Foods) their marketing network and
sales/supplies of Spices per year from Guntur dist for Annum in AP & TS states.
At present, modern sale management is procuring some products directly from the
manufacturers who are registered under GST/VAT, etc., and other products from the agents,
distributors by losing the margins in exchange (manufacturer to stockiest/agent/distributor)
and also they have plans to buy from the SHG’s and FPOs who are into processing by
eliminating the middlemen like distributors and pass on the same to the consumers but the
majority of the SHG’s are not registered and cannot procure from them without raising a
purchase order so they are suggesting that all the FPO’s and SHG’s who are into processing
to get it registered to enable them to procure from them also.
However, the wholesalers are procuring directly from the manufacturers as well as with the
unregistered firms
There are nearly 5000 outlets are established in Guntur and the majority of the outlets are
selling spices (Chilli powder and Turmeric and masala powders and the majority of the
outlets like a wholesaler, retailers, modern sale managements are procuring material from
the state of Andhra Pradesh
Problems faced by the General traders, modern sale, wholesale, Retail management, etc.,
Color deterioration (Chilli powder) is noticed with some brands in the market and also there
are some shelf-life issues.
Adulteration complaints are more
Unhealthy competition
5.1. Introduction
Chilli
Chilli is the dried ripe fruit of the genus Capsicum. Capsicum annum is an annual subshrub,
the flowers of which are borne singly and fruits usually pendent, which provide red peppers,
cayenne, paprika and chillies and sweet pepper (bell pepper) a mild form with large inflated
fruits.
Capsicum frutescence is a perennial chilly with small-sized pods which are highly pungent. It
is commonly known as ‘bird chilly’ and ‘Tabasco’.
Chilly is reported to be a native of South America and is widely distributed in all tropical and
subtropical countries including India. It was first introduced in India by the Portuguese
towards the end of the 15th Century. Now it is grown all over the world except in colder
parts.
Uses
Dry chilly is extensively used as a spice in curried dishes. It is also used as an ingredient in
curry powder and seasonings. Bird chilly is used in making hot sauces as pepper sauce.
Paprika, Byadgi chilly, Warangal chapatta, and similar high colorless pungent varieties are
widely used for color extraction. This color is highly popular among food and beverage
processors for its use as a colorant, since this is a ‘natural plant color’.
As a medicine, it is used as a counter-irritant in Lumbago, Neuralgia, and Rheumatic

disorders. Capsicum has a tonic and carminative action. Taken inordinately it may cause
gastro-enteritis. The enzyme isolated from chilly is used in the treatment of a certain types
of cancers. Oleoresin capsicum is used in pain balms and vaporubs. Dehydrated green chilly
is a good source of vitamin ‘c’
Turmeric
Turmeric is the boiled, dried, cleaned, and polished rhizomes of Curcuma longa. The plant is
a herbaceous perennial, 60-90 cm high, with a short stem and tufted leaf. There are 7 to 12
leaves, the leaf sheaths form the pseudostem. The lamina is green above and pale green
below and has a length of 30-40 cm and a width of 8-12 cm. The inflorescence is a central
spike of 10-15 cm in length. 1-4 flowers are born in the axil of the bract opening one at a
time. About 30 flowers are produced in a spike. Seeds are produced in capsules and there
will be one to numerous sunken capsules in an inflorescence.
Turmeric is a tropical crop cultivated from sea level to 1200 meters MSL. It grows in light
black, black clayey loams and red soils in irrigated and rainfed conditions. The crop cannot
stand waterlogging or alkalinity.
Uses
Turmeric is used to flavor and color foodstuffs. It is a principal ingredient in curry powder.
Turmeric oleoresin is used in brine pickles and to some extent in mayonnaise and relish
formulations, non-alcoholic beverages, gelatins, butter, and cheese, etc. The colorCurcumin
extracted from turmeric is used as a colorant. Turmeric is also used as a dye in the textile
industry. It is used in the preparation of medicinal oils, ointments, and poultice. It is
stomachic, carminative, tonic, blood purifier, and antiseptic. It is used in cosmetics. The
aqueous extracts have biopesticidal properties.
What does it lack to be a better-quality product?
During the process of Chilli powder, the majority of the unit holders blend the Taalu variety
along with the different varieties of chillies, and owing to the usage of 20-40% Taalu variety
chilli to minimize the price the quality is product is not produced. Since Aflatoxin percentage
is more in Taalu variety and it is very cheaper when compared to the normal variety and
some processors even mix cottonseed oil for getting better appearance and are not
following the FSSAI standards properly.
The significance of the product in that particular district/state
The Guntur chilli is exceptionally dark red due to the rich source of capsaicin. Capsaicin is
the content that is responsible for the color of chillies. In cooking, the chilli is used as a
whole and thrown in during the preparation, or it is ground into powder or a paste with
other spices.
5.2. Nutritive Value and Health Benefits

Chilli
Principle Nutrient Value

Energy 40 Kcal
Carbohydrates 8.81 g
Protein 1.87 g
Total Fat 0.44 g
Cholesterol 0 mg
Dietary Fiber 1.5 g
Vitamins
Folates 23 µg
Niacin 1.244 mg
Pantothenic acid 0.201 mg
Pyridoxine 0.506 mg
Riboflavin 0.086 mg
Thiamin 0.72 mg
Vitamin A 952 IU
Vitamin C 143.7 mg
Vitamin E 0.69 mg
Vitamin K 14 µg
Electrolytes
Sodium 9 mg
Potassium 322 mg
Minerals
Calcium 14 mg
Copper 0.129 mg
Iron 1.03 mg
Magnesium 23 mg
Manganese 0.187 mg
Phosphorus 43 mg
Selenium 0.5 µg
Zinc 0.26 mg
Phyto-nutrients
Carotene-ß 534 µg
Carotene-α 36 µg
Cryptoxanthin-ß 40 µg
Lutein-zeaxanthin 709 µg
Source: USDA National Nutrient database
• VitaminC is a potent water-soluble antioxidant. It is essential for collagen synthesis

inside the human body. Collagen is one of the main structural proteins required for
maintaining the integrity of blood vessels, skin, organs, and bones.
• They are also good in other antioxidants such as vitamin-A, and flavonoids like β-
carotene, α-carotene, lutein, zeaxanthin, and cryptoxanthin. These antioxidant
substances in capsicum help protect the body from injurious effects of free radicals
generated during stress and diseases conditions.
• Chilies carry a moderate amount of minerals like potassium, manganese, iron, and
magnesium. Potassium is an important component of cells and body fluids that help
regulate heart rate and blood pressure. The human body uses manganese as a co-
factor for the antioxidant enzyme superoxide dismutase.
• Chilies are also good in the B-complex group of vitamins such as niacin, pyridoxine
(vitamin B-6), riboflavin, and thiamin (vitamin B-1). These vitamins are essential in
the sense that the human body requires them from external sources to replenish.
Turmeric

Energy 354 Kcal
Protein 7.83 g
Total Fat 9.88 g
Cholesterol 0 mg
Dietary Fiber 21 g
Vitamins
Folates 39 µg
Niacin 5.140 mg
Pyridoxine 1.80 mg
Riboflavin 0.233 mg
Vitamin A 0 IU
Vitamin C 25.9 mg
Vitamin E 3.10 mg
Vitamin K 13.4 µg
Electrolytes
Sodium 38 mg
Potassium 2525 mg
Minerals
Calcium 183 mg
Copper 603 µg
Iron 41.42 mg
Magnesium 193 mg
Manganese 7.83 mg
Phosphorus 268 mg
Zinc 4.35 mg
Source: USDA National Nutrient database
• It is a very rich source of many essential vitamins such as pyridoxine (vitamin B6),
choline, niacin, and riboflavin, etc. 100 g herb provides 1.80 mg or 138% of daily
recommended levels of pyridoxine. Pyridoxine is employed in the treatment of
homocystinuria, sideroblastic anemia, and radiation sickness. Niacin helps prevent
"pellagra" or dermatitis.
• The fresh root contains good levels of vitaminC. 100 g is composed of 23.9 mg of this
vitamin. VitaminC is a water-soluble vitamin and a powerful natural antioxidant,
which helps the body develop immunity against infectious agents, and remove
harmful free oxygen radicals.
• Turmeric contains good amounts of minerals like calcium, iron, potassium,
manganese, copper, zinc, and magnesium. Potassium is an important component of
cell and body fluids that helps in controlling heart rate and blood pressure. The
human body utilizes manganese as a co-factor for the antioxidant enzyme,
superoxide dismutase. Iron is an essential co-factor for cytochrome oxidase enzymes
at cellular level metabolisms and is required for red blood cell (RBC's) productions.
5.3. Global Market for the Product

Major Country Wise Export of Chilli from India in 2018-19
• During 2018-19, India exports 468500 MT of chillies and a value of INR 541117.5
lakhs.
• Major chilli importing countries from India are China (16%), Vietnam (14%), Thailand
(14%), Sri Lanka (11%), U.S.A (6%), Indonesia (7%), Malaysia (7%) and Bangladesh
(5%) in 2018-19.
COUNTRY Quantity in MT % Share Value (Rs. in Lakhs) % Share

CHINA 74903.07 16% 93676.93 17%
VIETNAM 66302.67 14% 86855.25 16%
THAILAND 66197.29 14% 75447.04 14%
SRI LANKA 53185.71 11% 46488.38 9%
U.S.A 27793.16 6% 45534.78 8%
INDONESIA 34848.66 7% 36627.18 7%
BANGLADESH 25405.7 5% 34250.48 6%
MALAYSIA 31692.2 7% 33557.5 6%
U.A.E 29741.43 6% 18859.66 3%
U.K 7248.42 2% 10885.58 2%
NEPAL 6259.98 1% 6309.54 1%
SAUDI ARABIA 4184.26 1% 4842.23 1%
OMAN 5580.31 1% 4337.59 1%
SINGAPORE 3331.34 1% 4244.45 1%
QATAR 4948.95 1% 4235.39 1%
AUSTRALIA 1741.72 0% 3140.32 1%
CANADA 1743.63 0% 2911.16 1%
SOUTH AFRICA 1712.63 0% 2496.06 0%
MEXICO 13.48 0% 19.11 0%
TOTAL(INCL.OTHERS) 468500 100% 541117.5 100%
Source: Spice Board
Major Country Wise Export of Turmeric from India in 2018-19
• During 2018-19, India exports 133600 MT of turmeric and a value of INR 141616
lakhs.
• Major turmeric importing countries from India are Iran (14%), Bangladesh (9%),
Morocco (7%), U.A.E (6%), U.S.A (5%), Malaysia (5%), and Sri Lanka (4%).
ITEM/MAJOR COUNTRY Quantity in MT % Share Value (Rs. in Lakhs) % Share

TURMERIC
IRAN 19061.58 14% 19328.9 14%
U.S.A 7339.85 5% 16682.9 12%
BANGLADESH 11602.11 9% 12295.67 9%
MOROCCO 8760.2 7% 6767.64 5%
U.A.E 7461.38 6% 6522.92 5%
MALAYSIA 6937.45 5% 6467.32 5%
GERMANY 3635.64 3% 5925.43 4%
U.K 4561.23 3% 5633.3 4%
SRI LANKA 5303.03 4% 4579.33 3%
JAPAN 2787.69 2% 3866.4 3%
NETHERLANDS 2777.89 2% 3729.29 3%
SAUDI ARABIA 4499.11 3% 3692.24 3%
TUNISIA 4461 3% 3509.78 2%
IRAQ 4052.6 3% 2963.08 2%
SOUTH AFRICA 2507.4 2% 2747.49 2%
EGYPT 2718.71 2% 2035.62 1%
KOREA(SOUTH) 1250.63 1% 1861.77 1%
TOTAL(INCL.OTHERS) 133600 100% 141616 100%
Source: Spice Board
Chilli and Turmeric Import into India from Other Countries in 2018-19
• During 2018-19, India imports 1230 MT (value of INR 1970 Lakhs) of chilli and 30578
MT (value of INR 29947 Lakhs) of turmeric from other countries.
Spices Quantity in MT Value (Rs.in Lakhs)

CHILLI / PAPRIKA 1,230 1960.95
TURMERIC 30,578 29947.46
TOTAL 207300 503205.5
Source: Spice Board
5.4. Indian Market & Valuation for the Product

Major State-Wise Chilli Area and Production in India in 2018-19
Andhra Pradesh was the leading Chilli producing state in India with the contribution of 33%
percent of the total Chilli production; Telangana was the second leading chilli producing
state with the contribution of 24 percent and other Chilli producing states are Madhya
Pradesh (14%), Karnataka (13%) and Orissa (5%) respectively.
STATE Area (Ha) % Share Production (MT) % Share

ANDHRA PRADESH 158428 22% 501410 33%
TELANGANA 82521 12% 369020 24%
MADHYA PRADESH 87839 12% 217550 14%
KARNATAKA 157587 22% 194760 13%
WEST BENGAL 5292 1% 8300 1%
ORISSA 71700 10% 69280 5%
GUJARAT 11335 2% 21444 1%
ASSAM 19847 3% 18980 1%
RAJASTHAN 8480 1% 14356 1%
PUNJAB 8770 1% 16656 1%
UTTAR PRADESH 13763 2% 12716 1%
MAHARASHTRA 5698 1% 14030 1%
TAMIL NADU 45950 7% 14000 1%
NAGALAND 1372 0% 1798 0%
Total including others 706710 100% 1515560 100%
Source: Spice Board
Major State-Wise Turmeric Area and Production in India in 2018-19
Tamil Nadu (10%), Telangana (7%) and Orissa (5%) respectively.
STATE Area (Ha) % Share Production (MT) % Share
ANDHRA PRADESH 53104 20% 345270 36%

KARNATAKA 26579 10% 153770 16%
TAMIL NADU 23351 9% 92360 10%
TELANGANA 28921 11% 69410 7%
WEST BENGAL 17737 7% 45460 5%
ORISSA 27869 11% 43615 5%
MADHYA PRADESH 13666 5% 47660 5%
MAHARASHTRA 17224 7% 38310 4%
MIZORAM 7738 3% 29820 3%
ASSAM 15896 6% 19395 2%
GUJARAT 4425 2% 17386 2%
HARIYANA 921 0% 2195 0%
Total including others 261922 100% 957130 100%
Source: Spice Board
5.5. Manufacturing Process:
Chilli with stem, chilli without stem, crushed dried red chilli flakes; dried red chilli powder,
chilli paste, chilli chutney, chilli seeds, and chilli oil (oleoresin) are the various processed
products of chillies. The clean and dried chillies with stem obtained after primary processing
are used as the raw material for the production of all the products.
Stems of the clean dry chillies are cut either manually using knife or mechanically in a chilli
stem cutting machine. The chilli stem cutting machine consists of a rotary hollow cylindrical
drum with holes on the outer surface. The dry chillies when fed through the hopper, flows
into the drum. As the chillies flow inside the drum, the rotation of the drum makes the stem
enter into the holes. The stems projecting through the holes are cut using a blade. The dried
chillies without stem flow out through the other end of the drum. The output capacity of the
machine depends on the retention time of chillies in the drum and the rotary speed of the
drum. The stem cutting efficiency varies in the range of 90-95% at the optimum operating
conditions.
Red chilli flakes
The clean dry chillies are first roasted for 1-2 minutes till they turn into a slightly brown
color and give off an aroma. Usually roasting is done in a thick-bottomed pan on low flame.
The roasted chillies are cooled to room temperature. The chillies are then ground in a spice
grinder to get coarse flakes. The size of flakes obtained depends on the duration of grinding.
The flakes are blown into the cyclone separator and collected. The chilli flakes are packed in
printed flexible pouches, the pouch in mono-carton boxes, high-density polyethylene,
laminate pouches, and composite, plastic, and glass jars.
The chilli flakes are widely used in the preparation of snacks, seasoning of pizzas and
casseroles, and sometimes used for garnishing.
Dried red chilli powder
The stems of the clean dry chillies are cut using the chilli stem cutting machine or using a
knife. The use of stem-cutting machines generally reduces time and labor costs. The process
of milling is commonly also known as the grinding process. Hammer mill is commonly used
for grinding. Either the crushed material is passed 2-3 times through the small hammer mills
with centrifugal blowers, cyclone separator, and sifting machine along with lump breaker
between the hammer mills, or a large hammer mill is used to obtain the fine chilli powder
Electric motor-operated machine which works on the principle of the traditional pounding
of chillies is used obtain the chilli powder with traditional aroma and quality. Sieving is done
in a Centrifugal sifter with fine mesh. The internal shaft with rubber blades rotates to break
the lumps along with it passing through the desired size of fine mesh to get smooth fine
chilli powder. The fine red chilli powder is conveyed from one place to another within the
premises using a vacuum conveyor. Red chilli powder with a moisture content of less than
8% is for safe storage. The chilli powder is packed in printed flexible pouches.
Chilli oil (oleoresin)
Oleoresin is obtained by solvent extraction of the pericarp (skin of chilli) or pulp. The
oleoresin contains a major pungency principle, capsaicin, and coloring principles of
capsanthin and capsorubin.
The stems of the clean dry Byadgi chillies are removed and deseeded. The pericarp or pulp
of the chillies is ground to the size of 0.25 mm. Pellets are prepared from the powder. The
chilli oil or oleoresin is extracted in a solvent extraction machine. The main solvent used is
liquid propane / butane / dimethyl ether / R134a / liquid ammonia. After the extraction, the
solvent is removed. The chilli oil or oleoresin is a red viscous liquid with a characteristic chilli
odor.
The equipment required for solvent extraction is cabinet dryer, hammer mill, oscillator
granulator, sigma mixer, screw elevator, condenser, desolventiser, steam generator,
dacetone distillation unit. The oleoresin yield of around 15% of the total pulp weight can be
obtained by the solvent extraction method.
Techniques like the use of supercritical carbon dioxide and enzymes like Pectinases,
CellulasesHemicellulases, and Xylanases which help break open the cell wall, have also been
studied to increase the extraction of color and oleoresin out of the chilli powder. The
enzymatic method increased the color value by 15000 CU and capsaicin content by 0.79-
0.82% under optimized conditions. The oleoresin can be used to obtain deep red color in
any food that has a liquid/fat phase. The typical use levels are in the range of 10-60 mg/kg
of the finished food, calculated as pure coloring matter.
5.6. District Profiling
Demographic and Socio-economic profiling
According to the 2011 census Guntur District has a population of 48.88 lakhs. It has a
population density of 429 inhabitants per square kilometer.The district has a sex ratio of
1003 females for every 1,000 males, and a literacy rate of 67.4%.
SL. ITEM UNIT STAT DISTRI

No E CT
1 Geographical Area: 000'Sq.Kms. 162. 11.4

97
2 Population as per 2011 Census
(a) Total Population In Lakhs 495. 48.88
77
(b) Male Population In Lakhs 248. 24.41
3
(c) Female Population In Lakhs 247. 24.47
47
(d) Sex Ratio Females for 1000 997 1003
Males
(e) Rural Population In Lakhs 349. 32.35
67
(f) % of Rural Population to Total Population In Lakhs 70.5 66
3
(g) Urban Population In Lakhs 146. 16.53
1
(h) % of Urban Population to Total Percentage 29.4 34
Population 7
(i) No. of Households In Lakhs 127. 12.97
19
(j) Density of Population Persons per Sq.Km. 304 429
(h) Growth Rate over the previous Census Percentage 9.21 9.47
(2001-2011)
3 Child Population ( 0-6)
(a) Total Population In Lakhs 52.4 4.96
4
(b) Male Population In Lakhs 26.9 2.55
7
(c) Female Population In Lakhs 25.4 2.41
7
(d) Rural Population Lakhs 37.8 3.33
3
(e) Urban Population Lakhs 14.6 1.63
1
4 Literates
(a) Total Literates In Lakhs 298. 29.61
6
(b) Male Literates In Lakhs 165. 16.35
5
(c) Female Literates In Lakhs 133. 13.26
1
5 Literacy Rate
(a) Total Literacy Rate Percentage 67.3 67.4
5
(b) Male Literacy Rate Percentage 74.7 74.79
7
(c) Female Literacy Rate Percentage 59.9 60.09
6
6 No. of Households
(a) Total In Lakhs 127. 12.97
19
(b) Rural In Lakhs 90.6 8.78
5
(c) Urban In Lakhs 36.5 4.19
4
7 House hold size
(a) Total No. of Persons per 4 4
house hold
(b) Rural No. of Persons per 4 4
house hold
(c) Urban No. of Persons per 4 4
house hold
8 Scheduled Caste Population
9
9
(d) % of SC Population to Total Population Percentage 17.0 19.58
8
9 Scheduled Tribe Population
2
8
(d) % ST Population to Total Population Percentage 5.53 5.05
10 Workers
(a) Total Workers (Main+Marginal) In Lakhs 230. 23.82
81
(b) Agriculture Workers In Lakhs 143. 15.3
(Cultivators+Agrl.labour) 93
(c) Non-Agriculture Workers (Household In Lakhs 86.8 8.51
industries+Others) 8
Number of Villages/Gram Panchayats/Mandals/MandalParishad in Guntur District
Sl.N Name of Villages/Gram Unit State Distric

o Panchayats/Mandals/MandalParishad t
(a) Census Villages (including uninhabitated villages) Nos 17,36 729
. 6
(b) Revenue Villages (including uninhabitated villages) Nos 17,39 729
. 8
(c) Gramapanchayats Nos 12,91 1011
. 8
(d) Revenue Mandals Nos 670 57
.
(e) MandalParishads Nos 670 57
.
(f) Revenue Divisions Nos 51 4
.
(g) Towns (Statutory and Census,2011) Nos 195 1
.
(h) Municipal Corporations Nos 14 1
.
(i) Municipalities/ Nagar Panchayats Nos 96 13
.
5.7. Industrial Profiling

products, Agriculture produce, and Agro-based products, Handicrafts, and Engineering
products.
In the Guntur district of Andhra Pradesh State, there are 103 large and medium scale
industries, and 4365 factories are registered under Factories Act and provided
employment of around 1,08,939 persons during 2018-19. The major activities of the
industries in the district are Food Products and Beverages, Wood and Wood Products,
pharmaceuticals, Cotton, Tobacco, pesticides, Pistons, Ammonium Nitrate, Rice mills,
Granite, Stone Crushers, Sugar, and Power.
Turnover & Employment:
The arrival season commences during the January of every year and ends by May and the
processors will be busy procuring the material and depositing the same in the cold storage.
The peak season is between January and May and the lean season for two months i.e. from
June and July.
Depending on the prices and the orders in hand the processors normally procure the raw
material chilli. The majority of the processors buy raw material from the APMC and few
processors buy directly from the farm gate by paying the necessary market cess. The
processors depending on the availability of orders and the labor operate the unit every day
if required they operate two shifts in a day.
Social Economic Profiles of the ODOP Producers:
• Through primary survey (310 respondents) observed that the majority of the unit
owners belong to an age group of 40 to 60 years and their education level lies
between intermediate to post-graduation.
• Workers' age group lies between 20 years to 60 years and they have education upto
intermediate.
Infrastructure
Cold storages
Stocks at Cold storages & Exports − Particularly in Guntur district, approximately 80-85 cold
storages are functioning with the average capacity of 80000-90000 bags each and the total
capacity comes to nearly 270000-300000 tonnes.
The prevailing cold storage annual hire per bag is INR 110 − Particularly in Warangal, in total
14 cold storage are existing with the average capacity of 90000 bags each and the total
capacity comes to nearly 130000 bags.
Road Network
The state of Andhra Pradesh is mostly dependent on roads for transportation. The road
networking within the state is good and there are double-lane highways. District roads and
village roads are also good.
Rail Network:
The state capital is connected to the rest of India by a railway track and it is helpful.
Power supply
In the state of Andhra Pradesh, there are no power issues and an uninterrupted power
supply is given to the industries however the unit holders are requesting the state
government to bring down the power tariffs.
In the recent past, many initiatives have been taken to improve the basic as well as
industrial infrastructure in the state
Testing labs: There are necessary testing labs available in the district
Essential amenities required for the production of the product
Existing infrastructure
• The state is presently power-surplus. However, the unit holders feel that the power
tariff is higher.
• The state of Andhra Pradesh is mostly dependent on roads for transportation. The
road networking within the state is good and there are double-lane highways.
District roads and village roads are also good.
• The state capital is connected to the rest of India by a railway track and it is helpful.
• The telecom infrastructure is also being upgraded by laying an OFC network
connecting all towns, by strengthening the Internet backbone, etc. All telephony
services are available in the state.
• Industrial Centre
Additional infrastructure required
Raw Materials
Chilli with stem, chilli without stem, crushed dried red chilli flakes, dried red chilli powder,
chilli paste, chilli chutney, chilli seeds, and chilli oil (oleoresin) are the various processed
products of chillies. The clean and dried chillies with stem obtained after primary
processing are used as the raw material for the production of all the products.
The quality parameters being checked for all the raw materials
Quality tests are conducted to check for aflatoxin, pesticide residues, and microbial
contaminants. After monitoring only the processors ensure that, only chillies that pass
stringent QC tests go under the mill for further processing.
Quality begins right from raw material selection. Raw chillies are tested for important
parameters before commencing production. Testing of chillies is further undertaken at
various stages of production and continues until finished product dispatch of crushed chilies
and ground chillies. This continual monitoring of quality ensures a superior finished product
that offers consistency in pungency, color, and granulation. A unique blending system
ensures that ground chillies and crushed chillies are blended within a narrow range.
Analytical laboratories are fully equipped to test for all quality characteristics, such as Total
ash, Acid Insoluble Ash, Extraneous matter, Moisture, granulation, pungency, color, and
aflatoxins.
Whether the raw materials are perishable
Chilli is highly perishable. It requires more attention during harvest, storage, and
transportation. Harvesting should be done at the right stage of maturity.
Production Process:
Cleaning:
It is a very initial process for spice (Chillies/Turmeric) making in which the raw material
Chilli/Turmeric are cleaned manually by removing impurities like stone, dust, and dirt.
Drying :
After the cleaning process display them in sunlight so that they dry, the quality of the
chllli/Turmeric spice powder will depend on the well-dried spice. If proper cleaning does not
take place, it will lead to the growth of bacteria, which will poison food.
Grinding:
Grinding machinery is used for pulverizing to convert the spices into powder form.
Grading:
The grading is a process that is the basis of the inclusion and proportion of spices mixed with
their raw material used also depends on the type of spices (flavor), size, shape, density, and
color.
Sieving
Make sure that spice powder has a uniform mesh size
Packaging of Chilli and Turmeric powder
Spices (Chilli and Turmeric powder) must be fresh and hence correct packaging is
mandatory. Protect and preserve the Chilli and Turmeric powder with stand-up pouches
with zip locks and such packaging bags will give you the flexibility to choose the best size,
style, and features for your spices.
Choose from options like gas release valves, tear notches, heavy-duty zipper tops and, as
well as different styles that give you room to bring your brand to life.
Once Chillies and Turmeric are converted into powder form, then the spice powder is
weighted as per the quantity that needs to pack. The spices are then wrapped in a
polythene bag and sealed with the help of the sealing machine.
Stand up; pouches will protect your spices from issues such as moisture, puncture, odor,
and more.
Production Process:
After procuring the raw material (chilli) of different lots is stored in cold storage and when it
is to be processed, the chilli of different lots and varieties are made palti three to four times
with the help of labor on the floor to get uniform quality in terms of physical and chemical
parameters and later it is packed into bags of 35kg and dispatch to the mill for the necessary
grinding and during the process of grinding cross verification is done to check the granule
size, appearance, etc., and some processors draw the sample for the necessary testing like
to understand the Ash percentage, moisture content, color, pungency, etc., and later it is
being packed according to the requirements and send for dispatch
Product Range:
There are number of SKU’s made from Red chilli like Red chilli powder, Red chilli Thikha
powder Red, chilli flakes, Red chilli pickle, Redchilli with Gongura, Redchilli with Garlic, Red
chilli paste, Redchilli NallaKaram , Red chilli sauce, etc.,
Technology:
Chillies are processed into some commercially viable products like chilli paste, chilli puree,
chilli powder, dried/dehydrated chilli, and chilli oleoresin and chilli seed oil. The Chilli, is
currently processed in the traditional manner which result in loss of carotenoids during the
sun drying operation. The new process developed employs a fluid bed drier for bringing
down the moisture to acceptable levels of fresh chilli hygienically. The resulting end product
will have a 10% increase in color value when compared to the conventionally processed raw
material. The raw material is washed, size reduced, dried in the fluid bed drier, and then de-
seeded. The contact time in the drier is less than 15 minutes and the entire operation is
automated. All the machineryis interlocked and the manpower requirements are marginal.
High-pressure steam is used as the heating medium and the plant is engineered to ensure
high thermal efficiency.
Investment required: The facility can be set up at a cost of approximately Rs.2.5 crore for a
20 Ton/day fresh red byadgi chilli processing unit.
The unit can provide direct employment to 30 people and indirectly benefit a large number
of farmers ensuring a fair price for the produce.
Marketing
Marketing channels through which chillies/Turmeric are marketed:
Pre harvest
contractor
Farmer Agent wholesaler Retailer Consumer
Farmer Retailer Consumer
Freshly harvested chillies/Turmeric is supplied to the local market directly by the farmer to
the retailer and the retailer sells to the consumer. Farmers generally supply chillies that
arrive into markets mostly packed in gunny bags of 30-40 kg. Farmers dry the chillies and
store them in gunny bags. Dried chillies are sold in the market in different forms like chilli
with stem, chilli without stem, crushed dried red chilli flakes, and dried red chilli powder.
Chilli reaches the global market in various forms like dried whole chilli (with and without
stem), chilli powder (ground and crushed), chilli paste, chilly chutney, and chilli seeds. It is
also much sought-after in the oleoresin industry and the oleoresin extracted from it is used
in the preparation of food and cosmetic products.
It is traded through different marketing channels generally farmer sells to the commission
agent/middlemen/local merchant and he sells to the wholesaler and wholesaler sells to the
retailer and from the retailer the consumer buys.
At some pockets, the farmer sells to the retailer and he sells to the consumer
Lack of marketing information:
Due to a lack of market information regarding prices, arrivals, etc., prevailing in other
markets, producers sell chillies to the merchants.
Adoption of grading: Grading of Chillies ensures better prices to producers and better
quality to consumers. However, most of the markets are lagging in providing grading
services.
Inadequate cold storage &other facilities: Due to inadequate cold storage facilities, farmers
are forced to sell their produce at a lower rate.
Training of producer:
The farmers are not properly trained in the harvesting, transportation, and marketing of
Chillies. Training will improve their skill for better marketing of their produce.
Financial problem:
Lack of market finance is one of the major marketing constraints in operating the marketing
chain.
Infra-structure facilities: Due to inadequate marketing infra-structural facilities with

producers, traders, and at the market level, the marketing efficiency is affected adversely.
Inadequate processing units: Due to the inadequate number and capacity of processing
units, excess production during peak season is sold at a distressing rate or even gets
perished at farm level.
Marketing players:

• ITC Limited
The corporate companies use to arrange contract farming for 15 to 20 years and the
relevant farmers are given the necessary guidance/counseling for applying the fertilizers and
spraying the pesticides
Pedakorapadu, Ponikallu, Bandarupalli, Ravela, etc., Chilli varieties like Indo-5, 341, Local
Krishna and Guntur districts of Andhra Pradesh represent 9% and 57.4% of the area
approximately.
In the state of Andhra Pradesh, the chilli sown acreage increased significantly when
compared to the previous years owing to the considerable shoot up in chilli prices because
of growing demand in domestic as well as global markets. Under this pretext, the farmers
have been attracted and switched over to crops of Chillies from Cotton and paddy in some
regions.
Contract farming:
The corporate companies use to arrange Contract farming with progressive farmers through
coordinators for 15 to 20 years. This type of bonding initially started in the state of present
Telangana. The corporate companies used to make the farmers sow the seed varieties of
high pungency as well as color as per their requirement. The companies insist on applying
fertilizers at different stages from time to time as well as on spraying only the
recommended that to strictly permitted/restricted quantities of chemicals (pesticides) like
insecticides, fungicides, Biocides, and Weedicides at the scheduled periods.
Coordinator activities:
The coordinators are arranged by the company and their primary responsibilities are to
gather the progressive farmers and find out the extent of farmland that is possessed by
individual farmers and convey to them the main requirements of the company with the
details of qualities and varieties of the commodities of Chillies and about how the fertilizers,
as well as pesticides, are to be utilized. And they assure that they would address the issues
that may be raised during the chilli cultivation. They also assure that they would arrange a
premium price with the consent of the company for the commodity.
If the farmers are agreeable to all conditions then they assure them they would make
arrangements for contract farming/bonding with the company
The coordinator's additional responsibilities are to see that the cultivation activity is carried
out fairly and correctly especially according to the standard norms of PRF and they bring the
farmers and the company into a harmonious and cordial relationship in all respects. The
remuneration is received from both sides i.e. farmers and company at the rate of about INR
0-75 to 1 per kg by the coordinator.
Key corporate and their method of functioning

The corporate companies who procure a bulk stock of quality dry chillies make
arrangements for contract farming with farmers who agree to their conditions regarding
how the cultivation is to be carried out.
M/s. AVT McCormack Ingredients Pvt Ltd.,
This is the company thatis pioneers in adopting farm contracting of Chilli and started about
16 years back in the districts of Khammam, Warangal, and Krishna of Telangana and Andhra
Pradesh. At present they have contracted to the tune of more than 8000 acres
(approximately) of Chilli farmland under PRF/IPM. Every year they procure in large
quantities of chillies of diverse varieties of chillies like US-341, Wonder hot, DD, S-4884,
Indon -5, etc., They arrange to keep regular surveillance over the utilization of high standard
and quality fertilizers as well as the only permitted pesticides by the farmers (PRF Agri
practices)
Human Resource
Skilled labor:
Skill Development
The company maintains an agriculture division and this corporate deputes one person of
field staff for every farmland to the extent of 250 acres to monitor the ongoing day-to-day
cultivation activity. He also maintains the regular surveillance over the utilization of high
standard and quality fertilizers as well as the only permitted pesticides with restricted
quantities as per the schedules and he makes the relevant entries date wise from time to
time in the dairy issued to the farmers at the same time the same entries are recorded in
the company database. And keeps a good relationship between the farmers and company.
One person of the Area executive is delegated to oversee the performance of the three
persons of the field staff. A person with the rank of Manager makes surprise visits to inspect
the performance of both executive and field staff as well as the activity of farmers.
Testing:
On the completion of each harvesting, the executives from the quality control division use
to pick up random samples of raw material, and the same is sent to the lab for necessary
testing. If the results are up to the mark they accept the product otherwise it is rejected.
For the processed product no regular testing is conducted in the majority of processing units
only a few companies undergo testing batch-wise. Some unitholders/processing units test
their produce at third-party labs if the buyer insists on necessary testing. Normally they
conduct this test: moisture content, nonvolatile percentage, ash%, color, aflatoxin,
pungency, mixing, etc.,
In the Guntur district at Spice board, sample tests are done, and also at ITC and medical
college chilli testing is conducted.
Institutional Supportfrom these institutions
• Agricultural Marketing Information Network,

• Spices Board
• GraminBhandaranYojana
• Scheme for development/ strengthening of agricultural marketing Infra-structure,
grading & standardization
• Agmark grading and standardization
• Capital Investment f To promote setting up of cold storage in the country for
reducing post-harvest losses. - 54 - Subsidy for Construction / Modernization
Expansion of Cold Storage and Storage for 7. Horticulture Produce
• . Development of Commercial Horticulture through Production and Post-Harvest
Management,
• 9. Schemes for Infrastructure Development,
• Agricultural & Processed Food Products Export Development Authority
• National Horticulture Mission
• National Agriculture Development ProgrammeRashtriyaKrishiVikasYojana (RKVY)
• Scheme for Infrastructure Development Ministry of Food Processing Industries,
• Scheme for Technology Upgradation /Establishment /Modernization of Food
Processing Industries
• Scheme for Quality Assurance, Codex Standards, and Research & Development
• Scheme for Backward and Forward Integration and other Promotional Activities
Support Infrastructure:
Financial Linkages:
Interest-Based Conventional Financing Mode:
• Funding for Farmers (grower)

• Financing for Cooperatives
• Supply chain financing
• Pre-Harvest Financing
• Trade Finance of Red Chili
Environmental Impact:
No such environmental impact
5.8. Cluster Actors
No of skilled and semi-skilled Workers:

Each unit requires 4+1 i.e. 4 labor unskilled/semi-skilled and one machine operator (Skill
labor) for each unit apart from loading and unloading hamalies. Unskilled/semi-skilled labor
does the activity of de stemming, cleaning, grading, and other activities necessary in
processing
While in big processing units for one shift labor required is 6+1 i.e. six labor unskilled/semi-
hamalies. In a day in the entire Guntur district, nearly 800 tonnes of chilli are processed in
one shift and nearly 620 labourers are working for one shift. During the peak season, i.e. Jan
–May the processing units will operate in 100% capacity as well as some units also
operate/run two shifts
Manufacturers:
The list is of units is already shared
Enterprise Promotion Councils :
Industrial Associations:
Guntur chilli merchants association & Chillies Exporters Association India's are established in
Guntur district for the welfare of the Chilli merchants and exporters and their activity is to s
ee that merchants and exporters do not face any problems in the execution of their work
Financial Institutions:
National and private banks, financial institutions are extending financial support to the
processors, exporters, and traders to carry out their trade.
Marketing players:

• ITC Limited
5.9. Existing Government Schemes:

Support of Food Processing Industries
Micro and Small Enterprises
S. No Scheme Incentives as per industries policy 2020-2023

1 Investment Subsidy Micro and Small Enterprises
15% uptoRs. 20 Lakhs
Farmer Producers Organization (FPs):
35% upto Rs. 50 Lakhs
BC / Minority Communities (Women)
SC / ST Entrepreneurs:
45% Limited to Rs. 1.00 Crore for Women

and Men
2 Interest Subvention Micro and Small Enterprises:
3% for 5 Years
Farmers Producers Organization (FPOs):
3% for 5 Years
BC/ Minority Communities (Women):
3% for 5 Years
SC/St Entrepreneurs:
Upto 9% over and above 3% for 5 Years

3 Power cost Reimbursement Micro and Small Enterprises:
@1.00 Per Unit for 5 Years

@1.25 per unit for 5 Years
SC/ST Entrepreneurs:

4 Stamp duty and Transfer duty for 100% Reimbursement for MSEs, FPOs, BC/
the purchase of land, Lease of Minority Communities (Women), and SC/ST
Land/ Shed/Buildings, Mortgage, Entrepreneurs
and Hypothecation duty
5 Land Conversion Charges 25% Land Conversion Charges upto Rs. 10
lakhs for MSEs, FPO, BC/Minority
Communities (Women), and SC/ST
Entrepreneurs
6 Land Cost rebate 50% rebate in land cost upto Rs. 20 Lakhs for
FPOs, BC/ Minority Communities (Women),
and SC/ST Entrepreneurs.
7 SGST Reimbursement (for 5 Years) Micro and Small Enterprises:
Reimbursement of 100% net SGST for 5

Years
FPOs, BC/Minority
Communities (Women) and SC/ST

Entrepreneurs:
Micro and Small 100% enterprises

8 Quality Certification / Patent SC/ST Entrepreneurs:
Registration
100% of the cost incurred limited to Rs. 3
lakhs
9 Seed Capital Assistance SC/ST Entrepreneurs:
25% of machinery cost for micro-units

10 Other Common Initiatives 16.2% of Plots for SC Entrepreneurs
6% of plots for ST Entrepreneurs in industrial

parks
Medium Large and Mega Industries
No. Scheme Incentives as per industrial policy 2020-23

1 SGST Reimbursement (for 5 Years) Medium Enterprises, Large and Mega
Industries
Employment generated SGST

Reimbursement
<1000 50%
1000 to 2000 75%
2000+ 100%
FPOs, BC/Minority Communities (Women)

and SC/ST Entrepreneurs
Large enterprises 50%
Medium enterprises 75%

• All the incentives and other initiatives laid down in AP industrial policy 2020-23 are
applicable and implemented in AP Food Processing Policy 2020-25 For private
enterprises
5.10. Cluster Map:

PeddaKorapadu, Ponikallu, BandaruPalli, Ravela, etc., Chilli varieties like Indo-5, 341, Local
Chilli cluster in Guntur will support thousands of chilii farmers and also help the
stakeholders including growers, traders, processors, and exporters. A cluster, well-
identified, serves the needs of the producers, processors, and traders. A production cluster
also enables the production, value addition, and availability of a commodity at a competitive
price to consumers. It also reduces transportation costs to end markets as volumes are high
enough for bulk transport and creates a favorable trade ecosystem. Usually supporting
services such as warehouses and cold storage can be logistically established which also
ensures high utilization, the basic criterion for the profitability of storage units. Value
addition through processing is also possible in such areas due to the availability of quality
raw materials in such clusters, thus increasing employment opportunities for the local
population.
5.11. Value Chain:

In the process of Chilli value chain, chilli is made into powder and the varieties used for chilli
powder are 273, 341. DD, syngentabyadgi, 5531, Teja, 334, E- 5/Indom 5 / C 5. Normally
chilli processors blend different varieties for getting proper color, pungency and there is no
standard blending formula however the processors also mix/blend Taalu variety for
averaging the price. The majority of the processors use Taalu variety whether big or small
branded and unbranded companies.
Big processors/branded companies normally use 341 variety for pungency and color and it is
a premium variety that nearly cost 160 per kg.Some processors blend chilli varieties like Teja
and 4884 for obtaining the only pungency
Some processors blend chilli varieties like Guntur Byadgi, Karnataka Byadgi (Dabbi and
Kaddi) for getting the only Color. However, some processors generally blend varieties like
341, Devanoor deluxe and 5531, etc., for getting color and pungency.
Outturn/Recovery: when chilli is processed in bulk the recovery or outturn will be nearly
90% and if it is processed in small quantities like 200-300 kg then the recovery will be 70-
80%
Normally the processors blend different varieties in the process of chilli grinding and to
make the price average they normally blend lower price varieties and Taalu variety where
the aflatoxin is more in the Taalu variety.
The primary processing is done at the farmer's level involves three operations viz. Boiling,
Drying, and Polishing.
5.12. Product Cost Analysis:

Average Cost and Returns per Quintal of Chilli Powder
The total cost of production of Chilli Powder per quintal is Rs. 16939 and net income
generated per quintal is Rs.4610 with a benefit-cost ratio of 1.16.
Sl.No Particulars Cost (Rs.)

1 Cost of Dry Chilli 14000
2 Cost of Gunny Bags 50
3 Power Charges 80
4 Handling and Transportation Charge 6
5 Labour Wages 45
6 Repair and Maintenance Charge 32
7 Cost of Oil 250
8 Market Fee (1.5%) 210
9 Commission (2%) 280
10 Interest on Working Capital (@10%) PA 1495.3
A Total Variable Cost 16448.3
11 Depreciation 60
12 Salaries of Permanent Labours 80
13 Insurance Premium 8
14 License fee 4
18 Interest on fixed capital @12% PA 218.88
B Total Fixed Cost 370.88
C Marketing Cost 120
19 Total Cost (A+B+C) 16939.18
20 Processing Cost 800
D Returns
21 Dry Chilli Powder Recovery (Kg) 83
22 Price of Dry Chilli Powder (Rs./Kg) 250
23 Returns per quintal 20750
E Net Profit 4610.82
F BC Ratio 1.16
5.13. SWOT Analysis:
Strength:
• The huge availability of Chilli and well-established market and trading system.
• MSP
• A very good relationship with farmers and traders
• E nom
Weakness:
• Chilli is dried on the floors unhygienic ally

• Unavailability of skilled labor
• Higher commission charges
• Insufficient cold storage houses
Opportunities:
• Increasing YOY demand for Chilli/Turmeric powder

• Export infrastructure is available
• Availability of raw material throughout the year
• Availability of credit/loans from the financial institutions
Threats:
• Heavy competition
• Price fluctuations
• Pest organism attack
6. Benchmarking Studies
A Case Study on Chilli
P P Mills in Duggirala, Guntur
About: Established in the year 2011, P P Mills in Duggirala, Guntur is a top player in the
category in the Guntur. This well-known establishment acts as a one-stop destination
servicing customers both local and from other parts of Guntur. Throughout its journey, this
business has established a firm foothold in its industry.
Products and Services offered:

P P Mills in Duggirala has a wide range of products and services to cater to the varied
requirements of their customers. The staffs at this establishment are courteous and prompt
at providing any assistance.
Turnover: 8 crores per annum.
Processing: Grinds Chillies and Turmeric into powder and also takes job work of grinding
of spices from M/s. ITC and others.
Gaps: Required advanced machines for grinding, packing, and drying the chilli powder to
improve their product quality efficiency, production.
Fund Requirement:
Machinery Cost
A latest grinding machine, drier, and 3o lakhs
packaging machine
• Expecting banker assistance and subsidy on loans
International Benchmarking
7. Stakeholder Consultation
Individual Meeting
8. Agenda points & discussions

Need Assessment & Gap Study
• About 60-70 % of repackers/processors do not have awareness of FSSAI standards

and adulteration is high (White chilli and Cottonseed oil are blended). Some of the
unbranded companies are not following the standards and ethics
• Heavy competition in the trade is impacting quality from big & small
processors/packers
• Skilled labor problems persist and the majority of the labor is from Orissa
• Owing to climatic changes and rainfall the chilli growers are not getting the
standard yields every year and when growers received bumper crop/yields they are
facing storage issues and are unable to get the space and the management of cold
storage are not maintained proper required temperatures and there are no
standard fixed charges and they are collecting higher charges
• Zero business is taking place and some farmers report fewer stocks at the time of
entering into the APMC as well as bidding is not recorded for some lots in the
market to evade the taxes.
• There is no monitoring / low monitoring for the trade happening at cold storages
during the unreason.
• There is no proper medical care taken for the labor working in the AMPC yard in
Guntur by either traders, wholesalers, processors & APMC officials, etc., and the
labor, clerical staff, supervisors, who conduct Weighment, hamalies, and others are
continuously working in high pungency atmosphere/environment and are prone to
health issues
• Public infrastructure majority of respondents expressed that they are having good
public infrastructure facilities within the district as well as in the state.
• Access to Common Facilities majority of respondents expressed that they are not
having good access to common facilities such as grading, sorting, packaging,etc
within the district.
• Access to Testing Facilities majority of respondents expressed that they are not
having good testing facilities in their respective units.
• Compliance with standards and the frequency of inspections from the safety
regulators majority of respondents expressed that they are not undergone any kind
of inspection concerning safety regulators.
• Skill training needs the majority of respondents are semi-skilled laborers and
expressed need for training to improve their skills.
• Technologies Available majority of the respondents are aware of technologies

available but they are not following a good manufacturing process.
• Access to finance most of the respondents are seeking finance to upgrade their
existing units and currently, they are having poor access to finance.
• Access to mentorship/ servicemost of the respondents are looking for good

mentorship to expand their business and to improve their livelihood.
• Awareness ofGovt Policies among micro /small manufactures majority of them are
not much aware of government policies in the MSME sector.
• Awareness on ODOP product of the District majority of them are not aware of
ODOP product in district
• Marketing/sales facilities most of them are expressed that they need proper
training on marketing and branding to improve their business.
A - Public infrastructure such as roads for 66 11 60 114 202 453
backward and forward linkages
B - Access to common facilities such as grading, 86 62 96 110 98 452
sorting, packaging, cold chain facilities, etc.
C - Access to testing facilities 113 104 98 82 56 453
D - Compliance to standards and the frequency of 128 97 85 103 40 453

inspections from the safety regulators
E - Skill training needs 123 131 138 52 9 453

F - Manufacturing practices 102 92 115 124 20 453
G - Technologies Available 103 90 121 111 28 453
H - Access to finance 115 97 73 76 92 453

I - Access to mentorship/ service 232 70 44 80 27 453
J - Awareness on Govt Policies among micro 216 93 89 44 11 453

/small manufactures
K - Awareness on ODOP product of the District 274 102 46 24 7 453
L - Marketing / sales facilities 170 61 64 64 94 453
M - Facilities to the workers 138 70 117 92 36 453
9. Recommendations:

Vision Statement: To support micro-enterprises/SHGs/FPOs to up-gradation of technology
in the Guntur district.
Objectives


groups, and common infrastructure unitholders
1 &2 :
Approximately there are nearly 110 units small and big established in the Guntur district
which process chilli and their average capacity are 5-6 tonnes per shift in a day and in a
month they process nearly 130 tonnes and the majority of the processors operates their
unit for nearly 5-6 months in a year while others operate throughout the year depending on
availability of orders in hand. If they operate 5 months their turn over would be 650 tonnes
and the price of chilli ranges from 80 to 140 depending on the quality and variety on
average if 100 is taken into account it cost nearly 6.5 crores per annum so these units come
under small and medium but not under micro units however out of these only a few units
operates lesser capacities owing to unavailability of orders and funds.
There are nearly 90-100 repackers who sell the chilli powder but out of this 100 repackers,

in Lakhs)
together
For Individuals
have identified 20 samples who require funds to expand their business. Since the number is
No of Approx amount (Rs. in Subsidy

Sl.NO What is it for Respondents Crores) (Rs. in
Lakh)
Individual
1 Pickle Making Machine and 20 0.17 10
Packing Machine


3 Machinery and Packaging Machine DIC and Financial Institutions required for
Beauty of product
Natural/organic
Nutritive Value
3. Common infrastructure and incubation center :
Here common infrastructure does not work out since the repackersalready purchase or get
job work done with the existing units and there is no need of establishing a common
infrastructure and incubation center.
Incubation Center
Incubation Center will be made available for the end-users on a custom hiring basis for
startups and smaller food processing units. But it should run on a commercial basis for full
minimum of 7000 sq. ft.
Cost norms for setting up Incubation Center at Guntur

Center shall be supported by PM FME Scheme with a grant of Rs.1.0 crore (Rupees One
4. Brandingand marketing :
Only a few players are selling the chilli/Turmeric powder on their brand like Priya foods,
Telugu, Aashiwad, MTR, Agri gold, Aachi, Everest, AVT, three mangoes, swastika, etc.,
majority i.e. 90% of chilli powder is being sold as unbranded. There is a huge potential and
opportunity to make branding. Self-help group members are selling their products directly
without any brand if the GOVT/APFPS train them and create awareness of the brand and its
benefits then they can improve their sales and income levels and can market their product
market expansion to the next level.
The major portion of the chilli powder/ red chilli pickle is sold on loose if they maintain
FSSAI standards and packs in silver foils the shelf life of the products increases and the
product will be very hygiene and the quality improves and it will not lose its color,
pungency, etc., Here there is huge branding potential.
Products

55 lakhs
Labeling/ Packaging
GunturChilli and Turmeric product awareness
/Within District
Guntur Chilli and Turmeric product awareness
/Outside district
Total

Approximately 600 laborers are working in one shift for chilli processing and nearly 300-500
people are working in repacking units for packing, loading, and other purposes. The majority
of workers working in chilli processing and repacking are not aware of the FSSAI standards
and do not maintain or follow the rules so if they are given necessary training it will very
useful and supports in increasing the quality and shelf life of the product and also reduces
the loss. Awareness/training is required in blending, maintaining the moisture content, no
volatility percentage, understanding about the aflatoxin, packing conditions, packing
materials to be used, etc.,

• GOI to provide the formal markets at reachable places to the farmers to sell their
products to save big on transportation and expenditure burdens to shift to markets,
• Taalu (whilechillies) are used in blending with other chilli varieties to bring down
the cost of the product which is having good content of aflatoxin not good for the
health of humans so Govt should look and work for the usage of Tallu variety for
another purpose so the usage of Taalu will come down in chilli blending.
• Chilli/Turmeric processors do not have awareness of FSSAI standards and
adulteration is high (White chilli and Cottonseed oil are blended). State Govt should
provide counseling to the processor and repackers in this regard.
• APMC officials should seriously look into the zero business taking place, biddings
which are not recorded and take action against the management whoever is
involved in this
• APMC officials should monitor the trade happening at cold storages during the un
season
• Construction of cold storage and warehouses to deposit the produce of raw material
and finished goods. Owing to insufficient storage facilities at near places are making
the farmers/processors face the risk of selling the products at good prices. The state
govt should monitor and fix the prices for depositing the Chilli in cold storage (Price
mechanism should be developed)
• Support with financial aid to the processors since interest on unorganized loans,
compelled agreements with commission agents and local merchants are forcing
them to deliver the produced at cheaper prices which are realizing their half of the
returns that they are supposed to realize in organized markets.
• Lack of market intelligence and poor understanding of Volatile Price fluctuations,
which is affecting the benefit of farmers/processors, poor post-harvest practices like
drying, cleaning, grading, and packaging.
• The state government should create awareness among the farmers/processors
through its agencies to provide information on Chilli production and other
agricultural commodities
• GOI should monitor and fix the collection of commission charges.
• Govt should support the labor and other clerical staff working in a high pungency
atmosphere in the chilli market yard by providing medical insurance and also
providing death benefits who dies while performing the duties by tie-up with
insurance companies
Recommendation to consider Honey as a Food cluster under NON – ODOP
Honey production in Guntur district
During 1982 honey production has started in the PonnurMandal of Guntur district with a
few farmers. Initially, the DRDA govt agency supported the honey bee farmers by providing
training to them, and later after a long gap again during 2019 and 2020 under the Major
honey mission scheme KVIC department provided training for 5 days for 30 farmers and
provided 10 boxes of honey bees each. During this period the number of honey bee
producers increased from a small number to more than 110 farmers in the district at
present.
• At present in the Guntur district the honey is produced in the regions of Ponnur,
Dhandamudi, and Tenali, etc., nearly 110 farmers are producing the honey.
• At present they are importing a variety of Italian bees and in each unit, there will be
25 boxes/colonies and each box cost INR 6000 with 20000-25000 bees and the size
of the box is 16*20 *10 (inches).
• The honey bees start yielding from the 3rd month and in a year they produce honey
for nearly 7-8 months, approximately yield per box is 3-4 kgs per month and per year
it is nearly 25 kg per box. 125 boxes can be accommodated in one hectare of land.
• Weather plays a vital role in honey cultivation/production it requires shade and

sustains up to the maximum temperature of 25 degrees. Farmers generally cover the
boxes with gunny bags. Honey bees require flora of different varieties like gingely,
mustard, vegetable crops, coconut, groundnut, etc., so the farmer's keeps shifting
their colonies where they find flora
• Two laborers are required in each unit to work and they are paid a salary.
Labor working in Honey processing units in Guntur district per day
Classification of No of laboruers
No of farmers Total labour required
unit required per unit
Small 100 2 200

Medium 20 4 80
Big 10 6 60
Total 130 12 340
• After the honey is collected it is processed through Rotary and after that, it is dried
under the sun for 4-7 days to bring down moisture from 20% to 17 or 18% and later
they are packed into cans.
• At present Honey is being sold at INR 200-250 per kg in retail and in wholesale they
are selling at INR 140 per kg. They keep a margin of 30% -40%.
• There is no expiry for the honey but when stores for 2-3 years the color changes
from gold to brown.
• At present, there are no testing facilities in this region where honey is produced.
• At present, there is no marketing support for the farmers and they are selling on
their own but not on any brand.
Gaps observed
• No testing labs are available and no testing is done for the honey produced here
• No support to the honey farmers from the end of Government like providing
promotional activities.
• No financial support from the government or bankers
• No marketing support from the end of the government to promote their sales/ make
branding
• Required proper training support to the farmers to deal with diseases occurring to
the bees
• Required better price for their produce
• Cluster formation is required
STATE-LEVEL UP-GRADATION PLAN (SLUP)
FOR YSR KADAPA DISTRICT IN THE STATE OF ANDHRA
PRADESH STATE
Kadapa District
Executive Summary
The total area under banana in YSR Kadapa district is 25887 hectares, with the production
of1553220MT during 2019-20. During 2019-20, the total production of bananas in Andhra Pradesh
state is 5861700 MT. Kadapa district contributes around 23.5% to total banana production in the
state followed by East Godavari district 16.14% and Anantapuram district 15.47% respectively.
contributes around 28.34% to total agriculture production in Kadapa district in 2019-20. Other Non-
ODOP produce in the district is Cotton, Groundnut, and Bengal Gram with the production of 115883
thousand tons, 52818 thousand tons, and 27732 thousand tons respectively.
Vision Statement: To support micro-enterprises/SHGs/FPOs to up-gradation of technology in the

Kadapa district.
Objective:


Scope for processing
The total production of bananas in the district is 1553220 MT in 2019-20, of which only less than 1%
is diverted towards processing (majority for banana puree). Andhra Pradesh state is the leading
producer of bananas and there is a good demand for bananas outside India in commodity form as
well as processed form. Banana chips which is one of the major processed product in the region, but
the raw material (Nendran variety of banana) is procured from the state of Kerala and other regions.
This variety of bananas can be grown in the area for this purpose.
Scope for Capital Investment in Processing

Common Infrastructure • Currently in the district are few cold storage facilities, so
capital investment for cold storage is required for the district
now.
• The district is also well connected with roadways and railways,
no capital investment is required
Skill Development • Capital investment for skill development, awareness program,

training on post-harvest management, and handling of new
machinery is required. Though primary survey we found that
processing of banana into chips is done in the traditional way
which is brought from the state of Kerala since the Banana
variety grown here in theKadapa district is not suitable for
Chips making, Upgrading to new machinery like vacuum frying
of chips can be done and training for the same can be
provided.
Marketing and Branding • The majority of micro-unit owners are selling processed
products without brand and selling at very low prices in the
open market. To overcome this problem capital investment for
training on marketing and branding is necessarily required.
• Proper branding of bananas grown in the region is necessary to
acquire new customers and markets.
Proposed Interventions
The summary of Funding requirements, combining various categories within the PMFME scheme is
given below and the details are provided in the ensuing section.
Category Number of Units Total up- Purpose out of that

gradation plan - subsidy
average cost in provided
lakhs through
PMFME
Category Individual – Existing 371 Vacuum frying Purchase of 0
1 machine costs Machinery
around 5 lakh to and
50 lakhs or more Equipment
based on the
capacity and
scale.
Category Groups - SHG's 0
2
Category Common 0
4 infrastructure
Category Marketing and 65 Lakhs
5 Branding
Individual existing – During the primary survey respondents (existing individual and potential
units) expressed that they are interested in making processed banana products. During the
survey respondents of individual units expressed that they need funds for the up-gradation
of technology in banana processing. Although the majority of the produce is consumed
directly. There is potential for small-scale processing of bananas in the district. Banana
processed into chips is the Nendran variety, which can be introduced in the area and grown
in the region.
Groups – There are no SHG’s in the district processing banana. Out of the total production in
the district, only a small quantity is processed catering to local demands. Hence potential to
come up with processing is less.
Marketing & branding-There is a need for branding of ODOP products in the district to create
awareness about local products like banana chips, puree, jams, and juice.
Through primary survey observed that majority of the respondents expressed that they are
willing to produce processed banana products but they don’t have a proper marketing
facility. Once the marketing channel is well established more new entrepreneurs will enter
into processing activity.
• The brand needs to establish. retail shops need to establish in major cities to create
awareness and uniqueness about the product.
• The cluster needs to form for better marketing activities where all the producers,
processors can sell the produce in the name of Cluster.
Approximately 65 lakhs of fundsare required to establish branding and marketing. This can
form by the state marketing board.
Training and skill development- Through the primary survey, we observed that majority of banana
producers are practicing the traditional way of processing. To upgrade them to new technologies like
vacuum frying of banana chips which is a healthier option for consumers and increases shelf life with
proper packing. Upgrading to the modern way of processing which is machine-oriented, training and
skill development on machinery and equipment, branding and marketing is highly essential and this
can be done through the PMPME scheme.
Key Impacts
Particulars Impact

processing activity possibility of an increased percentage of processing in
the next few years, but overall the raw produced is
consumed more so, increase ripening chambers and
cold storage facility.
Employment • Employment of units will increase at least by 2-5% who

are benefitted by PMFME
Income • Through proper branding and marketing, the net profit

of units will increase by 10%
Reduce Waste • By proper handling during transportation one can

reduce the wastage of the produce at the farm gate.
processing activity and finding new markets to offset
overfull supply.
IV) SECTION ONE:-
D. Agriculture Profiling of the State

E. Profiling of existing Micro Enterprises Ecosystem in the State
F. Food Processing Policy in the State
4. Incentives\subsidies being given for food processing micro-enterprises through any specific
schemes of the state.
V) SECTION TWO:-

Based on the existence of micro-units and the relevant commodity is grown largely in the district the
ODOP product is identified by the APFPS department. Banana is recognized as an ODOP product.
The total area under Banana in Kadapa district is 25887hectares and production is1553220 MT
respectively.
% Share of Banana production in 2019-20
26%
Kadapa
AP (other districts)
74%
Source: (aps.dac.gov.in, 2019-20)

Total agriculture and horticulture production in the district is 7403216 MT and Banana contributes
around 11.86% to overall agriculture and horticulture production in the district during 2019-20.
% Share of ODOP Production to Total Agri&Horti Crops

Production in District in 2019-20
12%
ODOP production (Banana)

Agri and Horti production
88%

The perishable nature of Banana and its value-added products are listed below
I Banana
1 Banana chips three to six months Polythene Packets
2 Banana juice One day Glass Bottle
3 Banana jam Three to six months Glass Bottle, plastic bottle,

tin bottle, and Polythene
Packets
4 Banana Puree Three months Plastic bottle, tin bottle
1.8 Production of ODOP Agriculture Produce in that district compared to other districts and
states;
During 2019-20, the total production of bananas in Andhra Pradesh state is 5861700MT. Kadapa
district contributes around 26.50 % to total Banana production in the state followed by East
Godavari district 16.14% and Anantapuram district 15.47% respectively.
District-wise Area and Production of Banana in Andhra Pradesh in 2019-20
Area/Production Area % share in the area Production % share in production
Srikakulam 3152 3.23 189120 3.23
Vizianagaram 5800 5.94 348000 5.94
Visakhapatnam 1383 1.42 82980 1.42
East Godavari 15769 16.14 946140 16.14
West Godavari 13125 13.43 787500 13.43
Krishna 4771 4.88 286260 4.88
Guntur 4996 5.11 299760 5.11
Praksam 380 0.39 22800 0.39
SPSR Nellore 962 0.98 57720 0.98

Chittoor 2384 2.44 143040 2.44
YSR Kadapa 25887 26.50 1553220 26.50
Ananthapuram 15116 15.47 906960 15.47
Kurnool 3970 4.06 238200 4.06
Andhra Pradesh 97695 100 5861700 100
Andhra Pradesh state is the lead producer of Banana in India with an annual production of
5003.07MT in 2017-18 followed by Gujrat (14.52%), Maharastra (13.66%), Tamil Nadu (10.40%), and
Uttar Pradesh (10.30%).
State-wise Area and Production of Banana in India 2017-18.
States Area(In ` 000 % share Production(In ` % share

Hectare) 000 MT)
Andhra Pradesh 88.96 10.07 5003.07 16.24
Arunachal Pradesh 2.21 0.25 14.08 0.05
Assam 53.08 6.01 913.27 2.96
Bihar 31.07 3.52 1396.39 4.53
Chhattisgarh 26.57 3.01 745.78 2.42
Gujarat 68.15 7.71 4472.32 14.52
Himachal Pradesh 0.08 0.01 0.35 0.00
Jharkhand 9.17 1.04 32.06 0.10
Karnataka 110.55 12.51 2328.9 7.56
Kerala 109.26 12.36 1119.16 3.63

Madhya Pradesh 26.38 2.98 1834.03 5.95
Maharashtra 80.88 9.15 4209.27 13.66
Manipur 6.93 0.78 93.48 0.30
Meghalaya 7.37 0.83 96.9 0.31
Mizoram 11.21 1.27 143.84 0.47
Nagaland 8.34 0.94 117.04 0.38
Odisha 24.2 2.74 449.82 1.46
Punjab 0.09 0.01 5.27 0.02
Rajasthan 0.03 0.00 0.68 0.00
Sikkim 1.28 0.14 3.71 0.01
Tamil Nadu 82.63 9.35 3205.04 10.40
Telangana 2.29 0.26 90.02 0.29
Tripura 10.29 1.16 109.4 0.36
Uttar Pradesh 69.38 7.85 3172.33 10.30
West Bengal 49.3 5.58 1200 3.90
Others 4.07 0.46 51.29 0.17
India 883.77 100.00 30807.5 100.00
Source:(Indiastat.com, 2020)

Based on area and production Non – ODOP crops/products chosen in the Kadapa district are Paddy,
Ground Nut, Redgram, Cotton, Bengal Gram.
contributes around 28.34% to total agriculture production in Kadapa district in 2019-20. Other Non-
ODOP produce in the district isCotton, Groundnut, and Bengal Gram with the production of 115883
thousand tons, 52818 thousand tons, and 27732 thousand tons respectively.
Sl.N Non-ODOP Crop Production ('000 % Share to Total Agriculture
o Tonnes) Production
1 Paddy 194346 28.34
2 Cotton 115883 16.90
3 Groundnut 52818 7.70
4 Bengal Gram 27732 4.04

Production
processing in the District (Total number of Units and details related to their size, turnover,
etc.)
In the Kadapa district of Andhra Pradesh State, there is33 large and medium scale industriesand
the total capital investment of large and medium industries is INR 1302217 lakhs, and the value of
production is INR 7177217 lakhs in 2018-19.
The major activities of the industries in the district are cement, polymer, textile, energy sector,
renewable energy, and power sector.
Production of Selected Industries in Kadapa District in 2018-19.
Sl.
Item Units 2016-17 2017-18 2018-19
No
2 Sugar Tonnes 0 0 0
3 Cottonyarn 1000Kgs 14787 14602 14602
4 CottonFabrics 1000MTs 0 0 0
5 Jute Tonnes 0 0 0
8 ChemicalFertilizer Tonnes 0 0 0
9 Drugs&Pharmaceuticals RsinLakhs 0 0 0
10 Cement 000Tonnes 8325 9137 9137
12 FerroAlloys Tonnes 5705.36 5863 5863
13 Others 0 0 440
14 PigIron Tonnes 0 0 0
15 GraniteSlabs LakhSq.Feet 0 0 0
16 EdibleOils Tonnes 0 0 0
17 NewPrint LakhNumber 0 0 0
21 FoodProducts Tonnes 0 2150 2150
23 Rubber(Reclaimed) Tonnes 0 0 3000
Source: Kadapa district statistical handbook, 2019.
There are 1259 factories are registered under Factories Act and provided employment to around
24,191 persons during 2018-19.
Working Of Factories Registered Under The Factories Act – 1948
2017-18 2018-19
No. No.
S.NO. NameoftheIndustry No.ofWorkers No.ofWorkers
factories ofFactori
Male Female es Male Female
1 2 3 4 5 6 7 8
1 ManufacturingOfVegetablesOil 35 320 44 108 1854 56
s
2 ManufacturingOfPlastics 36 385 123 98 582 110
3 Manufacturing. ofPaperBoard 4 48 0 24 1298 0
4 Manufacturing 86 939 81 146 2200 56

OfStoneCrushers
5 Manufacturing 10 96 25 40 136 15
OfDrinkingWater
6 Manufacturing ofRiceMilling 52 836 73 68 1600 55
7 Manufacturing 128 1441 236 236 1703 155

ofBarytesPulverising
8 ManufacturingOfChemicals 9 280 68 42 516 72
9 ManufacturingOfCement 1 36 4 5 3412 48
10 ManufacturingOfEngeeringWor 14 395 5 14 795 5

ks
11 ManufacturingOfWool 0 0 0 0 0 0
12 ManufacturingOfBricks 30 313 75 86 2558 59
13 ManufacturingOfElectricals 12 198 30 12 708 20
14 ManufacturingOfSolvent 0 0 0 0 0 0
15 ManufacturingOfWood 0 0 0 0 0 0
16 ManufacturingOfSteel 0 0 0 0 0 0
17 ManufacturingOfMilk 10 244 58 3 398 16
18 ManufacturingOfIce 3 45 21 4 252 12
19 ManufacturingOfDall 34 302 68 82 1102 18
20 ManufacturingOfTexTiles 0 0 0 2 1150 983
21 ManufacturingOfColdStorage 0 0 0 5 40 16
22 ManufacturingOfFertilizers 0 0 0 3 141 2
23 ManufacturingOfFoodProducts 9 48 15 35 0 0
24 ManufacturingOfCable 0 0 0 2 144 1
25 ManufacturingOfRubber 8 72 0 8 172 8
26 ManufacturingOfPloythin 30 275 38 30 326 38
27 ManufacturingOfBorlyProducts 1 10 10 0 0 0
28 ManufacturingOfFabrication 9 68 0 9 68 0
29 ManufacturingOfPsclPoles 11 144 2 1 34 6
30 ManufacturingOfChappal 3 29 6 1 20 0
31 ManufacturingOfWovenSacks 2 60 27 67 100 55
32 ManufacturingOfMenirals 102 764 0 128 1076 0
33 ManufacturingOfGlass 1 120 10 0 0 0
TOTAL 640 7468 1019 1259 22385 1806
Source: Kadapa Statistical Yearbook 2019
7. Number of clusters or locations(if any) where the processing of this product happens;
Currently, there is no cluster established for Banana in the district. But there is a scope for forming a
cluster in the Kadapadistrict at Pulivendual or Railway Kodur because of the following reasons.
• Availability of raw material- Banana is abundant in the district for table consumption.
Banana processing happens in the Nendran variety (for chips), which needs to be grown in
the district and increase the area under cultivation.
• Availability of labors
• Availability of public infrastructure such as roadways, electricity, power, etc.
• Demand for value-added products like banana chips, jams in nearby cities and states.
8. A number of units engaged with producing the specific ODOP product and 4-5 major non-
ODOP products.
Through the primary survey, we identified 171 units are involved in the processing of bananas in the
district. Around 921 workers are engaged in the processing of ODOP products of which 23.45% are
female workers
Count of Mode of
Particulars
Operation
Household 46
Partnership 16
Proprietorship 109
Grand Total 171

513
Male Female
155
122
70
41
20
HOUSEHOLD PARTNERSHIP PROPRIETORSHIP

Through the primary survey, we visited and interviewed 42 respondents who are involved in the
processing of Bengal gram, Paddy, and Maize. Around 421workers are engaged in the processing of
Non-ODOP products in the district.
Count of Mode
Particulars
of Operation
Household 10
Proprietorship 56
Partnership 5
Grand Total 71
Particulars Male Female Total
Household 28 21 49
Proprietorship 202 143 345
Partnership 20 7 27
Grand Total 250 171 421
district,
The total production of bananas in the district is 1553220 MT in 2019-20. Out of total
production,98%-99% of production is used for direct/Table consumption in the state, and the
product is also exported to other districts and states. Less than one percent of one banana is
processed into chips (Brought from the state of Kerala), juice, jams, and puree.
10.The number of Self Help Groups, Farmer Producer Organisations, and Cooperatives currently
engaged in the processing of this product.
• There are no SHG, FPO, and co-operatives involved in the processing of bananas in the
Kadapa district.
• The list of SHG’s nearly 68 in Kadapa district who are processing different products is
furnished here under:
Name of Owner Conta Location of Manufacturing Proj The No.of
the SHG Name ct unit Products ect capa Tur Employe
Num (Address) Cost city nov es/Labo
ber (Rs. of er ur
Lakh the per working
s) unit Ann
(App (MT um
rox) /Day (Lak
or hs)
Qty/
Day
or
Kgs/
Day)
Khadira S Jubeda 6304 Lakkireddy Sweet Meking 1.00 70Kg 4.7 3
4775 palli s
36
AAli Dilshad 9849 Chintakunt LakkuPelalu 1.00 80Kg 4.9 3
6068 avandlapall s
54 i
Tirumala S 9177 Konmpeta AppadaluVadiyal 0.30 5Kgs 1.75 2
Husenam 9731 u
mma 34
Ananthasai S Chand 7013 Parvathare Sweet Making 1.00 20Kg 1.05 2
Begam 4944 ddygaripalli s
54
Sri Rama ADILAXMI 6309 VARIKUNTL HONEY MAKING 0.5 2 2
6472 A ST COLO
18
YARASULA M.PANJAV 9000 Chitvel Sweet Meking 8000 200K 500 5
LLA SHG ARNAM 7123 00 GS 000
71
DattaSai J DEVI DORASANIP BAKERY 2000 40K 150 5
ALLI 00 GS 000
0
Bhavani kondamm 9441 nallalingap ragiladdu 2000 50 1.0l 3
a 1494 alli 0 akhs
12
Mastanvall fhatima 8978 peddachap sweet items & 1 100 2.0l 4
i 7849 pali hot items akhs
57
Krupamayu rihana 9059 kamalapura karalu,sweets 5000 100 2.0l 3
du 7847 m 0 akhs
62
VYJAYANT 6305 RAVINDRA CHIKKI,SWEET,A 8000 1000 900 15
HI MALA 6371 NAGAR PPADALU,BURG 00 KG 000
CARPEVE 91 GALIVEEDU ER
SRI P Nirmala 7013 Saanapalli Millets 5.5 20 6 4
VEERARAG 4115 KGs
HAVENDRA 94
DEVAGUDI C.LAKSHM 9502 DANAVULA PALAKOVA AND 2 100 5 6
VO 1 IDEVI 6466 PADU SWET ITEMS
48
DIVYA SHG B.RAJYALA 6303 MOOLAVA VADIYAALU,JAN 1 58K 1.65 4
KSHMI 2008 NKA THIKALAU,PINDI G
40 VANTALU
AAYESHA V.RUBEEN 7989 MOOLAVA PINDI 0.6 25K 0.85 2

SHG A 6501 NKA VANTALU,RAGI G
60 BISCUITS
RAJIYA K.MASTHA 7989 MOOLAVA KAARALU, 0.5 10K 0.75 1

SHG NBI 1268 NKA MIXTURE,BADUS G
00 HA,LADDU
MARUTHI G.NAGAR 9866 PADIGALAP PINDIVANTALU 0.5 10K 0.75 2

SHG AJAMMA 9997 ALLI G
64
SriVenkate MRUGES 9959 MUDDANU SWEETS BEKARY 2000 6600 800 3
swara WARI 6468 R 00 0 000
32
Sri K.SUNDAR 9505 MUDDANU CHEKKILAALU 8000 3750 450 2
Chaitanya AMMA 9724 R 0 0 000
39
VENKATES RITA 9704 RAMAPURA BAKAREY 5000 100K 250 4
WARA SHG 6639 M 00 gS 000
70
LaxmiVenk P 7095 Veeraballi Bekarey& 3000 340 3
ateswarash Muragana 9940 Sweets 00 000
g ndham 71
Sai S.H.G T.Rajamm 9652 S.Ramapur Sweets & Mixer 1 100 12 4
a 7157 am KG
87
Kanakadur K.Mahalak 9502 Kondur Sweets & Mixer 0.5 20 4 2
ga S.H.G shmi 0511 KG
85
Kanakadur K.Eswara 9866 Kondur Sweets & Mixer 0.5 20 4 2
ga S.H.G mma 9034 Main KG
88
Kanakadur N.Ramade 7093 Kondur Sweets & Mixer 0.5 20 4 2
ga S.H.G vi 5037 KG
84
Saraswathi N.Padmav 9502 Ulavalapalli Sweets & Mixer 0.5 20 4 2
S.H.G athi 4434 KG
41
Chowdesw P.Ramalak 8179 Kondur Sweets & Mixer 0.5 20 4 2
ari S.H.G shumma 3836 B.C. Colony KG
61
KondaGan G.Rajeswa 9704 Nandimand All Sweet Items 0.5 20 4 2
gamma ri 4468 alam KG
S.H.G 01
Sivaleelalu y.Lakshmi 9502 Nandimand All Sweet Iteams 0.5 20 4 2
S.H.G devi 4153 alam KG
59
ShiridiSaib K.Lakshmi 7032 Nandimand Sweets , Arisalau 0.5 20 4 2
aba S.H.G. narasamm 1324 alam KG
a 73
Sri K.Pushpav 9177 N.PALAGIRI Sweets, Pickles 0.5 50 6 3
Venkatesw athi 4426 KG
ara SHG 06
Sri T.Padmala 9000 N.PALAGIRI Pickles 0.5 20 6 4
Anjaneya tha 4110 KG
SHG 48
Sri Balaji G.Rukmini 9866 V.N.Palli Sweets & Mixer 0.3 20 4 4
S.H.G 1449 KG
84
Sri Balaji A.S.K.Asm 6304 V.N.Palli Sweets & Mixer 0.5 20 4 3
S.H.G ath63043 3600 KG
31
Vasavee A.Sumalth 9849 V.N.Palli Pickles 0.5 20 3 2
S.H.G a 4251 KG
72
Vasavee A.Hymava 9390 V.N.Palli Pickles 0.5 20 3 2
S.H.G thi 8634 KG
84
Vinayaka R.Padmala 9849 Urutur Sweets & Mixer 0.5 30 4 3
S.H.G tha 6113 KG
05
Ganesh S.KESAM 8179 C.M.PALLI TURMERIC 0.5 10 4.8 3
MA 9262 POWDER KGS
81 MAKING
Ananthasai S.RAJIYA 9666 BIDALAMIT PIKKLE MAKING 0.6 20 0.7 3

3203 TA KGS
80
Rasool S.MAHAB 9704 JANDAMAN SEMIYA MAKING 7 2100 2.5 10
OOBJAN 4027 UVEEDHI LAK POK
06 HS ETS
Malleswari V.MALLES 9704 MUSALRED SEEDS 5 300 6 15
WARAMM 4029 DYGARIPAL PROCCESSING LAK KGS
A 14 LI HS
Sai M.KALAVA 9014 BODDUSAV CHIKKIS MAKING 0.5 Rs.3 600 3
THIA 5908 IDI STREET 000 00
21
JAYALAKSH K.JAYALAK 6305 MATHAMV CHIKKIS MAKING Rs.5 Rs.3 600 3
MI SHMI 0961 EEDHI 0000 000 00
14
Anjaneya M.KALYAN 9652 PATHA CHIKKIS MAKING 5 Rs.5 100 6
I 3550 HALL LAKS 000 000
88 VEEDHI HS
Fathima S.FATHIM 8008 SRIRAM SAMOSA Rs.5 Rs.2 300 3
A 7299 NAGAR MAKING 0000 500 00
58
Saibaba S.SARASW 8985 OPP.GOVT. CHIKKIS MAKING Rs.8 Rs.4 500 3
ATHAMM 8615 HOSPITAL 0000 000 00
A 58
Gangabhav S.MABUN 9618 GARUGU BUISKET Rs.1 Rs.1 350 6
ani MNI 4357 STREET MAKING 0000 5000 00
05 0
Lakshmi T.PEDDA 7032 KUMMARA BUISKET Rs.2 Rs.1 500 8
LAKSHMID 0020 VEEDHI MAKING 0000 5000 00
EVI 44 0 0
Gandhi G 9866 Velidhandla #REF! 0.4 25 3.6 3
Ramanjan 8490 kgs
amma 91
Sivasai K Sujatha 6305 Nookinenip Pikkle Making 1 25 0.96 2
1597 alli kgs
81
Veeranjane R Sunitha 9908 Patur 2 Biscuts 0.5 100 0.96 2
ya 4080 kgs
23
sivasai T 9573 Nandalur-1 Papads and 0.3 20 1.44 4
Sabhaana 4626 Sweets kgs
a 12
KASINAYA S Ameena 9949 Tanguturu Sweet Mixture 0.5 80 0.96 2
NA 0407 2 Making kgs
04
Sri Rama S Sunitha Chennur #REF! 0.5 20 0.5 1
kgs
YARASULA S Haseena 7993 Chennur #REF! 0.5 80 1.8 2
LLA SHG 1009 kgs
06
MASTAN G Chinnarusu #REF! 0.5 1.2 2
SHG Indravathi palli
BISMILLA K Nani Chinnarusu #REF! 0.5 1.5 3
SHG palli
AAYESHA B Roja Chinnarusu #REF! 0.5 1.3 3
SHG palli
RAJIYA V Chinnarusu #REF! 0.5 1.4 3
SHG Lakshmide palli
vi
SRI R 9032 KK SREET SWEETS 0.7 5 KG 3.6 2
Rajeswari LAKSHMID 5515 MAKING
EVI 23
SIRI S 8008 CHINTHAK SWEETS 1 8 KG 5.2 2
SAIBABA PARVEEN 3967 UNTA MAKING
24
Maithri S Haseena 9704 kanaguduru Sweets 0.7 5 kg 2.7 2
1027
38
vinayakash A 6301 obulaaripall ragi malt/ 1500 50 350 5
g sampoorn 8062 i odiyalu 00 000
a 74
saradashg M 7989 mangampe sweet items 1300 50 400 4
Bujjamma 4422 t 00 000
77
sai ram shg G 8688 mangampe sweet items 1400 50 380 5
saradamm 0710 t 00 000
a 79
amen shg Shajeera 7095 chennaraju sweet items 1500 50 350 3
7205 podu 00 000
50
Madina B Manisha 9154 Simhadripu Bekarey& 3000 3000 340 3
5598 ram Sweets 00 00 000
41
TAJMAHAL P BHANU 9885 CHAPADU CHIKKI MAKING 0.1 10 6 2
SHG BEE 7488 KG
29

3. The specialty of the local agricultural produce/food product, varieties available,
The arrival season extendsthroughout the year. The crop planting starts in August and extends
till October. Harvesting starts after a year. The major varieties grown in the regionare Dwarf
Cavendish,Robusta, and Poovan.
Harvest Calendar for Banana in India
Source: Directorate of Horticulture
4. Infrastructure
The essential machinery and facilities required for processing of Banana is listed below;
• Drying area
• Chips making vessel
• Packing Machine
• Labeling Machine
• Storage area
b. The existing level of Mechanizationfor ODOP processing within the district, in other
In the Kadapa district, micro and small units are traditionally processing bananas and no technology
is adopted by them due to the small-scale nature of business. The below flow chart gives the manual
method of processing banana into chips;
cleaning with addition of salt Packing

sun drying Frying in oil
water and spices (Manually)
The banana chips are prepared using Nendranvariety, which is suitable for chip making. Banana is
first cleaned with chlorinated water, then it is sundried to reduce the moisture level to about 50-60
percent. Then it’s fried in coconut oil to the required texture. After these spices are added for taste.
This is packed in polythene bags and sold to the consumer through distributors/retailers.
The manufacturing process for making Banana Puree is mentioned below (Small scale):
Ripe Banana Fruit Peeling Pulping
Pasturisation at 85 Treated with Packed in sterile

degree Centigrade preservative(KMS) asceptic packs
Ripe banana fruit is chosen for puree making. Ripe banana is peeled and banana pulp is separated.
Then it is homogenized and pasteurization is done at 85 degrees centigrade, then it is treated with
2000ppm potassium metabisulphite (KMS), and then it is packed in a sterilized aseptic container for
distribution and sale.
The manufacturing process for making Banana Jam is mentioned below (Small scale):
Addition of Bottling in
Ripe banana/ Cooking for a Distribution
sugar, pectin sterile
fruit pulp good set and sale
and citric acid condition
Banana is peeled and pulp is separated. Sugar, pectin, and citric acid are added, this mixture is
cooked for a given period until it gets a good set. Preservatives are added to increase shelf life. It is
bottled in air-tight containers and then dispatched for sale to the consumer.

During the primary, we noticed that no additional infrastructure is required for banana processing in
the district because processing is carrying out at a very small scale i.eless than 1% of total production
in the district and the district already has good public infrastructure facilities such as roadways,
railways, electricity, cold storage, drying yards, etc. Infrastructure in the form of modern mechanized
vacuum frying of bananas can be adopted in the area.
Development of Horticulture (MIDH) is a Centrally Sponsored Scheme for the holistic growth of the
horticulture sector covering fruits, vegetables, root & tuber crops, mushrooms, spices, flowers,
aromatic plants, coconut, cashew, cocoa, and bamboo. Under MIDH, the Government of India (GOI)
contributes 60%, of the total outlay for developmental programs in all the states except states in
North East and Himalayas, 40% share is contributed by State Governments. In the case of the North-
Eastern States and the Himalayan States, GOI contributes 90%. In the case of the National
Horticulture Board (NHB), Coconut Development Board (CDB), Central Institute for Horticulture
(CIH), Nagaland, and the National Level Agencies (NLA), GOI contributes 100%. MIDH also provides
technical advice and administrative support to State Governments/ State Horticulture Missions
(SHMs) for the Saffron Mission and other horticulture-related activities RashtriyaKrishiVikasYojana
Broad Name of
Integrate Packhouse / On-farm Collection 50% of the cost, Rs. 2.00 lakhs per Sub Schemes
d Post & Storage unit unit with a size of 9m x 6m of NHM &
Harvest HMNEH under
Manage MIDH
ment
Integrated packhouse with 35% in general areas, 50% in Hilly, Sub Schemes
facilities for grading, sorting, etc. and scheduled areas as credit- of NHM &
linked back-ended subsidy upto HMNEH under
Rs. 17.50 lakhs per unit with size MIDH
9m x 18m
Pre Cooling Unit 35% in general areas, 50% in Hilly Sub Schemes
and Scheduled Areas, as credit- of NHM &
linked back-ended subsidy, Rs. HMNEH under
8.75 lakhs per unit for 5 MT MIDH
capacity
Cold Storage Units 35% in general areas, 50% in Hilly Sub Schemes
(Construction/Expansion and and Scheduled Areas, as credit- of NHM &
modernization) (Maximum 5000 linked back-ended subsidy, (i) Rs. HMNEH under
MT capacity) 2800/- per MT for Type 1 MIDH
(iii) Rs. 3500/- MT for Type 2 with

add on the component of
controlled atmosphere technology
Ripening Chamber (maximum of 35% in general areas, 50% in Hilly Sub Schemes
300 MT) and Scheduled Areas, as credit- of NHM &
linked back-ended subsidy, upto HMNEH under
Rs. 0.35 lakh/MT MIDH

treatment facilities for bamboo back-ended subsidy upto Rs. 10.00 of National
lakhs Bamboo
Mission (NBM)
under MIDH.
Integrated Post Harvest 35% of the project cost in general Sub scheme of
Management for Commercial areas and 50% of the cost in NE, National
Horticulture: Ripening Chamber, Hilly, and Scheduled areas upto Rs. Horticulture
Reefer Van, Retail Outlet, Pre- 50.75 lakhs per project. Board (NHB)
Cooling Unit, etc. under MIDH
Cold Storage Units for 35% of project cost (50% in NE, Sub scheme of
Commercial horticulture Hilly, and Scheduled areas) for National
capacity above 5000MT, as credit Horticulture
linked back-ended subsidy, Board (NHB)
under MIDH

Rs. 3500/MT for Type 2 with add-
on components of controlled
atmosphere technology.
6. Testing
During the primary survey, we observed that micro and small units that are involved in banana
processing are not testing their processed product. They are processing at a small scale and
marketing their products in the local market, retail shops who sell the products with primary
packing, and also it is noticed that there are no proper testing facilities for ODOP in the district.
7. Value Chain\Channels of movement

The below tables elaborates the cost involved in different stages of processing and net profit
obtained for processing one kg of Banana.
Farmers to Micro Units (Price in INR)
Price Per Kg (in INR) 12
Transportation per kg 0.5
Micro Units to Market (Price in INR)
Recovery (%) 60%
Processing Charge per Kg 64
(labour+Ingredients+Oils)
Marketing Cost 1
Total Cost
Net Profit 41.4
8. Manufacturing Process
a. Product Range
During the primary survey, we interviewed 171 micro and small units who are involved in the
processing of bananas. The products they are making are chips, jams, juice, and puree.
• Banana flour
• Raw banana-based health drink
b. Production Process and Technology
Banana chips Processing Flow Chart
Raw banana Washing/cleaning Sundrying
Marketing and
Packing Frying
distribution
Technology
Currently,banana is processed in the traditional manner which reduces the shelf life of banana chips
and it is not considered healthy. Vacuum frying of bananas can be adopted in the area with proper
packing. This increases shelf life as well as the marketability of produce.
Investment required:
.
9. Marketing
Marketing channels through which Banana are marketed:
Farmer local exporter Trader/wholesaler Retailer Consumer
Pre harvest
contractor
trader/
Farmer Processor Retailer Consumer
wholesaler
Farmer wholesaler Cart-Vendor Consumer
Freshly harvested banana is supplied to the local market directly by the farmer through a trader or
wholesaler or preharvest contractor. The produce is made available to the consumer through
retailers and pushcart vendors. Banana is also processed into chips, jam, juice, and puree and made
available to consumers.
10. Quantum of Sale of this product to other districts, states and exported to other countries
The total production of bananas in the district is 1553220 MT in 2019-20. Out of total
production,99% of production is consumed in the state of Andhra Pradesh and the rest is
exported to another state/country.Less than 1 percent of produce is processed.
.

• APEDA
The above-mentioned institution/organization helping farmers, traders, and processors. For farmers,
the concerned department is releasing high yield varieties, and for traders and processors they
providing post-harvest management technologies.
VI) SECTION THREE - DETAILED SAMPLE STUDY TO BE UNDERTAKEN FOR EACH DISTRICT
OR PRODUCT CLUSTER1
This chapter explains the study area, sampling techniques, different tools, and techniques used for
analyzing the collected data. The methodology adopted for the present study is presented inthe
following sections.
13) Study area

Study Area
The study on State Level Up-gradation Plan is conducted in the entire Kadapa district of Andhra
Pradesh State of India.

Sample Size:
The sample size in the Kadapa district is 420. But we captured 384(ODOP and Non-ODOP)
Covered
1 ODOP (Banana) 171
2 Non-ODOP (Paddy, Maize, Bengal gram and Tobacco) 71

Primary Data
The study evaluates the banana supply chain and finds opportunities for traditional practices, and
analyses the value chain of bananas from farm to market. The study also estimates the distribution of
the value-added among the value chain actors like farmers, processors, traders, and retailers.
Primary data was collected from 242 respondents comprised of all the value chain actors, including
farmers, processors, traders, retailers, association president, machine operators, skilled laborers,
Agridept, horticulture dept officials, District industries center officials, FPO’s Self-help group
members, and other stakeholders.
Secondary Data
The secondary data is collected from various sources like DICGS annual report, Spice Board, Kadapa
Statistical Handbook, APEDA, Indiastat.com, Journals and Articles, and other internet sources to
know the area, production, export, import of banana processed products.

comprehensive picture and analysis of the Data. After the data has been collected, it has been
interpreted and presented to arrive at the conclusion

Output Document to be submitted– Excel Sheet with contact details of the respondents.

5.3 Focus Group Discussions
Output Document to be submitted -Agenda points & discussion minutes

There are no banana clusters in the district because of the following reasons;
• There is no large-scale processing of bananas in the region
• Nonavailability of raw material for banana processing in the area (Nendran variety of
Banana)
• Shortage of skilled labors
• The area under Nendran variety has to be increased so that a processing cluster can be
made in the region.
Skill Development required
The workers/laborers engaged in the processing of bananas are following the traditional method
which is time-consuming and labor-intensive. To overcome this and expand the business as well as
to increase their production they need to follow/up-grade their units with modern technologies and
new machinery. To know about new technology and handling of new machinery they require
training and skill development program.
6.2 Product Cost Analysis

The total cost of production of banana chips per kilogram is Rs. 85 and net income generated per
kilogram is Rs.35with a benefit-cost ratio of 1.4
Particulars Cost (INR)
Raw Material Cost in INR (Average Price per kg of Banana) 12
Oil Cost (to fry one kg of banana chips) 50
Other Ingredients Cost per kg 4
Labour Cost 10
Packaging Cost per kg 7
Misellneous cost 2
Total Cost Per kg 85
Recovery % 60%
Banana Chips obtained after processing in Kgs 0.6
Price per kg of Banana Chips 200
Total Returns (0.6*200) 120
Net Returns 35
Benefit Cost Ratio 1.4

Sectors Gaps Recommendations Costing
1 Skill training • Post Harvest • Training on Post 5 to 10 Lakhs
needs Management Harvest
• Packing such as proper
loading and
unloading,
drying, grading,
and sorting
should provide
by DIC or
Agriculture and
Horticulture
Department
2 Manufacturing • Traditional • Should provide 15 to 20 Lakhs
practices method drying automated
and frying machines for
drying and
vacuum frying of
banana
3 Technologies • Lack of • New machines 25 to 30 lakhs
new technologies at the subsidized
and machinery rate
• Training and skill
development of
new
technologies is
required
6.4 SWOT Analysis

Strength: Weakness:
• The huge availability of bananas (which • Less no of ripening chambers
is used for direct consumption) • Shortage of skilled labor
• A very good relationship with farmers • Higher brokerage/ commission
and traders • Insufficient cold storage facilities
• Huge potential to increase the area
under Nendran variety.
• Increasing YOY demand for banana • Heavy competition
consumption. • Price fluctuations
• Export infrastructure can be upgraded • Pest and diseases
• Availability of raw material throughout
the year
• Availability of credit/loans from the
financial institutions
• Banana chips which is one of the major processed product in the region, but the raw
material (Nendran variety of banana) is procured from Kerala and another region.
This variety of bananas can be grown in the area for this purpose.
• Skilled labor problems persist and the majority of the labor is from outside the state.
• Owing to climatic changes and rainfall the banana growers are not getting the
standard yields every year and when growers received bumper crop/yields they are
facing storage issues and are unable to get the space and the management of cold
storage are not maintained proper required temperatures and there are no standard
fixed charges and they are collecting higher charges
• Problems of middlemen operating in APMC and higher commission is collected from
commission agent.
• There is no monitoring / low monitoring for the trade happening at cold storage
during the offseason.
• Public infrastructure majority of respondents expressed that they are having good public
infrastructure facilities within the district as well as in the state.
• Access to Common Facilities majority of respondents expressed that they are having good
access to common facilities such as grading, sorting, packaging,etc within the district.
• Access to Testing Facilities majority of respondents expressed that they are having good
testing facilities in their respective units and elaborate testing is not required for their
product
• Compliance with standards and the frequency of inspections from the safety regulators
majority of respondents expressed that they are not undergone any kind of inspection with
respect to safety regulators.
• Skill training needs a majority of respondents are not skilled laborers and expressed need
for training to improve their skills.
• Technologies Available majority of the respondents are aware of technologies available but
they are not following a good manufacturing process.
• Access to finance most of the respondents areof view seeking for finance to up-grade their
existing units. Respondent is finding it difficult to obtain proper finance.
• Access to mentorship/ servicemost of the respondents is are finding it difficult to find

mentorship service and they are ready to take up mentorship if provided
• Awareness ofGovt Policies among micro /small manufactures majority of them are not
much aware of government policies in the MSME sector.
• Awareness on ODOP product of the Districtmajority of them are not aware of ODOP
product in district
• Marketing/sales facilities most of them are expressed that they need proper training on
marketing and branding to improve their business.
Public infrastructure such as roads for backward

1 4 85 81 171
and forward linkages
Access to common facilities such as grading,

1 32 107 31 171
sorting, packaging, cold chain facilities, etc.
Access to testing facilities 5 62 77 27 171
Compliance with standards and the frequency of

6 41 105 19 171
Skill training needs 5 43 106 17 171
Manufacturing practices 3 53 101 14 171
Technologies Available 5 36 102 28 171
Access to finance 4 83 70 14 171
Access to mentorship/ service 4 98 65 4 171
Awareness ofGovt Policies among micro /small

7 38 103 23 171
manufactures
Awareness on ODOP product of the District 3 6 32 83 47 171
Marketing / sales facilities 1 3 30 85 52 171
Facilities to the workers 4 23 70 74 171
7. Recommendations
Kadapa district.
Objective:
The total production of bananas in the district is 1553220 MT in 2019-20, of which only less than 1%
is diverted towards processing (majority for banana chips). Andhra Pradesh state is the leading
producer of bananas and there is a good demand for bananas outside India in commodity form as
well as processed form.
.
Scope for Capital Investment in ProcessingScope for Capital Investment in Processing
Common Infrastructure • Currently in the district are few cold storage facilities, so
capital investment for cold storage is required for the district
now.

machinery is required. Though primary survey we found that
processing of banana into chips is done traditionally,
Upgrading to new machinery like vacuum frying of chips can be
done and training for the same can be provided
Proper branding of bananas grown in the region is necessary to
acquire new customers and markets.

Units gradation plan subsidy
- average cost provided
in lakhs through
PMFME
Category Individual – 371 0 Purchase of 0
and
Equipment
2
Category Common 0
4 infrastructure
5 Branding
potential units) expressed that they are interested in making processed banana products.
During the survey respondents of individual units expressed that they need funds for the up-
gradation of technology in banana processing. Although the majority of the produce is
consumed directly. There is potential for small-scale processing of bananas in the district.
Groups – There are no SHG’s in the district processing banana. Out of the total production in
the district, only a small quantity is processed catering to local demands. Hence potential to
come up with processing is less, however, modern equipment like vacuum frying of bananas
can be adopted since the majority of banana processing done is chips.
Marketing & branding-There is a need for branding of ODOP products in the district to
create awareness about local products like banana chips, puree, jams, and juice.
Through primary survey observed that majority of the respondents expressed that they are
willing to produce processed banana products but they don’t have a proper marketing
facility. Once the marketing channel is well established more new entrepreneurs will enter
into processing activity.
• The brand needs to establish. Retail shops need to establish in major cities to create
• The cluster needs to form for better marketing activities where all the producers,
processors can sell the produce in the name of Cluster.
Approximately 65 lakhs of fundsare required to establish branding and marketing. This can
form by the state marketing board.
Training and skill development- Through the primary survey, we observed that majority of
banana producers are practicing the traditional way of processing. To upgrade them to new
technologies and modern way of processing which is machine-oriented, training and skill
development on machinery and equipment, branding and marketing is highly essential and
this can be done through PMPME scheme.
Key Impacts
Particulars Impact

processing activity possibility of an increased percentage of processing in
the next few years, but overall the raw produced is
consumed more so, increase ripening chambers and
cold storage facility.
Employment • Employment of units will increase at least by 2-5% who

are benefitted by PMFME
Income • Through proper branding and marketing, the net profit

of units will increase by 10%
Reduce Waste • By proper handling during transportation one can

reduce the wastage of the produce at the farm gate.
processing activity and finding new markets to offset
overfull supply.
Krishna District draft

Contents
EXECUTIVE SUMMARY .......................................................................................................................... 214
PROJECT METHODOLOGY ..................................................................................................................... 219
1. Baseline Assessment studies: ....................................................................................................... 220
1.1. Agriculture Profiling of the Districts in the State ...................................................................... 222
1.2. Percentage Share of Area under Agriculture and Horticultural Crops in Krishna District in
2019-20 ................................................................................................................................................. 222
agricultural produce of the district- ...................................................................................................... 223
1.4. Perishable nature of the produce – .......................................................................................... 224
states 225
1.6. Number of workers engaged in the ODOP cultivation ............................................................. 225
Product. ................................................................................................................................................. 226
1.8. Non-ODOP produce as a percentage of total agricultural produce of the district ................... 226
1.9. Perishable nature of the produce ............................................................................................. 227
1.10. Number of workers engaged in the cultivation of each of the Non-ODOP products. .......... 228
Enterprises in the State:........................................................................................................................ 228
2.1. Assessment of Food Processing Policies in the State: .............................................................. 228
sectors: .................................................................................................................................................. 230
2.3. Assessment of existing Regulatory frameworks for FPI ............................................................ 232
2.4. Stakeholder Mapping ................................................................................................................ 232
3. Profiling of existing Micro Enterprises eco system: ...................................................................... 233
3.1. Industrial Profile of the Districts in the State............................................................................ 233
3.2. Identifying Non-ODOP Products ............................................................................................... 234
3.3. District wise profiling based on secondary research ................................................................ 234
3.4. Detailed Cluster Study for ODOP Products - How are going to do cluster study.Error! Bookmark not defined.
4. Industry and Market Analysis ....................................................................................................... 257
4.1. Introduction ................................................................................... Error! Bookmark not defined.
4.2. Nutritive Value and Health Benefits ......................................................................................... 259
4.3. Global Market for the Product .................................................................................................. 260
4.4. Indian Market & Valuation for the Product .............................................................................. 261
4.5. Manufacturing Process: ............................................................................................................ 265
4.6. District Profiling......................................................................................................................... 269
4.7. Demographic and Socio-economic profiling ............................................................................. 270
4.8. Industrial Profiling ..................................................................................................................... 272
4.9. Cluster Actors ............................................................................................................................ 282
4.10. Existing Government Schemes: ............................................................................................ 283
4.11. Cluster Map: .......................................................................................................................... 287
4.12. Value Chain: .......................................................................................................................... 288
4.13. Product Cost Analysis: ........................................................................................................... 289
4.14. SWOT Analysis:...................................................................................................................... 290
5. Benchmarking Studies................................................................................................................... 290
6. Stakeholder Consultation.............................................................................................................. 291
7. Agenda points & discussions......................................................................................................... 292
8. Recommendations: ....................................................................................................................... 295
Common infrastructure – 297
EXECUTIVE SUMMARY
The geographical area (agriculture) of Krishna district is 1773 thousand hectares, of which the net
sown area is 434 thousand hectares accounted for 24.9 % in 2018-19. The major agriculture crops
grown in the district are Paddy, Maize, Jowar, Ragi, Red gram, Green gram, Black gram, Groundnut,
Sugarcane, Tobacco, and cotton in 2019-20. The predominant fruits and vegetable crops cultivated
in districts are Banana, Lemon, Guava, Mango, Papaya, Beans, Bitter Gourd, Bottle Gourd, Brinjal,
Cabbage, Carrot, Cauliflower, Chillies, Ladies finger, and Tomato. And plantation crops grown in the
district are Mango nut, Coconut, Oil palm, and Cocoa. Total agriculture production of Krishna district
in 2019-20 is 4842 thousand tons. Food grains contribute 46% to total agriculture production in the
district followed by fruits 32%, vegetables 9%, commercial crops 7%, and oilseeds 5% respectively.
The total area under mango in Krishna district is 70.9 thousand hectares and contributes around
18.3 % to the total mango area in the state in 2018-19.The production of mango is 922.6 thousand
tons in the district and contributes around 18% to total state mango production in 2018-19. Total
agriculture production in the district is 4842 thousand tons and mango contributes 19% to overall
agriculture production in the district during 2018-19.The mango acreage in this region is reducing
gradually because of disturbance in weather the yield is witnessed declining gradually while the area
is also switching over to real-estate as increasing urbanization in surrounding regions. From the
primary survey we observed that among 460 visited industries, 157 industries are micro-units
followed by 151household units, 98 small units, and 26medium units. The mango processors opined
that they need finance for the common infrastructure, Machinery, Ripening chambers, land, and
vehicles. To address the constraints/gaps they would need credit to the tune of INR 1.66 crore to set
up the above aspects.For Marketing and Branding of their products Industries have opined that they
need funds for training and Skill development (for which we estimated costing could be INR 55
lakhs). The same holds for the mango value chain. There is extensive potential that can be captured
by setting up common infrastructures.

Vision Statement:
• To support micro-enterprises for up-gradation of technology

• The state government should support the mango processing enterprises like Thandra
makers with providing driers, crushing machines for the up-gradation of technology
since the unit holders at present are drying the pulp naturally under the hot sun so
there is badly needed for new technology to improve their existing business like :
With the new driers, the labor problem can be reduced since the labor is not willing to work
under the hot sun for drying the mango pulp in making the Thandra and the quality is also
likely to improve. With the less skilled labor, the output will be more and the labor
shortage/ crunch will go away manufacturing costs will come down drastically and the
quality of the products is going to improve hygienically and also production will improve
(Quantity wise)
Objectives

• Creation of common infrastructure facilities for micro-entrepreneurs in the district.


3 Boiler/ cutter/ sortex Packaging DIC and Financial Institutions required for
Machine the establishment of required infrastructure
Agri./Horti. universities
6 More Govt. Policies Subsidies on Machinery
Beauty of product
Natural/organic
Sugar content
Funds required for common Infrastructure
Establishing a pulp unit requires nearly 13-15 crores if it is an aseptic unit and it requires 6-7
crores for establishing a canning unit. Generally, mango processing is done in season for 60-
75 days only and the major companies normally do not have processing units in the Krishna
or Chittoor district they supply raw material to the processing units and get it job work
done.
In Krishna district, Nuzivid is the right place where the common infrastructure is suggested
since the raw material is available on large scale and the big farmers, traders can go for job
work.
Aseptic
S. No Description tons/day Cost ( INR)
1 Machinery 140 8 cr
2 Ripening chambers & Shed 2.5 cr
3 Land & Vehicles 3 cr
Caning industry
1 Machinery 140 0.8 cr
3 Land & Vehicles 3 cr
From the study, we have also identified 105 individual enterprises (we have taken turnover
criteria of 1 crore. Since the number is few, we are giving the details of their requirements.
Summarily, they fit well into the bracket of “Max of 35% of the total requirement, not
exceeding Rs. 10 lakhs.
Sl.No What for No. of Approximate Subsidy (Rs.in Lakhs)

Respondents amount (Rs. in Individual
Crores)
I Micro
1 Cutting Machine 16 0.134 4.69
2 Pickle Mixer 6 0.050 1.75
3 Godown 4 0.073 2.5
4 Packaging 16 0.08 2.7
Material
II Household
III Small
3 Godown 7 0.129 4.52
4 Packaging 29 0.14 4.98
Material
IV Total 105 0.834
The majority of units along the value chain indicated the need for finance to create
infrastructure facilities, Machinery to enhance their business opportunities. Hence, the
banks and government should come forward to provide financial support in addition to
technical support for those who are willing to invest in activities that promote improvement
in the Mango value chain.
Other Recommendations
• The mango processing industry should be supported as the unit value growth and
sustainability of small firms is important as they constitute the majority of the total
firms. Since the small firms are viable, support and incentive should be given to them
so that they overcome the problems.
• The cooperative societies should be set up to help the small firms to increase their
access to the international market and realize a higher price for their output.
• Nearly, 5-10% of mango fruits are wasted due to faulty Post-harvest practices during
harvesting packaging, storage, grading, etc. This wastage can be reduced to some
extent through proper and scientific methods Post-harvest management can be
considered as a second production operation to add value to the products.
• While processing the pickles the semi-finished pickle is stored in plastic barrels.
Pickle units are in badly need of plastic barrels or storage tanks for storing the semi-
finished/salted pickles and the semi-finished produce is taken as and when required
in necessary quantities for manufacturing the pickles. The Agency can support the
small and micro pickle units by providing mixer machines for easy making of pickles
at subsidy prices
• Packaging fresh mango pickles/Thandra/pulp is one of the most important steps in
the long and complicated journey from grower to consumer. Bottles, aseptic bags,
covers, cartons, barrels, crates, baskets are convenient containers for handling,
transporting, and marketing fresh produce. Packaging of fruits in standard containers
is one way to reduce cost,
• The number of self-help members can form a cooperative society and market their
products like pickles, Thandra, pulp they can supply to the other districts, states, and
can export to other countries.
• Government should promote their product sales by organizing exhibitions, stalls.
They have to extend financial assistance towards capital expenditure like procuring
raw materials, storing material, opening outlets/showrooms to operate their
products.
• For the Thandra/jelly manufacturers government should provide the boilers, pans,
air dryers, & packing machines, etc., at subsidy prices for the smooth running of the
business. At present they are heating the pulp normally which is not hygienic. Also,
they support the Thandra unit holders by providing cutting machines. Since there are
more untapped markets for Thandra in Telugu states, creating awareness in the
untapped districts can promote Thandra sales.
• Transportation subsidies can offer to the farmers/traders during the raw/ripen
mangoes are trading at significantly lower prices
Other Project Strategy & Interventions
• With the support of state government policies, the value chain of mangoes can be
further improved. Improvement of food processing units, educating farmers on the
utilization of modern technology, and removal of middlemen.
• Self Help groups and NGOs in the state must promote mango processed products
like pickles to strengthen the value chain. Policy suggestions, training to mango
growers at the time of harvesting, encouraging investments in the value chain
processors to reduce post-harvest loss, and provide advance credit or loan facilities
should be the norm.
• Mango growers in the state are facing problems owing to the erratic climatic
conditions, high cost of cultivation, and lack of support in providing the minimum
support prices, and remunerative prices for farmers.
• The absence of mechanized grading systems has left the farmers with manual
methods. They also face constraints when it comes to the availability of packaging
material and unscientific pre and post-harvest management, limited processing units
close to mango growing areas, lower production of a suitable variety of processing
mangoes, lack of quality and suitable variety, lack of transportation, and storage
facilities, among other issues.
• Increasing the finances for mango production, improving efficiency and repayment
of loans, strengthening linkages among participants in value chains are badly
needed.
• The state government should be helping in providing market intelligence to the
farmers which, in turn, will strengthen the value chain of mangoes.
• During the productive years, the price of mango fruits should be declared by the
government under the market intervention scheme.
• The government and cooperatives need to develop the processing units in the
mango growing areas. This will help processors purchase raw materials at a
reasonable price.
• The majority of the consumer's purchase both fresh/table consumption as well as
processed mango products from local retail shops. Since there is a scope for value
addition and demand for value-added products of mango, the government and other
agencies must take up initiatives for strengthening this value chain by establishing
processing units in the production belts as well as provide the required institutional
arrangements for domestic and export promotion of value-added products of
mango.
• The mango value chain analysis is a market-oriented approach. It is important to
understand that all the stakeholders along a particular value chain co-operate and
coordinate their activities to fulfill the needs of the end consumer.
There is a strong need to discuss and sort out various issues related among people of
various categories to increase the level of value addition and improve the quality of value-
added food products for the domestic market as well as export.
PROJECT METHODOLOGY
following sections.
17) Study area
Study Area
The study on State Level Up-gradation Plan is conducted in the entire Krishna district of Andhra
Sample Size: Sample Size in Krishna district 420 and out of which 408respondents are covered so far
and the draft is prepared based on covered sample size.

Primary Data
India is one of the leading producers and processors of Mango products. Mango processing has
undergone a lot of developments from traditional to modern processing. The survey was conducted
in various Mango processing units located in different mandals of the Krishna district. In the process
of the primary survey, we met different unit holders registered and unregistered of Pickle, Thandra
and Pulp manufacturers, farmers, agriculture department officials, horticulture department officials,
raw material suppliers, skilled labor, district industries center officials, association secretary, and
president, farmer producer organizations, retailers, logistics officials concern, etc., and gathered the
necessary information like the availability of raw materials, year on year production, varieties
cultivated, problems facing by them, production process and the technology adopted by unit holders,
availability of skilled labor and their wages, range of products, value chain, the testing methodology
adopted by them, packaging, marketing, exports and other information from them.
Secondary Data
The secondary data is collected from various sources like DICGS annual report, Krishna Statistical,
APEDA, Indiastat.com, Journals and Articles, and other internet sources to know the area,
production, export, import of Cashew and Cashew processed products.
interpreted and presented to arrive at conclusions.
KRISHNA DISTRICT
Major mango growing

states in India
Mango is grown in India in tropical

and subtropical regions from sea to
an altitude of 1500 meters. It is
grown almost in all states of India.
However, it is mainly cultivated in,
Andhra Pradesh, Bihar, Gujarat,
Karnataka, Kerala, Maharashtra,
Orissa, Tamil Nadu, Uttar Pradesh,
and West Bengal.
Mango is the national fruit of India, known as the 'King of Fruits'. It is one of the most important and
popular Asian fruits. The cultivation of Mangoes is deeply embedded in Indian history. Mangoes are
mentioned in early Arialkrit literature. Mangoes are widely available year-round, as fresh fruit and in
frozen and processed foods. Mangoes thrive in tropical regions and are cultivated throughout India
and even in-home yards, along field boundaries and roadside avenues.
The fruit is very popular with the masses due to its wide range of adaptability, high nutritive value,
and richness in variety, delicious taste, and excellent flavor. The fruit is consumed in both forms raw
and ripe. Raw fruits of local varieties of Mango trees are used for preparing various traditional
products like raw slices in brine, Aamchur, pickle, murabba, chutney, pan (sharbat), etc. Raw fruit of
local varieties of Mango is used for preparing pickle and raw slices in brine on commercial-scale
while fruits of Totapuri variety are used for squash.
Krishna district
Mango production in the
Krishna district is likely to stay at
nearly 922675 tons while the area is
nearly 70975 ha approximately. The
mango acreage in this region is
reducing gradually because of
disturbance in weather the yield is
witnessed declining gradually while
the area is also switching over to
real-estate as increasing
urbanization in surrounding regions.
The major pulp varieties In
India are Totapuri, Alphonso, Kesar,
Raspuri among other blended
varieties of Sindhu and Neelam. The
varieties are constituted to the rich
taste of pulp and high Brix contain
compared with other varieties

The geographical area (agriculture) of Krishna district is 1773 thousand hectares, of which the net
sown area is 434 thousand hectares accounted for 24.9 % in 2019-20.
The major agriculture crops grown in the district are Paddy, Maize, Jowar, Ragi, Red gram, Green
gram, Black gram, Groundnut, Sugarcane, Tobacco, and cotton in 2019-20. The predominant fruits
and vegetable crops cultivated in districts are Banana, Lemon, Guava, Mango, Papaya, Beans, Bitter
Gourd, Bottle Gourd, Brinjal, Cabbage, Carrot, Cauliflower, Chillies, Ladies finger, and Tomato. And
plantation crops grown in the district are Mango nut, Coconut, Oil palm, and Cocoa.
Sl.No Particular Unit Year State District

(a) Gross Cropped Area In '000' Hectares 2019-20 7286 675
(b) Net Cropped Area (including fish ponds) In '000' Hectares 2019-20 5883 434
(c) Area Sown than Once In '000' Hectares 2019-20 1403 241
10.2. Percentage Share of Area under Agriculture and Horticultural Crops in

Krishna District in 2019-20
Total agriculture production of Krishna district in 2019-20 is 4842 thousand tons. Food grains
contribute 46% to total agriculture production inthe district followed by fruits 32%, vegetables 9%,
commercial crops 7% and oilseeds 5% respectively.
The total area under mango in Krishna district is 70.9 thousand hectares and contributes around
18.3 % to the total mango area in the state in 2018-19.The production of mango is 922.6 thousand
tons in the district and contributes around 18% to total state mango production in 2018-19.
Total agriculture production in the district is 4842 thousand tons and mango contributes 19% to
overall agriculture production in the district during 2018-19.
Mango is a highly perishable fruit. The Perishability of the fruit is attributed to rapid deterioration
after harvest. It is also susceptible to insect-pest infestation and decay-causing postharvest losses
due to a lack of proper pre-harvest practices. Mango has a short shelf life and is vulnerable to
environmental stress, especially high temperatures. Considerable quantities of mangoes are lost
every year during harvesting, transport, and marketing. Properly stored, mangoes will become fully
ripe in about 2 to 5 days at normal room temperature. The below table represents the perishability
of fresh mango and processed mango in different conditions.
Particulars Fresh Refrigerator Freezer

Mango (Whole) lasts for 4-6 Days 7-14 Days 10-12 Months
Mango (Cut) lasts for 2-4 Hours 4-7 Days 10-12 Months
Mango Pickles after packaging 6-9 Months
Mango Pulp after canning 18- 24 Months
10.5. Production of ODOP Agriculture Produce in that district compared to other
During 2018-19 the total production of mango is 5016.4 thousand tons in Andhra Pradesh State.
Chittoor and Krishna districts contribute 1458.4 thousand tons and 922.6 thousand tons of mango to
the total mango production to the state.
During 2018-19, mango production in India is 22372.02 thousand tons. Andhra Pradesh was the
leading mango producing state in India with the contribution of 22.36 percent of the total mango
production; Uttar Pradesh was the second leading mango producing state with the contribution of
20.46 percent and other major mango producing states are Bihar (10.88%) and Karnataka (8.34%).
Mango production in Uttar Pradesh state is 4577.17 thousand tons and Krishna district (Andhra
Pradesh State) mango production is around 20.15 % of the Uttar Pradesh state total mango
production in 2018-19 and also contributes 4.1% to overall India mango production in the same year.
Please maintain data either 2018-19 0r 2019-20
Sl.No States Production % Share to All India Mango Production

a. Krishna District 922.68 4.1
b. Chittoor District 1458.46 6.5
2 Uttar Pradesh 4577.15 20.5
4 Bihar 2434.65 10.9
5 Karnataka 1866.23 8.3
6 TOTAL 22372.02

According to the 2011 census Krishna district has a population of 45.17 Lakhs. The average size of
the land holdings in the district is 2.2 ha. The total area under mango cultivation is 70.9 thousand
hectares with the production of 922.68 thousand tons in the district. Approximately 33 thousand
households are involved in mango cultivation with a population of around 130 thousand. Around 3
percent of the total population in the district is engaged in mango cultivation.
Non-ODOP:
The Non – ODOP crops/products chosen in the Krishna district are Paddy, Maize, Jowar,
Sugarcane, and Cotton.
10.7. What other Major crops are being cultivated apart from the chosen ODOP
Product.
The major crops grown in the district are Paddy, Maize, Jowar, Ragi, Red gram, Green gram,
Black gram, Groundnut, Sugarcane, Tobacco, and cotton.
Sl.No Crop Area ('000 Hectares) Production ('000 Tons)

1 Paddy 315.04 1891.96
2 Jowar 0.42 1.99
3 Maize 25.66 149.05
4 Redgram 1.02 0.49
5 Bengalgram 3.81 8.31
6 Green Gram 6.01 5.87
7 Blackgram 127.79 178.37
8 Groundnut 1.49 6.18
9 Cotton (Lint) 48.42 109.10
10 Chillies 13.61 101.07
11 Tobacco 1.15 5.88
12 Sugarcane 9.00 0.83
10.8. Non-ODOP produce as a percentage of total agricultural production of the

district
contributes around 39% to total agriculture production of value around 3.43 crores in Krishna district
in 2019-20.Other Non-ODOP produce in the district is Maize,Jowar, sugarcane, and Cotton (Lint) as
the production of 149 thousand tons, 2 thousand tons, 0.8 thousand tons, and 109.1 thousand tons
respectively.

1 Paddy 1892.0 3.43 39.07
2 Maize 149.0 0.26 3.08
3 Jowar 2.0 0.01 0.04
4 Sugarcane 0.8 0.00 0.02
5 Cotton (Lint) 109.1 0.57 2.25
6 Total Agriculture Production 4842
Mango is ODOP in Krishna district and mango value-added products are nonperishable and their
shelf life for mango pickle is between 9 months to 1 year when packed in pouch and bottle, Mango
Thandra/Jelly shelf life is 6 months and mango amchur shelf life is 12 months when packed in pouch.
Non-ODOP processed products such as rice flour, papad, flaked rice, maize starch powder, maize
flour, raw sugar, jowar flour, jowarRawa, jowar flakes, jowar vermicelli, jowar biscuits, cotton seed
oil are nonperishable.
Name of the
S. No
ODOP/Non
product Value Added Products
Shelf life
ODOP
Bottle Pouch Brand
1 ODOP Mango Pickle 12 months 9 months Priya, Aachi, Swastik etc.,
Thandra/Jelly 6 months Atreyapuram mavidithandra
Aamchur 12 months J RC stores(1948)
2 Non ODOP Paddy Pappad 4 months Mother' Choice

Flaked Rice 2 months Safe harvest
3 Non ODOP Maize Starch powder 6 months Brown & Polson

Flour 6 months Brown & Polson
4 Non ODOP Sugarcane Raw sugar 12 months Dhampur

Sugar cane Juice 60 months (Bag) Un branded
5 Non ODOP Jowar Atta

Rawa 2 months Two brothers
Flakes 3 months Health sutra
Vermicelli 12 months Ammi Samayal
Biscuits 12 months Fitter
6 Non ODOP Cotton seed Oil 6 months NK proteins PVT Ltd., (Tirupati)
10.10. The number of workers engaged in the cultivation of each of the
Non-ODOP products.
The total area under paddy, jowar, maize, sugarcane, and cotton is 398.5 thousand hectares with a
production of 2153 thousand tons. Around 498 thousand households are involved in paddy,jowar,
maize, sugarcane, and cotton cultivation with a population of around 1993 thousand people.
Approximately 44 percent of the total population in the Krishna district is engaged in Non-ODOP
cultivation.
Enterprises in the State:
11.1. Assessment of Food Processing Policies in the State:

In the Krishna district of Andhra Pradesh state, to facilitate more mangos processing in the mango
value chain to maximize their return, a scheme is promoted by Andhra Pradesh Food, Processing
Society to support the food industries and the scheme is furnished hereunder.
Scheme Incentives as per industries policy 2020-2023
S. No
45% Limited to Rs. 1.00 Crore for Women and

Men
3% for 5 Years
3% for 5 Years
3% for 5 Years


4 Stamp duty and Transfer duty for the 100% Reimbursement for MSEs, FPOs, BC/
purchase of land, Lease of Land/ Minority Communities (Women), and SC/ST
Shed/Buildings, Mortgage, and Entrepreneurs
Hypothecation duty
5 Land Conversion Charges 25% Land Conversion Charges upto Rs. 10 lakhs
for MSEs, FPO, BC/Minority Communities
(Women), and SC/ST Entrepreneurs
FPOs, BC/ Minority Communities (Women), and
SC/ST Entrepreneurs.
Reimbursement of 100% net SGST for 5 Years
FPOs, BC/Minority

Entrepreneurs:

Registration
100% of the cost incurred limited to Rs. 3 lakhs

parks
11.2. Assessment of ongoing and proposed State Government programs in the

FPI and allied sectors:
stamp duty and Transfer duty Reimbursement of 100% stamp duty and transfer duty paid
by the industry
on purchase of land meant for Industrial use&ease of
land/shed/buildings,
• mortgages and hypothecations
Uninterrupted Power GoAP is committed to supplying uninterrupted 24x7 quality

power to all
• industries operating in the state
Fixed power cost reimbursement @ ₹1.00 per unit for five

years
• from the date of commencement of commercial Production
Subsidy on Fixed Capital Investment 15% Investment Subsidy on Fixed Capital Investment
limited up to ₹20
lakh, whichever is lower. The subsidy will be released only
after 3 years
of continuous operation with at least 80% efficiency in all
parameters i.e
• employment, production, etc.
capital investment by
new Micro and Small enterprises for 5 years from the date
of
o commencement of commercial production
SGST Reimbursement of 100% of net SGST accrued to state for a

period of 5
years from the date of commencement of commercial
production or up to
realization of 100% fixed capital investment, whichever is
earlier
land conversion charges Reimbursement of 25% land conversion charges for

Industrial use limited to ₹10
• lakh
Industries
Uninterrupted Power 100% Reimbursement of net SGST accrued to the State for
5 years or
100% fixed capital investment, whichever is lower, from the
date of
commencement of commercial production, linked to
employment
If direct employment generated is < 1000 SGST
reimbursement is 50%, for 1000 to 2000 is 75% and for
2000+ is 100%
SGST
Name of Policy: Special Package for Women Entrepreneurs belonging to
stamp duty and Transfer duty 100% reimbursement of Stamp duty and transfer duty paid
by the industry
on purchase of land meant for industrial use & Lease of
Land/Shed/Buildings and
mortgages and hypothecations.
50% rebate in land cost limited to 20 lakhs in Industrial
Estates/Industrial Parks
rebate in land cost
forMSEs.
25% Land conversion charges for industrial use limited to
10 lakhs for MSEs.
Land conversion charges
Fixed power cost reimbursement @ 1.25 per unit for 5
years from the date of
power cost reimbursement
commencement of commercial production.
Subsidy on Fixed Capital Investment 35% investment subsidy on fixed capital Investment limited
to Rs.50 Lakhs
forMSEs. The subsidy will be released only after 3 years of
continuous
operation with at least 80% efficiency in all parameters i.e
employment,
production etc
Interest Subsidy Interest subsidy of 3% on the term loan taken on the fixed
capital investment
for 5 years from the date of commencement of commercial
production for MSEs.
Enterprises for a
period of 5 years from the date of commencement of
commercial production
or up to the realization of 100% fixed capital investment,
Reimbursement of 75% net SGST to medium enterprises for
a period of 5
years from the date of commencement of commercial
production or up to
earlier.
years
from the date of commencement of commercial production
or up to
earlier
plots for SC Entrepreneurs 16.2% of plots for SC Entrepreneurs and 6 % of plots for ST
Entrepreneurs in
the industrial parks will be reserved and allotment will be
done as per the
APIIC allotment guidelines
11.3. Assessment of existing Regulatory frameworks for FPI
11.4. Stakeholder Mapping

Stakeholders Contribution
Horticulture department is providing subsidies to
farmers on plant materials, vermicompost, drip
irrigation tools, drilling borewells, supply of
diesel engines/ electric pump sets, inputs for
intercropping also providing training to the
Agriculture and Horticulture Department
farmers, extension officials, workers, and input
dealers
Also providing financial assistance for the
expansion of mango cluster activities in the
district like Area expansion program, Farm
mechanization, Integrated pest management
(IPM), INM, fruit care activities, post-harvest
infrastructure
District industries provide incentives for

upgrading of Micro and Small Enterprises and
District Industry Centre
large industries relating to Food and others like
Reimbursement of 100% stamp duty and
transfer duty paid by the industry, committed to
supplying uninterrupted 24x7 quality power,
15% Investment Subsidy on Fixed Capital
Investment, an Interest subsidy on the term loan
taken for fixed capital investment by new Micro
and Small enterprises and Reimbursement of
25% land conversion charges for Industries, etc.,
They are involved in providing maximum loans

Financial Institution for eligible individuals, SHG’s, micro and small
processing units.
They are involved in training and skill
National Rural Livelihood Mission (NRLM) development for individuals, farmers, traders,
and SHG’s.
They are involved in the processing, packaging,
Self Help Groups (SHG’s) and marketing of agricultural produce.
They are involved in the production and supply
Farmers of raw materials to processing units, SHGs,
individuals, and Traders
They are involved in grading, branding, and
Traders packaging of processed products and also supply
required quality of raw materials to processing
units
12. Profiling of existing Micro Enterprises eco system:

Andhra Pradesh has a fast-growing economy with strong agriculture and industrial base. The state
has the second-longest coastline and number of ports. The state has significant water resources
from the Godavari and the Krishna and abundant natural resources. The state also has surplus
power, well-connected roads, and high availability of skilled labor.
As per the Socio-Economic Survey of Andhra Pradesh, the GSDP of the state is estimated at current
price in the year 2019-20 is Rs. 9, 72,782 crores.
The industrial sector (excluding IT and ITES) contributes to around 23% of state GDP. Key industry
segments in Andhra Pradesh include Agro and Food processing, Biotechnology, Bulk drugs, and
Pharmaceuticals, Electronics, Textile, Automotive, and Auto components.
The export value from the industrial sector in Andhra Pradesh in 2018-19 is Rs. 98, 983 crores, and
major contributing industries for export are Drugs & Pharmaceuticals, Marine products, Agriculture
produce and Agro-based products, Handicrafts, and Engineering products.
In the Krishna district of Andhra Pradesh State, there are 2 large and medium scale industries,
and 2988 factories are registered under Factories Act and provided employment of around
75300 persons during 2018-19. The major activities of the industries in the district are Food
Products and Beverages, Wood and Wood Products, pharmaceuticals, Jute,Coir, pesticides,
Pistons, Ammonium Nitrate, Rice mills, Granite, Stone Crushers, BeachSand Minerals, Sugar,
and Power.

Identified Non – ODOP products through the primary survey in the district are listed below table;

4 Sugarcane Raw Sugar, Juice, Jaggery
5 Jowar Jowar Atta, JowarRawa, Jowar Vermicelli, Jowar Flakes, Jowar Biscuits

ODOP and Non-ODOP Produce based Factories Registered under Factories Act – 1948 in Krishna
District in 2018-19
Sl.No Name of the Industry No. of Factories Employees

Male Female
1 Food Products & Beverages 1491 16489 4532
2 Cotton Textiles 31 3318 1845
3 Total 1522 19807 6377
Factory –Wise Sugar Cane Crushed and Sugar Produced in MT in Krishna District
Sl.No Name of the Factory Sugar cane crushed Sugar Produced

2017-18 2018-19 2017-18 2018-19
1 K.C.P & I.C. LTD. Vuyyuru 0 0 0 0
2 K.C.P & I.C. LTD. Lakshmipuram 0 0 0 0
3 Delata Sugars Ltd. Hanumanjunction 0 0 0
4 M/s KCPS & IC Ltd., Vuyyuru 719878 845854.69 68915.2 80362.5
5 M/s KCPS & IC Ltd, Lakshmipuram 171572 279940.47 15394.6 265823
6 M/s Delta Sugars Ltd., Hanumana Junction 0 0 0 0
7 DISTRICT TOTAL 891450 1125795.17 84309.8 346185.5
r. Is the district recognized with the ODOP product?
ODOP product is identified by the APFPS department and Mango is recognized as an ODOP product.
Awareness about the ODOP and Non-ODOP Product in Krishna District

The primary survey observed that among respondents 73% of them are not aware of ODOP and
Non-ODOP products in the district and 23% of the respondents are aware of ODOP and Non-ODOP
products.
Count Percentage
No 296 73%
Yes 111 27%
Total 407 100%
s. Has the product been granted Geographical Indication status by the Government of India?
Mangoes need to be identified and given a geographical identity. Such varieties are dependent on
specific soil and climatic conditions. The Department of Horticulture may identify and make efforts
to enlist the places linked with a particular variety of mango and thereafter attempt for registration
of geographical identity of such local varieties, branding mango in such a way that it would lead to
integrated growth of that crop.
t. Special nature and relationship of the product with the district, uniqueness, history, etc?
Primary survey
Krishna District gets its name from the holy river Krishna, the third largest river that flows in
India. Mangoes have been granted a special position in India. The fruit is heavenly in taste and is
termed as “Food of the Gods”.
AP production share is nearly ~ 43.32%. In AP mango production the Chittoor, Krishna, and
Anantapur districts stand at the top place and are followed by Vizianagaram and Kadapa districts.
Mango is one of the important horticulture crops in the Krishna district with farmers growing
mangoes in over 70,000 hectares. Nuzvid, Tiruvuru, Mylavaram, Chatrai, Vissannapeta, Agripalle,
Reddygudem, and other mandals are famous for mango crops.
The tree produces dense clusters of flowers with cream-pink petals on branched panicles. The
mango fruit is roughly oval, with uneven sides. The fruit is a drupe, with an outer flesh surrounding a
stone. The flesh is soft and bright yellow-orange.
Mango Pulp is prepared from selected varieties of Fresh Mango Fruit. The preparation process
includes cutting, de-stoning, refining, and packing. In the case of an aseptic product, the pulp is
sterilized and packed in aseptic bags. The refined pulp is also packed in cans,
Mango puree, which is often called mango pulp, is a smooth and thick product that is processed in
such a way that the insoluble fibrous parts of the ripe mangoes are broken up. It retains all of the
fruit juice and a huge portion of the fibrous matter naturally, which is found naturally in the raw
fruit.
u. Level of processing happening for ODOP in the district, in other districts, and outside the
State.
•Mango production in Krishna district is likely to stay at nearly 922675 tons while area is nearly 70975 ha
approximately. The mango acreage in this region is reducing gradually because of disturbance in weather the
Total
mango yield is witnessed declining gradually while the area is also switching over to real-estate as increasing
production urbanization in surrounding regions
•Approximately 66450 tonnes of raw mangoes are diverted towards pickle-making across the district. There are
nearly 500-520 pickle processing units are located in the district out of which 3 units are operating on a large
Deiversion scale where nearly 7000 tonnes of raw mango is used by each unit for making semi-finished pickles while 10
to :Piclkle units are medium, 50 units are small scale units which are manufacturing pickles in the district and
ind approximately 450 Micro, Self-help groups, its members and Swagruha food units are manufacturing different
pickles at an average usage of 1 tonne of raw mangoes per year at their homes.
•Nearly 1950 tonnes of ripened mangoes are diverted towards Thandra/Jelly-making across the district. There
are nearly 20 Thandra processing units are located in the district out of which 5 units are operating on a large
Diversion scale where nearly 1500 tonnes of ripened mangoes are used for making Thandra while 15 units are small units
to Jelly using 450 (approx) units per year for processing Thandra across the district.
•The total mango production in the Krishna district is 9.22 lakh tonnes and the majority is diverted
Diversion for table consumption and nearly 5000 tonnes are diverted for Pulp manufacturing. Even though
to Table YOY the pulp crushing activity is declining the quantities are supplied for crushing to other districts
consumpiton
from this region. While 225084 lakhs of rupees are traded during the year from this district .
Labour •Nearly 4000 workers engaged in ODOP processing industries/units in Krishna district.
invoved
The Mango plantations are concentrated in two pockets basically – around Vijayawada & Chittoor.
Presently two key value-added products made in the state are mango pulp and mango pickles
(Sunsip, Allana, VinsariFruitech, Parle International, Concept Foods are major processors of mango
fruit pulp and concentrates in AP). The advantage with mango pulp processing is that the same
facility can be used to process several fruits and vegetables like guava, papaya, tomato. Though U.P
has the highest area under mango, production is the highest in Andhra Pradesh.
Mango is one of the important horticulture crops in the Krishna district with farmers growing
mangoes in over 70,000 hectares. Nuzvid, Tiruvuru, Mylavaram, Chatrai, Vissannapeta, Agripalle,
Reddygudem, and other mandals are famous for mango crops.
Presently, mangoes from the state could not be exported to countries like U.S, Japan, and Europe
due to the problem of fruit fly and corona. The varieties are grown in Uttar Pradesh (U.P) like Dasher
and Landa are with a thick rind and suitable for export. The varieties grown in A.P are different from
those of Uttar Pradesh. The majority of the mango gardens in the state are having a Benishan
variety, which is not a pulp variety. The remaining is accounted for Totapuri (Collector) and
Suvarnarekha. The percentage of mango production in the state being processed is estimated to be
around 6 percent only. There are a number of products in mango-like squash, bars, jelly, etc.,
Canned mango pieces, canned mango pulp, mango juice, nectars and drinks, freeze pulp, wine, pulp
in aseptic packing, mango powder, mango bar, carbonated beverage, truffles, etc. Kernel oil, patika,
vinegar, fiber,etc are the products of mango waste. Thandra making is done as a cottage industry by
sun drying. But, they do not maintain proper hygiene. There are also problems with storage and
maintenance. Solar driers can be used to make Thandra at the village level.
Krishna district is famous for mango pickles, mavidi Thandra, and mango pulp.
Normally people used to make pickles at home and use to preserve them in ceramic jars or earthen
pots, but with due course of time, its popularity and demand increased which made people use it
commercially. Mango pickle is an essential part of typical Andhra cuisine. Krishna, the district is
renowned for the preparation of the pickles at households. But the preparation of pickles became
a cottage industry providing livelihood to thousands of women. Mango pickles and other mango
products even mango itself have a very good export as well as domestic market.
On average, an Indian family consumes around 2.2 kilograms of pickles per year. As life is becoming
fast and hectic, people want ready-made quality products that can provide them a homemade taste.
The pickles market in the Krishna district is increasing YOY as the largest market in the Andhra
Pradesh state.
However, new flavors and the purported health benefits of pickles have attracted consumers in the
market. Based on distribution channels, the market is divided into grocery retailers, hypermarket/
supermarkets, online retailers, and others, etc. Supermarkets are likely to hold the major share in
the market and also the segment is expected to witness strong growth.
Mango Pulp is prepared from selected varieties of Fresh Mango Fruit. Fully matured Mangoes are
harvested, quickly transported to the fruit processing plant, inspected, and washed. Selected high-
quality fruits go to the controlled ripening chambers; Fully Ripened Mango fruits are then washed,
blanched, pulped, deseeded, centrifuged, homogenized, concentrated when required, thermally
processed, and aseptically filled maintaining sterility.
The preparation process includes cutting, de-stoning, refining, and packing. In the case of an aseptic
product, the pulp is sterilized and packed in aseptic bags. The refined pulp is also packed in cans,
hermetically sealed, and retorted. Frozen pulp is pasteurized and deep-frozen in plate freezers. The
process ensures that the natural flavor and aroma of the fruit are retained in the final product.
Mango puree, which is often called mango pulp, is a smooth and thick product that is processed in
such a way that the insoluble fibrous parts of the ripe mangoes are broken up. It retains all of the
fruit juice and a huge portion of the fibrous matter naturally, which is found naturally in the raw
fruit. . In few industries, the mango puree is pasteurized to increase its shelf life.
v. Mapping of the Micro, Small, Medium and Large Industries in the District (Total number of
Units)
2018-19
S.N Name of the Industry No. of No. of Workers
O. Factories
Male Female
1 Food Products & Beverages 1491 16489 4532
2 Manufacturing of Tobacco & Snuff 2 25 4
3 Cotton Textiles 31 3318 1845
4 Wood & Wood Products 269 1332 0
5 Paper & Paper Products 34 596 67
6 Publishing , Printing And Reproduction Of Recorded 45 767 25
Media
7 Manufacturing of Coke Refined Petroliam 16 598 4
8 Chemicals & Chemical products 21 320 18
9 Rubber & Plastic Products 35 544 191
10 Non-metallic Mineral Products 76 1268 49
11 Basic Metal & Alloys 35 1395 36
12 Manufacturing of fabricated Metal Products Except 80 988 40
Machinery Equipment
13 Manufacturing of machinery And Equipment 42 1050 46
14 Manufacturing electric Machinery And Apparatus 42 1042 41
15 Manufacturing of Motor Vehicles , Trailers And 28 437 28
Semi - Trailers
16 Manufacturing transport Equipment & Parts 64 2090 410
17 Manufacturing of Furniture 6 165 12
18 Collection, Purification & Distribution Of 1 80 0
Water
19 Sale, maintenance & Retail Trade, Repair Of 42 2490 0
Motor Vehicles
20 Manufacturing of Computer Electronic And Optical 1 302 5
Products
21 Sodium Silicate 1 8 2
26 Aluminum Utensils 88 1105 58
28 Iron Industry 7 266 42
29 Generation of Electricity 20 925 17
30 Fabrication of Iron 5 117 9
32 Coir Mattresses 2 76 8
33 Imitation Jewelers 29 341 70
34 Defense Equipment 1 458 27
35 Cement And Plastic Pipes 26 1938 240
36 Petrol Products 19 625 8
37 Tooth, Detergent Powder And Agarbatti 7 145 71
38 Manufacturing of Poultry Feeds 28 1030 307
40 Manufacturing of Salt 4 623 56
41 Fertilizers, NPK,PROM,CMS 4 177 42
44 Leather And Related Products 6 64 152
45 Wholesale and retail trade and repair of 41 2501 0
Motor Vehicles and Motor Cycles
47 Manufacturing of Ice blocks& Prawn processing 24 925 654
48 Cermic Tiles, Bricks &Gyrconium Hydroxide 5 751 89
49 Thermocol Sheets Plastic 5 79 40
50 Manufacturing of Textiles 38 2920 2025
51 Tanning And Dressing Leather 42 2398 0
52 Sale, maintenance & Retail Trade, Repair Of Motor 42 2389 0
Vehicles
53 Other manufacturing 21 83 0
54 Repair and installation of machinery and 47 1398 53
equipment
55 Electricity, gas, steam and air conditioning supply 4 4245 16
56 Advertising and market research 2 52 0
57 Mfg. of pharmaceuticals, medical and botanical 26 552 191
products
58 Specialized construction activities 1 21 0
59 Machinery Parts 3 58 1
60 manufacturing of Trailers 40 564 30
61 Rubber Products 39 617 212
District Total 2988 6274 11773
7
There are about 84 large and medium industries working in the district with an
investment of Rs.3,979.18 crores, employing 17,985 persons. The main activities are
refined oil manufacturing, cement, Lead Extraction, Fatty Acids, etc. Vijayawada City has
a big industrial estate that manufactures plastic, stainless steel articles, and aluminum
works, oil engines, paints, etc. The Andhra Pradesh Heavy Machinery Engineering
industry established with a paid-up share capital of Rs. 2 crores at Kondapalli town in
IbrahimpatnamMandal produces machinery required for papers, cement, and textile and
leather industries. Besides this, the JawaharAutonagar, Patamata, the only one of its
kind in India in the entire country, and the R.T.C. (Road Transport Corporation) regional
workshop at Vidyadharapuram, for repairing old buses are the important industries in
the district.
➢ 62,726 crore GDP

➢ 12% contribution to the GSDP
➢ 1, 04,897 per capita income at current prices
➢ 17,780 Crore agriculture contribution to GDDP
➢ 8,967 crore industries contribution to GDDP
➢ 35,979 Crore services contribution to GDDP
Source- DIC
Mode of Operation of ODOP and Non-ODOP Products
The primary survey observed that among 408 respondents, 240 respondents are operating business
atthe household level followed by 146 respondents who own the proprietorship of the
company/unit, 15respondents are operating business with partnership and 4 respondents are
operating the business through SHG’s/Society.
Count Percentage
Household 240 59%
Partnership 15 4%
Society/SHG 4 1%
Pvt. Ltd 2 0%
Other (Please specify) - 1 0%
Fssi
Total 408 100%
Classification of ODOP and Non-ODOP Processing Industries in Krishna District
The primary survey observed that among 408 visited industries, 193 industries are micro-units
followed by 103household units, 91 small units, and 21medium units.

Count Percentage
Micro 193 47%
Household 103 25%
Small 91 22%
Medium 21 5%
Total 408 100%
The primary survey observed that among the visited ODOP and Non-ODOP processing industries in
Krishna district, 326 industries/units are unregistered and 82 industries/units are registered.
Count Percentage
No 326 80%
Yes 82 20%
Total 408 100%

Classification of Industries by Registration in Krishna District
The primary survey observed that out of 185micro units only 8 units are registered ODOP and Non-
ODOP processing industries/units in Krishna district followed by 55 registered small units and 18
registered medium units in the district.
Micro 8 185
Household 1 102
Small 55 36
Medium 18 3
Total 82 326
w. Number of clusters engaged in the processing of this product;
There is no Mango cluster established in Krishna district however there is a potential to

form a cluster in the region of the Nuzvid region.
x. Number of workers engaged in the ODOP processing;
Number of Workers Engaged in ODOP and Non-ODOP Processing Industries in Krishna District
From primary survey observed that 3645 workers engaged in ODOP and Non-ODOPprocessing
industries/units in Krishna district.

Medium 411 1086 1497
Micro 192 242 434
Small 690 772 1462
Total 1381 2264 3645
y. Marketing linkages within the district, state, and outside
Krishna district is famous for the cultivation of renowned varieties of mango which is one of the
sources of their livelihood. Several factors such as pest, lack of processing industry and organized
marketing network in the region, and predominance of middle men in the trading network have
reduced the profitability of mango production system, particularly for small and marginal farmers.
Krishna district is one of the largest mango growing districts in the state of Andhra Pradesh with an
area of 70000 hectares and nearly 9.22 lakh tonnes of production.
Mango is a perishable commodity that cannot be stored for an extended period. The whole mango
crop is harvested within one month after getting maturity in this region which results in a glut in the
local market. Besides this, most of the farmers sold their orchards to pre-harvest contractors, and
few farmers sold fruits in the local market. The number of intermediaries in a traditional marketing
channel is more and this reduces the profitability of farmers considerably
Mangoes for table consumption
Preharvest Wholeseller
contractor
Commission Buyer/Expor
Farmer Trader
Agent ter/Importer
Commission
Agent
Raw material procurement for Pickle manufacturers& Jelly/Thandra makers
Preharvest Pickle/thandra
Farmer
contractor manufacturers
Commission Pickle/thandra
Farmer
Agent/Trader manufacturers
Intermediaries in the marketing chain and exploring new and distant markets to get rid of a glut in
the local market. Marketing linkages were established long back. The farmers sell their produce
through commission agents to the traders and as well as to the exporters. Commission agent
charges 3-5% as commission from both buyer and seller and payment risk will be borne by
Commission agent and payment is made within mutually agreed time. In another attempt,
Pickle/Thandra manufacturers procure their raw material from farmers through preharvest
contractors/commission agents or from traders.
Market linkages – Selling pickle /Thandra

Pickle/thandra CA/Trader/Distribution
Retialer/Consumer
manufacturers network
Finished product i.e. Mango pickle and Thandra is sold through the agents/ traders and thru the
distribution network to the retailers. In Madara, Nuzvid, agiripalli regions the pickle manufacturers
sell the semi-finished (cut) raw mango in barrels on a large scale to the pickle manufacturers across
the state and other states. The pickle manufacturers buy the semi-finished product according to
their requirements and add their value addition and sell to the consumers thru their supply chain.
Others have their business contacts and supply directly to the retailers, supermarkets, hotels,
restaurants, caterers, and big institutions. The pickle manufacturers who have distribution networks
like Super stockiest/ C & F Agency, distributors are supplying to retailers and consumers thru this
network like Priya Foods, MTR, Telugu Pickles, Agri gold, etc.,
While Thandra manufacturers sell their products through distribution networks as well as directly to
the retailers, super markets.
Swagruha foods are selling their products pickles and Thandra through their outlets across the
district.
Self-help group women who are manufacturing pickles/Thandra on small scale also sells their
products directly to the consumers, retailers, households, hotels, restaurants, caterers, super
markets and making attractive profits. They also participate in exhibitions regularly to sell their
products.
Market linkages – Selling Mango Pulp
Pulper Agent Trader/Buyer Exporter
Pulper Exporter Importer/Buyer
India is a major exporter of Mango Pulp in the world. The pulp manufactured from Southern India is
popular in the world. Totapuri mango pulp is one among the pulp made, Chittoor and Krishna district
produces pulp in the state of Andhra Pradesh. India has exported good quantities of Mango Pulp
across the world is nearly 120000 tonnes during the year 2019-20. Major Export Destinations are
Saudi Arabia, Yemen Republic, Netherland, Kuwait, U S A.
Meager quantities of mangoes produced in the Krishna district are processed into pulp, which
accounts for about 5-10% of the region’s total production. The variety of Totapuri is processed into
mango pulp or pulp concentrate.
Most large and medium farmers collaborate with processors to supply harvested fruit directly or
through commission agents/traders for processing after sorting and grading at the orchard level.
The traders usually provide financing during the off-season to the small farmers for farm inputs and
thus they are bound to sell their produce to the same trader, however, they are also free to sell their
products to others depending on the prevailing rates at that time. The processed mango pulp is used
as an ingredient in a range of products such as beverages, jams, ice cream, etc., and is procured by
companies based on prior contracts through commission agents/traders. Some of the exporters
directly procured pulp from the pulper.
More than half of the pulp produced is exported to countries to the Middle East, Europe, the United
States, and the rest is consumed on the domestic market.
Krishna district ODOP trade information
Vijayawada is one of the largest cities in the state of Andhra Pradesh and the estimated population
in the city is nearly 20-21 lakhs. Value-added commodities like Chilli powder, Turmeric powder,
pickles made from Mango, Tomato, Chilli, Lemon, and others are widely consumed in day-to-day life.
There is enough demand for these value-added products in the city and it is being manufactured by
largely and also it is being sold in different outlets like retail, wholesale, supermarkets,
hypermarkets, online markets, etc.,
The Vijayawada city is commercially divided into three regions geographically
One Town, Two towns, and Singh Nagar. Two towns is a big market where the majority of the area is
covered.
Trade is classified into General trade, modern sale &Online sale. Under general trade, there are
Wholesale and Retail sale trade and under modern sale, there will be Hypermarkets, supermarkets
while under Online sales there are big giants like Amazon, Flipkart, Bigbasket, Grofers, etc.,
General trade is classified into ABCD and under the A segment all hypermarkets, supermarkets are
involved in trade and at Vijaywawad city there are nearly 80-100 supermarkets, and out of this,
there are nearly eight hypermarkets who are operating their sales in different locations thru
different branches.
Sl.NO Chain
1 AVENUE SUPERMARTS LTD-Dmart
4 RATNADEEP RETAIL PRIVATE LIMITED
5 VIJETHA SUPERMARKETS PRIVATE LIMITED
7 METRO CASH & CARRY INDIA PVT. LTD
8 WALMART INDIA PRIVATE LIMITED
9 SUPERMARKET GROCERY SUPPLIES PVTLTD-Big Basket-Online
11 FUTURE RETAIL LIMITED
Under B segment wholesale trade is involved, nearly 120-150 traders are trading masalas, spices,
and pickles in markets like Kaleshwarrao market, Gollapudi market yard, Patamata, Poranki, etc.,
Under the C segment, 1400 retailers are there who deal in spices, masalas, and Pickels across the
Vijayawada city.
Under the D segment, there are nearly 500 shops like pan shops, milk parlors, cool drink shops, etc.,
Pickles, Spices and Masala powders, Turmeric, Daniya powder, etc., are major commodities these
segments deal with.
% of Share of the items in Vijaywada
5%
10% Pickel
Chilli powder
45% Turmeric powder
23% Masalas
Culnary paste
Papad
14%
3%
While in the pickle market tomato pickle is mostly sold by nearly 35% followed by Mango 25%, Red
chilli 15%, Lime 15%, and others 10%.
% of Share of Pickels in the
Vijayawada market
10%
Tomato
Mango
23% 45%
Redchilli
Lime
Ohers
3% 14%
Major players dealing in Pickels and their share in the market
% of market share of Pickels brands in

Vijaywada market
Swastik
22% Priya, Delite & Ramya
30%
Amma- Local
5% Telugu
5% Aachi
Sri Vijaya - local made
3% 10% 25% other local brands/Swagruha's
Major players dealing in Spices and their share in the market

% of market share of Spices brand wise in
Vijaywada market
Sri Dhana Lakshmi
4% 14% SIRI
20%
Swastik
4%
Priya
5%
15% Aachi
5%
Mahalakshmi
5% 8% 10% Vijaya Lakshmi
10%
MTR
Approximate sale of pickles (Mango, Tomato, Lime, Red Chilli, etc., in the state of Andhra Pradesh
through general trade, modern and online sale. The approximate sale of pickles in AP is nearly 345
lakhs per month.
Pickle avg sales per month in AP (Lakhs)
Swastik
70 Priya, Delite & Ramya

90
Amma- Local
Telugu
20
Aachi
17
Sri Vijaya - local made
15 45
Mamabalm Iyer
20
10
18 23 Fine life
7 10
Out of a total of 345 lakhs, the Swastik brand (26%) is the highest seller followed by Priya (13%),
Telugu, etc., in branding, and nearly 30% is sold as unbranded.
Chilli Powder sales brand-wise in the state of AP
Chilli Powder Sales per month(Tonnes) in AP state
Everest
2000 ITC
3000 Priya
Telugu
500 Eastern
others
400
20 800
Out of a total of 6720 tonnes, the Everest brand (45%) is the highest seller followed by ITC (12%),
Easter (7%), Priya (6%), Telugu, etc., in branding, and nearly 30% is sold as unbranded.
One of the manufacturers M/s. UshodayaEntps (Priya Foods) their marketing network and sales
per month in AP state.
• At present, modern sale management is procuring some products directly from the
manufacturers who are registered under GST/VAT, etc., and other products from the agents,
distributors by losing the margins in exchange (manufacturer to stockiest/agent/distributor)
and also they have plans to buy from the SHG’s and FPOs who are into processing by
eliminating the middlemen like distributors and pass on the same to the consumers but the
majority of the SHG’s are not registered and cannot procure from them without raising a
purchase order so they are suggesting that all the FPO’s and SHG’s who are into processing
to get it registered to enable them to procure from them also.
• However, the wholesalers are procuring directly from the manufacturers as well as with the
unregistered firms
• There are nearly 8000 outlets are established in Vijaywada however nearly 2200 outlets are
selling pickles, spices, and masalas and the majority of the outlets like a wholesaler, retailers,
modern sale managements are procuring material from the state of Andhra Pradesh
however Spencer management complained against the cashew supplier/manufacturer of
Palasa that the quality is not to the expectations as agreed. However, some others
expressed their satisfaction procuring material from the local.
Problems facing by the General traders, modern sale, wholesale, Retail management, etc.,
• Traders, modern sale management, and retailers are facing Quality issues regarding pickles
(Fungus and other problems)
• Color deterioration (Chilli powder) is noticed with some brands in the market and also there
are some packaging issues like leakages etc.,
• Some expressed product shelflife issues because of COVID.
z. Level of infrastructure for ODOP processing within district, in other districts and States.
• Land
• Raw material
• Labor
• Manual Machinery
• Logistics
• Water and Electricity
• Roads
• Ripening chambers
• Cold storages
Most processing plants in the district are small and medium enterprises and a few of them are large.
With regarding the fresh fruit, traders and aggregators procure fruit from the local producer,
aggregate the fruit, and ship it to traders at distant markets across the country.
The preharvest contractors also operate similarly; in this case, they contract with the mango
producer for the entire production for one or more seasons and, in turn, finance the farm operations
for that particular season.
Mango jelly and pickles are manufactured by small or cottage-scale processors with capacities of less
than two tonnes per day. However, Priya Foods processes more than 50 tonnes a day.
While small processors can produce up to 50 tonnes of mango pulp per day. The main product
produced is canned mango pulp and pulp concentrate.
Krishna region is creating employment for about 4000 people, directly at processing plants and
indirectly in allied services. Fewer women than men are employed at processing plants, employed in
operations, quality assurance, planning, and management. An equal number of men and women
were observed to be taking part in processing operations as workers.
In Krishna district there are nearly 42Processing Units, Canning units -2 units Pickle making units Big
& Medium – 20 units, Thandra making units -20, Self-help groups & Swagruha foods in around all
mandals nearly – 500
In the Krishna district, people are going only for Pickle and Thandra making, because of lower Brix
content available in the Totapuri fruit as well as more water content and other varieties are not
suitable for pulp making so people are preferring pickle industry which is very much suitable.
However, a few industries are processing mango pulp. There is huge scope for other processing
industries like mango jelly and pickles. However, Priya foods are processing the pickles from mango.
Thus, the district can have the potential to produce more pickle for the demand of the growing
population
Other districts and state infrastructure:
Two main clusters of Mango Pulp are there in the country, which has more than 100 processing units
with a good backward linkage of Alphonso and Totapuri variety of mangoes. These clusters are
Chittoor in the state of Andhra Pradesh, Karnataka, and Krishnagiri in the state of Tamil Nadu. Some
of the Processing units are in the state of Maharashtra and Gujarat.
Chittoor district has a good horticulture production base and enjoys easy access to leading
horticulture bases in Andhra Pradesh, Tamil Nadu, Karnataka, and Maharashtra. Mangoes dominate
the horticulture resources of the Chittoor district. Of the various varieties grown, Totapuri accounts
for nearly 50 percent, Neelam 25 percent, and other varieties 25 percent.
Chittoor district is surrounded by other fruit growing belts YSR Kadapa and Anantapur districts of
Andhra Pradesh; Dharmapuri district of Tamil Nadu and Kolar district of Karnataka.
There exists a lot of variation in the commencement seasons for various fruits across regions and
varieties. It is observed that the majority of the small scale and medium scale units start their
processing operations during the May-July months, covering 30-75 days, to produce mango pulp.
The pulp is produced from the Totapuri, Raspuri, and Alphonso variety of mangoes which are
considered the best for mango pulp. Most of the sampled units process mango as raw material to
produce pulp.
aa. Total production value of the ODOP product manufactured in the district and as % oftotal
agricultural production.
overall agriculture production in Krishna district during 2019-20 and contributing around 138 crores
for total agriculture value.
Crop Name/ODOP Name Production (MT) Value of ODOP (Rs.)

Mango 685570 137.55
bb. Number of enterprises involved in the processing of this product and as a % share of the
total number of micro food processing enterprises in that district;
Through the primary survey, we covered 408 ODOP and Non-ODOP processing units in the district,
out of 408 unit’s more than 95% of units are ODOP processing units. The total number of industrial
units in the district is 2988 in 2018-19 (DIC data). ODOP processing units contribute around 14% to
the total number of units in the district.
cc. The number of Self Help Groups and Farmer Producer Organizations engaged in
theProcessing of this product.
No. of SHG No. of workers No. FPOs No. of workers

engaged engaged
994 3000 (apprx) 10 NA
In the Krishna district, there are nearly 994 shelf help group unitsthat are involved in the Food
processing industry and nearly 3 people will be working in each group unit. Farmer producer
organization (FPO) is the collectivization of Producers, especially small and marginal farmers to form
an effective association to collectively address many challenges of agriculture effectively such as
improved access to investment, technology, inputs, and markets.
To significantly improve the terms of smallholder farmers’ access to the market and strengthen their
position in agri-value chains, it is gradually being realized that if federated; small farmers can easily
bargain for better prices, both while buying inputs and selling their produce. This belief has led to
the concept of establishing “Farmer Producer Organizations” (FPOs) in the country. Small Farmers’
Organizations such as FPOs are expected to overcome the constraints of farmers imposed by the
small size of their farms by leveraging the collective strength and bargaining power to access
financial and non-financial inputs, services, technologies, enhance incomes, reduce costs of input
purchases along with transaction costs, create opportunities for involvement in value-addition
including processing, distribution, and marketing.
In the district of Krishna, there are more than 10 Farmers Producers Organizations (FPO’s / FPC’s)
registered with the Dept. of Horticulture, A.P. covering 2000 farmers.
dd. Sale of this product to other districts, states and exported to other countries
The main sales channels of mango in the Krishna district of Andhra Pradesh include direct sales from
farmers to large retailers, supermarkets, wholesalers, and small retailers through commission
agents/traders/exporters. Large quantities of mango of different varieties are supplied from this
region during the season to all parts of the states.
A majority of farmers sell their produce at the farm gate to the pre-harvest contractors, who in most
cases are also the wholesale agents at the APMC yard, under a mutually agreed contract. The
contract is verbal in a majority of cases. The contractors visit the farm during the post-flowering
period and evaluate the farm. Based on their evaluation, an amount is decided and payment is made
in full.
During the marketing of mango, smallholder farmers use corrugated boxes, baskets, plastic boxes,
and wooden boxes to pack mango to keep safety and postharvest loss of mango during
transportation.
India has also not been able to export mangoes successfully because of the lack of infrastructure for
complying with food safety standards. Among the top export destinations, the United Arab Emirates
(UAE) imports almost 69% to 70% of India’s total fresh mango exports.
Pickle/Thandra
Retialer/Consumer
No Indian meal is complete without a smidgen of the pickle. Ready to eat pickle is very popular in
almost every household. Apart from the domestic market, Indian pickles have very inspiring export
demand. Pickles can be packed in different weights ranges from few grams to 5 kg so that it
becomes useful for one-time use to a month’s consumption. There has to be the implementation of
systems for following food standards like FSSAI.
Mango pickle and Thandra are sold through the agents/ traders and thru the distribution network to
the retailers. The oldest firms have their business contacts and supply directly to the retailers,
supermarkets, hotels, restaurants, caterers, and big institutions. The pickle manufacturers who have
distribution networks like Super stockiest/ C & F Agency, distributors are supplying to retailers and
consumers through this network like Priya Foods, MTR, Telugu Pickles, Agri gold, etc.,
The demand for Indian pickles in foreign countries like Saudi Arabia, America, Australia, Europe,
Russia, and many other countries is high. Day-by-day demand for pickles is acquiring thrust in every
part of the world because of its global quality standard. On average, an Indian family consumes
around 2 kilograms of pickles per year.
The global pickles market has been divided, by packaging type, into jars, bottles, pouches, tubs, and
others. The pouches segment is projected to record the highest sales as pouches offer ease of
storage and usage and can be used as refill packs. Furthermore, longer shelf life can be achieved by
using Tetra Pak pouches.
In other states
In Srinivasapura, of Karnataka within a radius of 200 kilometers, there are 18 retail marketing
centers, bordering the states of Andhra Pradesh and Tamil Nadu. The farmers in the region sell their
products through three predominant marketing channels: they sell at the farm gate to the pre-
harvest contractor; they sell at the village Agricultural Produce Marketing Commission (APMC) yard,
or they sell directly in city retail markets or government authorized wholesale centers such as the
Horticultural Producers’ Co-operative Marketing and Processing Society (HOPCOMS) and Safal.
The prices are fixed by wholesale agents operating in the yard, with farmers lacking any power to
negotiate them. For small farmers, the volume produced usually is below the minimum quantity
required by corporate buyers. Hence, they are forced to sell at the APMC yard at a fixed rate. The
farmers from nearby villages travel to the market yard to sell their produce. In many cases, the
farmer sells it to the wholesale agent or the pre-harvest contractor, who pays the farmer in advance
after deducting a 10% commission. All the costs related to activities like grading, transportation,
packing, and storage are borne by the contractors. The wholesale commission agents have tie-ups
with agro-processing units like Mother India farms, Pepsi and Dabur, which are located in Andhra
Pradesh.
ee. Mapping the value chain aspect

Pre Harvest
Fruit Growers
Contractors
Commission
Cold Storage
Agent &Traders
Processors Wholesalers
Exporters Retailers
Consumer
Pre-harvest contract: Pre-harvest contract is the most commonly used sales system of mangoes. The
contractors evaluate the orchard during the initial stage of fruiting and payment is done to the
farmer on a per kg basis. Some of the farmers also negotiate the price of their orchards on a lump-
sum basis. The quantity, quality, and rates are negotiated based on mutual agreement between the
farmer and the contractor. The cost of activities such as harvesting, packing, and transportation at
the farm gate takes care of by the contractor.
Purchase by Processing Units: Processing units are directly procuring the raw material at the farm
gate. Apart from this, they also procure through agents/suppliers. Processors are more price-
sensitive and quality is the major concern for them.
APMC Market yards: Farmers in the catchments of nearest APMC bring their produce which is sold
under an open auction mechanism. It is observed that at times, farmers do not bring the product to
the nearest market yards and travel to a bigger market yard in expectation of a better price. The
volume of trade through this mechanism is estimated to be about 5-10% of the total Mango trade.
Wholesaler: The wholesaler is responsible for the distribution of products to various retailers. The
second level of sorting/grading has also been observed at the secondary/terminal markets.
Accordingly, the produce is sold to the retailer based on specific grades.
Commission agent: The commission agent facilitates trade between the contractor and the
wholesaler and for which they charge 6-8% commission from the contractor.
Exporters: Exporters are procuring directly from fruit growers and also buy from pre-harvest
contractors, traders & commission agents, and processors.
ff. Understanding the Infrastructure constraints faced by Micro Enterprises:

The mango processing industry in Krishna faces a number of constraints. Among the infrastructural
constraints.
Tabular format Infrastructure Up-gradation proposals
Infrastructure Up-gradation proposals
Public infrastructure Mango processing units in the Krishna district do not have the proper
road all major mandals facilities to transport the raw material while
procurement and selling the finished products, however roads across
the district need to be renovated While there is no shortage or
interruption of power and water in the district.
Common facilities Marketing support and Mentorship services are badly required for the
processors to expand their business and to increase the product quality
and quantity. While branding will improve to increase their volumes
not only in the district but also across the state and country
Testing facilities At present, there is no practice of testing the Mango products like
Pickle, Thandra and Amchur made by the processors periodically and
there is badly need for a testing facility in the district to test their
products periodically in the laboratories recognized by the FSSAI
Safety standards : Mango processing i.e. Pickle and Thandra industries are some of the
largest industries of the unorganized sector in India. Pickle and Thandra
-making plants are generally tiny in size and the machinery of the plants
do not possess the FSSAI certificate. The majority of the Mango
processing units are not following the norms set by the FSSAI.
The high cost of credit was reported to be the major problem by the
firms. The processing sector is very labor-intensive, with the majority of
laborers coming from within the region to meet the labor deficit of the
High cost of credit:
neighboring regions.
There is a shortage of trained and skilled manpower for the

management and operations at the field level. The processing industry
is raw material intensive.
Skilled Labour:
The industry faces a number of problems related to raw material
supply. The supply is not consistent owing to the dependence of
production on weather variations. About 20-30% of the produce is lost
in postharvest operations.
For the distant markets, infrastructure in the form of packhouses with
automatic sorting, washing, packing, pre-cooling, storage, and
Raw material supply : marketing has not developed with the level of production.
Inappropriate packing and high temperatures of 40 °C further
deteriorates the quality.
International trade demands mango varieties that are with fiber-less

flesh, good aroma, attractive color, and better sugar and acid blend.
Efforts are not being made to produce and grade mango, based on such
Infrastructural
tastes and varieties.
bottlenecks:
For far-away markets, the establishment of pack houses with automatic
sorting, washing, packing, precooking, storage, and marketing on large
scale could be considered by the public and private sector. These
facilities could be made available on a hire basis to the farmers.
Lack of Export Promotion:
The pack houses need to have adequate capacity and should have a
pre-cooling unit/ cold storage. The development of adequate cold
storage capacity with the latest technology/ cold chain would help in
increasing the shelf life minimizing post-harvest losses through proper
storage and help the unitholders in taking timely marketing decisions.
Cold storages with multi-chamber/ multi-commodity facilities need to
Pack House: be popularized.
Cold Storage:
Big unit holders process nearly 8-10 thousand tonnes per year while small unit holders process
nearly 4-5 thousand tonnes in a year. Their profit margins are very less i.e. they are operating the
business under 2-3 % margin and they are unable to buy necessary equipment and construct
godowns for storing the finished product since the product life is 7-8 months after processing so
they need to take proper care in storing the finished pickle. If they are provided with financial
assistance there is every chance to improve their business as well as income and can provide much
employment.
gg. Mapping the market potential of FPI micro enterprises

Firm-level gaps and recommendations
S.No Sectors Gap Recommendations Costing

1 Skill training needs Shortage of Skilled labor Necessary training has to be 100000
to process Mango value- provided to train the labor
added products like
Thandra & Pickle
2 Manufacturing Raw material Mango processors are
practices Procurement, processing, buying the raw material at a
Packing, Marketing, and higher price, adopt new
Branding technology in processing &
packing. Expansion of
marketing and create brand
awareness of their products
3 Technology Lack of modern Adopt new processing
technology technology ripening
chambers- latest crushers,
packing material, and cold
storage
4 Access to finance Lack of capital Support the processors with
expenditure and subsidies and extend loans at
investment to buy new a lower rate of interest to
machinery expand their business
5 Access to mentorship Lack of suggestions to the Need to provide support in
services processors regarding the adopting new technology for
expansion of business processing, marketing, and
branding

Mango is one of the most consumed fruit in the world. Mango is a fruit with very special
characteristics, including the distinctiveness and range of its flavor, its nutritional and dietary
qualities, and its many industrial uses and derivatives.
The production of mango in India is around a 22.3million tons, contributing 46% of the total world
production of mango. The main mango producing states in India are Uttar Pradesh (20.46 %), Andhra
Pradesh (22.36%), Bihar (10.88%), Karnataka (8.34%), Gujarat (5.45%), Tamil Nadu (5.59%), and
Telangana (4.83%) in 2018-19. Total export of fresh mangoes and mango pulp from India is 49.7 ‘000
MT and 85.7 ‘000 MT, valuing Rs. 400.2 crores and 584.3 crores during 2019.20. The major importing
countries of India’s fresh mangoes during 2019-20 were UAE (35.3%), UK (17.1%), USA (7.7%), Oman
(7%), and Qatar (6.8%). And the major importing countries of India’s mango pulp during 2019-20
were Saudi Arabia (21.5%), Yemen Republic (10.6%), Netherland (10.5%), Kuwait (7.9%), and the USA
(6.7%).
State-wise Production of Mango in India

Andhra Pradesh was the leading mango producing state in India with the contribution of 22.36
percent of the total mango production; Uttar Pradesh was the second leading mango producing
state with the contribution of 20.46 percent and other mango producing states are Bihar (10.88%),
Karnataka (8.34%), Gujarat (5.45%), Tamil Nadu (5.59%), Telangana (4.83%), Madhya Pradesh
(2.88%) and Maharashtra (2.53%). Dadra and Nagar Haveli U.T contributesa negligible amount of
mango production i.e. 0.09 percent.
States 2015-16 2016-17 2017-18 2018-19 Share in 2018-19 (%)

Andhra Pradesh 2803.66 4043.47 4373.61 5001.74 22.36
Uttar Pradesh 4512.71 4341 4551.83 4577.15 20.46
Bihar 1464.93 1472.38 2443.47 2434.65 10.88
Karnataka 1725.67 1719.73 1760.6 1866.23 8.34
Gujarat 1241.59 1424.87 1207.78 1219.86 5.45
Tamilnadu 975.11 1282.44 1234 1250.77 5.59
Telangana 1778.32 482.46 1080.14 1080.13 4.83
Madhya Pradesh 371.48 586.24 654.79 643.62 2.88
Maharashtra 463.17 603.83 791.36 566.37 2.53
Dadra and Nagar Haveli 15.18 16.5 18.7 19.19 0.09
Others 3305.88 3549.78 3724.75 3712.36 16.59
TOTAL 18657.7 19522.7 21841.03 22372.02 100.00
Doesn’t have any issues regarding the quality of the product

Krishna district is the home of mangoes. A large number of varieties are found in major mandals of
the district. Mango Pickle, Jelly, and Pulp are prepared from selected varieties of Fresh Mango Fruits.
Krishna district is the largest mango exporter in India. Mango production is throughout the state of
Andhra Pradesh.However, most of the pickle industries are established in this district.

Mango Nutritive Value per 100g
Energy 250 KJ (60 kcal)

Carbohydrates 15g
Sugar 13.7
Dietary Fibres 1.6g
Fat 0.38g
Protein 0.82g
Vitamins
Vitamin A 54 µg
Beta-Carotente 640 µg
Lutein Zexanthin 23 µg
Thiamine (B1) 0.028 µg
Riboflavin (B2) 0.038 µg
Niacin (B3) 0.669 µg
Pantothenic Acid (B5) 0.197 µg
Vitamin (B6) 0.119 µg
Folate (Bg) 43 µg
Choline 7.6 mg
Vitamin E 0.9 mg
Vitamin C 36.4 mg
Vitamin K 4.2 µg
Minerals
Calcium 11 mg
Copper 0.111 mg
Iron 0.16 mg
Magnesium 10 mg
Manganese o.o63 mg
Phosphorus 14 mg
Potassium 168 mg
Selenium 0.6 µg
Sodium 1 mg
Zinc 0.09 mg
Water 83.5 g
Health Benefits of Mango

• Helps in fighting against acidity
• Cures stomach and digestion issues
• Helps in treating blood disorders
• Helps in maintaining dental hygiene
• Helps the body in boosting immunity
• Helps in enhancing eye vision
• Helps in keeping the liver healthy

characteristics, including the distinctiveness and range of its flavor, its nutritional and dietary
qualities, and its many industrial uses and derivatives. However, most mangoes are consumed fresh.
The socioeconomic importance of mango is great, not only for local societies in rural producing
regions but also increasingly in countries that benefit from its trade and consumption.
Major Producing Countries of Mango and its Share in the World
Country Production in MT % share

India 22,300,000 46%
China 4,771,038 11%
Thailand 3,432,129 8%
Mexico 2,197,313 5%
Indonesia 2,184,399 5%
Pakistan 1,606,091 4%
Brazil 1,417,149 3%
Egypt 1,277,008 3%
Bangladesh 1,161,685 3%
Others 7,800,188 17%
Total 44,626,000 100%
Source: APEDA
• Global production of mangoes is concentrated mainly in Asia and more precisely in India
which produces an average of 22 million MT a year.
• The total world production of mangoes is about 44 million MT.
• World demand for mango is increasing particularly from temperate countries where
mangoes are rapidly gaining.
• The leading importing country is the US and in the EU it is Netherlands, France, England,
Portugal, Spain, Belgium, Denmark, and Sweden.
• Apart from India, other major producers of mango are China, Mexico, Thailand, Indonesia,
Pakistan, Philippines, Nigeria, Brazil, Peru, Australia, South Africa, Malaysia, and Venezuela.
• India’s major marketing season is April to July while harvesting continued for 8-10 months a
year in Brazil, Columbia, Kenya, and Venezuela.
India imports 139 MT of fresh/dried mangoes, a value of 221.03 lakhs from other countries (Malawi,
South Africa, Thailand, Bangladesh, and Vietnam) in 2019-20.
Import of Mangoes (Fresh/Dried) in India from Other Countries
Value in Rs.Lac and Qty in MT
2017-18 2018-19 2019-20
Country Quantity Value Quantity Value Quantity Value
Malawi 0 0 16.5 30.23 63.8 150.13
South Africa 12.1 18.5 10 18.52 65 41.85
Thailand 0.05 0.04 0 0 9.8 29.05
Bangladesh Pr 0 0 4 1.8 0 0
Vietnam Soc Rep 0 0 0.06 0.02 0 0
Total 12.1 18.5 30.5 50.57 139 221.03
Source: DGCIS Annual Report
India imports 500.1 MT of mango pulp, a value of 370.7 lacs from other countries (Sri Lanka, China,
USA, Netherland, U K, Saudi Arab andSpain) in 2019-20.
Import of Mango Pulp in India from Other Countries
Value in Rs.Lakh and Qty in MT
2017-18 2018-19 2019-20
Sri Lanka Dsr 0 0 0 0 304.1 186.2
China P Rp 0 0 28.1 26.88 192.5 161.5
USA 0 0 18 18.38 3.54 22.91
Netherland 0 0 0 0 0 0.07
UK 0 0 0 0 0 0.03
Saudi Arab 0 0 37.2 17.28 0 0
Spain 0 0 4.08 4.34 0 0
U Arab Emts 0 0 72.8 38.74 0 0
Total 0 0 160 105.6 500.1 370.7
India exports 135384 MT of fresh mangoes (37%) and mango pulp (63%), a value of 984.43 crores
with a contribution of 400.21 crores (41%) from fresh mangoes and 584.32 crores (59%) from mango
pulp in 2019-20. The export of mango pulp in 2019-20 is decreased by 11.15 percent compared to
the previous year.
Export of Mango and Mango Pulp Exported from India
Commodit April-March(2018-19) April-March(2019-20) % % Share in

y Quantity Value (Rs. Quantity (MT) Value (Rs. Change APEDA's total
(MT) Crores) Crores) Export
Mango 105,873.22 657.67 85,725.57 584.32 -11.15 0.51
Pulp
Fresh 46,510.22 406.5 49,658.68 400.21 -1.55 0.35
Mangoes
Total 152,383.44 1,064.17 135,384.25 984.53
Major fresh mangoes export destinations are U Arab EMTS, U K, U S A, Oman, Qatar, Nepal, Kuwait,
and Saudi Arab
Country Wise Export of Fresh Mangoes from India in 2019-20
Value in Rs.Crores and Quantity in MT

Country 2019-20
Quantity Value
U ARAB EMTS 16567.22 142.87
UK 4356.26 67.62
USA 1095.42 30.56
OMAN 3636.81 27.57
QATAR 2744.95 27.4
NEPAL 11975.04 24.51
KUWAIT 1170.85 16.05
SAUDI ARAB 1517.39 13
BANGLADESH PR 3038.11 9.04
SINGAPORE 687.55 7.36
BAHARAIN IS 700.33 6.68
CANADA 492.95 5.81
MALAYSIA 240.36 2.37
FRANCE 196.75 2.34
GERMANY 185.67 2.33
HONG KONG 156.19 1.98
NEW ZEALAND 65.98 1.6
ITALY 123.84 1.51
SWITZERLAND 99.58 1.46
AUSTRALIA 68.31 1.23
MALDIVES 115.69 1.22
JAPAN 54.71 0.95
RUSSIA 38.93 0.76
NORWAY 51.87 0.65
NETHERLAND 60.74 0.63
KOREA RP 45.97 0.6
POLAND 67.51 0.55
SWEDEN 27.25 0.35
IRAN 14.54 0.24
BRUNEI 11.9 0.21
CHINA P RP 4.09 0.13
MAURITIUS 7.04 0.12
SPAIN 9.6 0.12
ARGENTINA 3.1 0.12
BELGIUM 4.7 0.07
IRELAND 2.75 0.06
KAZAKHSTAN 2.59 0.05
CONGO P REP 1.5 0.03
AFGHANISTAN TIS 10.02 0.03
TURKEY 1.22 0.02
MYANMAR 0.93 0.01
Total 49,656.21 400.21
Major mango pulp export destinations are Saudi Arabia, Yemen Republic, Netherland, Kuwait, U S A,
U K, China, Germany, Canada, U Arab EMTS, Oman, and France.
Country Wise Export of Mango Pulp from India in 2019-20

Country 2019-20
Quantity Value
SAUDI ARAB 22889.58 125.67
YEMEN REPUBLC 12116.38 61.99
KUWAIT 7293.24 46.4
USA 3749.46 39.12
UK 3385.37 30.59
CHINA P RP 3617.66 30.23
GERMANY 2711.03 25.61
CANADA 1792.77 17.93
U ARAB EMTS 2280.56 14.31
OMAN 2204.66 13.05
FRANCE 832.47 9.83
POLAND 1034.38 9.73
SUDAN 1599.8 8.5
JAPAN 573.07 7.62
SPAIN 859.29 7.38
MALAYSIA 1416.92 6.99
TAIWAN 797.03 6.69
QATAR 654.48 4.8
BELGIUM 752.2 4.49
PORTUGAL 518.73 4.18
LEBANON 594.4 4.09
ITALY 257.23 2.31
IRELAND 480.4 2.13
GEORGIA 340.83 2.02
RUSSIA 234.79 1.88
TUNISIA 207 1.54
AUSTRIA 158.48 1.43
INDONESIA 239.8 1.38
TANZANIA REP 319 1.36
SRI LANKA DSR 204 1.07
KOREA RP 107.16 1.05
HONG KONG 72.31 0.97
ALGERIA 136.2 0.96
JORDAN 136.69 0.94
EGYPT A RP 183.72 0.91
NORWAY 109.19 0.78
FR POLYNESIA 69.96 0.77
UGANDA 132 0.66
ANGOLA 89.4 0.59
CZECH REPUBLIC 79.15 0.56
TURKEY 104 0.54
JAMAICA 36.12 0.43
LIBYA 73 0.38
FINLAND 24.48 0.37
SOUTH AFRICA 63.64 0.37
IRAN 51.6 0.36
NEPAL 68.53 0.31
MAURITIUS 29.66 0.31
BARBADOS 34.4 0.29
UKRAINE 32.24 0.26
FIJI IS 22.1 0.22
CHILE 28 0.19
BHUTAN 53.74 0.18
UNSPECIFIED 10 0.15
VIETNAM SOC REP 11.37 0.15
DENMARK 18.24 0.14
THAILAND 9.3 0.11
CYPRUS 17.6 0.1
KENYA 17.76 0.09
HUNGARY 4.6 0.06
SWEDEN 16 0.05
MALDIVES 2.5 0.03
SLOVENIA 2.04 0.02
PANAMA REPUBLIC 2 0.02
REUNION 0.88 0.01
DJIBOUTI 1 0.01
MALAWI 0.56 0.01
NIGERIA 0.7 0.01
Total 85,723.52 584.32
Source: APEDA

Pickle is one of the oldest and most successful methods of food preservation known to humans. The
optimization of pickle quality depends on the maintenance of proper acidity, salt concentration,
temperature, and sanitary conditions. Pickle products add spice to meals and snacks. The skillful
blending of spice, sugar, and oil with fruit and vegetable gives crisp, firm texture and pungent,
sweet-sour flavor. Pickles serve as appetizers and help in digestion by aiding the flow of gastric
juices. Fermented pickles also have beneficial bacteria that can control harmful intestinal microbes.
Mango pickle
Mango slices 1.0 kg, Salt 200g, red chili powder 10g, turmeric powder 10g, asafoetida 5g, black
pepper, cardamom (large), fenugreek, cinnamon (ground), and cumin 10g each.
Procedure: Wash the mature green mango fruits, cut into 4 equal pieces (depending upon fruit size)
and remove the kernel. Mix the fruit slices with salt and turmeric powder. Fill mango slices in glass
jars and keep them covered jars in sunlight for 7-10 days. Shake the jar at least 2-3 times during
drying. Mix the ground spices in well-dried mango slices. Store the pickle in a cool and dry place.
Washing and
Cutting/slicing curing/Brining Blending Oil topping packing Storing
cleaning
According to FPO specifications, the minimum percentage of salt in a pickle in brine shall be 12%
while for pickling in citrus juice the acidity as citric acid shall not be less than 1.2%. For oil pickles,
any edible vegetable oil like rapeseed, mustard, olive, etc can be used. Other general characteristics
for these pickles include the use of wholesome fruit which are free of fungal or insect attack or any
rotting. All ingredients shall be thoroughly clean and free from extraneous matter. The only
substances that may be added are spices, salt, garlic, benzoic acid, soluble calcium salts. Pickles shall
be free from added copper, alum, mineral acids, or other preservatives
The preservation by using common salt, spices, and vinegar is a common method for the preparation
of pickles. Salt is mostly used as a preservative in pickles in combination with acid. The minimum
concentration of salt to act as a preservative is about 12%. Similarly, the addition of acid to the food
lowers the pH of the food which inhibits the growth of spoilage-causing microorganisms. The
addition of spices and edible oil in these products besides improving flavor and taste also helps in
preservation. Thus preservation by using salt, spices, and acid is one of the most ancient and
effective methods of food preservation.
The preservation of fruit in salt and vinegar is called pickling. Pickles may prepare without
fermentation or with partial or complete fermentation. Spices, edible oil, sugar/jaggery, etc are
added to improve the taste and palatability of the product. The nutritive value of pickles varies with
the kind of raw material used and method of preparation such as with or without fermentation.
The manufacturing of pickles has developed as an industry in the country. Mango pickles are the
commercial products available in the market.
Pickling process
Mango pickle is prepared by using salting. The procedure for dry salting mangoes is washed, sliced,
and placed in a barrel in layers to which salt is sprinkled followed by placing another vegetable layer
and sprinkled with salt. Generally, 3 kg dry salt is used for each 100 kg of prepared vegetable. The
salt is added in layers till the barrel is ¾ full. The barrel is placed in a warm and dry place.
Types of Pickles
Pickles are generally categorized into fermented pickles and partial or non-fermented pickles. While
non-fermented pickles are of different types depending upon the covering medium used. Pickles
preserved with salt and mango pickle.
Mango Pulp
Mango Pulp is prepared from selected varieties of Fresh Mango Fruit. Fully matured Mangoes are
harvested, quickly transported to the fruit processing plant, inspected, and washed. Selected high-
quality fruits go to the controlled ripening chambers; Fully Ripened Mango fruits are then washed,
blanched, pulped, deseeded, centrifuged, homogenized, concentrated when required, thermally
processed, and aseptically filled maintaining sterility. The preparation process includes cutting, de-
stoning, refining, and packing. In the case of an aseptic product, the pulp is sterilized and packed in
aseptic bags. The refined pulp is also packed in cans, hermetically sealed, and retorted. Frozen pulp
is pasteurized and deep-frozen in plate freezers. The process ensures that the natural flavor and
aroma of the fruit are retained in the final product.
Mango Fruits (Ripened)
Cleaned and washed with chloinated

water and dried
Peeled and De stoned
Extracted Pulp
Pasteurized
Preservatives added
Filling the pulp in the cans
Cooled and labelled
Stored at cooled and dry place
Raw material mangoes at ripening chambers Mangoes cleaning with chlorinated water
After de stoning sending for pulp crushing Pulping process
Pulp section machine Fruit preparation

Fruit Conveyor
Marketing Channel in Mango Pickle
Producer
Trader Wholesaler
Retailer Consumer Retailer
District Krishna
The District is divided into 50 Mandals covering 4 Revenue Divisions viz.,1.Bandar 2. Vijayawada 3.
Gudivada 4.Nuzvid. The District is naturally divided into1.Delta 2.Upland Zones. All the Mandals
existing in Bandar, Gudivada divisions
andpartofVijayawadadivision(Penamaluru,Kankipadu,ThotlavallurupartofVijayawada Rural) comprise
delta and Unguturu, Vuyyuru, Pamidimukkala and partof Gannavaram and Bapulapadu Mandals of
Nuzvid Division and all the
mandalsexistinginNuzviddivisionandtheremainingMandalsofVijayawadaDivisionconstitute upland.
The upland consists of an undulating broken by low ranges ofEastern Ghats.
The population of the District is 4517398 comprising 970 inhabited and 35uninhabited
villages. It took the third rank in population density (518 per sq.Km).There are 9 Municipalities
viz., 1. Machilipatnam
2.Pedana3.Gudivada4.Nuzvidand5.Jaggaiahpeta6.Nandigam7.Tiruvuru8.VuyyuruandoneMunicipal
Corporation inVijayawada.
13.6. Demographic and Socio-economic profiling

According to the 2011 census Krishna District has a population of 45.17 lakhs. It has a population
density of 518 inhabitants per square kilometer. The district has a sex ratio of 992 females for every
1,000 males, and a literacy rate of 73.74%.
SL.N ITEM UNIT STAT DISTRI

o E CT
1 Geographical Area: 000'Sq.Kms. 163 8.73
7
7
(e) Rural Population In Lakhs 349.6 26.74
7
(f) % of Rural Population to Total Population In Lakhs 70.53 59.2
(g) Urban Population In Lakhs 146.1 18.44
(h) % of Urban Population to Total Population Percentage 29.47 40.8
(i) No. of Households In Lakhs 127.1 12.43
9
(h) Growth Rate over the previous Census (2001- Percentage 9.21 7.86
2011)
4 Literates
(a) Total Literates In Lakhs 298.6 30.09
(b) Male Literates In Lakhs 165.5 15.99
(c) Female Literates In Lakhs 133.1 14.11
5 Literacy Rate
6 No. of Households
(a) Total In Lakhs 127.1 12.43
9
7 Household size
household
household
household
10 Workers
(a) Total Workers (Main+Marginal) In Lakhs 230.8 20.49
1
(b) Agriculture Workers (Cultivators+Agrl.labour) In Lakhs 143.9 10.07
3
industries+Others)
Number of Villages/Gram Panchayats/Mandals/MandalParishad in Krishna District
Sl.No Name of Villages/Gram Unit Year State District

Panchayats/Mandals/MandalParishad
(a) Census Villages (including un inhabitated Nos. Census 2011 17,366 1,005
villages)
(b) Revenue Villages Nos. 2019 17,398 1,005
(c) Gramapanchayats Nos. 2019 12,918 970
(d) Revenue Mandals Nos. 2019 670 50
(e) MandalParishads Nos. 2019 670 49
(f) Revenue Divisions Nos. 2019 51 4
(g) Towns (Statutory and Census,2011) Nos. Census,2011 195 37
(h) Municipal Corporations Nos. 2019 14 1
(i) Municipalities/ Nagar Panchayats Nos. 2019 96 8

In the Krishna district of Andhra Pradesh State, there are 2 large and medium scale industries,
and 2988 factories are registered under Factories Act and provided employment of around
75300 persons during 2018-19. The major activities of the industries in the district are Food
Products and Beverages, Wood and Wood Products, pharmaceuticals, Jute,Coir, pesticides,
Pistons, Ammonium Nitrate, Rice mills, Granite, Stone Crushers, BeachSand Minerals, Sugar, and
Power.
1. Cluster Analysis
Krishna Dist
Mango production in the Krishna district is

likely to stay at nearly 922675 tons while
the area is nearly 70975 ha approximately.
The mango acreage in this region is
reducing gradually because of disturbance
in weather the yield is witnessed declining
gradually while the area is also switching
over to real-estate as increasing urbanization in surrounding regions
In the Krishna district of Andhra Pradesh state, to facilitate more mango processing, value addition
and involve farmers in the mango value chain to maximize their return, an APFPS scheme is
promoted.
Across India, the early crop of mango commences from the Krishna district, and the farmers are
always much benefited during the initial season price-wise.
The mango is supplied from the different markets belonging to different mandals like Nunna,
vissanapet, Triuvur, Nuzivid, aagiripalle, Mylavanam, etc.,
This region is famous for pickle/Jelly manufacturing and a lot of self-help groups, individuals,
swagruha foods manufacturer’s different pickles, and Thandra in the district. However, the pulpers
have closed down gradually their pulping activity from this district, earlier nearly 5-6 pulp units were
operated but at present only a couple of units are operating during the season because of lower Brix
content i.e. 10-12 units and more water level in the Totapuri mangoes.
There are about 80 traders in the Nunna market who deal in mango, supplying to other districts and
states like Kerala, Telangana, Rajasthan, Maharashtra, Madhya Pradesh, etc.,
The mango produced in the mandals of Nuzvid and Agripalle are famous for pickle making and table
consumption and there are nearly 30-35 pickle and trading companies who supply mangoes to the
other states and manufacturers pickles like Priya Foods, Lakshmi Entps, and Murali, etc., While there
are Thandra/Jelly making units small -15 and large 5 units in the Vadlmanu region of Agripalle of
Krishna district apart from this there are two pulp making units located in this region where the pulp
is made from Totapuri mangoes. Nearly 3000-4000 laborers are working across the Krishna district in
about 500- 600 in the processing units.
Finished product i.e. Mango pickle and Thandra is sold through the agents/ traders and thru the
distribution network to the retailers. In Eadara, Nuzvid, agiripalli regions the pickle manufacturers
sell the semi-finished (cut) raw mango in barrels on a large scale to the pickle manufacturers across
the state and other states.
The pickle manufacturers buy the semi-finished product according to their requirements and add
their value addition and sell to the consumers thru their supply chain. Others have their business
contacts and supply directly to the retailers, supermarkets, hotels, restaurants, caterers, and big
institutions. The pickle manufacturers who have distribution networks like Super stockiest/ C & F
Agency, distributors are supplying to retailers and consumers thru this network like Priya Foods,
MTR, Telugu Pickles, Agri gold, etc.,
While Thandra manufacturers sell their products through distribution networks as well as directly to
the retailers, supermarkets. Swagruha foods are selling their products pickles and Thandra through
their outlets across the district.
Self-help group women who are manufacturing pickles/Thandra on small scale also sells their
products directly to the consumers, retailers, households, hotels, restaurants, caterers,
supermarkets and making attractive profits. They also participate in exhibitions regularly to sell their
products.
So there is every need to form a cluster and organize the trade in a better way and support farmers
eliminating the middlemen and provide financial assistance and subsidies for the
development of the cluster
Employment:
Industry Male Female Total % of the workers

Household 88 164 252 7
Medium 411 1086 1497 41
Micro 192 242 434 12
Small 690 772 1462 40
Total 1381 2264 3645 100
Employees % contribution
Male 1381 38
Female 2264 62
Total 3645 100
Total 3645 workers are working in the food processing industries in the district. Among the
3645 workers, 38% of the workers are male and 62% are female laborers. Among the total
labor working in the ODOP and Non-ODOP processing enterprises in the districts, 41% of the
total labor is contributed by the medium enterprises, 40% by the small processing units 12%
of the labor are working in the micro food processing and 7% of the labors are working in
household enterprises.
Turnover:
Enterprises Number of units Sum of value % share of

enterprises
Household 39 7300000 13
Medium 3 22000000 38
Micro 70 6780000 12
Small 29 22270000 38
Grand Total 141 58350000 100
The turnover of the units processing the ODOP in the district is 5.83 crores. 38% of the share
in the total turnover is contributed by medium and small enterprises respectively. 13% of
the total turnover from the ODOP processing is contributed by the household enterprises
and 12% from the micro food processing enterprises.
Still, we are gathering the information from ground level.
Infrastructure
Raw Materials
Mango grows over 70,000 hectares in the Krishna district and major mango growing mandals are
Nuzvid, Tiruvuru, Mylavaram, Chatrai, Vissannapeta, Agiripalli, Reddigudem, and other mandals.
About the area, production, and productivity of mango in Andhra Pradesh, Krishna district secured
Majority of the mango gardens in the state are having Baneshan variety, which is not a pulp variety.
The remaining is accounted for Totapuri (Collector) and Suvarnarekha. The percentage of mango
production in the state being processed is estimated to be around 6 percent only.
There are a number of products in mango-like squash, bars, jelly, etc., Canned mango pieces,
canned mango pulp, mango juice, nectars and drinks, frozen pulp, wine, pulp in aseptic packing,
mango powder, mango bar, carbonated beverage, tauffes, etc. Kernel oil, patika, vinegar, fiber,etc
are the products of mango waste. Thandra making is done as a cottage industry by sun drying.
Mango is a perishable commodity that cannot be stored for an extended period. The whole mango
crop is harvested within one month after getting maturity in this region. Besides this, most of the
farmers sold their orchards to pre-harvest contractors, and few farmers sold fruits in the local
market. The number of intermediaries in a traditional marketing channel is more and this reduces
the profitability of farmers considerably
The farmers sell their produce through commission agents to the traders and as well as to the
exporters. Commission agent charges 3-5% as commission from both buyer and seller and payment
risk will be borne by Commission agent and payment is made within mutually agreed time. In
another attempt, Pickle/Thandra manufacturers procure their raw material from farmers through
preharvest contractors/commission agents or from traders.
Out of the total produce, 95% goes for table consumption and 5% goes for processing pickle,
Thandra, and pulp industries. Sufficient raw material is available in the district for processing. Nearly
70000-75000 tonnes are required for the processing of pickle, Thandra, and pulp in the district.
Skilled labor:
Sufficient labor is available for processing the mango in the district. Nearly 3000-4000 labor is
required for the processing of the mango industry i.e. Pickle, Thandra, and pulp. In each large scale
industry,300 people work a day and in the medium industry nearly 50-100 people work and in the
small and micro industries, 10-25 people work. However, the labor will get employment for four
months only.
Roads, Electricity and water:
Proper roads are constructed to transport the raw material and finished products, while
uninterrupted electricity is provided in the state and sufficient water is available.
Storage tanks and machinery:
There is an acute shortage of storage tanks to deposit the semi-finished or finished products like
pickle, Thandra, and pulp, and washing/cleaning, mixing, and packing machinery are not available
with all processors. Air dryers, heaters are also not available with the Thandra makers to improve
their production and quality.
Testing facilities: No proper testing facilities are available in the district to test their finished
products.
Export support:No proper guidance is available to promote the export sales of the mango products
Post-harvest Infrastructure:
Since the creation of post-harvest infrastructure requires huge capital investment initially, its
creation has to be considered on merit so that the proposed infrastructure remains in operation for
at least 200-250 days in a year.
Pack House:
For far-away markets, the establishment of pack houses with automatic sorting, washing, packing,
precooking, storage, and marketing on large scale could be considered by the public and private
sector. These facilities could be made available on a hire basis to the farmers. Certain criteria like
urban areas with concentrated pockets of production, having good connectivity, availability of
electricity, the water round the year, and hygienic surroundings, etc, need to be considered for
setting up packhouses.
Cold Storage
The pack houses need to have adequate capacity and should have a pre-cooling unit/ cold storage.
The development of adequate cold storage capacity with the latest technology/ cold chain would
help in increasing the shelf life minimizing post-harvest losses through proper storage and help the
unitholders in taking timely marketing decisions. Cold storages with multi-chamber/ multi-
commodity facilities need to be popularized.
Vapour Heat TreatmentPlant:
There is a need to establish one Vapour Heat Treatment Plant (VHTP) to sort out the problem of fruit
fly, which is the main hindrance for exporting mangoes to Japan, the USA, and European countries.
Road Transport:
Mangoes are transported in trucks, open pickups, or bigger trucks. Specialized transport vehicles
should be used, which may have separate cabins and partial shades so that losses during transport
are minimized.
The quality parameters are being checked for all the raw materials.
The quality of a fruit that is free from internal and external disorders is judged by various parameters
such as size, shape, weight, color, speciﬁ c gravity, acidity, pH, TSS, carotenoids, vitamins, and other
trace elements and volatile compounds responsible for their aroma. Viscoelastic, rheological
properties, and TSS of mango are important from a processing point of view.
Quality parameters of mango change almost daily and consumers cannot measure them during
purchase. It is therefore essential that all the major quality parameters be correlated in such a
manner that size, shape, color, or aroma should reveal the overall quality of fruit.
Production Process:
Pulp Making:

water and dried
Extracted Pulp
Pasteurized
Preservatives added
Cooled and labelled

Product Range:
Pickles: There are several pickle varieties in the mango and it is available from 5 grams pouch to 5
kgs bucket. Priya foods sell their products in 5 grams pouch to 1kg pet bottle. It is also available in
250 gms, 500gms however other companies sell in pouches on-brand as well as unbranded. Some
supply their products in bulk 5kg buckets to the hoteliers, institutions, marriages, caterers, etc.,
The majority of the pulp is exported to other countries and the remaining is sold in the domestic
market. Pulp is available in 1kg can and 2kg cans as well as in 15kg bags.
Thandra is sold in packets, bottles, and pet jars
Technology:
Technology for processed products like pickles:
The majority of the mango pickle unit holders, like large, medium, small and micro (swagruha pickle
makers, and self-help group) pickle makers while preparing mango pickle use to cut the raw mango
by hand with the help of labor. In the Krishna district, there are nearly 3 big pickle making units
whose turnover is nearly 8-10 thousand tonnes of mango pickle per year, nearly 5-10 medium-scale
manufacturers whose turnover is 1000-5000 tonnes per year, small scale unit holders manufacturers
nearly 100- 1000 tonnes per year while micro unitholders are very large in number (nearly
550)whose turnover would be from 10 quintals to 100 tonnes per year however the majority of
these unitholders are using labor to cut the mangoes but a few manufacturers are using cutting
machines and mixing machines for preparing mango pickle. The new technology here in pickle
making is hand cutting machine where with the help of a cutting machine (Vtech, Coimbatore cost
14500) where mango is cut into 10-15mm it reduces microorganism development and reduces 2 nos
of unskilled labor. For mixing the mango pickle in large and medium scale mango mixing machines
(GK cooking mixer) are used to reduce the usage of more labor and semi-skilled labor is enough,
reduces time and fuel, while unique mixing system enhances the taste, and reduces production cost.
Cutting machine Mango mixing machine
Vendor: www.vegetablecuttingmachine.com
Pickle packing is made automated and manual. The big and medium scale industries use automated
packing machines filling directly into the bottles and sachets and small and micro industries pack the
mango pickle manually with the support of labor according to the norms of FSSAI
Pulp making:
The Mango pulp process is done through machinery crushing the mangoes, heating, cooling, and
packing is done by automated machines. However, in the Krishna district, the pulp processing is
declining significantly and the pulping units became sick and are nonoperational because of lower
Brix content and water content is more in the Totapuri mango which is normally used for pulping so
the pulping process is diminishing.
Mango Thandra:
Mango Thandra is made with the support of machines as well as manually. The ripened mangoes are
cleaned and crushed the necessary sugar and preservatives are added to the mango pulp, heated,
and dried under the sun. Here some manufacturers are drying under the sun and others are using
boilers and electrical dryers. However, packing is made manually.
Marketing
Marketing players:
Mango pickle manufacturers after making the semi-finished pickle are selling as a commodity to the
manufacturers across India in barrels without any brand and the pickle makers after buying from
these bulk sellers are adding other ingredients and packing in the sachets, bottles on their brand and
selling to the retailers through the distribution network, directly selling to the hotels, caterers,
restaurants, supermarkets, hypermarkets, retailers, etc., bulk seller firm name is Lakshmi
Enterprises, Nuzivid, Krishna District, UshodayaEntps/Priya Foods, Nuzivid, Vijayawada and Manna
Salva, Vijayawada.
Human Resource
Skilled labor:
There is no shortage of trained and skilled manpower for the management and operations at the
field level.
Skill Development: Govt should provide skill development programs and offer free training to the
female and male workers with a stipend to improve their income levels as well as to start their own
small business. They can teach how to make different types of pickles, Thandra and how to extract
the pulp from the mangoes manually as well as from machines.
Testing: No proper testing facilities available in the district
Institutional Support
Nationalize banks are extending loans

Post-harvest infrastructure requires huge capital investment initially, its creation has to be
considered on merit so that the proposed infrastructure remains in operation for at least 200-250
days in a year.

International trade demands mango varieties that are with fiber-less flesh, good aroma, attractive
color, and better sugar and acid blend. Efforts are not being made to produce and grade mango,
based on such tastes and varieties.
Pack House:
For far-away markets, the establishment of pack houses with automatic sorting, washing, packing,
precooking, storage, and marketing on large scale could be considered by the public and private
sector. These facilities could be made available on a hire basis to the farmers.
Cold Storage:
The pack houses need to have adequate capacity and should have a pre-cooling unit/ cold storage.
The development of adequate cold storage capacity with the latest technology/ cold chain would
help in increasing the shelf life minimizing post-harvest losses through proper storage and help the
unitholders in taking timely marketing decisions. Cold storages with multi-chamber/ multi-
commodity facilities need to be popularized.
Vapour Heat TreatmentPlant:
There is a need to establish one Vapour Heat Treatment Plant (VHTP) to sort out the problem of fruit
fly, which is the main hindrance for exporting mangoes to Japan, the USA, and European countries.
Road Transport:
Mangoes are transported in trucks, open pickups, or bigger trucks. Specialized transport vehicles
should be used, which may have separate cabins and partial shades so that losses during transport
are minimized.
Skilled labor:
There is a shortage of trained and skilled manpower for the management and operations at the field
level.
God owns:
In the Krishna district, the unitholders are facing problems with the acute shortage of godowns,
storage tanks, machinery, driers, washing equipment, etc., Big unit holders process nearly 8-10
thousand tonnes per year while small unit holders process nearly 4-5 thousand tonnes in a year.
Their profit margins are very less i.e. they are operating the business under 2-3 % margin and they
are unable to buy necessary equipment and construct godowns for storing the finished product since
the product life is 7-8 months after processing so they need to take proper care in storing the
finished pickle. If they are provided with financial assistance there is every chance to improve their
business as well as income and can provide much employment.
Proper testing facilities are not available in this region.

At present they are supplying the finished product across the states in India and they are supplying
against cash and credit to their customers and they don’t have proper marketing experience to
export the finished product. If they are supported to export the finished products then they can
develop their business in turn India gets more money from other countries.
Financial Linkages:
Banking and other financial institutions are available in the district to support the industry
Environmental Impact: no such impact
Since the mango processing units are located in the outskirts of the residential area and there is no
such environmental impact from these units and are obtained all the necessary permissions from the
government
13.8. Cluster Actors
Nearly 4000- 4500 laborers are working across the Krishna district in about 550 processing units and
skilled and unskilled labor that is who operates the machinery, boiler, who performs fruit cutting,
grading, and packing.
Manufacturers:
There are a total of 50 mandals and the total villages are 1005 while Mango processing mandals are
1.Nuzivid, Vissanapeta, Vijayawada, Reddygudem, Nunna, etc., There are nearly 550 units are
located around the districts.
Raw Material Suppliers:
The farmers sell their produce through commission agents to the traders and as well as to the
exporters. Commission agent charges 3-5% as commission from both buyer and seller and payment
risk will be borne by Commission agent and payment is made within mutually agreed time. In
another attempt, Pickle/Thandra manufacturers procure their raw material from farmers through
preharvest contractors/commission agents or from traders.
Enterprise Promotion Councils :

In the Krishna district region, where the different varieties of mangoes are grown and processed
here we don’t find any significant or registered association for, pickle/Thandra processors, and
pulpers but there is one association for traders in Vijayawada other than farmer producer
organizations.
Nationalize banks are extending loans to purchase the machinery as well as towards working capital
to the unitholders.
Marketing players:
• The Agents/ traders/processors during the season normally go to the nook and corner of the
farmer’s farm gate and procure the material and pay the cash.
• The traders/agents who collect the produce from the farmers in each village supply to the
small/big mango processors and Pulp processing industries like Varsha, RMM, Global are the
main players who procure material.
• After the mango is processed into different products like Pickle, Thandra, Pulp, Aamchur,
mango powder, etc., is being sold across the district, other districts, states, and other
countries.
• The major players who deal in the pickle, Pulp and Thandra are
• M/s. Lakshmi Enterprises, UshodayaEntps (Priya Foods), Agri Gold, Telugu Pickles, Radha
Krishna company, Swagruha foods, Annapurna Pickles, Sri Sai home pickles, Vijay Durga
Pickles, Sai ram pickles, SathvikaAnand enters, Gayathri Foods, etc.,

National Food Security Mission (NFSM)
Assistant Target Achievement

Sl. per Unit
Component Unit
No. (Rs. In
Phy. Fin. Phy. Fin.
lakhs)
1 Plant Material Subsidy Ha 0.12 1800 216.00 166.85 24.23
2 Vermicompst Units No 0.15 4 0.60 0 0
3 Dripirrigation Ha 0.24 150 36.05 0 0
4 Drilling of borewells No 0.50 3 1.50 1 0

Supply of diesel engines/
5 No 0.25 3 0.74 1 0
Electric pumpsets
6 Machinery Tools No 29 8.93 5 0
7 Trainings to farmers’ No 0.24 15 3.60 0 0
Trainings to Extension Officials /

8 No 0.36 7 2.52 0 0
workers / input dealers
1st, 2nd, 3rd & 4th year

9 Ha. 0.05 5770 288.50 1000 0
Maintenance
1st, 2nd, 3rd & 4th year Inputs for
10 Ha. 0.05 2760 138.00 500 0
Intercropping
Total 10541 696.44 1673.85 24.23
Major Components under RKVY PROPOSED ACTION PLAN 2021-22

Financial (Rs. In
Sl.No Name of the Component Unit Physical
Lakhs)
MANGO CLUSTER ACTIVITIES
1 Area Expansion Programme Ha. 175 14
2 Canopy Management Ha. 600 36
3 Farm Mechanisation Nos 383 58
4 IPM & INM Ha. 4000 200
5 Fruit Care activities Ha. 12050 371
6 Post Harvest Infrastructure Nos 35023 435
7 HRD Nos 1460 45
Mango Total 53691 1159
CHILLI CLUSTER ACTIVITIES
Integrated Pest
1 Ha. 2000 100
Management (IPM)
2 Protected Cultivation Sq.mt. 33100 240
3 Farm Mechanisation Nos 315 34.5
4 PHM Nos 4001 226
5 HRD Nos 1100 28.40
Chilli Total 40516 628.90
Area Expansion:
Under Area Expansion scheme during 1st year a subsidy of Rs. 7980/- per Ha. for Mango, Rs.
17599/- per Ha. for Guava, Rs. 9602/- per Ha. for Acid lime, Rs. 30739/- per Ha., for Tissue Culture
Banana and Rs. 23160/- per Ha. for Papaya will be provided. The maintenance during the 2nd & 3rd
years for perennial fruit crops will also be provided.
2nd Year Assistance Phy. Ach. Fin. Ach. (Rs.
S.No.
Maintenance (Rs.) (Ha.) In Lakhs)
i Papaya 6165 92.59 5.71
ii Acid lime 3201 17.22 0.55
iii Guava(3x3) 5866 46.31 2.72
v Cocoa in Coconut 4000 21.42 0.86
vi Cocoa in Oil Palm 3200 11.08 0.35
vii Mango 2660 146.88 3.91
viii Cashew 4000 13.96 0.56
xi T.C.Banana 10246 14.98 1.53
xiv Dragon Fruit 110400 6.57 7.25
xv Custard Apple 8471 7.31 0.62
Total 378.32 24.06
3rd Year Assistance Phy. Ach. Fin. Ach.(Rs.
S.No.
Maintenance (Rs.) (Ha.) In Lakhs)
i Mango 2660 176.25 4.69
ii Cashew 4000 18.73 0.75
iii Guava 5866 135.37 7.94
v Acid lime 3201 28.48 0.91
vi Cocoa in Coconut 4000 26.82 1.07
vii Cocoa in Oil Palm 3200 30.55 0.98
viii Apple Ber 2800 1.26 0.04
ix Dragin Fruit 110400 1.45 1.60
x Sweet Orange 3201 2.70 0.09
Total 421.61 18.06
Major Components under APIIATP 2021-22
Target Achievement
S.
COMPONENTS Unit
No. Fin. Fin. (in
Phy. Phy.
(in Lakhs) Lakhs)
I Protected Cultivation
a. Adoption of water
Acre 30 5.40 17.00 3.06
soluble fertilizers
b. ICM & INM in

Ha. 25.18 3.02 25.18 3.02
Horticulture Crops
II Fruit care Activities

a.Mango fruit covers Ha 875 122.43 97.33 13.62
b. Guava Fruit covers Ha 60 5.04 20.00 1.68
c. Fruit pickers Ha 300 10.20 80.00 2.72
Total 1290.18 146.09 239.51 24.10
Major Components under APILIP-II 2021-22
Target Achievement
S.
COMPONENTS Unit Fin (Rs. Fin (Rs.
No.
Phy In Phy In
Lakhs) Lakhs)
Integrated Pest
I Ha. 50 2.50 50 2.50
Management (IPM)
II Fruit Covers Ha. 100 14.00 100 14.00
III Harvesting Tools Nos. 64 1.20 64 1.20
IV Collection Center Nos. 5 18.00 2 0
Agriculture Input
V Nos. 2 18.00 1 0
Center
VI Trainings/ Workshops Nos. 2 3.00 2 3.00
Total 223 56.70 219 20.70
Solar Cold Room
• 75% assistance is provided to the FPOs on the total unit cost of Rs. 12.50 lakhs on 10 MT unit
Integrated Pack House

INPUT SUBSIDY RELEASED TO FARMERS (Calamity wise Details)
Calamity wise Details

Input
Extent Subsidy
Sl. No of
Name of the Natural Calamity Damaged released
No Farmers
(in Ha.) (in
Lakhs)
1 Unseasonal Rains April 2019 13.55 18 3.77
2 Unseasonal Rains May 2019 36.05 211 11.61
3 August 2019 Krishna River Floods 4685.37 9977 844.89
4 Unseasonal Rains April 11th - 2020 11.44 36 3.45
5 Unseasonal Rains April 28th to 30 - 2020 16.87 23 3.43
6 Heavy Rains, Wins & Gales May 2020 15.34 13 1.41
Krishna River Floods & Heavy Rains August
7 33.47 69 5.08
2020
8 Floods and Heavy rains September 2020 748.43 1715 134.92
9 Krishna River Floods October 2020 3317.60 7042 591.92
10 Nivar Cyclone November 2020 316.62 662 61.48
TOTAL 9194.73 19766 1661.96
13.10. Cluster Map:

13.11. Value Chain:
The ODOP of the Krishna district is Mango and it is abundantly grown in this district for decades and
the mango processing industries are located across the mandals of the district. The value addition is
made to mangoes to make different mango Pickles, Thandra and Pulp.
Out of the total production of the mangoes majority of the mangoes are goes for table consumption
i.e. nearly 90-95% and the remaining is diverted for processing industries i.e. Pickle, Thandra and
Pulp, etc.,
Out of the 5-10% of the quantity, Totapuri is the main variety used for processing owing to its
characteristic features and lower price.
The break up is furnished hereunder:
Approximately 66450 tonnes of raw mangoes are diverted towards pickle-making across the district.
There are nearly 500-520 pickle processing units are located in the district out of which 3 units are
operating on a large scale where nearly 7000 tonnes of raw mango is used by each unit for making
semi-finished pickles while 10 units are medium, 50 units are small scale units which are
manufacturing pickles in the district and approximately 450 Micro, Self-help groups, its members
and Swagruha food units are manufacturing different pickles at an average usage of 1 tonne of raw
mangoes per year at their homes.
Thandra industry segment

Ripened mango Total
Size of Industry No of units (Apprx) consumption Consumption
/Year(Tonnes) /year (Tonnes)
Large scale 5 300 1500
small scale 15 30 450
Total 1950
Nearly 1950 tonnes of ripened mangoes are diverted towards Thandra/Jelly-making across the
district. There are nearly 20 Thandra processing units are located in the district out of which 5 units
are operating on a large scale where nearly 1500 tonnes of ripened mangoes are used for making
Thandra while 15 units are small units using 450 (approx) units per year for processing Thandra
across the district.
Total mango production and its diversion and value
The total mango production in the Krishna district is 9.22 lakh tonnes and the majority is diverted for
table consumption and nearly 5000 tonnes are diverted for Pulp manufacturing. Even though YOY
the pulp crushing activity is declining the quantities are supplied for crushing to other districts from
this region. While 225084 lakhs of rupees are traded during the year from this district.

Average Cost and Returns per Quintal of Mango Pickle
The total cost of production of mango pickles per quintals is Rs. 13660, of which 68 percent is a
variable cost, 18 percent is fixed cost and 14 percent is a marketing cost. Net income generated per
quintal is Rs.7760 with a benefit-cost ratio of 1.57.
Unit: Rs/Quintal
Sl.N Particulars Quantity Average Rate Cost Percent to
o (kgs) (Rs./kg) (Rs.) Total
Variable Cost
I. Raw Materials
1 Mango 100 25 2500 18.30
2 Salt 15 20 300 2.20
3 Fenugreek Powder 2.5 150 375 2.75
4 Turmeric Powder 1.5 70 105 0.77
5 Red Chilli Powder 1.5 130 195 1.43
6 Clove 2.5 180 450 3.29
7 Black Pepper 1.5 280 420 3.07
8 Cumin 1.5 110 165 1.21
9 Mustard Oil 25 120 3000 21.96
10 Asafetida 2 150 300 2.20
II. Packaging Material
11 Polythene bags 400 1.5 600 4.39
III Labour Cost 0
12 Labour Charge (No. and 5 180 900 6.59
Rs./100kg)
IV Fixed Cost
13 Rent Value of Building (Per 2500 2500 18.30
Month)
V Marketing Cost
14 Transportation (Rs.) 350 2.56
15 Marketing Cost (Rs.) 1500 1500 10.98
VI. Total Cost 153 13660 100.00
VII. Total Revenue 153 140 21420
VIII. Net Income 7760
IX. Benefit-Cost Ratio 1.57

Strength Weakness
• There is a gradual rise in the demand for • Always there are fluctuations in the raw
pickles, Thandra, and pulp across India material prices.
as well as overseas. • Mango Pickle/Thandra making is a
• Increasing demand for organically seasonal business, as mangoes are not
cultivated mangoes and their products available throughout the year.
• A strong online presence is an added • For mango pickle-making business from
advantage for mango products. home requires a place and storage
• Less capital investment is required to tanks/barrels for storage with the
start the mango pickle/Thandra-making preservation.
unit and requires no special training.
Threats Opportunities
• Have a tough competition for the • There is a gradual growth in the Food
products in the market Processing Industry
• Competing substitutes such as lemon • The growing number of hotels and
pickle, mixed pickle, chilli pickle, etc. restaurants and Pickle/Thandra/Pulp
products have the opportunity in selling
at grocery stores, malls, food mess,
canteens, etc.
• Mango Pulp/Thandra/pickle-making
business has the scope of arranging stalls
at exhibitions, retail shops, selling door
to door, etc, and online also.
• Mango products have good export
demand.

National Benchmarking
A Case Study on Pickle Manufacturer in Dadra and Nagar Haveli
This is the story of Shankar Pickles, a micro-unit from Silvasa Head Quarters in Dadra and Nagar
Haveli Union Territory.
Name of the Organization Shankar Pickle
Founded By Shankar Patel
Started In 2001
Number of Persons Involved 5
Manufacturer Praveen Shankar Patel, Dhokwadi, Silvasa, Dadra,
and Nagar Haveli
Formed and Support By None (Individually Established)
Training Received On None
Turn Over Per Annum Rs.8,00,000
Net Profit Per Annum Rs. 2,50,000 to 3,00,000
Shankar pickles were founded in 2001 by Shankar Patel with family members in Dhokwadi, Silvasa
headquarters in Dadra, and Nagar Haveli U.T, he started the business on his own without any
support from the government. Now his son Praveen Shankar Patel is looking towards the business
with his family and they are doing a transaction of Rs.8,00,000 per annum with a net profit of
Rs.2,50,000 to Rs. 3,00,000. They use to sell the pickles in polythene covers without packaging,
labeling, and branding.
Types of Pickles and Average Monthly Sale of Pickles
Sl.No Type of Pickle Average Monthly sale (in Kgs) Price (Rs./Kg) Monthly Turn over (Rs.)
1 Mango 350 120 42000
2 Lemon 120 120 14400
3 Chilli 150 120 18000
4 Mixed 100 120 12000
5 Total 720 86000
International Benchmarking
Stakeholder meetings were conducted in Vijayawada of Krishna district
The below table shows the number of stakeholders met from various sectors.
• Stakeholder meetings and workshopswere conducted to explain the benefits of the PMFME
scheme and also discussed with different stakeholders.
• During the discussion, most of the stakeholders are happy with the scheme and expressed
that they want support from the government to upgrade their existing units in terms of skill
development of workers, purchase of machinery, packaging, branding, and marketing.
• Major problems identified during the discussion are; Nonavailability of testing facilities, land
for processing, lack of finance with stakeholders, no common facilities available, packaging,
branding, and marketing.
SN Name Designation Department with Address Phone No

1 Mr. A Sudhakar General Manager DIC NA
2 Mr. Srinivas Rao Deputy Director DIC 8074443259
3 Mr. Ravi Kumar Deputy Director Horticulture 79950 87045
4 Mr. Vijay Kumar Director SERP 9849901077
5 Mrs. GVS Janki Official SERP 9849900741
6 Mrs. Kameshwari Official SERP 9908132058
7 Mr. VenkataRao Asst Project Director DRDA 9866343924
8 Mr.SeshagiriRao GM, Priaya foods Modern Trade 9394112111
9 Mr. KLN Prasad Category Manager Spencer’s Retail 9346761230

Gaps Remarks
Skill Training • Mango processing methods, Food safety standards, Export

Documentation, Packaging, Branding, and Marketing are the
required training areas.
Technology • Since processing is not much evolved, technology is not much

evolved.
• With regarding Mango processing, there is a clear opportunity to
bring in Grading/Packaging/Primary processing, so that
farmers/traderscan get higher benefits.
Manufacturing • No Aseptic pulp manufacturing units are established in the Krishna
district, but in this district, there is a good scope and potential to
build mango processing due to the availability of raw material and
human resource
Solar dryers: • There are nearly 20 units in the Krishna district and they make
about 750- 1,000 MT of jelly during the season. Farmers require
solar dryers at a subsidized price to improve the hygiene and
quality of the products. The main drawback in this aspect is the
open drying of mango jelly. If the drying can be taken up in hygienic
conditions get better than the present price. To get a better price
for mango processors they require solar dryers for a drying capacity
of 1.50 MT at a time. The estimated cost of this is Rs 14.25 lakh for
each dryer.
Finance • Financial support to mango farmers & processors and local traders
will boost and encourage them to start the processing of Mango.
Access to • There is no institutional mechanism for accessing knowledgeable
Mentorship/Service mentorship. The directorate of industries can leverage its
technology based on an extension in creating this mentorship.
Infrastructure • Public infrastructure like roadways, railways, and airways are well
-Public Infra, established in Krishna District
Common Facilities, • There are no proper common facilities such as Ripening chambers,
Testing Facilities, cold storage, warehouse for mango processors and traders.
Safety Standards • Micro and small processors are facing marketing issues.
• There are no proper testing laboratories in District
• Major pickle processors are not following food safety standards
Mediator’s .
exploitation • In the absence of a direct link with the consumers, the farmers and
processors are at the mercy of the middlemen. This makes
middlemen very powerful and the farmers often find themselves at
a disadvantage despite being the producers. In the Krishna district,
it’s profitable for them to form a cartel and deliberately decrease
the bids, pushing prices lower.
• To combat the exploitation of farmers and processors, we need to
take active policy action to increase farm productivity, post-harvest
technology, and better storage facilities. If we want the consumer
to pay less and the farmer to gain more the role of private sector
role has to be enhanced by setting up private mandis where farmers
can come and sell their crops directly.
Rating of Response Count
• Public infrastructuremajority of respondents expressed that they are having good public
• Access to Common Facilities majority of respondents expressed that they are having
moderate access to common facilities such as grading, sorting, packaging, etc within the
district.
• Access to Testing Facilities majority of respondents expressed that they are not having good
testing facilities in their respective units.
• Skill training needs the majority of respondents are semi-skilled laborers and expressed
need for training to improve their skills.
• Technologies Availablemajority of the respondents opined that they are not having modern
technologies and expressed that they need training on post-harvest technologies.
• Access to finance most of the respondents are seeking finance to upgrade their existing
units and currently, they are having poor access to finance.
• Access to mentorship/ servicemost of the respondents are seeking for good mentorship to
expand their business and to improve their livelihood.
• Awareness of Govt Policies among micro /small manufacturesmajority of them are not
• Awareness on ODOP product of the District majority of them are not aware of ODOP
product in district
• Marketing/sales facilitiesmost of them are expressed that they need proper training on
A - Public infrastructure such as roads for backward and 9 5 45 277 72 408
forward linkages
B - Access to common facilities such as grading, sorting, 15 11 164 168 50 408
packaging, cold chain facilities, etc.
C - Access to testing facilities 18 27 228 131 4 408
D - Compliance to standards and the frequency of 19 13 121 248 7 408
E - Skill training needs 33 8 208 155 4 408
F - Manufacturing practices 8 4 188 151 57 408
G - Technologies Available 14 11 208 121 54 408
H - Access to finance 18 12 232 142 4 408
I - Access to mentorship/ service 59 5 169 172 3 408
J - Awareness on Govt Policies among micro /small 63 115 179 48 3 408
manufactures
K - Awareness on ODOP product of the District 362 1 1 10 34 408
L - Marketing / sales facilities 8 3 36 255 106 408
M - Facilities to the workers 36 0 1 13 358 408
17. Recommendations:

Vision Statement:

• The state government should support the mango processing enterprises like Thandra makers
with providing driers, crushing machines for the up-gradation of technology since the
unitholders at present are drying the pulp naturally under the hot sun so there is badly
needed for new technology to improve their existing business like :
With the new driers, the labor problem can be reduced since the labor is not willing to work under
the hot sun for drying the mango pulp in making the Thandra and the quality is also likely to
improve. With the less skilled labor, the output will be more and the labor shortage/ crunch will go
away manufacturing costs will come down drastically and the quality of the products is going to
improve hygienically and also production will improve (Quantity wise)
Objectives
• Upgradation of existing micro-enterprises by providing technology, training on skill

Under this scheme, credit link subsidies are offered by the AP FPS department against the loans
issued by the financial institutions/banks to the individual enterprises, Self-help groups, and
common infrastructure unitholders

inLakhs)
SHGs 0.40 Combined need of SHGs put together
Common Infrastructure (incubator) 4 100 The high potential that this common
lines infrastructure will be successful
Training, Branding & Marketing 65 There is a lot from Krishna to be
marketed. Training goes hand in
hand
Incubation Center
Incubation Center shall be the processing cum incubation facility based on ODOP along with 2-4
allied product lines. The Incubation Center should have a minimum of three processing lines and a
maximum of five processing lines to be funded from the PMFME Scheme. The Incubation Center will
be made available for the end-users on a custom hiring basis for startups and smaller food
processing units. But it should run on a commercial basis for full utilization of installed capacity. The
Incubation Center shall have the complete processing lines as per the standard norms. The
space/area for any Incubation Centers should be a minimum of 7000 sq. ft.
Cost norms for setting up Incubation Center at Krishna District

As a special case, if the host institute does not have building infrastructure for Incubation Center
shall be supported by PM FME Scheme with the grant of Rs.1.0 crore (Rupees One crore only) for
construction of buildings.
Basic estimated Fund required for Training, Branding, and Marketing of Processed Products

Labeling/ Packaging
Krishna District Mango product awareness /Within
District 65 lakhs
Krishna District Mango product awareness /Outside
district
Total
Fund Requirement for Individuals
We have identified 105 individual enterprises(we have taken turnover criteria of 1 crore to classify
our respondents as micro-enterprises)so accordingly out of the 408 samples we have surveyed 315
samples are falling under ODOP micro-enterprises. Since the number is few, we are giving the details
of their requirements. Summarily, they fit well into the bracket of “Max of 35% of the total
requirement, not exceeding Rs. 10 lakhs”.
ODOP Units in Krishna District (Primary Survey)
Sl.No Particulars Respondent

Count
1 Micro 154
2 Household 76
3 Small 69
4 Medium 16
5 Total 315
Sl.No What for No. of Approximate Subsidy (Rs.in Lakhs)

Respondents amount (Rs. in Individual
Crores)
I Micro
3 Godown 4 0.073 2.5
4 Packaging 16 0.08 2.7
Material
II Household
III Small
3 Godown 7 0.129 4.52
4 Packaging 29 0.14 4.98
Material
IV Total 105 0.834
Common infrastructure –
Establishing a pulp unit requires nearly 13-15 crores if it is an aseptic unit and it requires 6-7 crores
for establishing a canning unit. Generally, mango processing is done in season for 60-75 days only
and the major companies normally do not have processing units in the Krishna or Chittoor district
they supply raw material to the processing units and get it job work done.
In Krishna district, Nuzivid is the right place where the common infrastructure is suggested since the
raw material is available on large scale and the big farmers, traders can go for job work.
Aseptic
S. No Descriptiion tons/day Cost ( INR)
1 Machinery 140 8 cr
3 Land & Vehicles 3 CRS
Caning industry
1 Machinery 140 0.8 cr
3 Land & Vehicles 3 crs

industries, associations, testing agencies, traders, farmers, and processors are necessary to enable
the above-suggested processing to happen and the cluster to develop.

2 Storage DIC and Financial Institutions required for the
3 Boiler/ cutter/ sortex Packaging Machine DIC and Financial Institutions required for the
4 Extension Services Proper training facility from State Agri/Horti
universities
Beauty of product
Natural/organic
Sugar content
sustainability of small firms is important as they constitute the majority of the total firms.
Since the small firms are viable, support and incentive should be given to them so that they
overcome the problems.
• The cooperative societies should be set up to help the small firms to increase their access to
the international market and realize a higher price for their output.
harvesting packaging, storage, grading, etc. This wastage can be reduced to some extent
through proper and scientific methods Post-harvest management can be considered as a
second production operation to add value to the products.
• While processing the pickles the semi-finished pickle is stored in plastic barrels. Pickle units
are in badly need of plastic barrels or storage tanks for storing the semi-finished/salted
pickles and the semi-finished produce is taken as and when required in necessary quantities
for manufacturing the pickles. The Agency can support the small and micro pickle units by
providing mixer machines for easy making of pickles at subsidy prices
• Packaging fresh mango pickles/Thandra/pulp is one of the most important steps in the long
and complicated journey from grower to consumer. Bottles, aseptic bags, covers, cartons,
barrels, crates, baskets are convenient containers for handling, transporting, and marketing
fresh produce. Packaging of fruits in standard containers is one way to reduce cost,
• The number of self-help members can form a cooperative society and market their products
like pickles, Thandra, pulp they can supply to the other districts, states, and can export to
other countries.
• Govt should promote mango product sales by organizing exhibitions, stalls.The government
of Andhra Pradesh should allow the processors/SGH’s/ to exhibit their products like Mango
pickles, Thandra/Jelly, hydrated mango slices, Amchur, etc., in food festivals in Vijayawada
and other cities every year. They have to extend financial assistance towards capital
expenditure like procuring raw materials, storing material, opening outlets/showrooms to
operate their products.
• For the Thandra/jelly manufacturers government should provide the boilers, pans, air
dryers, & packing machines, etc., at subsidy prices for the smooth running of the business.
At present they are heating the pulp normally which is not hygienic. Also, they support the
Thandraunitholders by providing cutting machines. Since there are more untapped markets
for Thandra in Telugu states, creating awareness in the untapped districts can promote
Thandra sales.
• Transportation subsidies can offer to the farmers/traders during the raw/ripen mangoes are
trading at significantly lower prices
Other Project Strategy & Interventions
• With the support of state government policies, the value chain of mangoes can be further
improved. Improvement of food processing units, educating farmers on the utilization of
modern technology, and removal of middlemen.
• Self Help groups and NGOs in the state must promote mango processed products like pickles
to strengthen the value chain. Policy suggestions, training to mango growers at the time of
harvesting, encouraging investments in the value chain processors to reduce post-harvest
loss, and provide advance credit or loan facilities should be the norm.
• Mango growers in the state are facing problems owing to the erratic climatic conditions,
high cost of cultivation, and lack of support in providing the minimum support prices, and
remunerative prices for farmers.
• The absence of mechanized grading systems has left the farmers with manual methods.
They also face constraints when it comes to the availability of packaging material and
unscientific pre and post-harvest management, limited processing units close to mango
growing areas, lower production of a suitable variety of processing mangoes, lack of quality
and suitable variety, lack of transportation, and storage facilities, among other issues.
• Increasing the finances for mango production, improving efficiency and repayment of loans,
strengthening linkages among participants in value chains are badly needed.
• The state government should be helping in providing market intelligence to the farmers
which, in turn, will strengthen the value chain of mangoes.
• The government and cooperatives need to develop the processing units in the mango
growing areas. This will help processors purchase raw materials at a reasonable price.
• The majority of the consumers purchase both fresh/table consumption as well as processed
mango products from local retail shops. Since there is a scope for value addition and
demand for value-added products of mango, the government and other agencies must take
up initiatives for strengthening this value chain by establishing processing units in the
production belts as well as provide the required institutional arrangements for domestic and
export promotion of value-added products of mango.
• The mango value chain analysis is a market-oriented approach. It is important to understand
that all the stakeholders along a particular value chain co-operate and coordinate their
activities to fulfill the needs of the end consumer.
Contents
Section 1.............................................................................................................................................. 305
A. Agriculture profiling of the state ................................................................................................ 305
(aps.dac.gov.in, 2019-20) ................................................................................................................ 305
B. Profiling of the existing micro enterprises ecosystem in the state ............................................ 305
C. Food processing policy in the state ............................................................................................ 305
Section 2.............................................................................................................................................. 309
1. Agriculture profile of the district ................................................................................................ 309
a. Agricultural produce chosen as ODOP ........................................................................................ 309
1. Total production and Acreage of the produce in the district ................................................. 309
2. ODOP produce as a percentage of the total agricultural produce of the district ................... 309
3. Perishable nature of the produce ........................................................................................... 310
4. Production of ODOP agriculture produce in that district compare to other district and states
.................................................................................................................................................... 310
b. Food product chosen as ODOP ................................................................................................... 312
Total estimated production of the food product or its category chosen as ODOP .................... 312
2. Identifying Non-ODOP product ................................................................................................... 312
3. Industrial profiling ....................................................................................................................... 312
1. Mapping of the micro, small, medium and large industries in the district involved in food
processing in the district ............................................................................................................. 312
2. Number of clusters or locations (If any) where of this product happens ............................... 313
ODOP products ........................................................................................................................... 314
4. Approximate level (%) of processing happening for ODOP in the district .............................. 316
5. Number of Self help groups, Farmer producer organization and cooperatives currently
engaged in the processing of this product.................................................................................. 316
4. Profiling of existing micro enterprises ecosystem for the district .............................................. 317
1. Specific of the local agricultural produce/food product, varieties available, seasonality,
uniqueness, history etc. .............................................................................................................. 317
2. Infrastructure .......................................................................................................................... 317
3. Support infrastructure ............................................................................................................ 318
4. Testing ..................................................................................................................................... 318
5. Value chain\channels of movement ....................................................................................... 318
6. Manufacturing process ........................................................................................................... 320
7. Marketing ................................................................................................................................ 322
8. Quantum of sale of this product to the districts, states and exported to other countries .... 324
9. Institutional support ............................................................................................................... 325
Section 3.............................................................................................................................................. 325
1. Methodology note for primary data collection .......................................................................... 325
1.1 Individual in-depth interviews .............................................................................................. 326
1.2 Stakeholder consultation ...................................................................................................... 326
1.3 Focus group discussions ........................................................................................................ 328
2. Cluster analysis and discussion ................................................................................................... 328
2.2 Skill development required ................................................................................................... 329
2.3 Product cost analysis............................................................................................................. 329
2.4 Firm level issues of micro enterprises................................................................................... 330
2.5 SWOT analysis ....................................................................................................................... 331
2.6 Need assessment and Gap study .......................................................................................... 331
3.1 Vision statement and key objectives .................................................................................... 332
3.2 Strategy for integrated development ................................................................................... 332
3.3 Proposed interventions......................................................................................................... 333
3.3.1 For capital investment in plant and machinery ................................................................. 333
3.3.2 For common infrastructure and incubation center ........................................................... 334
3.3.3 Branding and marketing..................................................................................................... 334
4. Key impacts ................................................................................................................................. 334
Section 1
A. Agriculture profiling of the state
S.No Category Area Ha % share in Production % share in total
(lakhs) total area MT (lakhs) production
1 Agronomic crops 58.8 85% 210.2 45%
2 Horticultural 10.0 15% 257.4 55%

crops
3 Total 68.8 100% 467.6 100%
% Share in the total area of the % Share in total production of the

crops in the state crops in the state
15%
Agrnomic crops Agrnomic

45% crops
Horticultural 55% Horticultural
85% crops crops
B. Profiling of the existing micro enterprises ecosystem in the state
C. Food processing policy in the state

S.No Scheme Incentives as per industries policy 2020-2023
1 Investment Subsidy Micro and Small Enterprises: 15% upto Rs. 20 Lakhs
Farmer Producers Organization (FPs):35% upto Rs. 50 Lakhs
BC/Minority Communities (Women): 35% upto Rs. 50 Lakhs
SC/ST Entrepreneurs:45% Limited to Rs. 1.00 Crore for

Women and Men
2 Interest Subvention Micro and Small Enterprises:3% for 5 Years
Farmers Producers Organization (FPOs):3% for 5 Years
BC/ Minority Communities (Women):3% for 5 Years
SC/ST Entrepreneurs:Upto 9% over and above 3% for 5

Years
3 Power cost Micro and Small Enterprises:@1.00 Per Unit for 5 Years
Reimbursement
Farmers Producers Organization (FPOs):@1.25 per unit for 5
Years
BC/ Minority Communities (Women):@1.25 per unit for 5

Years
SC/ST Entrepreneurs:@1.50 per unit for 5 Years

4 Stamp duty and 100% Reimbursement for MSEs, FPOs, BC/Minority
Transfer duty for Communities (Women) and SC/ST Entrepreneurs
purchase of land,
Lease of Land/
Shed/Buildings,
Mortgage and
Hypothecation duty
5 Land Conversion 25% Land Conversion Charges upto Rs. 10 lakhs for MSEs,
Charges FPO, BC/Minority Communities (Women) and SC/ST
Entrepreneurs
6 Land Cost rebate 50% rebate in land cost upto Rs. 20 Lakhs for FPOs, BC/
Minority Communities (Women) and SC/ST Entrepreneurs.
7 SGST Reimbursement FPOs, BC/MinorityCommunities (Women) and SC/ST
(for a period of 5 Entrepreneurs:Reimbursement of 100% net SGST for 5 Years
Years)
8 Quality Certification / SC/ST Entrepreneurs:100% of cost incurred limited to Rs. 3

Patent Registration lakhs
9 Seed Capital SC/ST Entrepreneurs:25% of machinery cost for micro units
Assistance
10 Other Common 16.2% of Plots for SC Entrepreneurs
Initiatives
6% of plots for ST Entrepreneurs in industrial parks

Stamp duty and Transfer duty Reimbursement of 100% stamp duty and transfer duty
Industrial use & ease of
land/shed/buildings,mortgages and hypothecations
Uninterrupted Power GoAP is committed to supplying uninterrupted 24x7
quality power to allindustries operating in the
stateFixed power cost reimbursement @ ₹1.00 per
unit for five yearsfrom the date of commencement of
commercial Production.
Subsidy on Fixed Capital 15% Investment Subsidy on Fixed Capital Investment
limited up to ₹20lakh, whichever is lower. The subsidy
Investment
will be released only after 3 yearsof continuous
operation with at least 80% efficiency in all
parameters i.eemployment, production, etc.
capital investment bynew Micro and Small enterprises
for 5 years from the date ofcommencement of
commercial production.
SGST Reimbursement of 100% of net SGST accrued to state
for a period of 5years from the date of
Land conversion charges Reimbursement of 25% land conversion charges for
Industrial use limited to ₹10lakhs.
Industries
Uninterrupted Power 100% Reimbursement of net SGST accrued to the

State for 5 years or100% fixed capital investment,
whichever is lower, from the date of commencement
ofcommercial production, linked to employmentIf
direct employment generated is < 1000 SGST
reimbursement is 50%, for 1000 to 2000 is 75% and
for 2000+ is 100%
Name of Policy: Special Package for Women Entrepreneurs belonging
to
stamp duty and Transfer duty 100% reimbursement of Stamp duty and transfer duty
industrial use & Lease of Land/Shed/Buildings
andmortgages and hypothecations.
Rebate in land cost 50% rebate in land cost limited to 20 lakhs in Industrial
Estates/Industrial Parksfor MSEs.
Land conversion charges 25% Land conversion charges for industrial use limited
to 10 lakhs for MSEs.
Power cost reimbursement Fixed power cost reimbursement @ 1.25 per unit for 5
years from the date ofcommencement of commercial
production.
Subsidy on Fixed Capital 35% investment subsidy on fixed capital Investment
limited to Rs.50 Lakhsfor MSEs. The subsidy will be
Investment
released only after 3 years of continuousoperation
with at least 80% efficiency in all parameters i.e
employment,
production etc
Interest Subsidy Interest subsidy of 3% on the term loan taken on the
fixed capital investmentfor 5 years from the date of
commencement of commercialproduction for MSEs.
Enterprises for aperiod of 5 years from the date of
commencement of commercial productionor up to the
enterprises for a period of 5years from the date of
yearsfrom the date of commencement of commercial
production or up torealization of 100% fixed capital
investment, whichever is earlier.
Plots for SC Entrepreneurs 16.2% of plots for SC Entrepreneurs and 6 % of plots
for ST Entrepreneurs inthe industrial parks will be
reserved and allotment will be done as per theAPIIC
allotment guidelines
(MSME AP, 2020)
Section 2
1. Agriculture profile of the district
a. Agricultural produce chosen as ODOP
1. Total production and Acreage of the produce in the district

In 2109-21, Onion crop was grown in 20.37 thousand Ha with the production of 3.51 lakh
tons in the Kurnool district. Kurnool districts stands top in the production of the Onion crop
in the state.
Area and the production of the onion in the district
351.2
20.377
Area Production
2. ODOP produce as a percentage of the total agricultural produce of the district

The total agricultural production in the Kurnool district in 2019-20 is 42.18 lakh tons. Onion
crop production in the district for the year 2019-20 is 3.51 lakh tons which are 8.3% of the
total agricultural crop production in the district.
% share of Onion production in the total agricultural production in the
district
8.3
Onion production
Total agricultural production
91.7
3. Perishable nature of the produce

Particulars Fresh Refrigerator
Onion
Dehydrated onion 6 months
Onion flakes 3 to 6 months
Onion paste 3 months
Pickles 6 months 2 years
4. Production of ODOP agriculture produce in that district compare to other

district and states
Total production of Onion crop in Andhra Pradesh for the year 2019-20 is 4.6 lakh tons
Among all the districts producing the onion crop, Kurnool district is the highest producer of
the onionwith 74.8% % of the total crop production in the state followed by YSR Kadapa
district 10.3%, Anantapuramdistrict 7%, and rest of the district contribute 7% total crop
production respectively.
Districts Area Production % Share in Area % Share in production

Srikakulam 130 3079 0% 1%
Vizianagaram 112 2652 0% 1%
Visakhapatnam 122 2889 0% 1%
East Godavari 176 2822 1% 1%
West Godavari 0 0 0% 0%
Krishna 0 0 0% 0%
Guntur 201 4760 1% 1%
Prakasam 414 9983 2% 2%
SPSR Nellore 4 24 0% 0%
Chittoor 377 6470 1% 1%
YSR Kadapa 3803 48146 14% 10%
Ananthapuram 1617 37256 6% 8%
Kurnool 20377 351238 75% 75%
Andhra Pradesh 27333 469319 100% 100%
% share of districts in the Onion production in the state
7
7.9
Kurnool
10.3 YSR Kadapa
Anantapuram
Other districts
74.8
Onion production in the different states in India
Maharashtra, Madhya Pradesh, Karnataka, Bihar, and Rajasthan are the top five states in
India in terms of producing the Onion crop. Andhra Pradesh is the 6 th largest producer of
onion in India. Kurnool is the largest producer of Onion in Andhra Pradesh.
S. No State 2017-18
Production (000 Share %
Tones)
3 Karnataka 2986.5 12.85
4 Bihar 1240.5 5.34
5 Rajasthan 996.7 4.29
(National Horticulture Board , 2017-18)
% share of the states in the Onion production in India
Maharashtra
19.57
Madhya Pradesh
38.09 Karnataka
3.94
4.29 Bihar
5.34 Rajasthan
Andhra Pradesh
12.85 Other states
15.92
b. Food product chosen as ODOP
Total estimated production of the food product or its category chosen as ODOP
Due to no scope for the marketing of the onion-based processed products in the district, the
processing of the selected ODOP in the district is not there currently, no units are working
on the processing of the ODOP of the district.
2. Identifying Non-ODOP product

Paddy, Chickpea, sunflower, groundnut, sorghum are the major crops cultivated crops apart
from the onions cultivated in the Kurnool district.
Crop Area in (Ha) Production in MTs

Paddy 121473 721808
Bengal gram 155952 198527
Minor millets 8405 3967
Groundnut 950073 166896
Sorghum 55421 94490
3. Industrial profiling
1.Mapping of the micro, small, medium and large industries in the district
involved in food processing in the district
In the year 2018-19, there are 125 large and medium scale industries are working in the
district with 70206 and 25660 male and female workers respectively. Coal, Sugar, cotton,
Chemical fertilizers, Drugs and Pharmaceuticals, edibles oils PVC pipes, cement concrete
sleepers, granite slabs, etc are the major products produced from the industries. There
are 1753 Mandal-wise working factories registered under the factories act-1948 in the year
2017-18 with 126442 male workers and 28971 female workers.
Small scale industries-2017-18
S.No Category No. of units Capital Employees

investment(Rs.
In lakhs)
Male Female
1 Micro enterprises 322 2957 1912 956
2 Small enterprises 268 200408 3244 1620
3 Medium enterprises 12 7884 983 491
Total 602 31249 6139 3067
Small scale industries- 2018-19
S.No Category No. of Capital Employees

units Investment Male Female
(INR in Lakhs)
1 Agro industries 89 1321 704 152
2 Mineral industries 176 3905 1287 152
3 Engineering industries 38 587 238 12
4 Food based industries 138 1242 694 323
5 Chemical based 6 441 18 4
industries
6 Textile based industries 85 3702 576 304
7 Plastics based industries 65 671 284 148

8 Power based industries 0 0 0 0
9 Rubber based industries 0 0 0 0
10 Miscellaneous 288 6675 688 116
Total 885 18544 4489 1211
(Kurnool statistics Handbook, 2019)
2. Number of clusters or locations (If any) where of this product happens

There is no cluster in processing the Onion crop in the region which is the ODOP product of
the Kurnool district. The traders who purchase the crop from the farmers performs the
primary processing like sorting and grading before exporting the crops to other districts and
likes like Telangana, West Bengal etc. Traders cluster can be observed in the Kurnool city.
3. Number of units engaged with producing the specific ODOP product and 4-5
major non-ODOP products
Total 284 enterprises visited during the primary survey and among the total food processing
units in the Kurnool district 21 units are processing the ODOP of the district and 263 units
are operating on the Non-ODOP of the district. The processing of ODOP in the district only
includes primary processing like sorting and grading.
Enterprises ODOP Non Total

Number of ODOP processing units
ODOP
Household 2 1 3 249
Medium 2 1 3
Non ODOP
Micro 16 249 265
ODOP
16 12
Small 1 12 13 1 2 1 2 1
Total 21 263 284
Number of workers engaged in the ODOP and Non ODOP processing:
Among the total workers engaged in the processing of the ODOP and Non-ODOP, 88% of the
total employees are working in the micro food processing units, 10% of the workers are in
the small enterprises and 1% of the workers are working in the medium and household
enterprises each.
Enterprises Total Male Female % share in the employment

employees workers workers contribution
Household 11 8 3 1
Medium 12 8 4 1
Micro 1418 824 598 88
Small 167 112 55 10
Total 1608 952 660 100
Total number of workers engaged in processing of ODOP and Non
ODOP in the district
1418
824
598 Total employees
Male workers
167 112 Female workers
11 8 3 12 8 4 55
Household Medium Micro Small
Turnover and employment
Among the total turnover from the Non-ODOP processed products in the Kurnool district,
81% is contributed by the micro food processing units, 19% is from the small enterprises,
very negligible amount of the total turnover of the processed from the non-ODOP is
contributed by the household enterprises and medium enterprises.
Enterprises Number of Turnover % share in the total turnover

units (Lakhs)
Household 1 3.0 0
Medium 1 20 0
Micro 249 17965 81
Small 12 4163 19
Total 22151 100
Employment
Among the total employed in the Non-ODOP processing, 89% of the total workers are
contributed by the micro food processing units, 11% of the employees are working in small
enterprises and very few of the employees are working in the household and medium
enterprises.
Enterprises Total Male Female % share in the employment

employees workers workers contribution
Household 4 3 1 0
Medium 3 2 1 0
Micro 1338 782 560 89
Small 165 111 54 11
Total 1510 898 616 100
Mode of Operation
Among the total food processing units surveyed in the Kurnool district, 87% of the total food
processing units are operating in the proprietorship mode, 7% of the units are operating in
the partnership mode and 4% of the surveyed sample are farmers involved in the primary
processing and 1% of the sample is the household level processors.
Enterprises Count of % share of the

Mode of operation
ODOP/Non enterprises
ODOP Household Partnership
Proprietorship Farmer
Household 3 1
0% 1%1%
Partnership 21 7 4% 7%
Proprietorship 246 87
Farmer 10 4
Lease 1 0
Others 3 1
87%
Grand Total 284 100
4. Approximate level (%) of processing happening for ODOP in the district

There is no processing of the onion crop in the district which is the ODOP of the district.
Famers are selling the crop to the traders who will sell the crop to distributors and retailers
after primary processing like sorting and grading.
5. Number of Self help groups, Farmer producer organization and cooperatives

currently engaged in the processing of this product
There are no Self-help groups (SHGs) and farmer-producing organizations (FPOs) engaged in
processing the onion crop in the Kurnool district. Few FPOs who are cultivating the crop are
directly selling the produce to the traders in the districts.
4. Profiling of existing micro enterprises ecosystem for the district
1. Specific of the local agricultural produce/food product, varieties available,

seasonality, uniqueness, history etc.
Onion is one of the important crops grown in the Andhra Pradesh state and Kurnool district
stands top in terms of producing the onion crop in the state. Onion is mainly used as spices
in the curries preparation in the households. No special nature is associated with the onion
crop and Kurnool district.
2. Infrastructure
Horticulture department of Kurnool provided subsidy for the construction of the “onion
storage sheds” for the onion crop growers in the district for the storage of their crop under
the scheme “RashtriyaKrishiVikasYojana”.
The horticulture department of Kurnool provided the Solar drier for the preparation of the
Onion flakes to the FPOS under the scheme but due to lack of the marketing facility and low
shelf life period of the onion variety grown in the Kurnool region the unit was closed
currently.
a. Essential machinery or facilities required for the production of the product

Machinery, Warehouse facilities are the essential infrastructure required for processing and
storing the raw material.
b. Existing level of mechanization for ODOP processing within district, in other

districts states
Below are the machinery listed are used for processing the ODOP products and Non ODOP
of the district. Apart from the machinery, vehicles are required in the movement of the raw
material from the farmers, distributors, and retailers and processed products to the
wholesalers, retailers, and consumers.
S. No Machinery
Onion Flakes
1 Solar conduction dryer
2 Fixed bed dryer
3 Combo cutter
Decorticator
1 Vibrator Pre-Cleaner machine
2 Decorticator machine
Peanut oil
1 Expeller
2 Solvent extraction
3 Cross tube boiler
Puffed rice
1 Rice puff making machine
Packaging machine
c. Additional infrastructure and amenities required

Warehouses and testing facilities are the other essential infrastructure required for the
ODOP processing enterprises in the district. There are no testing facilities for the processing
units in the district. There are warehouses for the few enterprises in the district but the
majority of the units requested for the warehouses in the primary survey.
3. Support infrastructure
Kurnool district is well connected with the road and railway transport with the neighboring
districts and within the district. There is no shortage of the electricity and water supply to
the processing units in the district and Kurnool onion market is one of the largest onion
market in the India and the biggest market in Andhra Pradesh state. Majority of the crop
produced in the district is traded in the Kurnool onion market in the district. There are no
common storage and transport facilities for the primary processor and for the farmers in the
district.
4. Testing
There is no test done for the ODOP and Non-ODOP products processing in the district. The
processing of the ODOP product in the district is very less due to the unavailability of the
marketing and the Non-ODOP like groundnut, Bengal gram, sorghum, rice are processed
into different products like flour, puffed rice, fried gram are not undergoing any test under
any of the organizations like FSSAI.
5. Value chain\channels of movement

Onion crop:
Trader/ Consum
Commsissio Distribut
Farmer Exporte Retailer er
n agent or
r
Puffed rice:
Bengal gram flour and Bengal fried gram:
Groundnut decorticators:
6. Manufacturing process
a. product range
➢ Onion flakes
➢ Onion slices
➢ Groundnut oil
➢ Puffed rice
➢ Bengal gram flour
➢ Bengal fried gram
b. Production process and technology
Onion Slices
Weighin
Tempera Grading
Raw Washing Drying- g,
ture- and
material and Slicing 5 layer Packing
Equalizi color
-Onion peeling air dryer and
ng sorting
Storing
Onion flakes and powder:
Slicing
Grading, (Size Tray drying
Blanchin Osmosis
Harveste stem reductio of onion
g (80° C 1-3% Onion
d cutting n 1/8- slices (50- Packing
for 5 brine, 30 Flakes
(Onions) and 1/4’’ 70°C 8-10
minutes) min
peeling thicknes hours)
s)
Thin flaked rice
Groundnut oil extraction
7. Marketing
Processed onion products in the district:
➢ Onion flakes
➢ Onion powder
From the primary survey it is observed that below 1% of the total onion production in the
district is processed into the different products like Onion flakes and Onion powder.
Majority of the Onion crop produced in the district is exported to other districts in the states
and other states like Telangana, Tamilnadu and West Bengal.
Market linkages:
Onion crop
Commsission Trader/ Distributo Consume

Farmer Retailer r
agent Exporter r
Onion flakes:
Farmer Trader Retailer Consumer

Groundnut oil:
Distributor/
Farmer Trader Consumer
Processor
Number of Groundnut oil processing units:
Number of Avg. processing Avg. price per Revenue per Revenue per
units per month liter month year
15 4 tons 150 6,00,000 72,00,000
Product cost:
S.No Particulars Kurnool(INR) Other states

1 Onion 13/Kg
2 Onion Flakes 500/kg
3 Groundnut 70/kg
4 Groundnut oil 150/kg
5 Hand picking seed 100/Kg
Unique selling place:
S. No Particulars USP (Unique selling place)

1 Onion Traders
2 Onion Flakes Distributors/Metropolitan cities
3 Groundnut oil Distributors/Traders
8. Quantum of sale of this product to the districts, states and exported to other
countries
9. Institutional support
Horticulture department of Andhra Pradesh provided storage structures to the onion crop
growers in the district to increase the shelf life period of the onion in the district and also
provided the solar driers to the FPO in the district for manufacturing the onion flakes but
due to lack of the marking facilities, there was a halt in the manufacturing in the unit.
There are no institutions like associations, training institutes, etc in the district which are
providing the handholding support to the ODOP processing units in the district.
Section 3
1. Methodology note for primary data collection
21) Study area
Study Area
The study on State Level Up-gradation Plan is conducted in the entire Kurnool district of
Sample Size:
The sample size in the Kurnool district is 284. Among the total sample surveyed 21
respondents are processing the ODOP produce (Onion based products) of the district and
263 respondents are processing the Non-ODOP of the district. (Paddy, Bengal gram,
Groundnut).
Primary Data
Total 284 respondents involved in the food processing in the district including the individual
enterprises, FPOs, SHGs, are contacted during the primary survey for collecting the
necessary information. Other players in the value chain like farmers, distributors,
wholesalers, and retailers are also contacted during the primary survey.
Secondary information
The secondary data is collected from various sources like DICGS annual report, Horticulture
Board, Kurnool Statistical Handbook, APEDA, Indiastat.com, other internet sources.
1.1 Individual in-depth interviews
1.2 Stakeholder consultation

S. No Department Discussion
1 Deputy Director ➢ 1. Functional pack house/On farm collection unit-
Horticulture (Executive 4.00 lakh/unit with size of 9M*6M-Subsidy:50%
director APFPS) of the capital cost
2. Low cost onion storage structure (25MT)- Rs.
1.75 Lakh/Per unit- Subsidy 50% of the capital
cost
3. Zero Energy cold chamber- Rs. 4000/Per unit-
Subsidy:50% of the total cost
➢ 100 onion flakes machinery worth of 1 lakh with
50kg/Hr capacity has provided to the women
entrepreneurs in the district to increase the
onion processing
➢ Women entrepreneurs and FPO’s are provide
training on the onion flakes processing
➢ Administration has hired the consultant to
purchase the onion flakes from the processors
➢ 1 Onion flakes machinery worth of 3 laksh has
provided to the FPO’s in the district and due to
lack of the marketing facility has unit is currently
not operating
➢ District is provided with the good backward
linkages and need to focus on the forward
linkages (Processing lines)
➢ FPO’s are involved in producing the crop but they
are not processing the crop
2 Farmers ➢ Reduction in the yield due to the pest infestation
➢ High fluctuation in the crop prices
➢ Not involved in processing due to lack of the
awareness and the marketing facilities
➢ Selling the crop to the commission agents to the
trades in the market yard
➢ No processors to purchase the crop in the district
3 Traders ➢ Exporting the crop to the other districts in the
states and states like Telangana, Tamilnadu and
West Bengal.
➢ Increase in the transportation cost
➢ Huge fluctuation in the crop prices
➢ Selling the crop to other distributors and
wholesalers in other districts and not to the
processors
4 Processors(Groundnut ➢ Purchasing the raw material from the trades in
oil processing unit) the local
➢ Processing the Groundnut into oil and selling
through own retail outlet only
➢ Market is dominated by the branded player
➢ No incentives and benefits available from the
industries department for processing the
produce.
➢ No brand for the oil
5 Processors (Groundnut ➢ Purchasing the raw material from the trades and
decorticating units) directly from the farmers in the local
➢ Selling the HPS (Hand picking seed) within the
district and out of the district and also exporting
to the neighboring states like Telangana, and
Tamilnadu
➢ No future processing. HPS is used for seed
sowing and consumption
➢ Selling without the branding only
1.3 Focus group discussions
2. Cluster analysis and discussion
2.2 Skill development required

Due to the lack of marketing of the processed ODOP products, there is no major processing
of the ODOP of the district. Recently, Kurnool district Horticulture department installed
onion flakes and powder processing machinery in tow different places in the district to train
the entrepreneurs in the districts on preparation of the onion processed products
Workers engaged in the processing of the Non-ODOP require training in handling the
advanced machinery to increase the quantity of the processing products.
2.3 Product cost analysis

Integrated Onion processing units installed at the capacity of 150 MT
S.No Particulars Amount

1 Fixed cost (Rs. win Lakhs)
I Machinery and Equipments depreciation @ 10% of 2.0
2000000 (machinery capacity 150 MT)
ii Other fixed assets like furniture, electric fittings 1.0
@10 % of 100000
iii Power and water 1.2
Total fixed cost
2 Variable cost (Operating at 135 MT) (Rs. In Lakhs)
i Raw onions @ 30 Rs/Kg 40.50
ii Packaging material @ Rs 3/Packet 1.21
iii Utilities (Electricity, fuel) 5.40
Iv Wages 8.10
V Repair and maintenance 0.64
Vi Insurance 0.30
vii Miscellaneous expenses 2.00
Total variable cost 58.15
Total expenditure (Fixed + variable cost) 62.35
3 Total sales revenue (in Lakhs)
Sale of Onion flakes @ 700/Kg of 40% raw material 56.70
Sale of onion powder @ 80/Kg of 40% of raw 64.80
material
Sale of onion paste @ 80/Kg of 105 of raw material 9.72
Sale of vacuum-packed peeled onion@ 60/kg 7.29
Total sales 138.51
Profit (Expenditure- Sales) 76.16
Tax@18% 13.7
Profit after tax 62.46
2.4 Firm level issues of micro enterprises

S. No Sectors Gap Recommendations
1 Skill training needs Shortage of Skilled labor to Necessary training has to be
process the non ODOP provided to train the labor to
products handle the existing and
upgraded machinery
2 Manufacturing Fluctuations in the Raw Fluctuations of the prices of
practices material Prices, processing, the Non-ODOP products like
Packing, Marketing, and Sorghum, Groundnut, etc.,
Branding. for the processing industries,
need to be stabilized, adopt
new technology in processing
& packing. Expansion of
marketing and create brand
awareness of their products
3 Technology Lack of modern technology Adopt new processing
technology to increase the
production and the quality of
the produce.
4 Access to finance Lack of capital expenditure Support from the financial
and investment to buy new institutions to the processors
machinery with subsidies and loans at
the lower rate of interest to
expand their business.
branding to the processing
units.
2.5 SWOT analysis

Strength: Weakness:
➢ Health benefited associated with ➢ High fluctuations in the raw material

products prices and seasonality in the
➢ Abundant availability of the raw production of the raw materials
material in the region ➢ Lack of infrastructure and skilled
➢ Huge demand for the products in the labor in the region
district ➢ Lack of funds to install and upgrade
the existing units
➢ Perishable nature of the produce
➢ Support from the state and central ➢ Cultural preference of consuming the
government with the different fresh food
schemes ➢ Competition from the others
➢ Increased processed food substitute products and brands
consumption among the people ➢ Other established brands in the
➢ Awareness about the health benefits market
associated with the products ➢ High-cost involvement in attractive
➢ Opening of the global market packaging
➢ Development of the new technology ➢ High inventory and carrying cost
in the machinery offers vast scope for
improvement and progress for the
food processing
2.6 Need assessment and Gap study

Gaps Remarks
Infrastructure The road facilities are good to reach the processing units. There are no
facilities constraints in the forward and backward linkages to the processing
units
Testing facilities There are no testing facilities carried out by the associated organization
like FSSAI. Only minor millets traders who are carrying the primary
processing like sorting, grading, and packing are provided with the FSSAI
certificate
Machinery No ODOP is processing the district due to the shelf life period of the
crop produced. The Non-ODOP processing is using advanced machinery
in manufacturing the puffed rice, Jowar flour, Bengal gram fried gram,
Bengal gram flour, and Groundnutdecorticator.
Finance There is a lack of access to finance from the financial institutions to the
ODOP and Non-ODOP processers in the district.
Marketing There is no marketing support from none of the stakeholders for the
support food processing industries in the district. Required branding and
marketing support from the DIC and other stakeholders involved in the
food processing sector in the district.
Skilled labor There isa lack of skilled labor in the ODOP and Non-ODOP processing
units in the district. Labor requires training in handling the advanced
machinery to increase the ODOP and Non-ODOP crop processing in the
district.
Access to No support provided by the stakeholders in the district in terms of
Mentorship/ financial and technical support to the food processing enterprises
services
3. Recommendations
3.1 Vision statement and key objectives

To create a reliable environment for the food processing industries in the district
Objectives:
➢ Provide the necessary funding for the ODOP and Non-ODOP food processing
industries in the district.
➢ To provide mentorship to the beneficiaries in the food processing industries.
➢ To identify and help the new entrepreneurs in the food processing industries in the
district

Integration of stakeholders such as financial institutions, training institutions, FSSAI, DIC,
manufacturers, retailers is necessary to start a cluster.
Particulars Requirement Support Department

Workers/ labors Training should be given on Training institute and DIC
handling the advanced
machinery used in increasing
the production and the
efficiency of the production
Financial support Financial support and Financial institution and DIC
mentorship should be
provided to the existing
beneficiaries and new
aspirants to purchase the
necessary machinery and
start the food processing
enterprises respectively
Branding and marketing Training and skill DIC, Training institute and
development on branding FSSAI
and packaging of the
manufactured products and
organizing the exhibitions to
create awareness of
thelocally processed ODOP
and Non-ODOP of the
district.
3.3 Proposed interventions

➢ Funding to the Non ODOP enterprises in the district
➢ Providing mentorship to the food processing industries in the district
➢ Providing common branding and marketing support to the Non-ODOP processors in
the district
➢ Provide the training on handling the new machinery to increase the production of
the processed products in the district
3.3.1 For capital investment in plant and machinery

Category Existing/New Numbers of Total up- Purpose
(ODOP) units gradation cost
(Lakhs)
Individual Existing 0 0 -
New 0
FPO Existing 0
SHG Existing 0
Category (Non-
ODOP)
Individual Existing 85 7,17,90,000 Machinery for
up-gradation of
the units
Existing 3 30,00,000 Warehouse for
storage of the
processed
products
Existing 6 16,90,000 Marketing the
processed
products
3.3.2 For common infrastructure and incubation center
There are no common facilities like common storage structure, common testing facilities or
common transport facilities for the processed products in the district. Kurnool horticulture
department is providing 50% subsidy to the farmers for building the storage structures in
the district. There are no incentives provided for the ODOP processors in the district.
3.3.3 Branding and marketing

There is no processing of the onion crop in the district which is ODOP. The farmers directly
selling the crop to the traders who are further selling the crop to the distributors, retailer
within the district and exporting to other states.
4. Key impacts
➢ Creating employment opportunities for the individuals by providing the training on
processing the Non ODOP products of the districts.
➢ New enterprises can be setup by providing financial support and technical support to
the aspirants in the food processing sector in the district.
Onion Traders:
S.No Enterprises Name Mobile number
1 Umer onion merchant, Kurnool M. Ibrahim 9963277866
2 Sanjeeva traders, Kurnool S. Sanjeevaiah 9440244239
3 Sri vinayaka traders, Kurnool B. Sathyanarayana 9948449199
4 Chintharalaprasannaanjaneya traders, Mahesh 9440220900

Kurnool
5 Ganesh commission agents, Kurnool Venkatesh 9848480799
6 Mahaboobmarchents, Kurnool MahaboobBasha 9948710347
7 Shekar onion marchent, Gudur J. Veerashekaraiah 7993170358
8 Sreeramulu onion traders, Dhone Sreeramulu 8317661544
9 Rangaiah onion agents, Gudur G. Rangaiah 9702519573
10 Sri balajitaders, Kurnool Dattu 9052296816
11 Prasanna onion growers society, Mohiuddin 9701439615

Kodumuru
Field Photographs:
STATE LEVEL UP-GRADATION PLAN (SLUP) FOR
NELLORE DISTRICT IN THE STATE OF ANDHRA
PRADESH STATE
EXECUTIVE SUMMARY
The total area under citrus crop is 19983 hectares in the district with the production of 319728 MT
during 2019-20. Nellore district contributes around 46% to total citrus production in the state. Total
agriculture and horticulture production in the district is 2447885 MT and citrus contributes around
13% to overall agriculture and horticulture production in the district during 2019-20.
During 2019-20, the total production of Citrus in Andhra Pradesh state is 688704 MT.
Nellore district contributes around 46% to total citrus production in the state followed by
West Godavari 18%, Prakasam district 7%, and Kadapa district 6% respectively.
Based on area and production Non – ODOP crops/products chosen in the Nellore district are Paddy,
Black Gram, Bengal Gram, Green gram, and Groundnut.
Recommendations
Vision Statement: To support micro-enterprises/SHGs/FPOs to up-gradation of technology and
increase the number of citrus processing units in the Nellore district.
Total production of the citrus district is 319728 MT in 2019-20, of which only 3% is diverted towards
processing (majority for lemon pickle). Nellore district is the leading producer of citrus fruits in the
state and contributing 46% to total citrus production in the state and there is a good demand for
citrus value-added products outsidethe district, states, and also outside India.
If 20% of total production is diverted for citrus value-added products in the district will generate
income and employment for local people. Only they are into lemon pickle is manufacturing but there
is also a great opportunity for canned juice, pulp, jam, jelly, and squash in the district which can be
promoted through awareness and skill development programs through the PMFME scheme.
Common Infrastructure • The district is also well connected with roadways and railways,
• Processing is happening at a very small scale that to only for
lemon pickles, so for this reason common infrastructure is not
required at present
• If processing for other citrus value-added products is initiated
then there is a requirement for cold storage. For that capital
investment is required and this can be supported under the
PMFME scheme

machinery is required.
products without a brand in the open market and directly to
the consumer. To overcome this problem capital investment
for training on marketing and branding is necessarily required.

lakhs through
PMFME
Category Individual – Existing 34 40.8 Purchase of 14.28
1 Machinery
and
Equipment
2
Category Common Currently, cold storage is not required. If, processing for other value-
4 infrastructure added products get started then INR 50 lakhs is required for cold
storage establishment
Category Marketing and 20 lakhs
5 Branding
Individual existing – During the primary survey respondents (existing individual and potential units)
expressed that they are interested in making processed lemon products. During the survey
respondents of individual units expressed that they need funds for up-gradation and purchase of
new machinery automated slicer, mixing machine, dryer, filling machine, packing and labeling
machines.
Marketing & branding- There is a need for mass advertisement and campaigning for ODOP products
in the district to create awareness about local products.
Through primary survey observed that majority of the respondents expressed that they are willing to
produce processed lemon products but they don’t know where to sell the processed products. Once
the marketing channel is well established more new entrepreneurs will enter into processing
activity.
• The cluster needs to form for better marketing activities where all the producers, processors
can sell the produce in the name of Cluster.
Approximately 20 lakhs of fundsare required to establish branding and marketing. This can form by
the state marketing board.
Training and skill development- Through the primary survey, we observed that majority of pickles
producers are practicing the traditional way of processing. To upgrade them to new technologies
and modern way of processing which is machine-oriented, training and skill development on
machinery and equipment, branding and marketing is highly essential and this can be done through
PMPME scheme.
Key Impacts
Particulars Impact
processing activity possibility of an increasing percentage of processing in the
next few years
Employment • Employment of units will increase at least by 25% who are
benefitted by PMFME
Income • Through proper branding and marketing, the net profit of
units will increase.
Reduce Waste • By processing can reduce the wastage of the produce at the
farm gate.
Better Price • During the off-peak season the price of the product will be
low, to overcome this they can enter into processing activity
and earn a better price.
VII) SECTION TWO:-

ODOP product is identified by the APFPS department Citrus is recognized as an ODOP product.

during 2019-20. Nellore district contributes around 46% to total citrus production in the state.
% Share of Citrus Area % Share of Citrus Production
Andhra
Nellore Nellore
Andhra Pradesh
46% 46%
Pradesh (Other
(Other Districts)
Districts 54%
)
54%

Total agriculture and horticulture production in the district is 2447885 MT and citrus contributes
around 13% to overall agriculture and horticulture production in the district during 2019-20.
% Share of ODOP Production to Total Agri & Horti Crops

Production in District
Citrus
13%
Other Crops
87%

The perishable nature of Citrus fruits and their value-added products are listed below
Name of the
Sl.No Shelf-life of the product Packaging Material
produce
I Citrus Fruits
Polythene Packets and Glass

1 Lemon Pickle Upto One Year
Bottles
Glass Bottle and Polythene

2 Lemon Squash Upto One Year
Packets
Pantry (1-2 days), Fridge (8-12

Glass Bottle and Polythene
3 Mandarin Juice days), and Freezers (6-8
Packets
Months)
Canned Mandarin
4 Upto 18 to 24 Months Glass Bottle and Tins
Orange
Polythene Packets and Glass

5 Orange Pulp Upto Three Months
Bottles
and states;
During 2019-20, the total production of Citrus in Andhra Pradesh state is 688704 MT.
Nellore district contributes around 46% to total citrus production in the state followed by
West Godavari 18%, Prakasam district 7%, and Kadapa district 6% respectively.
District wise Area and Production of Citrus in Andhra Pradesh in 2019-20
District Area (Ha) % Share Production (MT) % Share

Srikakulam 27 0% 432 0%
Vizianagaram 804 2% 12864 2%
Visakhapatnam 18 0% 288 0%
East Godavari 2151 5% 34416 5%
West Godavari 7592 18% 121472 18%
Krishna 1012 2% 16192 2%
Guntur 2766 6% 44256 6%
Prakasam 3173 7% 50768 7%
SPSR Nellore 19983 46% 319728 46%
Chittoor 190 0% 3040 0%
YSR Kadapa 2555 6% 40880 6%
Ananthapuram 1088 3% 17408 3%
Kurnool 1685 4% 26960 4%
Andhra Pradesh 43044 100% 688704 100%

In 2018, Gujarat state is the leading producer of citrus fruits in India and accounts for around 19% to
total citrus production in India followed by Andhra Pradesh 18%, Madhya Pradesh 10%, Karnataka
10%, Orissa 8%, and Maharashtra 8% respectively.
State Wise Production of Lemon in 2018
Sr No. State Production Share(%)

1 Gujarat 605.62 19.24
4 Karnataka 306.21 9.73
5 Orissa 259.83 8.25
7 Telangana 178.25 5.66
8 Tamil Nadu 118.46 3.76
9 Bihar 113.19 3.6
10 Assam 112.4 3.57
11 Chattisgarh 108.3 3.44
12 Manipur 66.95 2.13
13 Jharkhand 54.6 1.73
14 Mizoram 25.9 0.82
15 Tripura 24.21 0.77
16 Rajasthan 14.47 0.46
17 Jammu & Kashmir 12.74 0.4
18 Punjab 7.62 0.24
19 Nagaland 7.51 0.24
20 Himachal Pradesh 6.72 0.21
21 Meghalaya 4.94 0.16
22 Kerala 0.46 0.01
23 Arunachal Pradesh 0.11 0
24 Total 3147.85 99.97
Source: (National Horticulture Board, 2018)
Area and Production of Citurs in India from 2011 to 2020
1562
1408
1289.6
1140
994.4 1030
776.8
704 694
412
190.4 153 126.4 111.1 138 136 103 67 81 88
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
(2nd
Advance
Estimates)
Area (In ' 000 Hectare) Production (In ' 000 MT)
Source: (Indiastat.com 2020)

Based on area and production Non – ODOP crops/products chosen in the Nellore district are Paddy,
Black Gram, Bengal Gram, Green gram, and Groundnut.
Among Non-ODOP produce, Paddy has the highest production of 1484.2 thousand tons followed by
groundnut 36.4 thousand tons, Black gram 13.4 thousand tons, Bengal gram 12.5 thousand tons and
Green gram 3.3 thousand tons respectively in 2019-20.
District Paddy Black Gram Bengal Gram

Area Production Area Production Area Production
(Ha) (MT) (Ha) (MT) (Ha) (MT)
Srikakulam 219160 937440 41355 19804 0 0
Vizianagaram 126647 611546 18563 11895 121 176
Visakhapatnam 103557 374272 7445 3234 82 119
East Godavari 387586 2449332 14291 12859 1964 3364
West Godavari 394173 2649963 5086 3750 4 6
Krishna 315036 1891963 127792 178373 3805 8314
Guntur 246702 1474573 32903 41698 16735 28182
Prakasam 80375 454727 12321 12256 86177 120734
SPSR Nellore 232405 1484212 16941 13451 10655 12562
Chittoor 54519 300590 3439 3867 0 0
YSR Kadapa 41809 194346 3664 3385 90675 115883
Ananthapuram 32540 165968 64 53 92409 70878
Kurnool 121473 721808 19307 24542 155952 198527
Andhra 2355982 13710742 303171 329167 458579 558744
Pradesh
District Green Gram Ground Nut

Area (Ha) Production (MT) Area (Ha) Production (MT)
Srikakulam 26791 14166 4896 7359
Vizianagaram 12785 9195 1504 2472
Visakhapatnam 3079 1157 2063 3125
East Godavari 9082 6820 151 96
West Godavari 7406 8881 2166 5232
Krishna 6009 5866 1492 6185
Guntur 22088 29569 3211 11709
Prakasam 1825 1090 3027 9415
SPSR Nellore 4951 3351 8955 36469
Chittoor 509 199 108269 204027
YSR Kadapa 2906 2869 21827 52818
Ananthapuram 7892 1881 408630 343519
Kurnool 1656 1089 95073 166896
Andhra Pradesh 106979 86133 661264 849323

11.Mapping of the Micro, Small, Medium, and Large Industries in the District involved in food
etc.)
Industries in Nellore District in 2018-19
Mega Projects / Special Economic Zones:19 Mega Projects are existing with an Investment of
Rs.27,085.75Croresemploying 36,610 persons.
Large & Medium Scale Industries: 72 Large & Medium Scale Industries are existing with an
Investment of Rs.5375.60 Croresemploying 25,195 persons.
Small Scale Industries: 333 Small Scale Industries are existing in the district with a capital
investment of Rs.139.76 Croresemploying 3,800 persons. ((Nellore District Statistical Handbook
2019)
List of Large Scale Industries in Nellore District In 2018-19
CapitalInv Value Empl

S NameoftheIndustryandLocation Installe estment ofProduction( oyees
lN dCapac (Rsin RsinLakhs) M Fe
O ity Lakhs)
al m
e a
l
e
Dodla Diary Ltd.,
1 00000Liters/D 623 25550 17 25
Devarapalem,Nellore(m).pin- a 0
524004
Empee Sugars &chemicals
2 Ltd,Ayyapareddypalem,Naidupet(m). 500TCD30KPL 5890 6325 22 0
Pin-524126 0
SarithaSugarsLtd.,(gayathriSugarCo
3 mplex),Prabhugiripatnam 2500TCD 8000 3103 24 0
(v),Podalakur(m).pin-524345 4
TheWaterbaseLtd.,Anathapuram(v)tPG
4 22500MT 418 15959.12 12 5
udur(m)., Pin-524344
1
AnjaneyaSeaFoods,NrPalem(v),K
5 74.9MT/Day 709.12 8267.07 47 10
odavalur(m)Pin-524366
2
NippoBatteriesCo.,Ltd.,GntRoad,Tada(v)(
6 780Millions 375 16060 19 0
m)Pin-524401
8
PanasonicCorbonIndiaCo.,Ltd.,Tada(v)(m)
7 6000MT 15.46 4041 14 2
-524401
6
SaintGobainGlassIndiaLtd.,Plot.no.98,Ida,K
8 arur(v),tada(m),Pin-524401 360000MT 2852 5500 10 0
0
City Lubricants Pvt. Ltd., Plot.no.15 To
9 20,Industrial Estate, Karur (v), Tada(m). 24000KL 291 178 30 0
Pin-524401
Lakshmipriya Spinning Mill
10 Ltd.,Graddagunta(v),Akkampet( 6480Spindles 336 399.39 17 5
po),Tada(m).pin-524121
PallavaGraniteIndustries(i)Pvt.Ltd.,Nh-
11 5,Gnt Road,Manubolu-524405 100000SQM 325 2506 53 0
NelcastLimitedPlot.no.34,Ie,Gudur(v
12 7500MT 5662 22531.14 48 0
)(m)Pin-524101
2
MangaloreMinerals(pvt.)Ltd.,W.no.6-
13 85MT/hr 35.54 1841.29 65 2
384,Momidi(v),Chillakur(m)
EcofIndustriesPvt.,Ltd.,S.no.805(part),
14 Gnt Road, Chittugunta 18000MT 218.9 922.3 63 2
(v),Chillakurmandal,Pin-
524410
Asian Peroxides Ltd., Gnt Road,
15 Mmmudi(b.o) Kotapolur(v) (po), 14.400MT 3245 3214 62 0
Sullurpet(m) Pin-524123
The Nellore District Milk
16 ProducersMutually Aided Cooperative 75000Liters 23.4 4539.41 14 20
Union 4
Ltd.,Venkateswarapuram,Nellore-
524005
FiveStarMarineExports(p)Ltd.,Na
17 52.36MT 400 11000 96 16
raanareddypet,Nellore(m) 4
Tirumala Milk Products (p) Ltd., Nh-
18 5,ChennaiHighwayRoad,NearBhudanam 75000Liters/D 1880 4425 53 40
,Kadivedu(v),Chillakur(m)Pin-524410 a 2 7
Sarath Industries Limited,
19 (formerlySharat Sea Foods 6000MT 4000 10200 17 31
Ltd.,)Mahalakshmipuram,Venkannapale 3 1
m(v),T.p.gudur(m)
SujalonWindPower,Narasimhakonda(v),N
20 2.5MW 1000 105 5 0
elloreRuralMandal

S NameoftheIndustryandLocation Installe estment ofProduction( oyee
lN dCapac (Rsin RsinLakhs) s
O ity Lakhs)
Fe
M
al m
e a
l
e
AllianceMineralsPvt.Ltd.,Ip,Tada,SpsNell
21 2400000SQFT 4036 2500 11 4
oreDist.,A.p. 0
Neutraspecialities (p) Ltd.,
22 51.90MT 2059 7281 14 14
Sy.no.69,Chandrapadiya(v),Vinjamur( 8
m)
VikkiIndustriesPvt.Ltd.,Pennepalli(v)Pell
23 75000MT 16783 3315 11 0
akur(m) 7
TheExtracoCompositesIndia(p)Ltd.,Tad
24 4000MT 989 479 40 6
a(v)& (m)
25 TataRyersonLtd.,Mamabttu,Tada(m) 800MT 1084 898 93 2
26 DraIndustries, 70000MT 1900 14199 70 10
Parikh Fabricks (p) Ltd., No.198/p-
27 2900000Pair 6000 101.9 46 58
apiicIndl.Park,Mambattu(v),Tada(m s
AmmanTrySponge&Power(p)Ltd.,Sira
28 sanambedu(v),Pellakuru(m) 65000MT 2030 16542 68 0
Nitya Steels And Alloys
29 30000MT 3056.46 9416.03 95 0
PvtLtd,industrialPark,Attivaramozili (m
30 EmpeePowerCompany(india)Limited, 20MW 9360 1990 56 0
ayyappareddipalem(v),naidupet(m)
M/s. Emjoy Steel Udyog Pvt.,
31 90000MT 103.92 16550 95 0
Ltd.,Vengamambapuram(v),Naidupe
t(m
KpPolyolefinSacksPvt.Ltd.,Ipuru-
32 8470MT 1965.88 8347.36 21 8
1A,(v),Muthukur(m) 2
Regen
33 340No’S 29150.79 50831 10 20
PowerTech,ip,mambattu(v),tad 00
a(m)
GreenTechIndustries(india)P
34 30,00,000PC’s 41747 17047.39 16 10
vtltd;sez,menakur,naidupet 15 9
HindusthanNationalGlassIndustriesLi
35 650TPD 66874 32275 98 28
mited,menakur(v),naidupet(m) 5
Apache Footwear
36 6655663No’ 24447 422639 37 31
IndiaLtd;(sez),mambattu(v),tada(m) s 50 95
Loyal Textiles
37 8spindles169l 20131.4 20185 39 38
MillsLtd;menakur(v),naidupet(m) 1 4
Gemini Edibles & Fats India
38 538000MT 14000 121265.12 36 57
(p)Ltd;pantapalem(v),muthukur(m) 7
Sariwalaindustries,oilrefinaries,pantapalem
39 234000MT 11000 147108.42 37 80
(v),muthukur(m) 5
Krishnapatnam Oils & Fats
40 468000MT 10941 101150 23 0
(p)Ltd;pantapalem(v),muthukur(m) 4
Emami Biotech
41 256300MT 12000 130000 32 21
Pvtltd;Pantapalem(v),muthukur(m) 7
South India Krishna Fats &
42 318893.22M 11448 236041.5 15 11
OilsPvtltd;pantapalem(v),muthukur(m) T 4
LouisDreyfusCommoditiesIndia(p)Lt
43 d;epuru Bit-1, 1366550MT 10727 85456.16 27 4
Pantapalem(v),Muthukur(m) 4

S NameoftheIndustryandLocation Installe estment oyee
lN dCapa (Rsin ofProduction( s
O city Lakhs) RsinLakhs) Fe
M
al m
e a
l
e
4 3fIndustries,Pantapalem(v),Muthukur(m) 274000MT 14640 87378.89 30 0

4 0
Pinnae Feeds Limited,bhogole (v
4 50000MT 40000 4402 32 0
5 &M),Nellore
CPAquaCulture(india)PrivateLimit
4 110Millions 5714.05 3818.56 27 1
6 ed,thupili(v),vakadu(m) 8 2
Star Agro Marine Exports
4 912MT 6000 18446.48 12 52
7 (p)Ltd:devispet(v),indukurpet(m) 0 7
M/s.IndusCoffeePvt.Ltd.,MambattuIp,Tada
4 4500MT 10500 10800 21 1
8 (m),SpsrNelloreDistrict 4 7
M/s.bmrIndustriesPvt.Ltd.,Damavaram(v),
4 9023MT 5811.55 1896 20 15
9 Dagadarthi(m),SpsrNelloreDistrict 0 3
M/s.fedoraSeaFoodsPvt.Ltd.,63/1,64/
5 1,69,70/1,71/2,Nh-16(ah-45), 24000MT 1840 864 24 1
0 Kovur(v),SpsrNelloreDistrict 0
M/s.simhapuri Agro Products Pvt.
5 Ltd.,Sy.no.80/1, 80/2, Kothapeta 7000MT 892 900 34 0
1 (v),KavalimustapuramGp,Kaligiri(m),SpsrN
elloreDistrict
GamesaRenewablePvtLtd.Iffco-
5 75No.s 14033 5900 20 10
kisanSez,KodavaluruMandal
2 5 5
SembcorpGayathriPowerLtd.,(nccLtd.,)Vara
5 20MW 9500 2146.03 63 15
kavipudi(v),TpGudur(m)
3 5 5
5 CrestCellulosePvtLtd,Ip,Menakur 20200MT 7200 79570 40 2
4 0
AnjaniTiles,eguvaRajupalem(v),chillakur(m)
5 100000MT 6200 7500 40 1
5 0
BmrIndustriesLimited,Damavaram(v),Dag
5 9082MT 4300 31600 85 2
6 adarthi(m) 0
PenverProductsPvtLtd,Oduru(v),Chill
5 8423MT 4400 1984.36 12 45
7 akur(m) 3 0
5 Gelcaps,Ip,Menakur 35000Million 2400 4080 50 2
8 s 0
5 AurobindoPharmaLtd.,Apiic,menakuru 583.81TPM 5989 78723 24 7
9 0 6
Snj Distilleries Pvt Ltd.,
6 120TPA 14000 19025 74 2
0 sy.no:2508/ab/1,sarvepalli(v),Venkatachal 6
ama(m)
GreenFlashPvtLtd,Bodipadu(v),Chejarla(m),
6 30MW 15000 5890 42 8
1
BalajiEnergyPrivateLimited,UnitLl,
6 Somasila Dam, Somasila 2x1.5MW 1833 47882 8 2
2 (v),Ananthasagaram(m)
GreenHouseAgroProducts,North
6 120000MT 6000 9874 28 4
Rajupalem,Kodavalur(m)
3 0 9
ColorshineCoated Pvt
6 9500MT 7000 8942 70 1
Ltd,sy.no:1230,Chennuru(v),Guduru(m)
4 0
6 PennaCementIndustriesLtd. 2MTPA 616MT 34.74 14 7
5 5
6 BrakesIndiaPvtLtd(TvsGroup),Menakur 18000MT 12500 7843 11 7
Naidupet
6 8
CapitalInvest Value Employ

Sl NameoftheIndustryandLoc InstalledCa ment (Rsin ofProduction(Rsin ees
NO ation pacity Lakhs)
Lakhs) Mal Fem
e al
e
67 NekkantiMegaFoodPaRk(P)L 15 1 1000 90 10
td.,
Kothapatnam(V)Chillakur(M)
68 TycheCastTech(P)LtdMamba 1800MT 1700 4356 250 50
ttu(V)
Tada(M)
69 AllegroSpecialityChemicalsP 1500MT 1270 5465 25 10
rivateLtd.
70 AurobindoPharmaLtd. 34MILLION/MO 300 4080 600 100
71 NeevaAeroSolutions 300MT 200 5434 200 100
72 GYPEliteIndiaPrivateLimited, 300TPA 200 2350 40 20
Survepalli,
Venkatachalam
TOTAL 537560.5 2054474.66 181 703
58 7
Source: (Nellore District Statistical Handbook 2019)
12.Number of clusters or locations(if any) where the processing of this product happens;
Currently, there is no cluster established for citrus products in the district. But there is a clear
possibility to form a citrus cluster in the district for the below-listed reasons.
• Availability of raw material

• Availability of public infrastructure such as roadways,electricity, power, etc.
• Demand for citrus-based value products such as lemon pickles, canned orange juice, squash,
jelly, and jam within India.
13.Some units engaged with producing the specific ODOP product and 4-5 major non-ODOP
products.
The number of units engaged in ODOP and Non-ODOP Processing is 34 and 140 units respectively.
Very few people/units are engaged in the processing of ODOP produce in the district.
Particulars Number of Units

ODOP (Citrus) 34
Non-ODOP (Paddy, Bengal gram, Black, gram, 140
Green gram, and Groundnut)
14.Approximate Level (%) of processing happening for ODOP (out of total production) in the
district,
Approximately 3% of citrus processing is carrying out in the district and the rest is consumed as fresh
and exporting to other states for processing and table consumption.
15.Several Self Help Groups, Farmer Producer Organisations, and Cooperatives are currently
There are no Self Help Groups (SHG’s) and Farmer's Producer Organizations (FPO’s) are involved in
the processing of citrus fruits in the district.

12. The specialty of the local agricultural produce/food product, varieties available, seasonality,
uniqueness, history, etc.?
There are two main crops in mandarins and sweet oranges. One is called Ambiabahar (mango
flowering) the flowering of which occurs in January (at the time of flowering of mango hence the
name Ambia) the fruits of which are available in the months of October-December The other crop is
Mrigbahar(Monsoon bloom) the flowering of which occurs in the month of June-July and the fruits
are harvested during February-April. Mandarins and sweet oranges normally take 240- 280 days to
arrive at maturity. Mature fruits at the colour break stage are picked up in 2 - 3 intervals of 10-15
days. Limes and lemons take 150-160 days for maturity. There may be 2 or 3 crops in a year in limes
and lemons.
Name of States Varieties

theCitrusfrui
t
1. Sweetorange Punjab,Rajasthan, Uttar Pineapple, Jaffa, Hamlin,
Pradesh Valencia,LateCampbellValencia
2.Mandarin Maharashtra Nagpurmandarin
Madhya Pradesh, A.P., NagpurmandarinKhasi mandarin

North Eastern Kinnow,NagpurMandarin,andlocalDarjeelingmanda
region,Punjab, rin
Rajasthan, U.P., West
Bengal, andSikkim
KarnatakaandTamilnadu Coorgmandarin
3.Acidlime Andhra Pradesh, Kagzi lime, Indore

Rajasthan, Karnataka, seedlingBaramasi,Kagzilime
UttarPradesh, Gujarat,
Madhya
Pradesh,Maharashtra
4.Grapefruit AndhraPradesh PKM(Jayadevi)
5.Lemon Gujarat, Eureka Hill, GalgalAssamlemon

Andhra
Pradesh,
U.P.Assam
Karnataka Baramasi, Nepali oblong, Italianlemon, Lisbon
lemon, Eureka lemon,Seville
6.Pummelo AndhraPradesh,Assam,NE Redfleshed,Whitefleshed

H
13. Infrastructure
Essential machinery required for lemon pickle making are listed below;
Description Capacity Unit/Hr Cot Rs/unit
Lemon Cutting Machine 200 kg / hr 200000

Drier 1000 kg / hr 100000
Mixing Machine 100 kg / hr 50000
Filling Machine 100 kg / hr 100000
Packing Machine 100 kg / hr 40000
Labeling Machine 100 kg / hr 60000
In the Nellore district, micro and small units are processing lemon into lemon pickles in the
traditional way and no technology is adopted by them due to financial constraints. The below flow
chart gives the manual method of processing;
Rinsing in Salt Mixing with Oil Packing and

Lemon Slicing
Solution and chilli Powder Storing
(Manually) (Manually)
(Manually) (Manually)
During the primary, we noticed that no additional infrastructure is required for citrus processors in
the district because processing is carrying out at a very small scale i.e less than 2 to 3% of total
production in the district and the district already has good public infrastructure facilities such as
roadways, railways, electricity, cold storage, drying yards, etc.
(RKVY)/NMSA. (MIDH, 2021)
Broad Name of
Harvest HMNEH under
Manage MIDH
ment
facilities for grading, sorting, etc. and scheduled areas as credit- of NHM &
linked back-ended subsidy upto HMNEH under
Rs. 17.50 lakhs per unit with size
9m x 18m MIDH
capacity


lakhs Bamboo
Mission (NBM)
under MIDH.
under MIDH

15. Testing
During the primary survey, we observed that micro and small units that are involved in lemon
marketing their products in the local market, retail shops and directly selling to the consumer.
obtained for one kg of the processing;
Price Per Kg 80
Transportation per kg 1
Recovery 150%
Marketing Cost 1
Ingredients Cost per kg (Oil, Chilli, salt and other 120
spices)
Total Cost 212.5
Net Profit 87.5
Note: here we explained the value chain for lemon pickle only because other citrus value-added
products are not processed by micro-units in the district because of high initial investment, lack of
marketing capability, and lack awareness about the value-added products of citrus

a. Product Range
processing of lemons. The only product they are making is lemon pickles and no other value
products are carried out by units mainly because of high initial capital investment, lack of marketing
capability, and lack awareness about the value-added products of citrus.
• Canned orange juice

• Orange candy
• Orange pulp
• Orange Squash
• Orange Jelly etc.,
c. Production Process and Technology
Lemon Pickle Production Flow Chart

Rinse with
Adding other
Raw Material Wash and Slice Lemon Juice
ingrediants
and Salt
Marketing Packing Storage
18. Marketing
Marketing Channel for Lemon Pickles
• Channel A
Farmers
Traders Consumer
Micro Units Traders/Retailers
• Channel B
Farmer Micro Units Consumer

Micro units holders purchase the raw materials from farmers and traders, after processing they sell
the produce to traders, wholesalers, retailers, and directly to the consumer.
Around 90% is exported to other districts, states and export to another country as well.

• APEDA
VIII) SECTION THREE - DETAILED SAMPLE STUDY TO BE UNDERTAKEN FOR EACH DISTRICT
OR PRODUCT CLUSTER2
following sections.
25) Study area

Study Area
The study on State Level Up-gradation Plan is conducted in the entire Nellore district of Andhra
Sample Size:
The sample size in the Nellore district is 420. But we captured 174(ODOP and Non-ODOP)
Covered
1 ODOP (Chilli and Turmeric) 34

Primary Data
The study evaluates the Citrus supply chain and finds opportunities for traditional practices, and
analyses the value chain of citrus from farm to market. The study also estimates the distribution of
the value-added among the value chain actors like farmers, processors, traders, and retailers.
Primary data was collected from 174 respondents comprised of all the value chain actors, including
farmers, processors, traders, retailers, association president, machine operators, skilled laborers,
Agridept, horticulture dept officials, District industries center officials, FPO’s Self-help group
Secondary Data
The secondary data is collected from various sources like DICGS annual report, Spice Board, Nellore
Statistical Handbook, APEDA, Indiastat.com, Journals and Articles, and other internet sources to
know the area, production, export, import of Citrus processed products.



Nellore region is a suitable place to form a citrus cluster in the district because of the following
reasons;

• The district contributes around 46% of state citrus production
The workers/laborers engaged in the processing of lemon are following the traditional method
The total cost of production of lemon pickle per quintal is Rs. 10939 and net income generated per

3 Power Charges 80
5 Labour Wages 45
7 Cost of Oil 250
8 Market Fee (1.5%) 210
11 Depreciation 60
14 License fee 4
D Returns
21 Lemon Pickles in kgs 140
23 Returns per quintal (20000/q) 28000
F BC Ratio 1.6

1 Skill training • Post Harvest • Training on Post 5 Lakhs
loading and
unloading,
drying, grading,
and sorting
should provide
by DIC or
Agriculture and
Horticulture
Department
2 Manufacturing • Manually • Should provide 15 to 20 Lakhs
practices manufacturing automated
the pickles machines for
pickle
manufacturing
3 Technologies • Lack of • Should provide 25 to 30 lakhs
automated machines at a
machines such as subsidized rate
dryer, slicer,
mixer, labeling,
and packing
machine
8.5 SWOT Analysis
Strength Weakness
• Availability of good quality citrus fruits • Seasonal and Perishable nature of few
(lemon) citrus fruits
• Demand for the citrus processed product • Lack of knowledge on processing,
is high packaging, storage, and marketing
• Intervention and support by the • Lack of awareness on global demand for
department of industries, financial the product
institution, agriculture and horticulture • Difficulties to sell in main cities
departments • Lack of capital
• Rising awareness about the health • Lack of infrastructure such as
benefits of citrus fruits equipment, stall, etc.
• Lack of skilled labors
Opportunities Threats
• Increasing demand in the global market • Stiff competition from existing
and local market as well companies (Swastik, Priya, etc.)
• Opportunities to build brand and • Competing substitutes such as mango
marketing pickle, mixed pickle, chilli pickle, etc.
• Opportunities to export outside Union
territory
• Access to Common Facilities majority of respondents expressed that they are not having
good access to common facilities such as grading, sorting, packaging,etc within the district.
• Access to finance most of the respondents are not seeking finance to upgrade their existing
units.
• Access to mentorship/ servicemost of the respondents are looking for good mentorship to
product in district
Public infrastructure such as roads for backward and forward

0 0 12 22 0 34
linkages
Access to common facilities such as grading, sorting,
0 19 11 4 0 34
Access to testing facilities 0 13 18 3 0 34
Compliance with standards and the frequency of inspections

0 22 8 4 0 34
from the safety regulators
Skill training needs 0 24 8 2 0 34
Manufacturing practices 0 18 11 5 0 34
Technologies Available 0 26 8 0 0 34
Access to finance 0 5 25 4 0 34
Access to mentorship/ service 0 23 4 7 0 34
Awareness on Govt Policies among micro /small manufactures 0 17 13 5 0 34
Awareness on ODOP product of the District 0 18 4 12 0 34
Marketing / sales facilities 0 5 18 11 0 34
Facilities to the workers 0 12 16 6 0 34
9. Recommendations
Vision Statement: To support micro-enterprises/SHGs/FPOs to up-gradation of technology and

increase the number of citrus processing units in the Nellore district.

Total production of the citrus district is 319728 MT in 2019-20, of which only 3% is diverted towards
processing (majority for lemon pickle). Nellore district is the leading producer of citrus fruits in the
state and contributing 46% to total citrus production in the state and there is a good demand for
citrus value-added products outsidethe district, states, and also outside India.
If 20% of total production is diverted for citrus value-added products in the district will generate
income and employment for local people. Only they are into lemon pickle is manufacturing but there
is also a great opportunity for canned juice, pulp, jam, jelly, and squash in the district which can be
promoted through awareness and skill development programs through the PMFME scheme.

Common Infrastructure • The district is also well connected with roadways and railways,
• Processing is happening at a very small scale that to only for
lemon pickles, so for this reason common infrastructure is not
required at present
• If processing for other citrus value-added products is initiated
then there is a requirement for cold storage. For that capital
investment is required and this can be supported under the
PMFME scheme

products without a brand in the open market and directly to
the consumer. To overcome this problem capital investment
for training on marketing and branding is necessarily required.

lakhs through
PMFME
1 Machinery
and
Equipment
2
Category Common Currently, cold storage is not required. If, processing for other value-
4 infrastructure added products get started then INR 50 lakhs is required for cold
storage establishment
Category Marketing and 20 lakhs
5 Branding
expressed that they are interested in making processed lemon products. During the survey
new machinery automated slicer, mixing machine, dryer, filling machine, packing and labeling
machines.
in the district to create awareness about local products.
produce processed lemon products but they don’t know where to sell the processed products. Once
activity.
Training and skill development- Through the primary survey, we observed that majority of pickles
PMPME scheme.
10. Key Impacts
Particulars Impact
next few years
benefitted by PMFME
units will increase.
farm gate.
SLUP
(State level up-gradation plan)
For Prakasam district in the state of Andhra Pradesh towards
implementation of PM formalization of Micro food processing
enterprises scheme (PMFME)
PRAKASAM DISTRICT
Executive Summary
The total area under Dry Chilli and Turmeric in the Prakasam district is 35031 hectares and 502
hectares, with the production of 210186 MT and 6024 MT respectively during 2019-20. During 2019-
20, the total production of Chilli in Andhra Pradesh state is 1079346 MT. Guntur district contributes
around 45% to total chili production in the state followed by Prakasam district 19% and Kurnool
district 14% respectively.
Among Non-ODOP produce, Paddy has the highest production of 454 thousand tons and contributes
around 32% to total agriculture production of value around 0.82 crores in Prakasam district in 2019-
20. Other Non-ODOP produce in the district is Maize, Bengal Gram, and Tobacco as the production
of 73 thousand tons, 72 thousand tons, and 72 thousand tons respectively.

Prakasam district.
Objective:
The total production of dried red chili in the district is 210186 MT in 2019-20, of which only 20% is
diverted towards processing (majority for chilli powder). Andhra Pradesh state is the leading
producer of dried chili and there is a good demand for chilli outside India in commodity form as well
as processed form.
If 10% of 80% is diverted for chilli processing in the district will generate income and employment for
local people. Only they are into chilli powder manufacturing but there is also a great opportunity for
red chilli sauce, chillli flakes,etc in the district which can be promoted through awareness and skill
development programs through the PMFME scheme.
Common Infrastructure • Currently, in the district as well as nearby districts,i.e Guntur
hasa good number of cold storage facilities, so capital
investment for cold storage is not required for the district now.

• The state government should provide a separate marketplace
for chilli processors and the capital investment can be
supported by the concerned department.

lakhs through
PMFME
1 Machinery
and
Equipment
Category Groups - SHG's 1 1.2 Up-gradation 0.42
2 and purchase
of new
machinery
and
equipment
Category Common 0
4 infrastructure
5 Branding
expressed that they are interested in making processed chilli products. During the survey
new machinery automated chilli drier, destemming machine, chilli powder making machine, packing
and labeling machines.
Groups – Few SHGs are active in chilli powder making. The fund requirement for an SHG is for the
purchase of new machinery, skill development, branding, and marketing. It was emerging from the
primary survey that SHGs are willing to expand and they need funds. PMFME scheme can fill this
gap.
in the district to create awareness about local products, and here we are specifically talking about
dried red chilli.
produce processed chilli products but they don’t know where to sell the processed products. Once
activity.
Training and skill development- Through the primary survey, we observed that majority of chili
PMPME scheme.
Key Impacts
Particulars Impact
next few years
benefitted by PMFME
units will increase by 15 to 20%.
farm gate.
IX) SECTION ONE:-
G. Agriculture Profiling of the State

H. Profiling of existing Micro Enterprises Ecosystem in the State
I. Food Processing Policy in the State
6. Incentives\subsidies being given for food processing micro-enterprises through any specific
schemes of the state.
X) SECTION TWO:-

ODOP product is identified by the APFPS department and Chilli and Turmeric are recognized as
ODOP products.

The total area under Dry Chilli and Turmeric in the Prakasam district is 35031 hectares and 502
hectares, with the production of 210186 MT and 6024 MT respectively during 2019-20.
% Sahre of Dry Chilli Production in
2019-20
Prakasam
19%
AP (Other
Districts)
81%
% Sahre of Turmeric Production

in 2019-20
Prakasa
m
2%
AP
(Other
Districts)
98%

Total agriculture and horticulture production in the district is 2447885 MT and Dry Chilli and
Turmeric contribute around 10% to overall agriculture and horticulture production in the district
during 2019-20.
% Share of ODOP Production to Total Agri&Horti Crops
Production in District in 2019-20
Turmeric
0%
Chilli
9%
Agri & Horti

Production
91%

The perishable nature of Chilli and Turmeric and their value-added products are listed below

I Chilli
1 Red Chilli Powder Upto Three Years Polythene Packets
2 Red Chilli Paste Upto One Year Glass Bottle and Polythene
Packets
3 Red Chilli Sauces Six to Nine Months Glass Bottle and Polythene
Packets
4 Red Chilli Pickles Upto 18 Months Glass Bottle and Polythene
Packets
II Turmeric
1 Dried Rhizome Upto Three Years
2 Turmeric Powder Upto Four Years Polythene Packets
and states;
During 2019-20, the total production of Chilli in Andhra Pradesh state is 1079346 MT. Guntur district
contributes around 45% to total chilli production in the state followed by Prakasam district 19% and
Kurnool district 14% respectively.
District wise Area and Production of Dried Chilli in Andhra Pradesh in 2019-20
District Area (Ha) % Share of Area Production (MT) % Share of Production

Srikakulam 1650 1 9900 1
Vizianagaram 4989 3 29934 3
Visakhapatnam 53 0 318 0
West Godavari 1514 1 9084 1
Krishna 15860 9 95160 9
Guntur 80264 45 481584 45
Prakasam 35031 19 210186 19
SPSR Nellore 2428 1 14568 1
Chittoor 2258 1 13548 1
YSR Kadapa 2662 1 15972 1
Ananthapuram 5536 3 33216 3
Kurnool 24538 14 147228 14
Andhra Pradesh 179891 100 1079346 100
During 2019-20, the total production of Turmeric in Andhra Pradesh state is 356604 MT.
Visakhapatnam district contributes around 38% to total turmeric production in the state followed by
YSR Kadapa district 19%. Guntur 16% and Prakasam district 2% respectively.
District wise Area and Production of Turmeric in Andhra Pradesh in 2019-20
District Area (Ha) % Share of Area Production (MT) % Share of Production

Srikakulam 253 1 3036 1
Vizianagaram 0 0 0 0
Visakhapatnam 11286 38 135432 38
West Godavari 180 1 2160 1
Krishna 2845 10 34140 10
Guntur 4806 16 57672 16
Prakasam 502 2 6024 2
SPSR Nellore 182 1 2184 1
Chittoor 402 1 4824 1
YSR Kadapa 5703 19 68436 19
Ananthapuram 0 0 0 0
Kurnool 3234 11 38808 11
Andhra Pradesh 29717 100 356604 100
Andhra Pradesh state is the lead producer of dried chilli in India with an annual production of
805026 MT in 2019-20 followed by Madhya Pradesh (14%), Telangana (13%), Karnataka (12%), and
Orissa (12%).
State wise Area and Production of Dried Chilli in India 2019-20
State Area (Ha) (% Share) Production (MT) (% Share)
Andhra Pradesh 153082 25% 805026 44%

Telangana 80579 13% 436380 24%
Madhya Pradesh 88675 14% 208634 11%
Karnataka 74078 12% 129238 7%
West Bengal 5450 1% 8576 0%
Orissa 71700 12% 69280 4%
Gujarat 11299 2% 18905 1%
Assam 2196 0% 4713 0%
Rajasthan 9832 2% 20033 1%
Punjab 8776 1% 16955 1%
Uttar Pradesh 13547 2% 11808 1%
Maharashtra 6508 1% 22434 1%
Tamil Nadu 47991 8% 29618 2%
Nagaland 1379 0% 1754 0%
Total Including Others 623446 100% 1841800 100%
Source: (Spice Board India, 2020)
Telangana state is the lead producer of dried chilli in India with an annual production of 386596 MT
in 2019-20 followed by Maharashtra (19%), Karnataka (11%), Tamil Nadu (8%), and Andhra Pradesh
(6%).
State wise Area and Production of Turmeric in India 2019-20
State Area (Ha) (% Share) Production (MT) (% Share)

Telangana 55444 19% 386596 33%
Maharashtra 54248 18% 218873 19%
Karnataka 20740 7% 132668 11%
Tamil Nadu 18432 6% 96254 8%
Andhra Pradesh 29717 10% 71321 6%
Madhya Pradesh 16272 5% 57067 5%
West Bengal 17812 6% 45648 4%
Orissa 27869 9% 43615 4%
Mizoram 7653 3% 29510 3%
Gujarat 4570 2% 18181 2%
Assam 17629 6% 22829 2%
Hariyana 1753 1% 4061 0%
Total Including Others 296181 100% 1178750 100%

Based on area and production Non – ODOP crops/products chosen in the Prakasam district are
Paddy, Maize, Tobacco, and Bengal Gram.
Among Non-ODOP produce, Paddy has the highest production of 454 thousand tons and contributes
around 32% to total agriculture production of value around 0.82 crores in Prakasam district in 2019-
20. Other Non-ODOP produce in the district is Maize, Bengal Gram, and Tobacco as the production
of 73 thousand tons, 72 thousand tons, and 72 thousand tons respectively.
Sl.N Non-ODOP Crop Production ('000 Value (Rs. in % Share to Total Agriculture
o Tonnes) Crores) Production
1 Paddy 454 0.82 32%
2 Maize 73 0.13 5%
3 Tobacco 72 0.58 5%
4 Bengal Gram 72 0.40 5%
Production

16.Mapping of the Micro, Small, Medium, and Large Industries in the District involved in food
etc.)
In the Prakasam district of Andhra Pradesh State, there are 60 large and medium scale
industriesand the total capital investment of large and medium industries is INR 410506 lakhs, and
the value of production is INR 2601880 lakhs in 2018-19.
The major activities of the industries in the district are Food Products and Beverages, Wood and
Wood Products, Cotton, Chemical Fertilizers, pharmaceuticals, Tobacco, Edible Oils, New Prints,
and PVC Pipes.
Production of Selected Industries in Prakasam District in 2018-19.
Sl.
Item Units 2016-17 2017-18 2018-19
No
2 Sugar Tonnes 0 0 0
3 Cottonyarn 1000Kgs 2150 2937.6 2987.4
4 CottonFabrics 1000MTs 3000 3307.5 1441.74
5 Jute Tonnes 0 0 0
8 ChemicalFertilizer Tonnes 1487 1815 1161.44
9 Drugs&Pharmaceuticals RsinLakhs 2592 2774.99 2886.37
10 Cement 000Tonnes 0 0 0
12 FerroAlloys Tonnes 2010 1805 1765
13 Others 0 0 0
14 PigIron Tonnes 0 0 0
15 GraniteSlabs LakhSq.Feet 1292 1992.19 2314.56
16 EdibleOils Tonnes 5000 4512.5 4100.3
17 NewPrint LakhNumber 2025 2450.25 2525.35
21 FoodProducts Tonnes 12600 18000 7027.62
23 Rubber(Reclaimed) Tonnes 0 0 1734.5
Source: (Prakasam District Statistical Handbook, 2019)
There are 3060 factories are registered under Factories Act and provided employment to around
88, 903 persons during 2018-19.
Working Of Factories Registered Under The Factories Act - 1948
2018-19
No. of
Sl.No Name of the Industry No. of Workers
Factories
Male Female
1 Milk Dairy 60 1271 843

2 A.P.S.R.T.C. 8 635 75
3 Electrical Transmission 1 16 4
4 Cotton Spining 16 2890 3890
5 Cement Poles 2 58 12
6 Rice Mills 827 6519 782
7 Dall Mills 85 1071 454
8 Oil Mills 13 191 62
9 Solven Extraction 12 1300 320
10 Production Of Common Salt 10 224 56
11 Chicory 0 0 0
12 Cashewnut 25 234 936
13 Tobacco 92 3964 12048
14 Cotton Ginning 16 332 588
15 Nawar Tape 1 15 5
16 Tarpaline 2 51 19
17 Card Boardboxes 3 48 12
18 Printing 7 396 79
19 Dyes 10 141 59
20 Chemical Productions 5 553 187
21 Rubber Productions 1 18 2
22 Pharmaciticals 6 267 127
23 Stone Crushing 148 2645 215
24 Granite 1273 25467 3032
25 Hume Pipes 12 338 40
26 Wire Drawing 2 34 6
27 Bross Rolling 1 18 2
28 Alluminium 5 127 10
29 I.v. Fluids 1 18 2
30 Agarbathies 1 15 25
31 Saw Mills 137 784 37
32 Natural Poly 0 0 0
33 Slates 28 400 263
34 Steel Re Rolling Industry 0 0 0
35 Biscuite 0 0 0
36 Sea Foods 9 3110 2270
37 Cement Brickes 13 276 39
38 Plastic Pipes 6 108 27
39 Petroleum 2 145 0
40 Poultry Feed 0 0 0
41 P.v.c. Pipes 7 142 28
42 Distilling, Ractifying& Blending Of Spirit 1 550 300
43 A.c.s.r. Conducter&M.s. Wires 1 7 2
44 Seed Processing 10 155 122
45 Flour Mill 0 0 0
46 Cold Storage 61 1572 193
47 Mineral Water 7 99 30
48 Automobiles 12 423 62
49 L.p.g. Botiling 1 20 0
50 Detergent Cakes 4 60 20
51 Picture Frame Products 1 20 35
52 Bio Technology Products 5 298 35
53 Readymade Garments 1 2 18
54 Manufacturing Of Glass 1 200 50
55 Manufacturing Of Iron Inga 2 235 65
56 Meta Works 0 0 0
57 Tire Re-traders 0 0 0
58 Cover Print 8 153 68
59 Paper Cups 13 198 62
60 Detergent Powder 4 59 21
61 Washing & Landry 1 5 15
62 Concrete Designed Tile 2 370 25
63 Artificial Stone Slabs 1 45 5
64 Embriodary Work 1 30 70
65 Prawns Feed 2 45 185
66 Gen.jobbery 1 8 1
67 Grainding Of Plastic Ropes 1 12 8
68 Groundnut Decordicator 6 58 122
69 Handloom Saries 1 50 250
70 Surgical Colth 2 51 19
71 Soaps 1 12 8
72 Ready Mix Concrete 5 122 38
73 Plastic Egg Tryes 2 32 8
74 Plastic Tublers 2 36 4
75 Pet Botles 1 12 8
76 Nonwoven Bags 2 31 9
77 Non Metalic Minerals 1 18 2
78 Scrubbers 1 15 5
79 Ice Cream 1 16 4
80 Hotmiz Plant 1 150 100
81 Ice Blocks 5 96 19
82 Tapes 1 15 5
83 Beedes 1 10 40
84 HdpePvc 2 80 20
85 Cellulose 1 28 10
86 Coconut Milk Power 1 12 8
87 Craft Paper 1 115 5
88 Fabrucatuib Work 8 203 19
89 Power Generation 4 95 0
90 Plastic Articals 15 272 85
91 Ferrow Alloy 2 122 23
92 Filling Of Ozyzen Gas 3 29 0
93 Fomes 0 1 16
94 Water Paintes 1 12 8
95 Quartz Powder 1 20 20
96 TOTAL 3060 60100 28803
Source: (Prakasam District Statistical Handbook, 2019)
17.Number of clusters or locations(if any) where the processing of this product happens;
Currently, there is no cluster established for chilli and turmeric products in the district. But there is a
clear possibility to form a chilli cluster in the district for the below-listed reasons.
• Availability of raw material- the suitable processing chilli variety is abundant in the district.
• Availability of public infrastructure such as roadways,electricity, power, etc.
• Demand for chili-based value products such as chilli powder, chilli sauce, chilli paste,etc in
India and also outside India.
18.Several units engaged with producing the specific ODOP product and 4-5 major non-ODOP
products.
Through the primary survey, we identified 342 units are involved in the processing of dry chilli and
turmeric in the district. Around 1907 workers are engaged in processing ODOP products of which
57% are female workers
Particulars Count of Mode

No. of Workers Engaged in ODOP Processing in the
of Operation
District
Household 257
Partnership 1 Male Female
Proprietorship 119 735
521
Pvt. Ltd 6 260 296
4 7 37 42 3 2
Society/SHG 1
Grand Total 384 Household Partnership Proprietorship Pvt. Ltd Society/SHG
Through the primary survey, we visited and interviewed 42 respondents who are involved in the
processing of Bengal gram, Paddy, and Maize. Around 461 workers are engaged in the processing of
Non-ODOP products in the district.
Particulars Count of Mode of Particulars Male Female Sun-Total

Operation Household 26 27 53
Household 25 Proprietorship 235 173 408
Proprietorship 17
Grand Total 42 Grand Total 261 200 461
19.Approximate Level (%) of processing happening for ODOP (out of total production) in the
district,
The total production of chilli in the district is 210186 MT in 2019-20. Out of total production, 80%
(168148 MT) of production is exported to other countries and the remaining 20% (42037 MT)
production is diverted for processing.
Level of Processing in District
20%
Export (as commodity)
Value added Product

(Chilli Powder and
Oleoresin)
80%
20.Several Self Help Groups, Farmer Producer Organisations, and Cooperatives are currently
Products
Name of Location ContactDetails
theFPOs/FP
District Mandal
Cs
MadakasiraAreca Ananthapuram Amarapuram Spices Ugranarasimhulu-
nut& 9440798591
SpiceFPOCompan
yltd
KrushivalaFPO EastGodavari Polavaram, Turmeric SatishBabuNimmakayala,C
Mummidiva andPepper EO-
ram,Katreni 9705348130,7780428287.
kona,Uppala
guptam,Alla
varam,Amal
apuram,Inav
illi,Ambajipe
ta,P.Gannav
aram,Mami
dikuduru,Ra
zole,sakhine
tipalli,Malki
puram,Koth
apeta,Ravul
apalem,Atre
yapuram
SupportChilliPr Guntur Eddlapadu Chilli J.V.Mohan Rao-
oducersCompa 9959900081
nyLtd JMohan-9704261555
Red Guntur Machavaram Chilli Jaya BabuRao-9502423259

ChilliProduc
ersCompan
y(SERVICE)
MangaladhriAgriP Guntur Tadepalli,Man Turmeric A. Raghuram Reddy,M
roducerComapan galagiri,Duggir Suresh9491011299,94
yLtd ala,Kollipara,K 91011121
olluru,Battipro
lu
SehamitaAgri Guntur Mangalagiri Spices Raghuram
PrathipaduAgriSer Guntur Prathipadu Chilli SrinivasaReddy9949522950

vice
Mutuallyaided
CooperativeSocie
ty
RamudupalemAra Krishna Challapalli TurmericandChilli KorrapatiVeeraSimhudu-
ti,Pasupu&Kuraga 9440248226
yalaUthpatthiDar
ulaParasparaSaha
yakaSahakaraSan
ghamLimited.
Sriram Krishna Nuzvid Chilli L.Balaji-964241293
GroupUdyanaUt
hpattiDarulaSan
gham
Subramanyeswar Krishna Challapalli Turmeric K. Veerasimhudu-
aFarmers 9440248226
ProducerCompan
yLimited
BajibabaFPC Krishna Nandigama,C Chilli M.SubbaRao-9949190227
handarlapadu
Cheruvukom
mupalem
Sri Krishna Chandarlapad Chilli KalyanamVenkataKrishnaR
VeeranjaneyaUd u ao-8185889306
yanaUtpathtidar
luaSahakaraRait
huSangam
BobbarlankaArati Krishna Mopidevi Turmeric Bala Ramakrishna Prasad-
Pasupu&Kuragay 9440651844
alaUtpathidarulaP
arasparaSahayaSa
hakaraSangam
MopideviH Krishna(Vijayawa Mopidevi Turmeric GaddeHari-9441196767
orticultureF da)
armersProd
ucersComp
any
DIvi Krishna(Vijayawa Mopidevi Turmeric BondalapatiVenkateswara
HorticultureProd da) Prasad-9490878157
ucersCompany
GosalaVanukuru Krishna(Vijayawa Penamalur Turmeric Bhuvanagiri Ajay-
HorticultureFarm da) 8074664455
ers
ProducerCompan
y
Pandurangapura Kurnool Nandyal Chilli PunnaReddy9704269644
mFarmers
ProducesCompan
yLtd.,
chaitanyajyothoV SPSNellore Kaligir Chilli RajaReddy,CEO-
egetables i&Vinj 9441984498
&AgriFarmersPro amur
ducersCompanyLt
d
PreranaChilliFarm Prakasam Cumb Chilli A.Ramesh-9705476304
ersProducersCom um,M
panyLimited arkap
ur
CheyuthaChilliPro Prakasam Konakanam Chilli J.V.Srinivasarao-
ducerCompanyLi itla,Tarlupa 9866540298
mited du
andDonako
nda
ChenchuFarm Prakasam Yerragorndap Chilli SrinivasMurarikar08403-
ProductsProd alem 254040
ucersCompan ,Pullalacher
yLtd uvu,Dornan
a,Peddarav
eedu,Tripur
antakam
MahanandiBanan Kurnool Thimmapuram Turmeric Srinivasa Reddy-
a 9959648653
FarmerProducerC
ompanyLimited
Maathotav Srikakulam Seetham Turmeric M.R.N.Batlu-8333856591
anasahaja peta,Vee
ragattam
GiriVikasaFarmer Srikakulam Seethampeta Turmeric NageswaraRao-9515202412
ProducingOrganiz
ation
D. Visakhapatnamm Paderu Turmeric&Pepper S.Satyanarayana-
GonduruGirijan 9490236216
aMahilaRythuS
evaUtpattidarul
aCompanyLtd.
M. Visakhapatnamm GMadugula Turmeric&Pepper P.Gangaraju-9490364168
NittaputtuGirijana
RythuSevaUtpatti
darulaCompanyLt
d.
GiriChaitanyaF Visakhapatnamm G.K.Ve Turmeric,Pepper CEO, Smt.
arming edi,Chi &Ginger Alivenu(Sudheer,Marketin
andMarketing thapalli g)8500254151(944076703
Mutually ,Kovvu 4)
AidedCooperati ru
veSocietyLtd,
AndhraKashmirTr Visakhapatnamm Chinta Turmeric&Pepper SatyanarayanaPrasa
ibal farming palliM d-
&marketingprod andal 9494671156,94933
ucercompany, 33819
Tajangivillage
Maathota Visakhapatnamm G.K.Veedi Turmeric&Pepper Satyanarayana-8790670589
TribalFarming
&MarketingPro
ducerCompanyl
td.,
G.K.village.
NandidevaraFarm Visakhapatnamm ArakuValley BlackPepper KPrasadaRao-9492824897
ProductsProducer ,Ginger&Turmeric
sCompanyLtd
ManavanamFarm Visakhapatnamm Dumbriguda BlackPepper TDileepkumar-8330977983
ProductsProducer ,Ginger&Turmeric
sCompanyLtd
ChinthapalliAd Visakhapatnamm Chinthapalli Turmeric&Spices OrcPrasad,Founder-
ivaasiFarmPro 9949540444
ductsProducer
sCompanyLtd
Manyamsaha Srikakulam Seetha Turmeric V.SankharRao-8985624689
jaFarmerPro mpetM
ducercompa andal
ny
HukumpetaGir Visakhapatnamm Hkumpeta Turmeric,Pepper& M.Kamaraju-8332992896
ijanaRythusev Pippallu
amariyuvutpat
tidarulaMACS
ChethanaGro Prakasam Kothapatnam Chilli A.Umadevi-9849211736
undnutProdu
cerCompanyL
td.
MangaladriAgro Guntur Nikki Turmeric Gowtam Reddy-
ProducersComp 7730045689
any
AmaravathiFarm Guntur Chilakaluripet Chilli PopuriSeshagiriRao-
ersProducersco a 9948254856
mpanylimited
PrathipaduFarme Guntur Prathipadu Chilli N.Nagaraju-9502301004
rs
producercompan
ylimited
ChirumamillaFar Guntur Nadendla Chilli J.Mohan-9704261555
mers
producercompan
ylimited.
RaithuSiriFarmers Guntur Ipuru Chilli G.Paparao-7036720384
ProducerCompan
yLimited
Ujwala Guntur Ipuru Chilli G.Paparao-7036720384
Farmersproducer
companylimited.
CheyuthaAgricult Prakasam Martur Chilli A.Sudha-7730915271
ureProducerCom
panyLimited
NidamanuruFarm Prakasam Naguluppalap Chilli G.V.Narayanareddy-
er adu 9912499184
ProducerCompan
yLimited
Rajya Prakasam J.Panguluru Chilli R.Lakshmirajyam-
LakshmiFarmers 9912858167
ProducerCompan
yLimited
Navyandhra Prakasam Bestavaaripet Chilli P.Rajaratnam-9866379790
Agriculture
ProducerCo
mpanyLimit
ed.
CheyuthaChilliPro Prakasam Tarlupadu Chilli G.V.Narayanareddy-
ducerCompanyLi 9912499184
mited
Prakasam Prakasam Pedaaraveedu Chilli G.Sreenivasulu-9676697823
FarmersProducer
CompanyLimited
Sahemita Guntur Atchampeta Chilli RathaiahAthota-
AgroProducersCo 9491011123
mpanyLimited
YeruvakaFarmers Guntur Atchampeta Chilli NarsimhaRao S-
ProducersCompa 9948203489
nyLimited
The Krishna Vuyyuru Turmeric G. Bhaskar Reddy-
PeddaOgiralaHorti 7702723609
cultureFarmerPro
ducer

21. Specialty of the local agricultural produce/food product, varieties available, seasonality,
uniqueness, history, etc.?
The arrival season extends from February to April. The crop planting starts from August and
extends till October for Hybrid Varieties and June 15 to July end for OP (open pollination)
varieties. While the harvesting begins from December with 5-10% of the arrivals usually reported
in this month. The peak arrivals are reported from February to March. There are several varieties
of Indian Chilly and the most popular among these are Teja, 334, 273, Byadgi, Indam- 5, 4884,
Wonder Hot, Mundu, Chapata,341, DD (DevanurDelux), Yellow(Talu) Chilies.
Harvest Calendar
22. Infrastructure
The essential machinery and facilities required for the processing of dry chilli is listed below;
• Drying Machine
• Destemming Machine
• Chilli Powder Making Machine
• Packing Machine
• Labeling Machine
• Electricity
• Drying Yard
• Cold Storage
In the Prakasam district, micro and small units are traditionally processing dry chilli and no
technology is adopted by them due to financial constraints. The below flow chart gives the manual
method of processing;
DeSteming Grading and

Grinding Packing
Sun Drying Sorting
(Manually) (Machine) (Manually)
(Manually)

During the primary, we noticed that no additional infrastructure is required for chilli processors in
the district because processing is carrying out at a very small scale i.e 20% (overall; which includes
large, medium, small, and micro-units) of total production in the district and district already has
good public infrastructure facilities such as roadways, railways, electricity, cold storage, drying yards,
etc.

Broad Name of
Harvest HMNEH under
Manage MIDH
ment
and scheduled areas as credit- of NHM &
facilities for grading, sorting, etc. linked back-ended subsidy upto HMNEH under
Rs. 17.50 lakhs per unit with size MIDH
9m x 18m
capacity


lakhs Bamboo
Mission (NBM)
under MIDH.
under MIDH

24. Testing
During the primary survey, we observed that micro and small units who are involved in chilli
marketing their products in the local market, retail shops that sell the products without packing,
and also in the Rythu bazaar.

obtained for one kg of the processing;
Price Per Kg 80
Transportation per kg 1
Recover (%) 80%
Marketing Cost 1
Total Cost 92.5
Net Profit 27.5

a. Product Range
processing of dry chilli. The only product they are making is chilli powder and no other value
products are carried out by units mainly because of high initial capital investment.
• Chilli Flakes
• Chilli Sauce
• Oleoresin
d. Production Process and Technology
Chilli Powder Processing Flow Chart
Raw
Sun Drying Desteming Packing
Material
Grading
Marketing Grinding
and Sorting
Technology
Currently,chilli is processed in the traditional manner which results in loss of carotenoids during the
sun drying operation. The new process developed employs a fluid bed drier for bringing down the
moisture to acceptable levels of fresh chilli hygienically. The resulting end product will have a 10%
increase in color value when compared to the conventionally processed raw material. The raw
material is washed, size reduced, dried in the fluid bed drier, and then de-seeded. The contact time
in the drier is less than 15 minutes and the entire operation is automated. All the machineryis
interlocked and the manpower requirements are marginal. High-pressure steam is used as the
heating medium and the plant is engineered to ensure high thermal efficiency.
Investment required: The facility can be set up at a cost of approximately Rs.2.5 crore for a 20
Ton/day fresh red chilli processing unit.
The unit can provide direct employment to 30 people and indirectly benefit a large number of
farmers ensuring a fair price for the produce.
27. Marketing
Marketing channels through which chillies/Turmeric are marketed:
Pre harvest
contractor
Farmer Agent wholesaler Retailer Consumer

Freshly harvested chillies/Turmeric is supplied to the local market directly by the farmer to the
retailer and the retailer sells to the consumer. Farmers generally supply chillies that arrive into
markets mostly packed in gunny bags of 30-40 kg. Farmers dry the chillies and store them in gunny
bags. Dried chillies are sold in the market in different forms like chilli with stem, chilli without stem,
crushed dried red chilli flakes, and dried red chilli powder. Chilli reaches the global market in various
forms like dried whole chilli (with and without stem), chilli powder (ground and crushed), chilli paste,
chilly chutney, and chilli seeds. It is also much sought-after in the oleoresin industry and the
oleoresin extracted from it is used in the preparation of food and cosmetic products.
The total production of chilli in the district is 210186 MT in 2019-20. Out of total production,
80% (168148 MT) of production is exported to other countries and the remaining 20% (42037
MT) production is diverted for processing.
The turmeric production in the district is 6024 MT, more than 95% of the production is not
processed in the district and it is sold as a commodity within the district as well as the outside
district.

• APEDA
XI) SECTION THREE - DETAILED SAMPLE STUDY TO BE UNDERTAKEN FOR EACH DISTRICT
OR PRODUCT CLUSTER3
following sections.
29) Study area

Study Area
The study on State Level Up-gradation Plan is conducted in the entire Prakasam district of Andhra
Sample Size:
The sample size in the Prakasam district is 420. But we captured 384(ODOP and Non-ODOP)

Covered
1 ODOP (Chilli and Turmeric) 342

Primary Data
The study evaluates the chilli /Turmeric supply chain and finds opportunities for traditional practices,
and analyses the value chain of chilli/Turmeric from farm to market. The study also estimates the
distribution of the value-added among the value chain actors like farmers, processors, traders, and
retailers. Primary data was collected from 384 respondents comprised of all the value chain actors,
including farmers, processors, traders, retailers, association president, machine operators, skilled
laborers, Agridept, horticulture dept officials, District industries center officials, FPO’s Self-help group
Secondary Data
Prakasam Statistical Handbook, APEDA, Indiastat.com, Journals and Articles, and other internet
sources to know the area, production, export, import of Chilli and Turmeric processed products.



NA
Martur region is a suitable place to form a chilli cluster in the district because of the following
reasons;
• A good number of processing units exist in this region


The workers/laborers engaged in processing dried red chilies are following the traditional method

The total cost of production of Chilli Powder per quintal is Rs. 16939 and net income generated per

3 Power Charges 80
5 Labour Wages 45
7 Cost of Oil 250
8 Market Fee (1.5%) 210
11 Depreciation 60
14 License fee 4
D Returns
21 Dry Chilli Powder Recovery (Kg) 83
22 Price of Dry Chilli Powder (Rs./Kg) 250
23 Returns per quintal 20750
F BC Ratio 1.16

loading and
unloading,
drying, grading,
and sorting
should provide
by DIC or
Agriculture and
Horticulture
Department
practices method drying automated
and grinding machines for
drying and
packaging of
materials
new technologies at a subsidized
and machinery rate
• Training and skill
development of
new
technologies is
required
11.5 SWOT Analysis
Strength: Weakness:
• The huge availability of Chilli and well- • Chilli is dried on the floors unhygienic
established market and trading system. ally
• Minimum Support Price • Shortage of skilled labor
• A very good relationship with farmers • Higher commission charges
and traders • Insufficient cold storage houses
• Increasing YOY demand for • Heavy competition
Chilli/Turmeric powder • Price fluctuations
• Export infrastructure is available • Pest organism attack
• Availability of raw material throughout
the year
• Availability of credit/loans from the
financial institutions

• About 60-70 % of repackers/processors do not have awareness of FSSAI standards and
adulteration is high (White chilli and Cottonseed oil are blended). Some of the unbranded
companies are not following the standards and ethics
• Heavy competition in the trade is impacting quality from big & small processors/packers
• Skilled labor problems persist and the majority of the labor is from Orissa
• Owing to climatic changes and rainfall the chilli growers are not getting the standard yields
every year and when growers received bumper crop/yields they are facing storage issues
and are unable to get the space and the management of cold storage are not maintained
proper required temperatures and there are no standard fixed charges and they are
collecting higher charges
• Zero business is taking place and some farmers report fewer stocks at the time of entering
into the APMC as well as bidding is not recorded for some lots in the market to evade the
taxes.
• There is no monitoring / low monitoring for the trade happening at cold storages during
the unreason.
• Access to Common Facilities majority of respondents expressed that they are not having
good access to common facilities such as grading, sorting, packaging,etc within the district.
majority of respondents expressed that they are not undergone any kind of inspection
concerning safety regulators.
• Access to finance most of the respondents are not seeking finance to upgrade their existing
units.
• Access to mentorship/ servicemost of the respondents are looking for good mentorship to
product in district
Public infrastructure such as roads for backward and forward 2

5 6 6 296 342
linkages 9
Access to common facilities such as grading, sorting,

2 68 196 70 6 342
11
Access to testing facilities 8 151 68 2 342
3
Compliance with standards and the frequency of inspections

14 17 82 227 2 342
from the safety regulators
12
Skill training needs 11 145 53 4 342
9
Manufacturing practices 1 84 188 65 4 342
10
Technologies Available 4 164 63 4 342
7
2
Access to finance 1 8 71 235 342
7
Access to mentorship/ service 6 21 67 246 2 342
Awareness on Govt Policies among micro /small manufactures 20 66 209 47 0 342
18
Awareness on ODOP product of the District 82 34 42 0 342
4
1
Marketing / sales facilities 2 4 78 242 342
6
5
Facilities to the workers 2 7 39 236 342
8
12. Recommendations
Prakasam district.
Objective:

The total production of dried red chilli in the district is 210186 MT in 2019-20, of which only 20%
is diverted towards processing (majority for chilli powder making, Oleoresin, sauce etc.,). Andhra
Pradesh state is the leading producer of dried chilli and there is a good demand for chilli outside
India in commodity form as well as processed form.
If 10% of 80% is diverted for chilli processing in the district will generate income and employment
for local people. Only they are into chilli powder manufacturing but there is also a great
opportunity for red chilli sauce, chillli flakes,etc in the district which can be promoted through
awareness and skill development programs through the PMFME scheme.

Common Infrastructure • Currently, in the district as well as nearby districtsi.e Guntur
hasa good number of cold storage facilities, so capital
investment for cold storage is not required for the district now.

products without brand and selling in unhealthy competition at
lesser prices in the open market without maintaining proper
quality and packing standards as per FSSAI standards. To
overcome this problem capital investment for training them to
manufacture the good product, guide the
processors/repackers on marketing and branding is required
badly.
• The state government should provide a separate marketplace
for chilli processors and the capital investment can be
supported by the concerned department.

lakhs through
PMFME
1 Machinery
and
Equipment
Category Groups - SHG's 1 1.2 Up-gradation 0.42
2 and purchase
of new
machinery
and
equipment
Category Common 0
4 infrastructure
5 Branding
expressed that they are interested in making processed chilli products. During the survey
new machinery automated chilli drier, destemming machine, chilli powder making machine, packing
and labeling machines.
Groups – Few SHGs are active in chilli powder making. The fund requirement for an SHG is for the
purchase of new machinery, skill development, branding, and marketing. It was emerging from the
primary survey that SHGs are willing to expand and they need funds. PMFME scheme can fill this
gap.
in the district to create awareness about local products, and here we are specifically talking about
dried red chilli.
produce processed chilli products but they don’t know where to sell the processed products. Once
activity.
Training and skill development- Through the primary survey, we observed that majority of chilli
PMPME scheme.
13. Key Impacts

Particulars Impact
next few years
benefitted by PMFME
units will increase by 15 to 20%.
farm gate.
Contents
1. Baseline Assessment studies: ............................................................................................... 414
1.1. Agriculture Profiling of the Districts in the State................................................................. 416
1.2. Percentage Share of Area under Agriculture and Horticultural Crops in Srikakulam District
in 2018-19 .................................................................................................................................. 417
agricultural produce of the district- .............................................................................................. 417
1.4. Perishable nature of the produce...................................................................................... 417
states 418
1.6. Number of workers engaged in the ODOP cultivation......................................................... 419
Product. ..................................................................................................................................... 419
1.8. Total Production of each of the Produces in the District in 2019-20 .................................... 419
1.9. Non-ODOP produce as a percentage of total agricultural produce of the district ................. 419
1.10. Perishable nature of the produce; ................................................................................. 420
1.11. Number of workers engaged in the cultivation of each of the Non-ODOP products. ......... 420
Enterprises in the State: .............................................................................................................. 420
2.1. Assessment of Food Processing Policies in the State: ......................................................... 420
sectors: ...................................................................................................................................... 422
2.3. Assessment of existing Regulatory frameworks for FPI ....................................................... 422
2.4. Stakeholder Mapping ....................................................................................................... 423
3. Profiling of existing Micro Enterprises eco system: ................................................................ 425
3.1. Industrial Profile of the Districts in the State ...................................................................... 425
3.2. Identifying Non-ODOP Products: ....................................................................................... 425
3.3. District wise profiling based on secondary research ........................................................... 425
3.4. Detailed Cluster Study for ODOP Products - How are going to do cluster study. ................... 438
4. Industry and Market Analysis ............................................................................................... 439
4.1. Introduction .................................................................................................................... 444
4.2. Nutritive Value and Health Benefits .................................................................................. 446
4.3. Global Market for the Product .......................................................................................... 447
4.4. Indian Market & Valuation for the Product ........................................................................ 449
4.5. Manufacturing Process..................................................................................................... 450
4.6. District Profiling ............................................................................................................... 456
4.7. Demographic and Socio-economic profiling ....................................................................... 456
4.8. Industrial Profiling............................................................................................................ 458
4.9. Cluster Actors .................................................................................................................. 467
4.10. Existing Government Schemes ...................................................................................... 468
4.11. Cluster Map ................................................................................................................. 471
4.12. Value Chain.................................................................................................................. 471
4.13. Product Cost Analysis ................................................................................................... 471
4.14. SWOT Analysis ............................................................................................................. 472
5. Benchmarking Studies ......................................................................................................... 472
6. Stakeholder Consultation ..................................................................................................... 474
7. Agenda points & discussions ................................................................................................ 474
Technology ................................................................................................................................. 475
Testing facilities .......................................................................................................................... 476
8. Recommendations............................................................................................................... 478
Create a marketing hub ............................................................................................................... 482
EXECUTIVE SUMMARY
Cashew nut is an important dry fruit grown in eight states in India namely Andhra Pradesh, Goa,
Kerala, Karnataka, Orissa, Maharashtra, Gujarat, and Tamil Nadu. Cashew nut needs to be processed
before selling to ultimate consumers. Therefore, cashew processing units play an important role in the
procurement of cashew from the farmers. A study of 310 Processing Units was undertaken by
PMFME- Scheme in theSrikakulam district of Andhra Pradesh as ODOP and Non-ODOP out of these
270 micro units fall under ODOP category (Who have been involved in cashew processing).
Srikakulam is the extreme North-Eastern District of Andhra Pradesh. The Nagavali, Vamsadhara,
Mahendratanaya, and Bahuda are the important rivers of the District. The coastal belt of over 193 km
on the East and the Eastern Ghats on the West, Vizianagaram District flanks in the south and west
while Orissa bounds it on the North and Bay of Bengal on the East. The major crops grown in the
district are Paddy, Maize, Sugarcane, CoconutRagi, Red gram, Green gram, Black gram, groundnut,
Onion, Sesamum, and cotton. The predominant fruits and vegetable crops cultivated in districts are
Pineapple, Papaya, Banana, Mango, Beans, Bitter Gourd, Bottle Gourd, Brinjal, Cabbage, Carrot,
Cauliflower, Chillies, Ladies finger, and Tomato. And plantation crops grown in the district are
Cashew nut, Coconut, and Cocoa. During 2018-19, food grains occupied 72% of the area under
agriculture and horticulture in Srikakulam district followed by fruits 20%, vegetables 6%, oilseeds
1%, and commercial crops 1%. The total area under cashew nut in the Srikakulam district is 24.5
thousand hectares and contributed around 12% to the total cashew nut area in the state in 2018-19.
The production of cashew nut is 21.2 thousand tons in the district and contributing around 20% to
total state cashew nut production in 2018-19.
Identified Non-ODOP products in the Srikakulam district are Paddy, Maize, Sugarcane, and Coconut.
At present 310 processing units are under operation in the district that is involved in the processing
of food products. From the field observations, we noticed that the majority of units are Micro (296),
followed by small units (11) and 3 household units. So summarily, processors (as defined in the
context) opined that they need finance for the common infrastructure, machinery, training, and
branding. To address the constraints/gaps they would need credit to the tune of INR 1.55crore to set
up the above aspects. For Marketing and Branding of their products Industries have opined that they
need funds for training and skill development (for which we estimated costing could be INR 55
lakhs). The same holds for the cashew value chain. There is extensive potential that can be captured
by setting up common infrastructures. From the study, we have also identified 270 individual
enterprises (we have taken turnover criteria of 1 crore. Since the number is few, we are giving the
details of their requirements. Summarily, they fit well into the bracket of “Max of 35% of the total
requirement, not exceeding Rs. 10 lakhs.

Vision Statement: To support micro-enterprises/SHGs/FPOs to up-gradation of technologies and
common infrastructure facilities in the Srikakulam district.
Objectives


inLakhs)
Training, Branding & Marketing 55 There is a lot from Srikakulam to be
hand
Incubation Center
space/area for any Incubation Centers should be a minimum of 7000 Sq. ft.
Cost norms for setting up Incubation Center at Srikakulam

shall be supported by PM FME Scheme with a grant of Rs.1.0 crore (Rupees One crore only) for

Labeling/ Packaging
55 lakhs
Srikakulam Cashew product awareness /Within District
Srikakulam Cashew product awareness /Outside district
MSP on Cashew(RCN)
Total
• Brands in fruits are certainly adding value to the fruit and are important to distinguish one
cashew from another. Particularly if you focus on the higher-income consumers who are
more sensitive to proof of quality, taste, or health benefits all of which can be expressed by
branding
• Govt should provide a market update/educate the processors like the present customer
requirements ingredients dicing, for biscuits makers (Karachi, ITC, etc), local bakeries,
mixture making companies like Haldriams.
• Govt should make GO procure the required cashew for the Temples for preparing prasad
from this cluster to benefit the unit holders
• Govt should fix the minimum support price on the cashew (RCN) to support the farmers and
also should provide market updates regularly on the global and domestic crop status of the
cashew and the prevailing prices by SMS to the farmers/processors.
• Govt should provide a price forecast for the next six months to avoid losses
For Individuals
our respondents as micro-enterprises) so accordingly out of the 310 samples we have surveyed 270
No of Approx Subsidy
Sl.NO What is it for Respondents amount (Rs. in
(Rs. in Lakh)
Crores) Individuals
1 Peeling Machine 91 9.56 10
2 Cutting Machine 76 7.68 10
3 Boiler 72 5.16 10
4 Crushing Machine, Dryer, Grading Machine, Humidifier, Nanopic 27 2.08 10
Machine, Shortix Machine, Pans and Buckets
5 Godowns 3 0.05 1.75
6 New Vehicle for Transportation 1 0.02 0.7
7 Total 270 24.54
What are all required and where are we proposing
Common infrastructure and incubation center can be
implemented at a 15-20 km radius of the Palasa
region since existing processors can defend this
proposal.
It requires a 2-2.5 crore investment to set up a plant
and requires 30 skilled laborers in a day for
processing 100 bags. While the land required for this
will be approximately 10000 sq. meters including
drying yards and it might approximately cost 1 crore.
It is going to help the farmers of the local and other
surrounding regions to a great extent as well as the
importers who don’t have processing units can utilize
this and will be benefited a lot. Most of the farmers
who produce the cashew and who have an interest
are compelled to sell their products because they
don’t have the infrastructure to process the material
with agreed rent and without any investment, they
can process their products and can sell in the market.
Already this type of common infrastructure is
available in the Vizianagaram district and it is
functioning well.
However, there are some constraints in the execution
of the plant-like:
· Area and viability where ever it is necessary
· Better understanding is required between the farmers/processors while processing the
RCN like peeling, cutting, and other activities whom to allow first
· Number of drying yards
· Skilled labor maintenance
· Packing
· Storage
· Loading and unloading
· Testing
· Time management etc.,
Cost attribute Investment in Rs. (Crore)

1. Land and buildings (10k sqmts) 1
2. Plant & Machinery 2.5
3. other Electrical Equipments 0.2
4. Furniture & Fittings 0.2
5. Testing lab 0.5
6. Training and skill development 0.55
Total 4.95
Breakup on Plant and Machinery

S. No Description No units No of the bags Remarks
required processed in a
day
1 Burma/ Hot 3 100 Each borma processes 30 bags in a

chamber day
2 Boiler 4 100
3 Cooker 2 100 It takes 30 minutes to cook 4 bags
and can cook 50 bags each in a day
4 Peeler 4 100
5 Compressor 3 100
6 Cutter 5 100
7 Grader 2 100
8 Nano Pit 2 100
9 Sortex machine 2 100
10 Labor 30 100


universities
Beauty of product
Natural/organic
Sugar content

Skill development for labor:
A proper skill set is required for the laborers to operate the machines like steam Boiler, peeling,
Sorting, husk winnowing, cutting, Weighment, etc., At present only a few skilled laborers are
available and the rest badly required the skill training and a skill development program to be
conducted.
Create a marketing hub
• Since the small unitholders do not have business contacts and are unable to market their
products Govt can create a hub where they can sell their produce and get the benefit.
Elimination of the middlemen in the trade
• In the Cashew industry, brokers/mediators play a big role in selling the product and they buy
the material at a lesser cost and sell the same at a higher price to others. Need to reduce the
gap between the seller & buyer.
Government procurement
• Like in other commodities the government procures the material from the farmers to
support them here the government can procure the quality product and support the
unitholders in providing the support price. Otherwise, can arrange or can make a
government order that all the temples whoever comes under endowment department must
buy their cashew requirements from this region. So the unitholders can be benefited.
Government intervention
• India is a huge cashew consuming country and the consumption of cashew nuts is increasing
YOY across all the industries like bakeries, sweet makers, biscuit manufacturers, juice
makers, mixture makers, etc., as well as it is used in households, marriages, functions,
hotels, etc., However, the Indian production of RCN is insignificant and always we depend on
imports from West Africa and Vietnam countries. The prices normally fluctuate now and
then and the Indian cashew industry is driven by African big traders/processors if the prices
are increased in Africa accordingly the raw material prices shoot up in India. However, the
prices of Cashew kernels have remained almost stable for the past 5-8 years even though
there is a surge in RCN. So there is a need for Govt intervention in this regard.
Contract farming with big processors
• If the farmers and processors come together and enter into an agreement where the farmer
agrees and cultivate the cashew according to the norms of the processors and processors
assure to buy the entire produce produced by the farmer at the ruling price of the day then
there is every chance to get mutually benefited. In this process, the cashew acreage will
increase YOY and the shortage of raw material also comes down gradually. Contract farming
with big processors:
Government support
• Cashew industry in Palasa, Srikakulam district, has been hit hard by various factors, Titli
cyclone, and last year lockdown including the partial lockdown recently imposed by the
Andhra Pradesh government to control COVID-19.
• A steep fall in demand for the nuts and a hike in electricity and labor charges have dealt a big
blow to the industry. Normally, 500 tonnes of cashew is processed per day here but it fell to
200 tonnes.
• “The closure of restaurants and cancellation of marriages triggered a sharp fall in demand
for cashew. The industry is already in dire straits due to last year’s lockdown and a drop in
exports,
• While many manufacturers are unable to overcome their financial distress since October
2018 when the Titli cyclone caused devastation in the entire Udhanam region, including the
cashew-rich Palasa, and Kasibugga towns.
• Despite the best efforts, the industry could not get back on track in the last three years. A
hike in labor charges is also cited as one of the reasons for the increase in production cost.
• In this bad situation if the government supports the unit holders by slashing the power
tariffs to the cashew industries, providing some interest-free loans as well as offering
subsidies that will support a lot to the micro, small and medium industries.
PROJECT METHODOLOGY
following sections.
33) Study area
Study Area
The study on State Level Up-gradation Plan is conducted in the entire Srikakulam district of Andhra
Pradesh State of India.Srikakulam District is the extreme north-eastern district of Andhra Pradesh
situated within the geographic co-ordinates of 18°-20’ and 19°-10’ of northern latitude and 83°-50’
and 84°-50’ of eastern longitude. The Nagavali, Vamsadhara, Suvarnamukhi, Vegavathi,
Mahendratanaya, Gomukhi, Champavathi, Bahuda, and KumbikotaGedda are the important rivers of
the district.
The geographical area of the district is 5,83,700 hectares covered by 38 mandals under three
revenue divisions viz., Srikakulam, Palakonda&Tekkali. During the year 2017-18, the cultivable land
(i.e., Net area sown, current fallows, and other fallow lands) was 3,54,673 hectares and it accounted
for 60.76 percent of the total geographical area of the district.
The role of the agricultural sector in the district economy is very significant. However, out of 34.64%
of the main workers in the district population comes under this category, 32.04% of cultivators and
agricultural laborers are still dependent on agriculture. Agriculture in the Srikakulam district is
mostly rainfall-dependent. Monsoon and seasonal conditions play a major role in the agriculture
Production

The sample size in the Srikakulam district is 420 and out of which 310 respondents are covered so far
and the draft is prepared based on the covered sample size.

Primary Data
India is one of the leading producers and processors of cashew nuts. Cashew nut processing has
undergone a lot of developments from traditional to modern processing. The survey was conducted
in various cashew nut processing units located in different mandals of the Srikakulam district. In the
process of the primary survey, we met different unit holders registered and unregistered, farmers,
agriculture department officials, horticulture department officials, raw material suppliers, skilled
labor, district industries center officials, institutional buyers like sweet makers, bakery manufactures,
institutional suppliers like Olam International, association secretary, and president, farmer producer
organizations, retailers, logistics officials concern, etc., and gathered the necessary information like
the availability of raw materials, year on year production, varieties cultivated, problems facing by
them, production process and the technology adopted by unit holders, availability of skilled labor
and their wages, range of products, value chain, the testing methodology adopted by them,
packaging, marketing, exports and other information from them.
Secondary Data
The secondary data is collected from various sources like DICGS annual report, Cashew Board,
Srikakulam Statistical Handbook, APEDA, Indiastat.com, Journals and Articles, and other internet
sources to know the area, production, export, import of Cashew and Cashew processed products.

interpreted and presented to arrive at conclusions.
SRIKAKULAM DISTRICT
Major cashew nut growing belts in India
Over the past years, cashew nut production in India has been increasing steadily with the adoption
of good agronomical practices. India is one of the largest producers of raw cashew nuts in the world.
However, domestic production is not enough to meet its processing demand. Hence India imports
equivalent or even more than its production from other producing countries, mainly
African countries.
RCN import into India has been steadily growing over the years. This indicates the country’s
dependency on other sources for RCN. Africa is the largest source of RCN to India. African countries
like Côte d'Ivoire, Benin, Ghana, Guinea Bissau, Tanzania, etc export the maximum quantity of their
production to India.
The cashew harvesting season in India is normally from late February to early June. According to the
Directorate of Cashewnut & Cocoa Development (DCCD), domestic cultivation covered
approximately 1.1 million hectares that harvested around 740,000 million tons (MT) of the crop. The
State of Maharashtra contributed 26 percent, followed by Andhra Pradesh (22 percent), Odisha (13
percent), Karnataka (10 percent), Kerala (10 percent), Tamil Nadu (8 percent), and Goa (4 percent),
with the remaining 7 percent originating from the rest of India
Srikakulam District is the extreme north

eastern District of Andhra Pradesh.
TheNagavali, Vamsadhara,
Mahendratanaya, and Bahuda are the
important rivers of the District. The coastal
belt of over 193 km on the East and the
Eastern Ghats on the West, Vizianagaram
District flanks in the south and west while
Orissa bounds it on the North and Bay of
Bengal on the East. The Geographical area
of the District is 5, 83, 700 Hectares.
Especially the District is backward in all
aspects except Sex – Ratio where Female
population exceeds Male Population.
The District is situated in the North Coastal

Plain of the Agro – Climatic Zone and
partly in Tribal Areas. The District has two Natural Regions Viz., the Hilly Region called Agency
Area, mostly inhabited by Tribal Population and the Plain Area. The district is divided into 3
divisions viz., 1.Tekkali 2.Palakonda and 3.Srikakulam covering 38 mandals with 1863 Villages
The geographical area of the Srikakulam district is 583.7 thousand hectares, of which the net sown
area is 307.44 thousand hectares accounted for 52.6 % in 2018-19.
The major agriculture crops grown in the district are Paddy, Maize, Ragi, Red gram, Green gram,
Black gram, groundnut, Onion, Sesamum, and cotton in 2018-19. The predominant fruits and
vegetable crops cultivated in districts are Pineapple, Papaya, Banana, Mango, Beans, Bitter Gourd,
Bottle Gourd, Brinjal, Cabbage, Carrot, Cauliflower, Chillies, Ladies finger, and Tomato. And
plantation crops grown in the district are Cashew nut, Coconut, and Cocoa.
Sl.No Particular Unit Year State District

(a) Gross Cropped Area In '000' Hectare. 2018-19 7,297 431.72
(b) Net Cropped Area (including fish ponds) In '000' Hectare. 2018-19 6,049 307.44
(c) Gross Irrigated Area In '000' Hectare. 2018-19 3,635 227.76
(d) Net Area Irrigated In '000' Hectare. 2018-19 2,796 189.88
18.2. Percentage Share of Area under Agriculture and Horticultural Crops in Srikakulam District
in 2018-19
During 2018-19, food grains occupied 72% of the area under agriculture and horticulture in
Srikakulam district followed by fruits 20%, vegetables 6%, oilseeds 1%, and commercial crops 1%.
agricultural production of the district-
The total area under cashew nut in the Srikakulam district is 24.5 thousand hectares and contributed around
12 % to the total cashew nut area in the state in 2018-19. The production of cashew nut is 21.2 thousand tons
in the district and contributing around 20% to total state cashew nut production in 2018-19.

Cashew Nut and its products are not highly perishable. Its products can be stored for up to 12
months with proper packing and storage. Generally, most cashew processors produce kernel cashew
nuts. Buyers after procuring the cashew from the processors do the value addition according to their
requirements. The majority of the produces does not do the salting or roasting, candy, and butter
activity. Third-party will do the value addition activity like roasting, salting, and other activity.
The Perishability of the cashew depends on the proper care taken by the processors during the
process they normally maintain the required moisture levels and dry properly the cashew, pack it
into good bags, and also stack it properly in the cold storages. The cold storage management takes
all the precautions like the required cold temperatures for better shelf life

1 Dried Nuts 8 to 12 Months Polythene packets
2 Cashew Nut Candy 12 Months Polythene packets
3 Salted Cashew Nuts 5 to 6 Months Polythene packets
4 Roasted Cashew Nuts 8 to 12 Months Polythene packets
5 Cashew Butter 9 Months Glass bottle, Plastic
bottle
6 Cashew shell Oil One Year Plastic and Glass Bottle
states
During 2018-19 the total production of cashew nuts is 109.9 thousand tons in Andhra Pradesh State.
Visakhapatnam and Srikakulam districts contribute 24.1 thousand tons and 21.2 thousand tons of
cashew nut to the total cashew nut production to the state.
Cashew nut production in Karnataka state is 84.98 thousand tons and Srikakulam district (Andhra
Pradesh State) cashew nut production is around 22 % of the Karnataka state total cashew nut
production in 2018-19 and also contributes 2.9% to overall India Production in the same year.
Srikakulam district is contributing around 3% to the total cashew nut production in India in 2018-19.
Sl. State District Area('ooo Production('oooTo % Share to All India

No Hectares) nnes) Cashew Production
1 Andhra Srikakulam 24.35 21.22 2.9
2 Pradesh Visakhapatnam 29.06 24.18 3.3
3 Karnataka Dakshin Kannada 16.89 19.84 2.7
4 Udupi 17.39 19.35 2.6
5 All India 1089.38 742.71
According to the 2011 census Srikakulam district has a population of 27.03 Lakhs. The average size of
the land holdings in the district is 1ha. The total area under cashew cultivation is 24.35 thousand
hectares with a production of 21.22 thousand tons. Around 24.2 thousand households are involved
in cashew cultivation with a population of around 96 thousand. Approximately less than 4 percent of
the total population in the Srikakulam district is engaged in cashew cultivation.
Non-ODOP:
The Non – ODOP crops/products chosen in the Srikakulam district are Paddy, Maize, Sugarcane,
and Coconut.
18.7. What other Major crops are being cultivated apart from the chosen ODOP Product.
The major crops grown in the district are Paddy, Maize, Ragi, Redgram, Greengram, Black Gram,
Groundnut, Sesamum, Sugarcane, cotton, and Coconut.
18.8. Total Production of each of the Produces in the District in 2019-20

Sl.No Crop Area ('000 Hectares) Production ('000 Tons)
1 Paddy 219.2 937.4
2 Maize 40.9 261.4
3 Ragi 3.5 5.0
4 Redgram 0.5 0.2
5 Greengram 26.8 14.2
6 Blackgram 41.4 19.8
7 Groundnut 4.9 7.4
8 Sesamum 7.7 1.6
9 Sugarcane 5.7 0.4
10 Cotton (Lint) 5.7 8.7
11 Coconut (No. of Lakh Nuts) 14.9 2097.0
18.9. Non-ODOP produce as a percentage of total agricultural production of the district

contributes around 55% to total agriculture production of value around 1.64 crores in Srikakulam
district in 2019-20.Other Non-ODOP produce in the district such as Maize and sugarcane as the
production of 261.4 thousand tons and 0.4 thousand tons respectively.
1 Paddy 937.4 1.640 54.38
2 Maize 261.4 0.44 15.16
3 Sugarcane 0.4 0.000 0.02
Production
18.10. Perishable nature of the produce;
Non-ODOP processed products such as rice flour, rice papad, sugar, maize flour, etc. are non-
perishable. Coconut milk, sugarcane juices are highly perishable in nature and other coconut
processed products such as Desiccated Coconut, Chips, Candy, Flour, Yogurt, Coconut Jam, Syrup,
Coconut Protein Powder, Coconut Vinegar, Coconut Cream, etc are moderately perishable.

I Paddy
1 Papad 6 Months
II Maize
III Sugarcane
1 Raw Sugar Upto 5 Years
2 Sugarcane Juice Refrigeratedupto 2 to 3 Weeks, fresh juice upto 8 hours
IV Coconut
1 Coconut Milk Powder 4 Months
2 Coconut Chips 3 to 4 Weeks
3 Coconut Candy Upto 12 Months
4 Coconut Yogurt Upto 15 Months
18.11. The number of workers engaged in the cultivation of each of the non-ODOP products.
The total area under paddy, maize, sugarcane, and coconut cultivation is 280.7 thousand hectares
with the production of 1199.2 thousand tons and 2097 lakh coconut nuts. Around 2, 80,700
households are involved in paddy, maize, sugarcane, and coconut cultivation with a population of
around 11, 22,000. Approximately 42 percent of the total population in the Srikakulam district is
engaged in non-ODOP cultivation.
19. Assessment of the existing Policy and Regulatory frameworks for FPI and FPI micro-Enterprises
in the State:

In Srikakulam of Andhra Pradesh state, to facilitate more cashews processing in the cashew value
chain to maximize their return, a scheme is promoted by Andhra Pradesh Food, Processing Society to
support the food industries and the scheme is furnished hereunder.



Men
3% for 5 Years
3% for 5 Years
3% for 5 Years


Hypothecation duty
FPOs, BC/Minority

Entrepreneurs:

Registration


parks
sectors:

Project Profile for Establishing Cashew Processing Unit:
In Srikakulam of Andhra Pradesh state, to facilitate more cashews processing, value addition, and
involve farmers in the cashew value chain to maximize their return, an APFPS scheme is promoted.
In this to start a cashew processing unit, as an initial capital the person, partnership firm, Pvt ltd., the
company should contribute a portion of the project cost, and the remaining will be taken care of by
the funding/banking/financial agency.
The key function of the APFPS includes planning, promoting, and financing programs for production,
processing, marketing, storage, export, and import of agricultural produce and certain other notified
commodities.
Loans and grants are recommended by the APFPS to the bankers for financing micro, small and
medium enterprises.
Purposes for which assistance is provided are:
• Margin money to raise working capital finance,

• Term loan for creation of infrastructural facilities likegodowns, cold storage,
equipment financing, purchaseof transport vehicles.
• Subsidy on loans
A model project report for establishing cashew processing units of 4 ton per day (TPD) capacity
under the scheme is given below. In terms of the costing, there will not be much difference between
private and SGH processing units except for funding patterns and financial assistance.
Economics of Establishing Cashew Processing Units

Assumptions:
• Processing capacity will be 4 tons per day or 4 TPD of raw cashew nut
• Average days of working in a year are 300 days
• Annual requirement of raw cashew nuts (RCN) is 1200 tons
• Average utilized capacity of the plant is 85%
• It is expected that the project is completed within one year after sanction of financial assistance
• The mill will require approximately 200 workers and 20 staff
• The Individual/company has to raise/arrange the requisite capital.

• Land Purchase/Leased
• Obtained assurance from State Electricity Board for providing required electricity connection
• NOC from the Pollution control board
• Prepared plan and estimates for civil work of main plant and other ancillary buildings
• Obtained quotations from suppliers of plant & machinery and other equipment.
• Identify the market for finished products.
The pattern of Funding:
As per the APFPS pattern of funding for the cashew processing unit 80% of the loan is sanctioned to
the banker or financial agency. The subsidy is available 35% respectively of the project cost and
sealing is 35 Lakhs.
S. No Department Discussion
1 District industries ➢ There is no specific policy for the food processing
center industries in the Srikakulam district.
➢ District industries provide incentives for upgrading of
Micro and Small Enterprises and large industries
relating to Food and others like Reimbursement of
100% stamp duty transfer duty paid by the industry,
➢ committed to supplying uninterrupted 24x7 quality
power, 15% Investment Subsidy on Fixed Capital
➢ Investment, an Interest subsidy on the term loan
taken for fixed capital investment by new Micro and
Small enterprises.
➢ Reimbursement of 25% land conversion charges for
Industries, etc.,
➢ No training has been provided for the food
processing industries from the DIC.
2 Financial Institution ➢ They are involved in providing maximum loans for

eligible individuals, SHG’s, micro and small processing
units.
3 Food safety and ➢ Manufacturing license will be provided to the

standards authority of units operating and periodical auditing is made.
India (FSSAI) ➢ FSSAI provides the license to the manufacturing
units before checking the products in the
laboratories which are produced in the units
4 Agriculture and ➢ Horticulture department is providing subsidies to

Horticulture Department farmerson plant materials, irrigation tools, drilling
borewells, supply of diesel engines/ electric pump
sets, inputs for intercropping also providing
training to the farmers, extension officials,
workers, and input dealers
➢ Providing financial assistance for the expansion of
Cashew cluster activities in the district like Area
expansion program, Farm mechanization & post-
harvest infrastructure
5 Self Help Groups (SHG’s) ➢ They are involved in processing cashew in little
quantities, packaging, and marketing their processed
agricultural produce
6 Farmers ➢ They are involved in the production and supply of
raw materials to processing units, individuals, and
Traders
7 Traders/ ➢ packaging of processed products and also supply
Cashew Association required quality of raw materials to processing units
➢

In the Srikakulam district of Andhra Pradesh State, there are 26 large and medium scale
industries and 727 small scale industries and employed 18,905 persons during 2018-19. And
also 916 factories are registered under Factories Act and provide around 38,000 employments
in the district. The major activities of the industries in the district are Pharmaceutical, Cashew
processing, jute,coir, pesticides, Pistons, Ammonium Nitrate, Rice mills, Granite, Stone
Crushers, Beachland Minerals, Sugar, and Power.
20.2. Identifying Non-ODOP Products:

Identified Non – ODOP products through the primary survey in the district are listed below
table;
Sl.No Crop Value Added Products

Name
1 Paddy Flaked Rice, Papad
3 Coconut Water, Milk, Milk Powder, Desiccated Coconut, Chips, Candy, Flour, Yogurt,
Coconut Jam, Syrup, Coconut Protein Powder, Coconut Vinegar, Coconut
Cream, etc.
4 Sugarcan Raw Sugar, Juice, Jaggery
e

List of the units visited
File already shared with APFPS management
Small Scale Industries in Srikakulam District in 2018-19

Capital Investment Employees
S.NO Category No. of Units
(Rs in Lakhs)
Male Female
1 Food Products Based 197 9209 2000 97
2 Textile & Jute Based 25 470 92 18
3 Chemical Based 200 11220 1600 197
4 Paper Based 72 791 173 25
5 Plastic Based 77 1397 339 220
6 Steel Based 156 1309 744 80
7 Total 727 24396 4948 637
Srikakulam District in 2018-19
2018-19
Sl.NO Name of the Industry No. of Factories No. of Workers
Male Female
1 Dairy Products 1 32 8
2 Paddy Milling 282 3704 260
3 Dal Mill 4 17 7
4 Oil Mill 2 151 79
5 Feed Mixing Plant 3 57 10
6 Sugar Factories 1 1000 0
7 Cashew Factories 244 756 6254
hh. Is the district recognized with the ODOP product?
ODOP product is identified by the APFPS department and Cashew nut is recognized as an ODOP
product.
Awareness about the ODOP Product in Srikakulam District
The primary survey observed that among respondents 92% are aware of ODOP products in the
district and the remaining 8% of the respondents are not aware of ODOP products.
Particular Respon Response
s se Percentage
Count
Yes 285 92
No 25 8
Total 310 100
ii. Has the product been granted Geographical Indication status by the Government of India?
The recognized ODOP product (Cashew Nut) in Srikakulam district in Andhra Pradesh State has not
been granted geographical indication status by the government of India.
jj. Special nature and relationship of the product with the district, uniqueness, history, etc?
In the state of Andhra, Pradesh Cashew is grown in different districts like Srikakulam,
Visakhapatnam, East Godavari, West Godavari, Krishna, Guntur, Prakasam, and Nellore. The cashew
is grown scattered across the districts.
In earlier days, cashew processing was mainly manual as it was a work of the artisan whose art of
processing was the key to realizing maximum value (whole kernel- W grade) from the raw material.
Careful roasting of RCN for easy shelling but without having burning or breaking impact on a kernel,
peeling off the testa (skin) without using a sharp tool to avoid the scratch on the kernel, and grading
the kernel based on the color and size are the key processing steps, where minimum mistake
committed by the labor would gain a higher return. The cashew cultivated in this district is unique
for taste and flavor so the people across the country prefer Srikakulam (Palasa) cashew
kk. Level of processing happening for ODOP in the district, in other districts, and outside the
State.
In the district of Srikakulam, nearly 310 units located among all the units manual, domestic, and
Vietnamese technology are adopted by the processors. Raw cashew nut is processed through
various activities like drying boiling heating cutting segregating and sorting by this process cashew is
produced.
Srikakulam district has more potential capacities to process than the produced in the district. Nearly
65-70% of the RCN is imported from the West African countries only 30-35% of the crop is produced
across the district. However, the units are operated for more than 283 daysin a year and processing
the RCN to Cashewnuts. Here the skilled labor availability is sufficient. While the infrastructure i.e.
machinery, drying yards, water availability, power supply, proper roads, the port is nearby and the
airport is nearer to the district. The finished product is supplied across India from this region.
In the state of Andhra, Pradesh Cashew is grown in different districts like Srikakulam,
Visakhapatnam, East Godavari, West Godavari, Krishna, Guntur, Prakasam, and Nellore. The cashew
is grown scattered across the districts.
The crop is also growing more in the regions of Thuni, Narsapuram, Rajahmundry, etc., of East
Godavari regions, in the Vetapalem region of Prakasam. The Processing units are emerging fastly in
these regions and there are processing units located in Parvathipuram of Vizianagaram districts.
The Indian processing industry is highly fragmented, with different states closely vying for the
biggest piece of the pie. It is estimated that Kerala topping the processing ladder board with a
20% market share, closely followed by Maharashtra (18%), Karnataka (16%), Tamil Nadu (12%),
Andhra Pradesh (11%), Odisha (11%), West Bengal (6%), and Goa (3%), etc. More states are entering
the cashew processing market with Gujarat, Bihar, and Rajasthan throwing their hats in the ring.
With around 275,000 tons of cashew kernel consumption domestically, India is one of the top
consumers in the world.
Snacking unsurprisingly tops consumption in India with 30 percent of the share followed by Bakery &
Confectionery, Sweets & savory, HORECA, frozen desserts, all accounting for 15 percent each in the
consumption pie chart. Temples, Marriages, and Functions round of domestic consumption by
accounting for the remaining 10 percent.
ll. Mapping of the Micro, Small, Medium and Large Industries in the District (Total number of
Units)
In the district of Srikakulam, nearly 310 units of Micro, Small and Large Industries are located. Nearly
250 -280 microprocessing units that process from 2 -10 bags in a day and approximately they
process 1500-1600 bags (80 kg of (RCN) raw material) i.e. nearly 120 tonnes in a day by all units in
Palasaand other mandals almost all through the year. While there are 20-30 small scale units that
process 20-50 bags each day and there are a few units that process nearly 50-100 bags in a day with
the help of semi-automatic machines (Automatic peeler and cutter) There are nearly 21 varieties
available in the market and they're sold according to size, color, and quality.
Mode of Operation of ODOP and Non-ODOP Product
The primary survey observed that out of 310 respondents, 304 respondents own the proprietorship
of the company/unit followed by 4 respondents is operating the business at the household level and
one respondent is operating a business with the partnership.
Particulars Respon Response

se Percentage
Count
Proprietorshi 304 98.1
p
Partnership 1 0.3
Society/SHG 0 0.0
Pvt. Ltd 0 0.0
State Govt. 0 0.0
Undertaking
Central Govt 0 0.0
Undertaking
Household 4 1.3
Other (Please 1 0.3
specify)
Total 310 100.0
Classification of ODOP and Non ODOP Processing Industries in Srikakulam District
The primary survey observed that among 310 visited industries, 296 industries are micro-units
followed by 11 small units and 3 units are household units.

se Percentage
Count
Micro 296 95
Small 11 4
Medium 0 0
Household 3 1
Total 310 100
Registration of Industries (ODOP and Non ODOP)
The primary survey observed that among the visited ODOP and Non-ODOP processing industries in
Srikakulam district, 285 industries/units are registered and 25 industries/units are unregistered.

se Percentage
Count
Yes 285 92
No 25 8
In Process 0 0
Total 310 100
Classification of Industries (ODOP and Non- ODOP) by Registration in Srikakulam District
The primary survey observed that out of 285 registered ODOP and Non-ODOP processing
industries/units in the Srikakulam district, 273 industries are micro industries followed by 11 small
industries and one household unit.
Industry Registered Unregistere
Household 1 2
Micro 273 23
Small 11 0
Total 285 25
Industries Registration (ODOP and Non-ODOP) in Srikakulam District
The primary survey observed that out of 310 visited ODOP and Non-ODOP processing
industries/units in Srikakulam district, 268 industries/units registered under GST and 9
industries/units registered under MSME.

Count Percentage
MSME 9 3
Municipal 0 0
GST 268 86
Other (Please 23 7
specify)
Not 10 3
Responded
Total 310 100
mm. Number of clusters engaged in the processing of this product;

In the Srikakulam district of Andhra Pradesh state Cashew is grown in Mandals in cashew processing
are Palasa, Mandasa, Sompeta&Ichapuram.
Earlier in the Palasa region of Srikakulam district majority of the processing was taking place
however in the recent past the crop is also growing more in the regions of Thuni, Narsapuram,
Rajahmundry, etc., of East Godavari regions, in the Vetapalem region of Prakasam. The Processing
units are emerging fastly in these regions as the crop availability is there and comparative
Srikakulam the raw material cost is lesser in these regions and the Visakhapatnam port is also nearer
to these regions when compared to Palasa if they import material from other countries and there
are processing units located in Parvathipuram of Vizianagaram districts.
In the district of Srikakulam, there are nearly 350 registered and unregistered processing units while
in the Palasa region of Srikakulam district.
However, there is no cluster existing for Cashew and a cluster can be made and all the processing
units located in the different districts can be brought under one cluster.
nn. Number of workers engaged in the ODOP processing;
Nearly 8000-9000 laborers are working across the Srikakulam district in about 300- 310 in the
processing units and skilled labor that is who operates the machinery, boiler, drier, who performs
cutting, who does grading will be nearly 60-70% and the other labor i.e. who does other
activity(Semi-skilled labor) will be nearly 30-40%.
Number of Workers Engaged in Cashew Processing Industries in Srikakulam District
The primary survey observed that around 96% of workers engaged in cashew processing are working
in micro industries/units and the remaining 4% of the workers are working in small industries/units.
Industry Male Female Total % Change Of Total

Household 9 16 25 0.36%
Micro 1160 5408 6568 95.70%
Small 102 168 270 3.93%
Total 1271 5592 6863 100%
oo. Marketing linkages within the district, state, and outside
Finished product i.e., cashew kernel is traded through the broker network as well as with the
existing relationship in the industry, most of the sales are happening in Andhra Pradesh from this
district. Out of the total cashew processed in the district of Srikakulam nearly 70-80% is sold in
the domestic market i.e. in India to the states of Telangana, Maharashtra (Nagpur), Orissa, Bihar,
West Bengal, Jharkhand, Madhya Pradesh, Uttar Pradesh, Delhi, Gujarat, Rajasthan, and other
parts of India, and the balance 20-30% is exported to other countries like USA and EU.
Big giants like Olam international, Bolas Kamat, SSL international, and other big industries sell
their produce in India as well as exports to other countries. In India Olam and other industries
are supplying to institutional buyers like ITC,Britania, Karachi Bakery, etc., (Biscuit makers)
Amul,Havmore (Ice cream manufacturers)Haldirams (Savouries makers), and all other nut-based
industries. Other medium unitholders or traders they are selling to e-commerce industries like
Amazon, Flipkart, Grofers, More, Jio mart, spencers, etc.,
With around 275,000 tons of cashew kernel consumption domestically, India is one of the top
consumers in the world.
Snacking unsurprisingly tops consumption in India with 30 percent of the share followed by
Bakery & Confectionery, Sweets &savory, HORECA, frozen desserts, all accounting for 15 percent
each in the consumption pie chart. Temples, Marriages, and Functions round of domestic
consumption by accounting for the remaining 10 percent.
pp. Level of infrastructure for ODOP processing within the district, in other districts, and
States.
Regarding the level of the infrastructure for ODOP processing within the district, the total
crop produced in the district, as well as the CRN, imported from African countriesare
processed in the district. In the Srikakulam district, there are nearly 300-310 cashew
processing units established in the Palasa, Mandana, and other mandals of Srikakulam
district and there are sufficient processing capacities to process the cashew produced and
imported. Approximately 18000 - 20000 tonnesof processed cashew is produced per annum
in this district and supplied to across the country.Out of the total units, the majority of the
units are adopting manual methods i.e. manual machinery and a few units are using
automatic machines for processing cashew. The majority of the units require warehouses
and cold storage, skilled labor, drying yards, new machinery for processing the cashew,
testing facilities, and an SEZ is required for the cashew process. While in other districts like
East Godavari, Rajahmundry, Vizianagaram, Vishakhapatnam, etc., there even though their
crop is cultivated but the processing units are lesser in number and there also the
infrastructure is required.
qq. Total production value of the ODOP product manufactured in the district and as % of total
During the year 2019-20,Srikakulam Cashew nut production was at 0.21 Lakh tons, which is 1% of
the total Agricultural Production in the district and 21% in the total state production.
rr. Number of enterprises involved in the processing of this product and as a % share of the
total number of micro food processing enterprises in that district;
• No. of units involved in cashew processing: approx. 350-360 units
• Percentage of cashew Processing: 80%
• Percentage of Jaggery and sugar processing: 9%
• Percentage of groundnut chickies: 5%
• Percentage of paddy processing: 6%
ss. The number of Self Help Groups and Farmer Producer Organizations engaged in the
processing of this product.
In the district of Srikakulam, there are nearly 10 farmer producer organizations registered legally and
with regarding exclusively cashew two are functioning one in Seethammapet with nearly 2200
members out of this there are nearly 180 self-help groups and other is located in Vajrapukotturu
with nearly 2400 members and out of this nearly 210 self-help groups are there. All farmers are the
members, and after forming the FPOs”s they are getting additional prices for their products
compared to earlier.
tt. Sale of this product to other districts, states and exported to other countries
Out of the total cashew processed in the district of Srikakulam nearly 70-80% is sold in the domestic
market i.e. in India to the states of Telangana, Maharashtra (Nagpur), Orissa, Bihar, West Bengal,
Jharkhand, Madhya Pradesh, Uttar Pradesh, Delhi, Gujarat, Rajasthan, and other parts of India, and
the balance 20-30% is exported to other countries like USA and EU
Mapping the value chain aspect

The above table shows the value chain in Cashew nuts. After the harvest, the product moves
through village traders/ wholesalers to processors. Then from the processor, it is traded
through a broker/commission agent, and supplies are made to the wholesaler who trades
processed produce from which the product is made available to retailers and finally to the
consumers. Apart from this, the processor directly sells the produce to nut-based industries
like biscuit manufacturers, ice cream manufacturers, sweet makers, bakeries, etc.,
In another channel in the chain further value addition takes place in bakeries, functions,
restaurants, and is made available to consumers. Some part of the processed cashew nut is
also exported to other countries like the USA, EU, Gulf countries.
Pre Harvest
Fruit Growers
Contractors
Commission
Cold Storage
Agent &Traders
Exporters Retailers
Consumer
Pre-harvest contract: The contractors evaluate the orchard during the initial stage of fruiting and
payment is done to the farmer on a per kg basis. Some of the farmers also negotiate the price of
their orchards on a lump-sum basis. The quantity, quality, and rates are negotiated based on mutual
agreement between the farmer and the contractor. The cost of activities such as harvesting, packing,
and transportation at the farm gate is taken care of by the contractor.
Purchase by Processing Units: Processing units are directly procuring the raw material at the farm
gate. Apart from this, they also procure through agents/suppliers. Processors are more price-
sensitive and quality is the major concern for them.
Wholesaler: The wholesaler is responsible for the distribution of products to various retailers. The
second level of sorting/grading has also been observed at the secondary/terminal markets.
Accordingly, the produce is sold to the retailer based on specific grades.
uu. Understanding the Infrastructure constraints faced by Micro Enterprises:
There are some Infrastructure constraints that micro Enterprises are facing are
• Shortage of raw material cultivated in Srikakulam
• Dependency on Imported RCN from East African countries & Higher import duty
• Processing the RCN with old machinery/Technology
• No testing labs in Srikakulam district
• No marketing support
• Very little support from the bankers to upgrade technology
• Less promotional activities/subsidies by industries department for up-gradation of
technology
• Little support from the Industries department in giving skill training to the labor
Mapping the market potential of FPI micro enterprises

The Srikakulam Cashew processing industry is fastlydeveloping, Rough estimates from market data
show PalasaMandal topping the processing ladder board with 60 -70 percent market share
compared to other mandals, More districts are entering the cashew processing market with East
Godavari, West Godavari, Vishakhapatnam, Vizianagaram, etc., Roughly 50% of the production and
sale is done from Srikakulam district and remaining 50% from other parts of Andhra Pradesh state.
Mapping the Firm-level issues
There are some issues faced by the maximum number of manufacturers in the district those are
Raw material shortage:

There is a huge shortage of raw materials i.e. RCN in India as well as in the district of Srikakulam
district. Only 30-35% of material is produced in India and the rest of the 65-70% is imported from
West Africa. While the quality is also not up to the mark. Only the first harvest crop will be good the
later harvested crop is inferior which is not preferred by most of the processors so they depend on
West African countries.
Farmers are incurring losses in cultivating the cashew because of no proper return on investment
either because of lower yields. Climate plays a vital role in the cashew cultivation or exploitation by
the mediators.
So the companies have to tie up with farmers and do contract farming then only the farmers are
benefit and government should support the farmers by providing procurement centers.
Here the total RCN prices are depending on Africa or Vietnam. They are price-deciding countries.
Processing areas: Drying yards

Srikakulam district is a producer as well as large importer of raw Cashew Nuts (RCN) in India. During
the harvesting season, most of the processors stock the local RCN for their future requirements. As
the new RCN contains a lot of moisture, it needs to be dried to prevent quality loss of the nuts
during warehousing. Drying of RCN is the key process done at this stage.
Drying of RCN- The freshly harvested RCN are dried by spreading it on the drying yard under the sun
for 1-3 days depending on the moisture content. The nut-making rattling sound is the symbol that
the raw nuts have been dried properly.
However, it is necessary to monitor the drying process as over-drying of RCN may cause scorched
kernel which may lead to higher breakage during shelling. On the other hand, improper drying of
RCN may again cause a lower yield of wholes and de-coloring of the kernel.
Preparation/Construction of Drying Yard- In general, for drying 100 bags (8000 kg) of RCN around
700 sq. feet of drying yard area is required. The size may differ from processor to processor
depending on the total area they possess within their processing premise.
Testing facilities:
Weight and quality inspection services for raw cashew import consignments are usually followed.
The majority of the raw cashew imports are through in 80-kilogram jute bags. The quality of the raw
nuts is determined for out-turn in pounds per 80 kgs bag. The price of the raw nuts is based on the
outturn of the nuts in the trade.
100% container weighment is carried out in nominated weighbridges. Representative samples are
drawn at random from approximately 10 % of the bags during de-stuffing of the cargo from the
containers at the buyer’s warehouses by our Inspectors. Approximately 2 kg sample per container is
drawn. The cutting test is done on two samples of one kg each and the average result is considered
for the outturn. Moisture is analyzed at the laboratory for one sample wise
Skilled workers
cutting, who does grading will be nearly 60-70% and the other labor.e.who does other activity(Semi-
skilled labor) will be nearly 30-40% there are semi-skilled workers are almost 60% skilled labor was
30%
Financial assistance
20.4. Detailed Cluster Study for ODOP Products .
• In the Srikakulam district of Andhra Pradesh state Cashew is grown in Mandals in cashew
processing are Palasa, Mandasa, Sompeta&Ichapuram. During the year 2019-20, Srikakulam
Cashew nut production was at 0.21 Lakh tons, which is 1% of the total Agricultural
Production in the district and 21% of the total state production.
• In the district of Srikakulam, there are nearly 300-310 registered and unregistered
processing units while in the Palasa region of Srikakulam district almost all through the year
nearly 150 -180 processing units approximately are processing 1500 bags (80 kg of raw
material) i.e. nearly 120 tonnes in a day by all units in Palasa region.
• Nearly 8000-9000 laborers are working across the Srikakulam district in all the processing
units
• There are nearly 21 varieties available in the market and they are sold according to size,
color, and quality.
• Out of the total cashew processed in the district of Srikakulam nearly 70-80% is sold in the
domestic market i.e. in India to the states of Telangana, Maharashtra, Delhi, Gujarat,
Rajasthan, and other parts of India, and the balance 20-30% is exported to other countries
like USA and EU.
• Even though there is huge potential for processing and shortage of raw material exists
nearly 60% of the raw material is imported from African countries and availability of skilled
labor is there and as well as Vishakhapatnam port is near to the Srikakulam but there is no
cluster existing for Cashew and a cluster can be made and all the processing units located in
the different districts can also be brought under one cluster.

Most of the cashew processing is done during the entire year in the Srikakulam district however
when the raw material availability is abundant (at arrivals season & Imports from African countries)
during that period the processing activity will be a little more as well as during the festive season
The approximate cashew nut production for one month in Srikakulam dist.
In the Srikakulam district, there are nearly 300-310 cashew processing units who are processing
cashew. While in a day approximately 250-254 tonnes of RCN is processed to produce 50-58 tonnes
of cashew nuts and nearly 1500 tonnes in a month and approximately 18000 tonnes in a year.
It requires nearly 6000 tonnes of RCN per month to process 1500 tonnes. Here in this district, the
unitholders have sufficient production capacities to produce 18000 tonnes of cashew in a year.
Distribution Channel of cashew :

Exclusive out
Trader/Co lets/Sweet Retialers/S
Cashew mmission Wholesaler makers/Bakeries/ uper Consumer
Processor agent Temples/Institutio markets
ns
The total cashew produced from this district is supplied to within district, across all the districts in
Andhra Pradesh, Telangana, Orissa, Delhi, Bihar, West Bengal, Nagpur of Maharashtra, Jharkhand,
and Bihar states.
Generally, the trade takes place through a broker network. The majority of the sales take place in
the pack of 10 kg tins conventionally packed (method) and 10 kg pouches. While for retail and
supermarkets it is supplied in 250 gms, 500 gms, and 1kg packs.
The cashew supplies are made to different segments during the year across India and major supplies
are made nearly 30% (5463 tonnes) towards snacking segment, 15% (1821 tonnes) to bakery and
confectionary i.e. biscuit manufacturers, ice cream manufacturers like ITC, Karachi, Amul, Sorvino,
Divya Sri, Haldrirams, Bikaji, etc., followed by Sweets 10% (1821 tonnes), Horeca 10% (1821 tonnes),
Temples 5% (911 tonnes) for making prasadams.
Total number of cashew selling outlets in Srikakulam district
There are nearly 100 exclusive cashew selling outlets where cashew is being sold and nearly 50
tonnes of quantity is sold in a month and through retail outlets & Supermarkets approximately
20 & 30 tonnes of cashew nuts are sold respectively
Nearly 40-50 tonnes of Cashewnuts are sold in Srikakulam town and nearby mandals for
bakeries, sweet makers, marriage & functions, household consumption, and restaurants
Cashew size: some of the sizes are:
1. Jumbo
2. Full size
3. 2 piece
4. 4 piece
5. Chekkamukka
Brands:
Jumbo, Big C, Gold, Rainbow, Adarsh (Ganesh cashew), Jayasri are the local brands.
Product placement:
cashew in the sizes 1/4kg, 1/2kg, and 1kg and cashew powder ( Nooka and Chekkamukka ) are
being sold in all Kirana shops and supermarkets.
Pricing:
At present 1kg, cashew is being sold at 470-750 according to their size and quality in Palasa.
The cashew powder sale is minimal in this market. cashew is sold majorly 99% and cashew
powder ( Nooka and Chekkamukka ) in 1% approximately.
Value addition :
Most of the value-added products are salted and roasted cashew those are made on orders
from the bulk buyers and these are only available in 4 pieces sized cashew
Value addition No of Cashew units Production per month in tonnes

(approx)
SALTED CASHEW 12 4
ROASTED CASHEW 10 6
(Source: Primary data survey)
Testing:
No chemical testing is done. While making cashew in Pure Gold color more chemicals are used
which is not good for human consumption and no necessary testing is done for testing the
strength and color.
Shelf life:
The shelf life of the cashew is nearly Packaging: 5months, Loose product: 10 days
Global Cashew production is 7862.6 thousand tons (Kernel basis) and around 3.6 million MT of raw
cashew nuts in 2019-20
Major cashew-producing countries in the world are India, Cote d’Ivoire, Ghana, Vietnam, Cambodia,
Indonesia, and Brazil.
TTD procurement of cashew:
The general practice of TTD procurement is done through tenders anybody can participate if they
meet the quality parameters of the product.
• TTD prefers Full split (premium broken cashew nut)

• The daily requirement is nearly 2-3 tonnes per day i.e. 700-1000 tonnes per annum.
• To process one tonne of full split cashew requires 70 tonnes of cashew material. Full split
means exactly half of the cashew nut.
• It is very difficult for any processor to supply full split in large quantities and a single
processor cannot supply the quantity. So the supplier who gets the L1 in the tender procures
material from all the processing states including Palasa, Mandasaof Srikakulam district and
supplies it to the TTD.
• However they are getting a premium price than the market for their supplies but it is difficult
to meet the standards by any single processor irrespective of large, medium, small, and
microprocessors or traders.
Percentage of Cashew Nut Production (Kernel basis) in World in 2019-20

Western Africa (Cote d’Ivoire is the biggest producing country) contribute about 47% to total cashew
production in the world, followed by India (22%), Eastern Africa (9%), Vietnam (8%), Cambodia (4%),
Brazil (3%), Indonesia (3%) and other countries (4%).
Percentage of Cashew Nut Production in World in 2019-20

Western Africa India Eastern Africa Vietnam
Cambadia Brazil Indonesia Others
3% 4%
4% 3%
8%
47%
9%
22%
Source: International Nut and Dried Fruit Council
The major cashew nut-producing states in India are Maharashtra (215.64 thousand tons), Andhra
Pradesh (109.9 thousand tons), Odisha (92.67 thousand tons), Karnataka (84.08 thousand tons),
Kerala (82.89 thousand tons), and Tamil Nadu (66.77 thousand tons).
Cashew Kernel and Cashew Nut Shell Liquid exported from India are 3867 thousand tons (value of
Rs. 67647 crores) and 4605 thousand tons (value of Rs. 23 crores) respectively in 2019-20. The major
cashew nut shell liquid importing countries from India are Korea, China, Slovenia, Japan, and Brazil.
Major cashew nut processed products importing countries from India in 2019-20 are U S A, Malaysia,
United Arab Emirates, Norway, and Mauritius.
In 2018, India imported around 9932 thousand tons of raw cashew nuts mainly from Western Africa
(78%) and Eastern Africa (10%).
21.1. Introduction
Cashew is one of the key sources for health and wellness and for decades it is being used in food and
it is having good nutrition value and at present, in pandemic times, it is being used as one of the
immunity boosters.
With the steady increase of GDP per capita income and the associated Purchase Power Parity,
consumption in India has picked up in every nook and corner. Still, the consumption is more
concentrated in the northern part of India, maybe due to the climatic pattern. Delhi is perhaps the
most potential market for Cashew kernels in India.
It serves also as a distribution hub to other consuming parts in the nearby localities. Bombay is
another trade distribution hub of cashew, where the consumption also is very high. Ahmedabad,
Jaipur, Luck now, Indoor, Amritsar, and Kolkata are the other potential markets of both wholes and
broken grades of cashew kernels in India.
The emergence of supermarket chains across India has accelerated the sales of cashew kernels in all
parts of India. The TTD TirumalaTirupatiDevastanams‘Tirupati’ temple in Andhra Pradesh consumes
larger volumes of broken grades (Fancy splits) in its ‘prasadam’-‘laddu’). The price of cashew is
affordable today to an average Indian, whereas the same was a not allowed item in terms of pricing
two decades back. Today, the price of the whole grade of cashew at the retail level is around
INR.700 - 800 per Kg. This shows that the net effective pricing of cashew has gone down, making it
affordable at a medium-class level. Of a variety of broken cashew numbering more than 15 grades,
the most popular and most sold grade is the LWP (the large white Pieces, i.e. 1/4th of a white whole
kernel). This grade is mostly used in making sweets, and a variety of food items.
India is earning significant foreign income through the export of cashew nuts. YOY the consumption
is increasing in India as well as across the world. India consumes nearly 25% of world consumption.
The primary concern of the buyer is that the product is within specification. Quality management
was based on the FSSAI specification with testing. Most of the manufacturers will require that the
cashew nuts be independently tested according to standards. The process of quality assurance is
usually started by a quality audit or inspection at the processor's plant. If this is satisfactory which
may be a full pass or a conditional pass based on certain actions being taken then the business can
commence.
Palasa cashew Industry in the Srikakulam district has evolved from a cottage Industry status to an
organized factory setup over some time and attained leadership as the largest producer and
exporter of cashew kernel in India to meet the demand. It made good use of the abundant labor
force available for cashew processing from the beginning of the 20th Century. Technology
Innovation contributed by leading processors and machinery manufacturers paved the way to
upgrade Cashew Processing Technology. While the industry has made strides in developing efficient
unit processing – adopting steam roasting over cumbersome drum roasting and drying process from
the wood-fired traditional Borma to modernized tray drying system and efficient bulk pack system
for exports to replace tin packing.
How does the general public perceive the product?
• Looking at health-wise it is preferred as an immunity booster; most of the doctors are

recommending the general public to consume every day for good health. It is a natural
product. Some studies are recommending consuming for better health.
• There is a good perception of the product in public like several varieties are available on the
cashew.
• Innovatively they are processing like Kaju based ice-cream, sweets, chocolates, (nut-
based) biscuits, sweets (katli, chakki), savories
• With the steady increase of GDP per capita income and the associated Purchase Power
Parity, consumption in India has picked up in every nook and corner.
• The emergence of supermarket chains across India has accelerated the sales of cashew
kernels in all parts of India.
• The ‘Tirupati’ temple (TTD) in Andhra Pradesh consumes large volumes of broken grades
(Fancy splits) in its ‘prasadam’ (The Lord's offering in the form of sweet ‘laddu’).
• The price of cashew is affordable today to an average Indian, whereas the same was a
forbidden item in terms of pricing two decades back but today, the price of the whole grade
of cashew at the retail level is around INR.700- 800 per Kg. This shows that the net effective
pricing of cashew has gone down, making it affordable at a medium-class level. Of a variety
of broken cashew numbering more than 15 grades, the most popular and most sold grade is
the LWP (the large white Pieces, i.e. 1/4th of a white whole kernel). This grade is mostly
used in making sweets, and a variety of food items.

The nutrient content of cashew nuts includes vitamin K, vitamin E, Folate, Vitamin A, and vitamin C.
They are rich in monounsaturated fats. The amount of polyunsaturated fats is low. They have plenty
of proteins and essential minerals. This includes zinc, potassium, phosphorus, iron, magnesium,
calcium, and copper.
Nutritive Value of Cashew Nuts per 100g

Energy 553 Kcal
Protein 18.22 g
Total Fat 43.85 g
Cholesterol 0 mg
Dietary Fiber 3.3 g
Vitamins
Folates 25 µg
Niacin 1.062 mg
Pantothenic acid 0.864 mg
Pyridoxine 0.417 mg
Riboflavin 0.058 mg
Thiamin 0.423 mg
Vitamin-A 0 IU
Vitamin-C 0.5 mg
Vitamin-E 5.31 mg
Vitamin-K 34.1 µg
Electrolytes
Sodium 12 mg
Potassium 660 mg
Minerals
Calcium 37 mg
Copper 2.195 mg
Iron 6.68 mg
Magnesium 292 mg
Manganese 1.655 mg
Phosphorus 593 mg
Selenium 19.9 µg
Zinc 5.78 mg
Phyto-nutrients
Carotene-ß 0 µg
Crypto-xanthin-ß 0 µg
Lutein-zeaxanthin 22 µg
Source: USDA National Nutrient DataBase
Health Benefits of Cashew Nuts
• Improves the health of Bones: - Cashew is rich in copper and it helps in replace of damaged
connective tissues. It forms the scaffolding for the bone through the collagen made with
copper. Manganese in the cashew nut helps in preventing osteoporosis in combination with
copper and calcium.
• It helps in the protection of the eyes: - The lutein and zeaxanthin present in cashew nuts act
as antioxidants and protect the eyes from damage.
• It helps to reduce elevated blood pressure due to the presence of magnesium.
• It decreases the risk of obesity.
• It helps in fighting against cancer and prevents cancer cells from dividing more.
• It enhances digestion.
• It decreases the risk of diabetes.

During 2019-20 Cashew Nut Shell Liquid exported from India is 721.07 tons and worth Rs.268.99
lakhs. The major importing countries are Korea, China, Slovenia, Japan, and Brazil.
Selected Country-wise Export of Cashew Nut Shell Liquid from India
Countries Value (Rs. in Lakhs) Quantity (In ` 000 Kg.)

2018-2019 2019-2020 2018-2019 2019-2020
Angola 6.62 - 1 -
Bangladesh PR - 0.1 - 0.2
Belgium 0.63 4.01 1.52 7.84
Brazil 37.29 - 110 -
China P Rp 137.21 - 505 -
Egypt A Rp - 6.33 - 20
Germany - 35.29 - 40
Israel - - - -
Italy 75.37 19.27 187.54 51.46
Japan 49.82 19.39 139.76 68.57
Korea Rp 211.72 151.26 528 443
Mexico - 7.56 - 23
Nepal - 0.5 - 1
Nigeria 1.04 - 1.24 -
Philippines 0.79 1.5 1 2
Slovenia 81.87 - 225.69 -
Spain 0.63 - 1 -
Turkey 0 - 0 -
UK 5.93 23.76 16 64
USA 1.19 - 1.72 -
Uganda 1.74 - 2 -
Total 611.84 268.99 1721.47 721.07
Source: Indiastat.com
Major cashew nut processed products importing countries from India in 2019-20 are U S A, Malaysia,
United Arab Emirates, Norway, and Mauritius. India exports around 2128.3 tons of cashew nuts and
its processed products and earns a value of rupees 149.5 crores during 2019-20.
Export of cashew nuts processed products (Roasted, Salted, and including in Mixture) from India in
2019-20.
Sl.NO Country Quantity in Tons Value in Rs.Crores

1 USA 1764.8 124.75
2 Malaysia 143.0 10.33
3 U Arab Emts 82.3 5.79
4 Norway 65.7 4.16
5 Mauritius 17.1 1.19
6 Vietnam Soc Rep 15.9 0.74
7 Saudi Arab 9.0 0.69
8 France 5.5 0.38
9 Brunei 2.6 0.19
10 Nepal 3.7 0.19
11 Canada 3.6 0.14
12 Japan 1.3 0.13
13 Sri Lanka Dsr 1.6 0.12
14 New Zealand 2.6 0.11
15 Qatar 1.7 0.10
16 Hong Kong 1.0 0.09
17 Singapore 1.1 0.06
18 Oman 0.7 0.04
19 Kuwait 0.9 0.04
20 Congo P Rep 0.2 0.03
21 Cote D Ivoire 0.2 0.03
22 Seychelles 0.4 0.03
23 UK 0.6 0.03
24 Maldives 0.3 0.03
25 Bhutan 0.6 0.03
26 Austria 0.4 0.02
27 Kyrghyzstan 0.6 0.01
28 Poland 0.1 0.01
29 Fiji Is 0.1 0.01
30 Congo D. Rep. 0.2 0.01
31 Others 0.7 0.02
31 Total 2128.3 149.5
During 2019-20 cashew kernel and cashew nut shell liquids exported from India are 3867.17 MT and
4605 MT and value of Rs.67647 crores and 23.09 crores respectively. India imports 938038 tons of
roasted cashew nuts worth Rs.8861 crores.
Export and Import Cashew Nut in 2019-20
Sl.No Particulars Quantity (MT) Value (Rs. in Crores)

Export from India
1 Cashew Kernel 3867.17 67647
2 Cashew Nut Shell Liquid 4605 23.09
Import Into India
3 Roasted Cashew Nut 938038 8861.58
Source: ICAR – Directorate of Cashew Research

The major cashew nut-producing states in India are Maharashtra (215.64 thousand tons), Andhra
Pradesh (109.9 thousand tons), Odisha (92.67 thousand tons), Karnataka (84.08 thousand tons),
Kerala (82.89 thousand tons), and Tamil Nadu (66.77 thousand tons).
State-Wise Area, Production and Yield of Cashew Nuts in India in 2019-20
Sl.No States Area (In ` 000 Production (In ` Yield (In Kg./Hectare)
Hectare) 000 MT)
1 Andhra Pradesh 191.27 109.9 575
2 Assam - 1.06 -
3 Chhattisgarh 30.96 21.61 698
4 Gujarat 7.98 6.11 766

5 Jharkhand 15.58 5.76 370
6 Karnataka 129.96 84.08 647
7 Kerala 96.65 82.89 858
8 Maharashtra 194.45 215.64 1109
9 Manipur - 0.31 -
10 Meghalaya - 5.75 -
11 Nagaland - 0.51 -
12 Odisha 205.38 92.67 451
13 Tamil Nadu 145.95 66.77 457
14 Tripura - 3.24 -
15 West Bengal 11.36 12.18 1072
16 Others 75.83 45.1 595

India 1105.37 742.71 672
Source: Indiastat.com
21.5. Manufacturing Process
Cashew
processi
ng flow
diagram
Raw Cashew with shell
Cooking/Roasting
Shelling
Kernel Shell
with Testa
Drying Cashew nut wheel

liquid
Peeling
Cashew Kernels
Quality
control/Fumigation
Packing
The processing of raw cashew nuts into edible cashew kernel takes the following steps traditional
method, roasting, shelling drying, peeling, grading, quality controls, fumigation, and packaging. All
these steps have to be conducted with care to obtain good quality and good grade kernels.
Calibration Process
It is also called size grading and pre-cleaning of the nuts. At this stage, the dried RCN is separated as
per the nut size as well as impurities like dust, plant stalks, mud/stones, etc are removed.
In this process a calibrator/grader machine is used, the machine will have cylinder-shaped sieves
having the whole of various dimensions/sizes and RCN passed through different wholes will be
segregated and collected separately.
The size of the whole varies from 17-18 mm to 23-24 mm which may yield 3-5 grades of RCN.
However, as per the requirement of the customer, the number of grads can vary. In Palasa, the
processors would grade the RCN mainly into the three sizes, i.e. small, medium and big
Preparation for Processing
Steam cooking or Roasting of Raw Cashew Nut (RCN) The raw cashew nut process starts with the
cooking process. It helps in softening the outer cashew shell so that cutting or shelling becomes
easy. There are three methods of cooking available in the cashew sectors, i.e. fire roasting, steam
cooking, and oil bath roasting.
Roasting is a traditional method and is mostly abandoned now. In this technique, raw cashew nuts
(RCN) are roasted on the steel/iron tray directly heated by the firewood where the shell gets burnt.
Boiler & Steam Generation

Steam cooking is the most adopted method as of now. Here the raw nuts are cooked in a steel vessel
for 20-30 minutes using steam generated through the boiler. Thereafter, it is cooled down at room
temperature for 18-24 hr.
Steam cooking also has two different sub-methods, where the static or fixed cooking vessels or
rotating drum steaming process is used. The static method is more common in India.
The static steam cooker generally comes in sizes of 100 kg to 320 kg RCN per batch and is bigger; in
India minimum, 320 kg capacity cookers are more popular.
Based on the batch processing quantity, the number of cooking vessels is determined. The rotated
steam cookers come in a bigger size which may have a capacity of carrying equivalent or more than
640 kg RCN per batch
The boiler is used as a source of steam to cook the RCN. As per the steam requirement, various size
of boilers is available.
This technology has given great flexibility to the processors of different processing capacities; even a
small processor with 8-10 bags/day (640 – 800 kg per day) processing capacity can adopt two
cookers with a mini boiler for this clean operation.
Manual cutting/shelling of RCN by hand tool
In India, shelling machine has become fast-moving equipment among cashew processors. The large
capacity operators are now shifting and new entrants are necessarily adding shelling machines to
their plants.
However, the un-cut RCN from the shelling system and scooping are still processed manually. l in
palasa use more labor than machine due to availability of labor.
Drying/heat treatment of shelled cashew- peeling treatment
The de-shelled nuts will have a high level of moisture which makes testa/skin hold tightly to the
kernel. This layer/ skin needs to be loosened to ease the process of removing it in further steps. At
this stage, shelled cashew is dried or roasted in the oven/hothouse to reduce the moisture level so
that the testa/skin can be peeled out easily. This is also a crucial stage where efficiency could
determine the breakage of kernels.
Cashew kernel drying tray
Three types of systems are available for drying the nuts before peeling. The dryers are like a large
chamber or metal box in which perforated metal trays are placed, hence these are also called tray
dryers.
These systems or methods differ based on the source of fuel used. (i) Heat exchanger (ii) Steam
hothouse and (iii) Electric hothouse
Heat exchanger
The heat exchanger has five parts namely, insulated chamber, heat exchanger, ignition
chamber/furnace and insulated pipes, and a chimney. Cashew kernels are kept in aluminum trays
stacked in a portable trolley in an insulated hot chamber.
The Blower maintains a uniform circulation of air at the desired temperature of 75-85 ° C inside the
hot chamber. Heat Exchanger is fired by Cashew Shell cake in furnace heats the air. Steam hot
house: Steam cooking of cashew shells has an advantage, as the same hot steam can be used for
heating the hot chamber.
Electric hothouse
In this method, electric power is used to heat the hot chamber which holds the aluminum trays fed
with cashew kernels. Fuels used for the purpose are firewood, cashew shell cakes, and
power/electricity. Earlier there have been separate chambers for the drying kernel as firewood and
other burning materials were used to generate heat. Processors who have higher capacity boilers
utilize the excess steam to be circulated in the dryers.
Electrical dryers are also popular but mostly used by the small size processors or those who could
not install the large capacity boiler at their premises or those processors who could not upgrade
their existing set-up to steam due to various reasons. Currently, batch dryers are in use.
The kernels are maintained at the temperature of 75-80°C; during this period the trolleys placed
inside are shuffled for uniform drying. Once, hot treatment is done, the kernels are allowed to cool
for a day or for a lesser time if humidity is higher.
Humidification
Humidification (Moisturized by water-mist) as a separate process is a new concept in cashew

processing. It has become more popular after the introduction of auto peeler or peeling equipment.
In this process, the moisture level in the kernel is enhanced up to 5-6% which helps reduce the
breakage of nuts during the mechanical peeling process. In this process (Humidification) which is
also called thermal shock treatment, the kernel expands by absorbing the moisture, and skin/testa
loosens further. There may be re-heating treatment (for a short duration of 20-30 minutes) in case
the kernels have got more moisture.
In the earlier days, processors used to cool the kernel for a day or so which was sufficient to
enhance the moisture level for manual peeling. There are traditional as well as modern methods
available with processors to humidify the kernels at the desired level. Traditionally, in place of
humidification, the kernels kept in trays are spread in a room so that they absorb the moisture
present in the environment.
Peeling of Cashew Kernel
Peeling is the last process from where cashew kernel appears in Ready-to-Eat form. At this stage, all
the inedible parts/layers are removed from the kernel, the price-enhancing value addition processes
like grading, sorting, packaging, etc start from here.
Peeling is the process by which the testa or outer skin attached to the cashew kernel is removed.
The process looks simpler but a lot of care needs to be taken at this stage as around 60-75% of the
processing cost is added up in the output recovered from here.
Peeling is done through two processes, viz. manual and mechanical. In the manual process, the
roasted/heat treated kernel is rubbed softly between the finger or palm of the hands to remove the
test.
In the mechanical process, the humified kernel is fed into the machine in which passes through the
rotating cylinder fitted with a brush where the testa comes out. The testa is then separated by
blowing air flow generated through the compressor.
In India, the peeling machine is getting adopted by cashew processors at a fast pace. However, the
small size processors who have sufficient labor are still peeling manually; on the other hand, some
processors who do not have labor prefer to get peeling done through job work.
The un-peeled nuts are usually processed manually by the labor rather than reloading it to the
peeling machine which yields a higher percent broken of nuts.
Grading/Sorting/Cleaning the Cashew Kernel
Cashew kernel prices are based on the various grades specified by the market. These grades are
defined as per the size, color and body texture, etc.
At present more than 24 grades of cashew kernel are traded in the markets. Women employees are
largely used in the grading/sorting/ cleaning sections. These skilled ladies have all expertise to
correctly select the kernel for specific grades.
Technology providers are still experimenting with the grading machine; to a certain extent, they
have succeeded also (grading the kernel for 5-8 grades based on the size, color, and texture) but still
incomparable to the human grading methods.
In the first step, splits, broken, and whole are separated, this is mostly done using a vibrator
separator machine. Once the wholes are separated from others, they are graded using the grading
machine. The grader could grade the kernel as per the specific size (mostly six to eight
classifications). These nuts are then given for color-based grading. For grading broken into various
grades (as per the size), mechanized wire-mesh sieves are used
Packaging the Cashew Kernels

After grading and sorting the nuts/kernels into various grades, the last process is the packaging.
Before packaging a final Quality Checking (QC) process is done, in which the graded nuts/kernel is
sent for dust removing and metal/ hair detection process. Both, dust removal and metal detection
processes are mechanical.
In the dust removal process, the kernel is passed through a closed chamber where pressurized air is
used to blow out the dust and light particles. The metal detector process ensures that cashew is not
contaminated with ferrous metals; the equipment will have the in-built online metal detection
program.
The kernels are packed in the desired packaging size and materials (Tins, poly bags, etc). Packaging
machines for specific types and purposes are available in the market.
Exporters of cashew kernel are now adopting a complete semi-automatic packaging line for both
bulks as well as retail packs. As per the export market specifications, the bulk cashew kernel needs
to be packed in multilayer flexible pouches; gas flushed and sealed – 25 pounds net per pouch. In
this process, the cashew kernel passed through the QC is filled in the polybag, weighted manually,
and then sealed by flushing Carbon-di-oxide (CO2) and/or nitrogen gas in a specific dosage and using
a vacuum packing machine.
Tests were done for the product
Raw Cashew Nut Inspections
Weight and quality inspection services for raw cashew import consignments are usually followed.
The majority of the raw cashew imports are through in 80-kilogram jute bags. The quality of the raw
nuts is determined for out-turn in pounds per 80 kgs bag. The price of the raw nuts is based on the
outturn of the nuts in the trade.
100% container weighment is carried out in nominated weighbridges. Representative samples are
drawn at random from approximately 10 % of the bags during de-stuffing of the cargo from the
containers at the buyer’s warehouses by our Inspectors. Approximately 2 kg sample per container is
drawn. The cutting test is done on two samples of one kg each and the average result is considered
for the outturn. Moisture is analyzed at the laboratory for one sample wise
• Quality parameters are observed while processing the cashew like color grading and size. AFI
standards are followed
• Based on three colors 1.White 2. Scorched 3. Dissert
• Size based & count per pound: Whole, broker/ Piece in global terminology W180, W 320, W
240. Out of this W, 320 is the most saleable variety
There are a total of 38 mandals and the total villages are 1814 while cashew processing mandals are
1.Palasa 2.Mandasa 3.Sompeta 4.Meliyaputti. There are nearly 300-310 units are located around
PalasaMandal where the majority of the cashew processing units are located and nearly 20-25k
acres are cultivating the cashew in the district and we observe incremental acreage YOY. Nearly
9000 laborers are working in these processing units. There are two FPO’s working on cashew in the
district.
21.7. Demographic and Socio-economic profiling

According to the 2011 census Srikakulam District has a population of 27.03 lakhs. It has a population
density of 463 inhabitants per square kilometer. The district has a sex ratio of 1015 females for every
1,000 males, and a literacy rate of 60.34%.
SL.N ITEM UNIT STAT DISTRI

o E CT
1 Geographical Area: 000'Sq.Kms. 163 5.83
7
7
(d) Sex Ratio Females for 1000 Males 997 1015
(e) Rural Population In Lakhs 349.6 22.66
7
(g) Urban Population In Lakhs 146.1 4.36
(i) No. of Households In Lakhs 127.1 6.81
9
(h) Growth Rate over the previous Census (2001- Percentage 9.21 6.5
2011)
4 Literates
(a) Total Literates In Lakhs 298.6 14.95
(b) Male Literates In Lakhs 165.5 8.58
(c) Female Literates In Lakhs 133.1 6.37
5 Literacy Rate
6 No. of Households
(a) Total In Lakhs 127.1 6.81
9
7 Household size
household
household
household
10 Workers
(a) Total Workers (Main+Marginal) In Lakhs 230.8 12.9
1
(b) Agriculture Workers (Cultivators+Agrl.labour) In Lakhs 143.9 8.66
3
industries+Others)
Number of Villages/Gram Panchayats/Mandals/MandalParishad in Srikakulam District
Sl.No Name of Villages/Gram Unit Year State District

Panchayats/Mandals/MandalParishad
(a) Census Villages (including uninhabitated Nos. Census 2011 17,366 1,802
villages)
(b) Revenue Villages Nos. 2019 17,398 1,863
(c) Gramapanchayats Nos. 2019 12,918 1141
(d) Revenue Mandals Nos. 2019 670 38
(e) MandalParishads Nos. 2019 670 38
(f) Revenue Divisions Nos. 2019 51 3
(g) Towns (Statutory and Census,2011) Nos. Census,2011 195 12
(h) Municipal Corporations Nos. 2019 14 1
(i) Municipalities/ Nagar Panchayats Nos. 2019 96 5

In the Srikakulam district of Andhra Pradesh State, there are 26 large and medium scale
industries and 727 small scale industries and employed 18,905 persons during 2018-19. And
also 916 factories are registered under Factories Act and provide around 38,000 employments
in the district. The major activities of the industries in the district are Pharmaceutical, Cashew
processing, jute,coir, pesticides, Pistons, Ammonium Nitrate, Rice mills, Granite, Stone
Crushers, Beachland Minerals, Sugar, and Power.
Cluster Analysis
• In the district of Srikakulam, there are nearly 300-310 registered and unregistered
processing units while in the Palasa region of Srikakulam district almost all through the year
nearly 150 -180 processing units approximately are processing 1500=1600 bags (80 kg of raw
material) i.e. nearly 120 tonnes in a day by all units in Palasa region.
units
color, and quality.
like USA and EU.
cluster existing for Cashew and a cluster can be made in Palasa region and all the processing
units located in the different districts can also be brought under one cluster.
• The approximate turnover in the district will be 672 crores per year and the break up is the
Number of units operational approximately through the year -200.
• Avg processing per day by each unit is 5-15 bags of 80kgs.
• Number of working days in a year 283 days
• The price of RCN per kg is approx INR 100
• Nearly 8000-9000 laborers are working across the Srikakulam district in the processing units
and skilled labor that is who operates the machinery,
• Through primary survey (310 respondents) observed that the majority of the unit owners
belong to an age group of 40 to 60 years and their education level lies between intermediate
to post-graduation.
intermediate.
Infrastructure
At present majority of the units are processing with manual technology/machinery i.e. Peeler,
cutter, Borma, etc.,
Drying yards
Srikakulam district is a producer as well as large importer of raw Cashew Nuts (RCN) in Andhra
Pradesh in India. During the harvesting season, most of the processors stock the local RCN for their
future requirements. As the new RCN contains a lot of moisture nearly 20%, it needs to be dried to
7-8% to prevent quality loss of the nuts during warehousing. Drying of RCN is the key process done
at this stage.
for 1-3 days depending on the moisture content. The nut-making rattling sound is the symbol that
the raw nuts have been dried properly.
However, it is necessary to monitor the drying process as over-drying of RCN may cause scorched
kernel which may lead to higher breakage during shelling. On the other hand, improper drying of
RCN may again cause a lower yield of wholes and de-coloring of the kernel.
Preparation/Construction of Drying Yard- In general, for drying 100 bags (8000 kg) of RCN around
700 sq. feet of drying yard area is required. The size of drying yards may differ from processor to
processor depending on the total area they possess within their processing premise.
Water: Water is most essential to process any product and the availability of water is good in the
Srikakulam district.
Electricity: uninterrupted power supply is witnessed in this district and there is no problem with
electricity supply the only problem is the tariff.
Roads: Proper roads are there to carry the RCN and the finished kernel to all destinations that are to
all states.
Port facility: The nearest port from Srikakulam district is Vishakhapatnam and the raw material i.e.
RCN is imported from the West African countries is routed through the Vishakhapatnam port.
In earlier days, cashew processing was mainly manual however the mechanization has brought both,
favorable as well unfavorable changes in the cashew processing sector. In the district of Srikakulam,
nearly 300- 310 units located among all the units manual, domestic, and Vietnamese technology are
adopted by the processors. Raw cashew nut is processed through various activities like drying
boiling heating cutting segregating and sorting by this process cashew is produced.
Essential amenities required for the production of the product:
Require sufficient raw material at affordable price and availability throughout the year, expecting
the government to bring down the import duty, require semi-automatic machines at subsidized
prices, financial support from the bankers/financial institutions, testing facilities, warehouses cold
and normal, skill training for labor, market linkages, and promotional activities by the
Government/industries dept for the development of Cashew industry.
Raw Materials
In the district of Srikakulam nearly in the land of 20-25k acres, the cashew is cultivated and out of 38
mandals in four mandals it is widely grown. The seasonality of cashew is from June to May of every
year and the harvesting starts from March to May month. Bapatla 8 is the major variety grown in
the district.
Even though we have more than 300-310 cashew processing units located in Srikakulam district and
also have more processing capacity the domestic crop is very lower to process and always the
processors use to depend on imports approximately out of 100% only 40% of the crop from local is
available for processing and the remaining 60% is imported from African countries like from West
Africa - Ivorycost, Ghana, Burkina Faso, Nigeria, Guinea, Senegal, Gambia, Togo, Benin, etc., and also
from east Africa – Tanzania, Mozambique, and Indonesia- Most of them are LDC countries (least
development counties) there will import duty benefit of 2.5% of the exemption if imported from
these countries
Drying yards
India is a producer as well as a large importer of raw Cashew Nuts (RCN) in the world. During the
harvesting season, most of the processors stock the local RCN for their future requirements. As the
new RCN contains a lot of moisture nearly 20%, it needs to be dried to prevent quality loss of the
nuts during warehousing. Drying and Calibration of RCN are the key processes done at this stage.
for 1-3 days to bring down to nearly 8%of the moisture content.
Storages
Required warehouses to deposit the RCN as well as the processed kernel in normal and cold storage.
Technology
While advanced technology i.e. latest types of machinery are also needed to increase the output,
quality and to minimize the cost.
The vital raw materials and all the added materials along with that
Not applicable
The quality parameters being checked for all the raw materials
• Number of Nuts per Kg
• The moisture of Raw Cashew Nut & Moisture of Cashew Kernel
• Yield per Kg
Cashew is not perishable if the parameters are properly followed the raw cashew nut can be stored
for 2 years and the finished product is properly handled and can be stored in cold storage for 3
years.
Production Process
Calibration Process
It is also called size grading and pre-cleaning of the nuts. At this stage, the dried RCN is separated as
per the nut size as well as impurities like dust, plant stalks, mud/stones, etc are removed.
In this process a calibrator/grader machine is used, the machine will have cylinder-shaped sieves
having the whole of various dimensions/sizes and RCN passed through different wholes will be
segregated and collected separately.
The size of the hole varies from 17-18 mm to 23-24 mm which may yield 3-5 grades of RCN.
However, as per the requirement of the customer, the number of grads can vary. In Palasa, the
processors would grade the RCN mainly into the three sizes, i.e. small, medium and big
Preparation for Processing
Steam cooking or Roasting of Raw Cashew Nut (RCN) The raw cashew nut processing starts with the
cooking process. It helps in softening the outer cashew shell so that cutting or shelling becomes
easy. There are three methods of cooking available in the cashew sectors, i.e. fire roasting, steam
cooking, and oil bath roasting.
Roasting is a traditional method and is mostly abandoned now. In this technique, raw cashew nuts
(RCN) are roasted on the steel/iron tray directly heated by the firewood where the shell gets burnt.
Boiler & Steam Generation
Steam cooking is the most adopted method as of now. Here the raw nuts are cooked in a steel vessel
for 20-30 minutes using steam generated through the boiler. Thereafter, it is cooled down at room
temperature for 18-24 hr.
Steam cooking also has two different sub-methods, where the static or fixed cooking vessels or
rotating drum steaming process is used. The static method is more common in India.
The static steam cooker generally comes in sizes of 100 kg to 320 kg RCN per batch and is bigger; in
India minimum, 320 kg capacity cookers are more popular.
Based on the batch processing quantity, the number of cooking vessels is determined. The rotated
steam cookers come in a bigger size which may have a capacity of carrying equivalent or more than
640 kg RCN per batch
The boiler is used as a source of steam to cook the RCN. As per the steam requirement, various size
of boilers is available.
This technology has given great flexibility to the processors of different processing capacities; even a
small processor with 8-10 bags/day (640 – 800 kg per day) processing capacity can adopt two
cookers with a mini boiler for this clean operation.
Manual cutting/shelling of RCN by hand tool
In India, shelling machine has become fast-moving equipment among cashew processors. The large
capacity operators are now shifting and new entrants are necessarily adding shelling machines to
their plants.
However, the un-cut RCN from the shelling system and scooping are still processed manually. l in
palasa use more labor than machine due to availability of labor.
Drying/heat treatment of shelled cashew- peeling treatment
The de-shelled nuts will have a high level of moisture which makes testa/skin hold tightly to the
kernel. This layer/ skin needs to be loosened to ease the process of removing it in further steps. At
this stage, shelled cashew is dried or roasted in the oven/hothouse to reduce the moisture level so
that the testa/skin can be peeled out easily. This is also a crucial stage where efficiency could
determine the breakage of kernels.
Cashew kernel drying tray
Three types of systems are available for drying the nuts before peeling. The dryers are like a large
chamber or metal box in which perforated metal trays are placed, hence these are also called tray
dryers.
These systems or methods differ based on the source of fuel used. (i) Heat exchanger (ii) Steam
hothouse and (iii) Electric hothouse
Heat exchanger
The heat exchanger has five parts namely, insulated chamber, heat exchanger, ignition
chamber/furnace and insulated pipes, and a chimney. Cashew kernels are kept in aluminum trays
stacked in a portable trolley in an insulated hot chamber.
The Blower maintains a uniform circulation of air at the desired temperature of 75-85 ° C inside the
hot chamber. Heat Exchanger is fired by Cashew Shell cake in furnace heats the air. Steam hot
house: Steam cooking of cashew shells has an advantage, as the same hot steam can be used for
heating the hot chamber.
Electric hothouse
In this method, electric power is used to heat the hot chamber which holds the aluminum trays fed
with cashew kernels. Fuels used for the purpose are firewood, cashew shell cakes, and
power/electricity. Earlier there have been separate chambers for the drying kernel as firewood and
other burning materials were used to generate heat. Processors who have higher capacity boilers
utilize the excess steam to be circulated in the dryers.
Electrical dryers are also popular but mostly used by the small size processors or those who could
not install the large capacity boiler at their premises or those processors who could not upgrade
their existing set-up to steam due to various reasons. Currently, batch dryers are in use.
The kernels are maintained at the temperature of 75-80°C; during this period the trolleys placed
inside are shuffled for uniform drying. Once, hot treatment is done, the kernels are allowed to cool
for a day or for a lesser time if humidity is higher.
Humidification
Humidification (Moisturized by water-mist) as a separate process is a new concept in cashew
processing. It has become more popular after the introduction of auto peeler or peeling equipment.
In this process, the moisture level in the kernel is enhanced up to 5-6% which helps reduce the
breakage of nuts during the mechanical peeling process. In this process (Humidification) which is
also called thermal shock treatment, the kernel expands by absorbing the moisture, and skin/testa
loosens further. There may be re-heating treatment (for the short duration of 20-30 minutes) in case
the kernels have got more moisture.
In the earlier days, processors used to cool the kernel for a day or so which was sufficient to
enhance the moisture level for manual peeling. There are traditional as well as modern methods
available with processors to humidify the kernels at the desired level. Traditionally, in place of
humidification, the kernels kept in trays are spread in a room so that they absorb the moisture
present in the environment.
Peeling of Cashew Kernel
Peeling is the last process from where cashew kernel appears in Ready-to-Eat form. At this stage, all
the inedible parts/layers are removed from the kernel, the price-enhancing value addition processes
like grading, sorting, packaging, etc. start from here.
Peeling is the process by which the testa or outer skin attached to the cashew kernel is removed.
The process looks simpler but a lot of care needs to be taken at this stage as around 60-75% of the
processing cost is added up in the output recovered from here.
Peeling is done through two processes, viz. manual and mechanical. In the manual process, the
roasted/heat treated kernel is rubbed softly between the finger or palm of the hands to remove the
test.
In the mechanical process, the humified kernel is fed into the machine in which passes through the
rotating cylinder fitted with a brush where the testa comes out. The testa is then separated by
blowing air flow generated through the compressor.
In India, the peeling machine is getting adopted by cashew processors at a fast pace. However, the
small size processors who have sufficient labor are still peeling manually; on the other hand, some
processors who do not have labor prefer to get peeling done through job work.
The un-peeled nuts are usually processed manually by the labor rather than reloading it to the
peeling machine which yields a higher percent broken of nuts.
Grading/Sorting/Cleaning the Cashew Kernel
Cashew kernel prices are based on the various grades specified by the market. These grades are
defined as per the size, color and body texture, etc.
At present more than 24 grades of cashew kernel are traded in the markets. Women employees are
largely used in the grading/sorting/ cleaning sections. These skilled ladies have all expertise to
correctly select the kernel for specific grades.
Technology providers are still experimenting with the grading machine; to a certain extent, they
have succeeded also (grading the kernel for 5-8 grades based on the size, color, and texture) but still
incomparable to the human grading methods.
In the first step, splits, broken, and whole are separated, this is mostly done using a vibrator
separator machine. Once the wholes are separated from others, they are graded using the grading
machine. The grader could grade the kernel as per the specific size (mostly six to eight
classifications). These nuts are then given for color-based grading. For grading broken into various
grades (as per the size), mechanized wire-mesh sieves are used
Packaging the Cashew Kernels
After grading and sorting the nuts/kernels into various grades, the last process is the packaging.
Before packaging a final Quality Checking (QC) process is done, in which the graded nuts/kernel is
sent for dust removing and metal/ hair detection process. Both, dust removal and metal detection
processes are mechanical.
In the dust removal process, the kernel is passed through a closed chamber where pressurized air is
used to blow out the dust and light particles. The metal detector process ensures that cashew is not
contaminated with ferrous metals; the equipment will have the in-built online metal detection
program.
The kernels are packed in the desired packaging size and materials (Tins, poly bags, etc). Packaging
machines for specific types and purposes are available in the market.
Exporters of cashew kernel are now adopting a complete semi-automatic packaging line for both
bulks as well as retail packs. As per the export market specifications, the bulk cashew kernel needs
to be packed in multilayer flexible pouches; gas flushed and sealed – 25 pounds net per pouch. In
this process, the cashew kernel passed through the QC is filled in the polybag, weighted manually,
and then sealed by flushing Carbon-di-oxide (CO2) and/or nitrogen gas in a specific dosage and using
a vacuum packing machine.
Product Range
Based on three colors 1.White 2.Scorched 3. Dessert & Size based & count per pound:
Whole, broker/ Piece in global terminology W180, W 320, W 240. Out of this W 320
is the most saleable variety. Normally best quality is sold within India and the inferior quality is
exported to the EU and the USA
Technology
Across the 300-310 units located in the district, only a few i.e. nearly 2-3% are adopting Vietnamese
technology regarding the processing the cashew like grading W180-W320, color picking, cutting, and
other processing activities. With Vietnamese technology, the labor dependency will be reduced
significantly and the cost of production also minimizes. However, the majority i.e. about 30% are
adopting domestic technology i.e. Indian technology, and the remaining approximately 67-68% are
adopting manual methodology/technology in processing the cashew
Marketing
Finished product i.e. cashew trade takes through the broker network as well as with the existing
relationship in the industry. Most of the sales are happening in India from this district. Out of the
total cashew processed in the district of Srikakulam nearly 70-80% is sold in the domestic market i.e.
in India to the states of Telangana, Maharashtra, Delhi, Gujarat, Rajashtan, and other parts of India,
and the balance 20-30% is exported to other countries like USA and EU.
Human Resource
Abundant human resources are available in the district that takes care of the operations like
processing, management, human, accounts, and other departments.
approximately 9000laborers are working in the 350 processing units
Skill Development
Even though skilled labor is available who does manually however there is high demand for skilled
labor for operating the latest technology of Vietnam machinery. 2 skilled labor is approximately
required to process 1 bag of RCN
Testing
• Quality parameters are observed while processing the cashew like color grading and size. AFI
standards are followed
• Based on three colors. 1. White 2. Scorched 3. Dissert
• Size based & count per pound: Whole, broker/ Piece in global terminology W180, W 320, W
240. Out of this W, 320 is the most saleable variety
The Bankers, trade associations, agricultural dept, horticultural dept, marketing departments who
are directly and indirectly involved with the micro food processing industry are extending their
support for the growth of the industry with the implementation of schemes that are beneficial to the
unitholders
Support Infrastructure
Necessary roads, electricity, skilled labor, raw material, water, and port facilities are available to
support the industry
Financial Linkages
Since the Cashew processing units are located in the outskirts of the residential area and there is no
such environmental impact from these units and are obtained all the necessary permissions from the
pollution department.
No of skilled and semi-skilled Workers
cutting, who does grading will be nearly 60-70% and the other labor i.e who does other activity
(Semi-skilled labor) will be nearly 30-40%.
Manufacturers
There are a total of 38 mandalas and the total villages are 1814 while cashew processing mandalas
are 1.Palasa 2.Mandasa 3.Sompeta 4.Meliyaputti. There are nearly 300-310 units are located around
PalasaMandal where the majority of the cashew processing units are located
Raw Material Suppliers: farmers and importing from other countries
• It is a regular practice of the cashew farmers/tribals in this district that the raw
material/produce is supplied to the local provisional stores (Shavukar) (10 kg to 80 kgs) in
the village/town every day or now then and gets the cash immediately.
• The existing/ oldest traders during the season normally go to the nook and corner of the
farmer’s farm gate and procure the material and pay the cash immediately.
• The traders/agents who collect the produce from the farmers/provisional stores in each
village supply to the small/big processors.
• RCN is imported from African countries like Côte d'Ivoire, Benin, Ghana, Guinea Bissau,
Tanzania, etc
Enterprise Promotion Councils
Industrial Associations
In the Palasa region, there is a manufacturers association by the name of Palasa manufacturers
association which is legally registered and nearly 190 manufacturers are registered, headed by the
president and other members and a nominal fee is collected from the members and it is used for the
welfare of the association and industry. If any issue is to be taken to the government notice or any
department collectively, they give representation through the association and see that the problems
are solved amicably
Financial Institutions
Nationalize banks are extending loans to purchase the machinery as well as towards working capital
to the unitholders.
Marketing players
• It is a regular practice of the cashew farmers/tribals in this district that the raw
material/produce is supplied to the local provisional stores (Shavukar) (10 kg to 80 kgs) in
the village/town every day or now then and gets the cash immediately.
• The existing/ oldest traders during the season normally go to the nook and corner of the
farmer’s farm gate and procure the material and pay the cash immediately.
• The traders/agents who collect the produce from the farmers/provisional stores in each
village supply to the small/big processors.
• Apart from the 250- 350 small and big processors located in the district, there are other big
exporters like Olam International, Rajkumar international, Vijaya Lakshmi group, India Food
exports, Prashant exports, etc.,
21.10. Existing Government Schemes

Micro and Small Enterprises



Men
3% for 5 Years
3% for 5 Years
3% for 5 Years


Hypothecation duty
FPOs, BC/Minority

Entrepreneurs:

Registration


parks

1 SGST Reimbursement (for 5 Years) Medium Enterprises, Large and Mega Industries

Reimbursement
<1000 50%
1000 to 2000 75%
2000+ 100%
FPOs, BC/Minority Communities (Women) and

SC/ST Entrepreneurs

❖ All the incentives and other initiatives laid down in AP industrial policy 2020-23 are applicable
and implemented in AP Food Processing Policy 2020-25 For private enterprises
21.11. Cluster Map
• In the district of Srikakulam, there are nearly 350 registered and unregistered processing
units while in the Palasa region of Srikakulam district almost all through the year nearly 150 -
180 processing units approximately are processing 1500 bags (80 kg of raw material) i.e.
nearly 120 tonnes in a day by all units in Palasa region.
units
color, and quality.
like USA and EU.
cluster existing for Cashew and a cluster can be made in Palasa region and all the processing
units located in the different districts can also be brought under one cluster.
21.12. Value Chain
After processing raw cashew nut the value addition is made to the finished product Cashew Kernels
as required by the customers. Cashew is roasted, salted, added to the biscuits, used in making
sweets, mixed with the mixture, prepares prasadam, used in Biriyanis, uses while preparing curries,
etc., lot of nut-based industries are using cashew and adding value addition to products.
21.13. Product Cost Analysis

Average Cost and Returns per Quintal of Cashew Kernel
The total cost of production of cashew kernel per quintals is Rs. 14,060, of whichthe variable cost is
Rs. 13,810 and Rs. 250 is a fixed cost. Net income generated per quintal is Rs. 4,495 with a benefit-
cost ratio of 1.3.
Sl.No Particulars Quantity Unit Total

(Kgs) Cost Cost
(Rs./Kgs) (Rs.)
I Variable Cost
1 Raw Material (Cashew) 100 105 10500
2 Labour (No.) 8 300 2400
3 Fuel Charge 120
4 Power Charge 90
5 Packaging 1 500 500
6 Transportation 200 200
II Fixed Cost
7 Deprecation, Interest on Woking Capital, Rental Value 250
etc..)
III Total Cost 14060
IV Returns
8 Kernel Recovery/Quintal 28 650 18200
9 Shell Recovery/Quintal 67 5 335
10 Husk Recovery/Quintal 5 4 20
V Gross Returns 18555
VI Net Returns 4495
VII B:C Ratio 1.3
21.14. SWOT Analysis
Strength: Weakness:
• In this district, there is good market
perception for the Cashew product and • Technology adoption is not up to the
it is known as a quality product from mark still majority of the processors are
Palasa, since it is an established district depending on the manual process while
for cashew processing there is the
managing the labor and getting the labor
availability of skilled labor and raw
material to some extent and there are has become challenging since labor is
good processing capacities. attracting to the NREGA and not
interested to work in industries.
• Quality of produce is low after the first
harvest
• Consistent increasing domestic • Insignificant increase in acreage of

consumption within the state of Andhra cashew and not meeting the local
Pradesh and other states in the country demand of cashew nut

A Success Story of Safalam Cashew Processing Society Kasaragod, Kerala (2017-18)
Safalam Cashew Processing Society started in 2008-09 in Kasaragod district of Kerala State in India.
The District Mission of Kasaragod has helped Safalam Cashew Processing Unit to become one of the
successful initiatives in the state. Activities of society involve the collection and processing of cashew
nut grown in the district by the local rural women, who are members of SafalamWomens Cashew
Processing Society. The society operates at 13 cashew processing units, which includes one Central
Grading and Packing Centre at Chattanchal and twelve primary processing units, spread across
13GramaPanchayaths, which function in a hub and spoke format.
Around 78 women workers are involved in the processing of cashew in 13 processing units at
different gram panchayaths in the Kasaragod district. The society produces 21 grades of Cashew,
Cashew Pickle, and Cashew Syrup.
Name of the Organization Safalam Cashew Processing Society
Founded By Rural Women, who are members of SafalamWomen’s Cashew

Processing Society
Started In 2008-09
Number of Persons Involved 78 Women’s and 13 Units are established in 13 Gram
Panchayats
Manufacturer Safalam Cashew Processing Society
Formed and Support By Kudumbashree had extended help to the units by giving a
subsidy of Rs. 50000. In addition, a revolving fund of Rs 17,500
was given to each unit. An amount of Rs. 33 Lakh was received
from the NRLM fund as well.
Turn Over Per Annum (Sales Cash Rs. 1,19,62,520

in 2016-17)
Work nature of society
The units procure the cashew nuts from the cashew nut farmers. Each unit has a secretary and
president. After procuring the cashews they dry them and bring them to the unit at Chattanjal along
with the bill. The dried cashews would be procured and the units would get a commission of Rs 3 per
kilo for drying the cashews. The units bring the cashews by grading them into 10 types and later at
the grading and peeling unit the cashews are graded into 21 different types viz., W180, W210,
W240, W320, SW, RW, DW, RW2, FW, KW, JH, SPLIT, SPLIT2, K, LWP, SWP, SP, DP, and BB.
After grading the cashew nuts are packed. The workers would get Rs 45 for cutting each kilogram of
cashew and Rs 60 for peeling. A worker could earn upto Rs 350 per day. The first-grade cashew is
available in 1 Kg and half Kg packs. The cashews are also available in 1 Kg, 500 gm, 250 gm, and 100
gm packs as well.
Brand
The product of Safalam cashew is available in the market under the brand name ‘Paranky Nuts’. 1 Kg
of Paranky Nuts costs Rs 1000. Pranky Nuts is also available in 500 grams and 250 grams packets. The
cashews have a shelf life of 6 months.
Name and Place of Units in Kasaragod District
Name of the Name of the Unit Members

Panchayath
Ajanur Samagra Cashew Processing Unit 7
Bedaduka Dhanam Cashew Processing Unit 6
Enmakaje Keerthy Cashew Processing Unit 4
Kallar Unity Cashew Processing Unit 7
Karaduka Aishwarya Cashew Processing Unit 7
KayyurCheemeni Matruka Cashew Processing Unit 7
KodemBelur Udayasree Cashew Processing Unit 5
Kuttikol Dhanasree Cashew Processing Unit 6
Panathadi Aishwrya Cashew Processing Unit 5
Pallikera Safalam Cashew Processing Unit 5
Pilikode Menma Cashew Processing Unit 0
PullurPeriya Gramasree Cashew Processing Unit 0
Chemnad Thejas Cashew Processing Unit 7
Business of the Society upto 2017-18
Description 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017-
10 11 12 13 14 15 16 17 18
Procurement 27799 44742 79896 49132 577418 65102 630751 769836 93167
Quantity (Kgs) 49 26 42 10 8 65 4 2 30
Procurement 59767 88094. 11384 71148. 86676. 86398 72013 66863. 67258
Expense (Rs.) .9 44 4.3 47 1 .7 1 .5
Average Rate 46 51 70 69 66 75 87 115 138.5
(Rs./Kg)
Work Days 14521 13718 14388 11433 12841 12359 11299 9270
Sales Cash (Rs.) 26466 72978 94357 87812 100731 84315 102962 119625
90 09 46 55 28 62 57 20

Individual Meeting

Gap Study
Raw material
There is a huge shortage of raw materials i.e. RCN in India as well as in the district of Srikakulam
district. Only 30-35% of material is produced in India and the rest of the 65-70% is imported from
West Africa. While the quality is also not up to the mark. Only the first harvest crop will be good the
later harvested crop is inferior which is not preferred by most of the processors so they depend on
West African countries
Farmers are incurring losses in cultivating the cashew because of no proper return on investment
either because of lower yields i.e. 750-800 kgsRCN or 200-300 kgs of dry nut and climate also plays
a vital role in the cashew cultivation, as well as the mediators, are exploiting the farmers. Sothe
companies have to tie up with farmers and do contract farming then only the farmers are benefit
and government should support the farmers by providing procurement centers.
Here the total RCN prices are depending on Africa or Vietnam. They are price-deciding countries.
Cashew Nut Production VS Import in India

1200
1000
800
600
400
200
0
Production in India ('000 Tons) RCN Import into India (Quantity in '000 Tons)
• Cashew nut import into India is increased 7% (CAGR) from the past two decades and
production of cashew nut in India is increased by 2%.
• During 2019-20, cashew nut production in India is 703 thousand tons (3rd advanced
estimate) and also importing 938 thousand tons of raw cashew nuts from other countries.
Technology
In the district of Srikakulam, there are nearly 300-350 processing units are established and process
the RCN on a day to day process and out of the total processing units there are small unit holders,
medium unitholders, and big unitholders. The small unitholders do the processing activity of 1-2, 2-
5, or 4-10 bags a day. In this process the small unitholders do the work manually with less
technology or machines they hire labor for performing hand cutting, humidification, peeling,
grading, and selling to the whole seller through a broker the small quantity on a day to day process.
While the Medium processors process the RCN nearly 30-50 bags a day through manual and
machine process with the help of shelling, peeling, and color sorting machines.
Big processors process nearly 80-100 bags a day with the help of Vietnamese technology or Indian
technology. Vietnam technology is a horizontal technology (5 lines) where the labor involved is very
less here the cutting, sewing, grading, color sortingandblowers, cross channel activity is done by
machinery. It is integrated machinery. It minimizes the cost, labor, and time. it is a cost-effective
system. It cost nearly 30-35 lakhs. It also has a single machine which costs nearly 8 lakhs.
However Indian technology machine is vertical and horizontal machine which is also an integrated
machine that is less expensive than Vietnamese technology. Some of the unitholders have adopted
this technology and it cost nearly 3-4 lakhs
Companies like Olam and others have adopted very big Vietnamese technology/machines where
they process 300-400 bags a day.
Testing facilities
There are no proper testing labs in the Srikakulam district and the drawn samples are sent to
Vishakhapatnam and getting tested there. Not every buyer insists on testing only a few buyers ask
for testing. The institutional buyers normally ask for a sample testing report which includes,
moisture content, color, % of foreign material, Whole count, etc., and also gets test at third-party
labs. Big processors like Olam international is having an in-house lab is present at their plant where
the procured RCN is tested batch-wise and even all the processed material is tested. The bulk
processors and the traders who do trade in bulk quantity normally test their product at third-party
labs.
Skill training
There is a shortage of skilled labor in the cashew processing industry and there are no proper skill
training facilities are available in the district. A proper skill set is required for the laborers to operate
the machines like steam Boiler, peeling, Sorting, husk winnowing, cutting, Weighment, etc., At
present only a few skilled laborers are available and the rest badly required the skill training and a
skill development program to be conducted.
Cluster: There is badly requirement of the cluster in the district even though there is good potential
of processing capacities, sufficient labor, infrastructure, and the finished product is supplied across
India there is no cluster for Cashew in the district.
• Public infrastructure:the majority of respondents expressed that they are having good
• Access to Common Facilities: the majority of respondents expressed that they are not
having good access to common facilities such as grading, sorting, packaging,etc withinthe
district.
• Access to Testing Facilities: themajority of respondents expressed that they are not having
good testing facilities in their respective units.
majority of respondents expressed that they are not undergone any kind of inspection for
safety regulators.
• Skill training:needs the majority of respondents are semi-skilledlaborers and expressed the
need for training to improve their skills.
• Technologies Available majority of the respondents are aware of technologies available and
they are following a good manufacturing process.
• Access to finance: most of the respondents are seeking finance to upgrade their existing
units and currently, they are having poor access to finance.
• Access to mentorship/ service: most of the respondents are seeking for good mentorship to
• Awareness ofGovt Policies among micro /small manufactures: the majority of them are not
• Awareness of ODOP products of the District: the majority of them are aware of ODOP
products in the district
• Marketing/sales facilitiesmost of them are expressed that they need proper training on

Rating 1 2 3 4 5 Not Total
Responded
A - Public infrastructure such as roads for 1 25 31 67 178 8 310
B - Access to common facilities such as 0 35 107 141 19 8 310
grading, sorting, packaging, cold chain
facilities, etc.
C - Access to testing facilities 101 22 107 64 8 8 310
D - Compliance to standards and the 82 25 96 88 11 8 310
frequency of inspections from the safety
regulators
E - Skill training needs 34 68 101 88 11 8 310
F - Manufacturing practices 2 12 94 180 14 8 310
G - Technologies Available 1 17 92 170 22 8 310
H - Access to finance 1 12 73 157 59 8 310
I - Access to mentorship/ service 37 50 113 94 8 8 310
J - Awareness on Govt Policies among 18 27 55 176 26 8 310
micro /small manufactures
K - Awareness on ODOP product of the 24 18 21 103 136 8 310
District
L - Marketing / sales facilities 1 12 146 125 18 8 310
M - Facilities to the workers 1 21 125 128 27 8 310
25. Recommendations

Vision Statement: To support micro-enterprises/SHGs/FPOs to up-gradation of technologies and
common infrastructure facilities in the Srikakulam district.
Objectives


inLakhs)
Training, Branding & Marketing 55 There is a lot from Srikakulam to be
hand
Incubation Center
space/area for any Incubation Centers should be a minimum of 7000 sq. ft.
Cost norms for setting up Incubation Center at Srikakulam

shall be supported by PM FME Scheme with the grant of Rs.1.0 crore (Rupees One crore only) for

Labeling/ Packaging
Srikakulam Cashew product awareness /Within District
55 lakhs
Srikakulam Cashew product awareness /Outside district
MSP on Cashew(RCN)
Total
• Brands in fruits are certainly adding value to the fruit and are important to distinguish one
cashew from another. Particularly if you focus on the higher-income consumers who are
more sensitive to proof of quality, taste, or health benefits all of which can be expressed by
branding
• Govt should provide a market update/educate the processors like the present customer
requirements ingredients dicing, for biscuits makers (Karachi, ITC, etc), local bakeries,
mixture making companies like Haldriams.
• Govt should make GO procure the required cashew for the Temples for preparing prasad
from this cluster to benefit the unitholders
• Govt should fix the minimum support price on the cashew (RCN) to support the farmers and
also should provide market updates regularly on the global and domestic crop status of the
cashew and the prevailing prices by SMS to the farmers/processors.
• Govt should provide a price forecast for the next six months to avoid losses
For Individuals
our respondents as micro-enterprises) so accordingly out of the 310 samples we have surveyed 270
No of Approx Subsidy
Sl.NO What is it for Respondents amount (Rs. in
(Rs. in Lakhs)
Crores) Individuals
1 Peeling Machine 91 9.56 10
2 Cutting Machine 76 7.68 10
3 Boiler 72 5.16 10
4 Crushing Machine, Dryer, Grading Machine, Humidifier, Nanopic 27 2.08 10
Machine, Shortix Machine, Pans and Buckets
5 Godowns 3 0.05 1.75
6 New Vehicle for Transportation 1 0.02 0.7
7 Total 270 24.54
What are all required and where are we proposing
Common infrastructure and incubation center can be
implemented at a 15-20 km radius of the Palasa
region since existing processors can defend this
proposal.
It requires a 2-2.5 crore investment to set up a plant
and requires 30 skilled laborers in a day for
processing 100 bags. While the land required for this
will be approximately 10000 sq. meters including
drying yards and it might approximately cost 1 crore.
It is going to help the farmers of the local and other surrounding regions to a great extent as well as
the importers who don’t have processing units can utilize this and will be benefited a lot. Most of the
farmers who produce the cashew and who have an interest are compelled to sell their products
because they don’t have the infrastructure to process the material with agreed rent and without any
investment, they can process their products and can sell in the market.
Already this type of common infrastructure is available in the Vizianagaram district and it is
functioning well.
However, there are some constraints in the execution of the plant-like:
· Area and viability where ever it is necessary
· Better understanding is required between the farmers/processors while processing the
RCN like peeling, cutting, and other activities whom to allow first
· Number of drying yards
· Skilled labor maintenance
· Packing
· Storage
· Loading and unloading
· Testing
· Time management etc.,
Cost attribute Investment in Rs.(Crore)
1. Land and buildings (10k sqmts) 1
2. Plant & Machinery 2.5
3. other Electrical Equipments 0.2
4. Furniture & Fittings 0.2
5. Testing lab 0.5
6. Training and skill development 0.55
Total 4.95
Breakup on Plant and Machinery
S. No Description No units No of the bags Remarks

required processed in a
day
1 Burma/ Hot 3 100 Each borma processes 30 bags in a

chamber day
2 Boiler 4 100
3 Cooker 2 100 It takes 30 minutes to cook 4 bags
and can cook 50 bags each in a day
4 Peeler 4 100
5 Compressor 3 100
6 Cutter 5 100
7 Grader 2 100
8 Nano Pit 2 100
9 Sortex machine 2 100
10 Labor 30 100


universities
Beauty of product
Natural/organic
Sugar content

Skill development for labor:
A proper skill set is required for the laborers to operate the machines like steam Boiler, peeling,
Sorting, husk winnowing, cutting, Weighment, etc., At present only a few skilled laborers are
available and the rest badly required the skill training and a skill development program to be
conducted.
Create a marketing hub
• Since the small unitholders do not have business contacts and are unable to market their
products Govt can create a hub where they can sell their produce and get the benefit.
Elimination of the middlemen in the trade
• In the Cashew industry, brokers/mediators play a big role in selling the product and they buy
the material at a lesser cost and sell the same at a higher price to others. Need to reduce the
gap between the seller & buyer.
Government procurement
• Like in other commodities the government procures the material from the farmers to
support them here the government can procure the quality product and support the
unitholders in providing the support price. Otherwise can arrange or can make a
Government order that all the temples that come under the endowment department must
buy their cashew requirements from this region. So the unitholders can be benefited.
Government intervention
• India is a huge cashew consuming country and the consumption of cashew nuts is increasing
YOY across all the industries like bakeries, sweet makers, biscuit manufacturers, juice
makers, mixture makers, etc., as well as it is used in households, marriages, functions,
hotels, etc., However, the Indian production of RCN is insignificant and always we depend on
imports from West Africa and Vietnam countries. The prices normally fluctuate now and
then and the Indian cashew industry is driven by African big traders/processors if the prices
are increased in Africa accordingly the raw material prices shoot up in India. However, the
prices of Cashew kernels have remained almost stable for the past 5-8 years even though
there is a surge in RCN. So there is a need for Govt intervention in this regard.
Contract farming with big processors
• If the farmers and processors come together and enter into an agreement where the farmer
agrees and cultivate the cashew according to the norms of the processors and processors
assure to buy the entire produce produced by the farmer at the ruling price of the day then
there is every chance to get mutually benefited. In this process, the cashew acreage will
increase YOY and the shortage of raw material also comes down gradually. Contract farming
with big processors:
Government support
• Cashew industry in Palasa, Srikakulam district, has been hit hard by various factors, Titli
cyclone, and last year lockdown including the partial lockdown recently imposed by the
Andhra Pradesh government to control COVID-19.
• A steep fall in demand for the nuts and a hike in electricity and labor charges have dealt a big
blow to the industry. Normally, 500 tonnes of cashew is processed per day here but it fell to
200 tonnes.
• “The closure of restaurants and cancellation of marriages triggered a sharp fall in demand
for cashew. The industry is already in dire straits due to last year’s lockdown and a drop in
exports,
• While many manufacturers are unable to overcome their financial distress since October
2018 when the Titli cyclone caused devastation in the entire Udhanam region, including the
cashew-rich Palasa, and Kasibugga towns.
• Despite the best efforts, the industry could not get back on track in the last three years. A
hike in labor charges is also cited as one of the reasons for the increase in production cost.
• In this bad situation if the government supports the unit holders by slashing the power
tariffs to the cashew industries, providing some interest-free loans as well as offering
subsidies that will support a lot to the micro, small and medium industries.
Visakapatanam
Contents
Executive summary: .................................................................................................................................. 487
ODOP and Non-ODOP products: ........................................................................................................... 487
1. Baseline Assessment studies: ........................................................................................................... 492
A. Agriculture profiling of the District in the state................................................................................ 494
ODOP:.................................................................................................................................................... 495
Percentage share of Area under Agriculture and Horticultural crops in Visakhapatnam district- ....... 496
1.2 ODOP produce as a percentage of the total agricultural production of the district- ..................... 496
1.3 Perishable nature of the produce- .................................................................................................. 497
1.4 Production of ODOP agriculture produce in that district compared to other districts and states- 498
1.5 Number of workers engaged in the cultivation of each of the ODOP products-............................ 499
Non-ODOP............................................................................................................................................. 499
1. What other Major crops are being cultivated apart from the chosen ODOP Product- ................ 499
3 Non-ODOP produce as a percentage of total agricultural production of the district ....................... 499
4. Perishable nature of the produce: ................................................................................................... 500
5. Number of workers engaged in the cultivation of the non ODOP produce in the district: ............. 500
B. Assessment of the existing Policy and Regulatory frameworks for FPI and FPI Micro Enterprises
in the State: ............................................................................................................................................... 503
C. Profiling of existing Micro Enterprises eco system: .......................................................................... 503
1. Industrial Profile of the Districts in the State................................................................................ 503
2. Identifying Non-ODOP Products ................................................................................................... 504
3. Information Sources – ................................................................................................................... 504
ODOP – List of units visited ................................................................................................................... 504
4. District wise profiling based on secondary research ....................................................................... 504
a. Detailed cluster study for ODOP products-How are going to do a cluster study ......................... 516
1. Industry and Market Analysis ........................................................................................................... 516
Nutritive Value and Health Benefits ..................................................................................................... 521
Nutrients of raw sugar (100gm) ............................................................................................................ 521
Composition of 100g of jaggery. ........................................................................................................... 521
1.3 Global Market for the Product ....................................................................................................... 522
1.4 Indian Market & Valuation for the Product .................................................................................... 522
1.5 Manufacturing Process: .................................................................................................................. 525
2. District Profiling................................................................................................................................ 529
3.16 Environmental Impact:.................................................................................................................. 541
3.17 Cluster Actors: ............................................................................................................................... 541
4.7 SWOT Analysis................................................................................................................................. 546
Executive summary:
In the district of Vishakhapatnam,the total geographical area ofthe district is 11.16 lakh
hectares of land of which 32.5% is a cultivable area, 39.5% is forest area, barren and
uncultivable land is 11.7% and non-agriculture use is around 10%. Suitable interventions
have been taken to improve land use. While the major crops grown in the district are Paddy,
maize, groundnut, red gram, green gram, rajma, ragi sugarcane, black gram, turmeric, and
cotton. Coffee and cashew are the major commercial crops grown in the region. Mango,
Guava, is the major horticultural crop grown in the Visakhapatnam. Brinjal, beans, Tomato,
Gourds, Chilli are the major vegetables.
ODOP and Non-ODOP products:

In Andhra Pradesh, about 4.0 lakh farmers were engaged in sugarcane production and 0.20 lakhs
workers get direct employment in its processing for sugar.
The maximum cane area is in the coastal region followed by Rayalaseema. In recent years, the area
under sugarcane has drastically reduced due to high production cost, scarcity of labor, and stiff
competition from other crops like maize, sunflower, groundnut, and paddy. Coconut, Paddy,
Mangoes & Ragi are identified as Non-ODOP. Non-ODOPs are identified based on the
number of enterprises involved in food processing from the primary survey.
Vision statement and key objectives for SLUP:
Vision statement:To increase the percentage contribution of the local sugar cane products
(Jaggery) manufacturing units in the total sales of the sugar cane products (Jaggery) in the
UT.
Objectives:
➢ Up-gradation of the existing Jaggery manufacturing units

➢ Increasing the numbering of Jaggery manufacturing units in the Vishakhapatnam
➢ Identifying the potential benefits to the manufacturing units from the stakeholders
Project strategy and interventions:
Context of ODOP processing (Sugarcane products):
In the district of Vishakhapatnam out of the 43 mandals, the jaggery making units are mainly
established in the Anakapalli surrounding mandals like Anakapalle, Chodavaram, Butchayyapeta,
Kasimkota, Munagapaka, Cheedikada, Devarapalle, K.kotapadu, Madugula, Atchutapuram,
Yelamanchili, Rambilli, and approximately there are more than 750 jaggery making units in the
district while most of the units are unregistered
Nearly 3850 labor are working in these 750 units of big and small. In the small units, approximately 5
people work in processing the jaggery and in the medium and big units nearly 7-10 people are
employed. However, there is a labor problem in the Jaggery making
Most of Jaggery processing is made during the season from December to April of every year.
There are nearly 750 jaggery processing units established in Vishakhapatnam and almost all are
unregistered cottage industries. Seasonality is from Dec-Apr and jaggery processing takes place
nearly 150 days. Approximately from 750 units, nearly 200-220 tonnes of jaggery is produced across
the district and nearly 3850 laborers are engaged in this jaggery making.
Up-gradation possibility summary:
Category – for ODOP Current Number of Up-gradation New Enterprises Other

Enterprises Possible in Number Possible in ODOP Intervention
s
Individuals 374 96 0 -
Group 0 0 0 -
Common 0 0 1 -
Infrastructure
SHG's Involved in 2 0 0 -
Food Processing
Seed Capital 0 0 0
Branding and Some of the unit holders have requested branding and marketing
Marketing
Need for funds by the respondents (From the primary survey observation
Proposed interventions
➢ Funding to the ODOP and Non-ODOP enterprises

➢ Training on handling the new technology machinery which is used for increase the
production capacity of the Jaggery products
➢ Development of common facility center for branding and marketing of locally
produced products
➢ Advertisement/Promotion/Exhibition of the local manufacturing products to
increase the awareness about the products to the local consumers.
Key impacts
➢ Increase in the income of the micro food processing enterprise that is involved in
manufacturing the Jaggery products.
➢ Creating employment opportunities to the individuals by providing training on
manufacturing of Jaggery products.
➢ New enterprises can be setup by providing financial support to the aspirants in the
Jaggery making sector
Recommendations:
Storing Jaggery and maintaining the quality of jaggery is a big challenge for any unitholder.
Traditionally, jaggery is being stored in earthen pots or wooden boxes or metal drums which could
not sustain the quality for a longer period so to enhance the quality of jaggery PET film, edible film
coating, drying cum storage bins, low-temperature storage techniques can be adopted to increase
the shelf life of the Jaggery.
At present, there is meager support from the government to the Jaggery industry and Govt should
come up with the necessary policies to support the industry and increase the income level of the
unitholders.
Jaggery unitholders at present are suffering/facing financial problems to adopt new technologies
The skilled labor whoever is involved in processing the Jaggery production are illiterates and badly
require the skill training and development programs
Jaggery industry is working on very thin margins the unitholders are not getting the desired income
or profits and some of the Jaggery unitholders are on the verge of closure as a result of traditional
technologies as well getting very low market price.
Recommendation for considering Coffee under NON-ODOP
Coffee is one of the other plantation crops cultivated in the district of Vishakhapatnam
Coffee is grown significantly in the ArakuMandal where coffee is grown at a higher altitude
of nearly 910 meters. Selection -5, Selection -9, Chandrika, Arabica, and Robusta coffee
varieties are grown in this region.
In the Mandal of Araku, the major coffee-growing regions (panchayats) areSunkaramattu,

ChinnaLabudu, Baski, PeddaLabudu, Padmapuram, Sirgam, Sonti, Madagada&, etc.,
Sunkaramattu is a major region where coffee is grown more
During this year the blossom was developed very well and the fruit setting was also
satisfactory and made the farmers happy and optimistic to achieve significant production.
The cultivation of Selection- 5 and S- 9 is significant while Robusta & Arabica is very less
Crop Calendar of Coffee crop
Variety Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
S-5 & 9
Robust
a
Blosso Fruit
m development Harvesting
Fruitsetting Ripening stage
The average yield per acre is 150-200 kg of Parchment. The approximate cost of cultivation
is nearly 15000 per acre. Here the coffee farmers/growers grow coffee organically they do
not use fertilizers or pesticides.
Trader information:
Here the general practice of the coffee growers is after harvesting the fruit the necessary
pulping and drying is done to make parchment and the growers sell their produce to the
traders. M/s. GCC also procures coffee from the growers. At present, the Selection 5 and 9
parchment are being sold at 120/kg
In this ArakuMandal, there are nearly 10 traders who deal in coffee and procure from the
growers. Harvesting commences from December and ends by Feb of every year. Traders buy
coffee directly from the farm gate or some of the farmers bring the parchment in the 40 kg
bags to the trader's point. Payment is made immediately or settles in a couple of days.
Each trader normally procures 4000-6000 bags in a season and the 10 traders procure
nearly 40000-60000 bags of 40 kg in a season. Further, these traders supply their major
procured material to the big traders or processors of Karnataka. During the season
processors from Karanataka will be very active for three months in procuring their material
from the ArakuMandal. Local traders keep the lesser margin and do not hold any significant
stocks with them.
In the ArakuMandal, the processing of coffee is taking place on a small scale. Only a few
people are processing coffee and selling it in the local market. There is badly requirement
for processing activity on large scale.
Two processors from Anantagiri Panchayat are processing coffee and their total processing
capacities are very less. Each processor is processing 3 tonnes a month and the total
processing in this Panchayat is only 6 tonnes per month. While another processor located in
Araku Valley is also processing below 10 tonnes per month. There is not much processing
activity happening in the ArakuMandal. Even the raw material and processed material are
supplied to the neighboring Mandal of Paderu where Coffee is grown there.
Totally 16-20 tonnes of coffee are being processed in the ArakuMandal for a month.
However, because of the pandemic from the past year, the processing activity has come
down significantly.
The processors are supplying the processed coffee to the other districts as well as to
Hyderabad. The processed coffee is being sold at INR 240- 500 per kg depending upon the
quality.
Existing infrastructure:
Roaster, Grinder, packing machine
Gaps observed:
• No auction process to sell growers produce

• No financial support from the bankers
• No government system to procure or buy coffee from the farmers
• No proper study is taking place to estimate the correct acreage
• No training is provided to the growers/traders/processors from the end of the Coffee
board/government/horticulture department.
• Marketing issues are existing to promote their processed product
• A big processing plant is required to support growers
Financial support:
Expecting financial support to upgrade their existing plant, construct godown, capital
expenditure, and packing machine.
In Vishakapatnam, district Araku Coffee can be considered as NON-ODOP and extend the
support to the existing processors for the development of the coffee trade. Many people
are interested to start coffee processing in the Mandal and they only require is financial and
marketing support. If the government provides the latest techonology at subsidized prices
and helps in marketing their processed product within the district, state, and other states it
will be very encouraging. They have sufficient raw material and labor for processing the
Coffee. Araku coffee is having a special & unique flavor.

Sugarcane (Saccharum officinarum) belongs to the family Gramineae (Poaceae) is a widely
grown crop in India. It employs over a million people directly or indirectly besides
contributing significantly to the national exchequer.Sugarcane originated in New Guinea
where it has been known for thousands of years. Sugarcane plants spread along human
migration routes to Asia and the Indian subcontinent. Here it cross-bred with some wild
sugarcane relatives to produce the commercial sugarcane we know today.
India is the second-largest sugarcane-producing country in the world. sugarcane is grown in

both tropical and subtropical regions. The productivity of sugarcane in the tropical
belt(Maharashtra, Andhra Pradesh, Gujarat, Tamilnadu, Madhya Pradesh, Orissa, and
Karnataka) is 26.4% higher than in the subtropical belt (Uttar Pradesh, Bihar, Haryana, and
Punjab). The highest productivity is achieved in the tropical state of Tamil Nadu, with 105 t
cane per ha, but the average productivity is low in India, with some regions producing only
40 t cane per Ha.In the Tropical zone, Maharashtra is the major sugarcane growing state
covering about 9.7 lakh ha area with production of 73.09 Million tons. Uttar Pradesh is the
highest sugarcane-producing State in the sub tropical zone having an area of about 21.51
Lakh ha with the production of 173.8 Million Ton cane whereas Haryana has the highest
productivity of sugarcane in Sub tropical zone.
Brazil, India, China, Thailand, and Pakistan are the 5 top sugarcane-producing countries in
the world. Brazil and India almost contribute 60% of the world’s sugarcane production.
China and Thailand have the highest productivity of the sugarcane crop per Ha.
Country Cane production (Mn Area harvested (Ha) Yield (Tones/Ha)

tones)
Brazil 752.8 10437.6 70.6
India 405.4 5012 70.3
Thailand 131.0 1738.1 72.3
China 109.3 1353 76.6
Pakistan 66.8 1173 57.5
Source: FAOSTAT
Raw sugar, sugarcane Juice, Ethanol, Bagasse, Molasses Jaggery, etc. are the direct
byproducts produced from the sugarcane crop. Raw sugar is used for direct consumption
and is additive for different sweet preparations. The lighter grades of molasses made
from sugarcane are edible and are used in baking and candy-making and to make rum.
Blackstrap and other low grades of cane molasses are used in mixed animal feed and the
industrial production of vinegar, citric acid, and other products. Jaggery is used for direct
consumption and medicinal purpose due to its high nutritional value. Sugarcane juice
provides great recreation and has many health benefits.Bagasse is typically used to produce
heat and electricity in sugar mills (cogeneration), but can also be used for paper making, as
cattle feed, and for manufacturing disposable food containers. Currently, bagasse is
mainly used as a fuel in the sugarcane industry to satisfy its energy requirements.
A.Agriculture profiling of the District in the state

The total geographical area ofthe district is 11.16 lakh hectors of the land of which 32.5% is
the cultivable area, 39.5% is forest area, barren and uncultivable land is 11.7% and non-
agriculture use is around 10%. Suitable interventions have been taken to improve land use.
The major agriculture crops grown in the district are Paddy, maize, groundnut, red gram,
green gram, rajma, ragi sugarcane, black gram, turmeric,and cotton. Coffee and cashew are
the major commercial crops grown in the region. Mango, Guava, is the major horticultural
crop grown in the Visakhapatnam. Brinjal, beans, Tomato, Gourds, Chilli are the major
vegetables.
S. No. Particulars State District

(Area 000’ Ha) (Area 000’ Ha)
1 Gross Cropped Area 7960 340
2 Net Cropped Area 6463 281
3 Gross Irrigated Area 3711 150
4 Net Area Irrigated 2801 122
ODOP:
In Andhra Pradesh, about 4.0 lakh farmers were engaged in sugarcane production and 0.20 lakhs
workers get direct employment in its processing for sugar. The maximum cane area is in the coastal
region followed by Rayalaseema. In recent years, the area under sugarcane has drastically reduced
due to high production cost, scarcity of labor, and stiff competition from other crops like maize,
sunflower, groundnut, and paddy.
AP and TG Sugarcane Area, Yield and Production from 2016 along with estimated 2021
Total Production of the Produce in the District:
VishakhapatnamSugarcane Area, Yield and Production from 2016 -2019-20
In Andhra Pradesh State, Visakhapatnam district is one of the major sugarcane growing districts in
Andhra Pradesh. Further, in the Visakhapatnam district, there are three sugar factories and one huge
famous Gur marketing yard at Anakapalli.The coastal areas of A.P. have high sugarcane productivity.
In the tropical region climatic conditions are more favorable for its growth. It is cultivated with a
better package of practices and higher irrigation levels. In Andhra Pradesh, cane planting is done
in December-February.Well-drained loamy soil with neutral soil reaction (pH 6.5 to 7.5) and
adequate nutrients and without soil compaction is considered an ideal soil for sugarcane production.
Percentage share of Area under Agriculture and Horticultural crops in
Visakhapatnam district-
Total agriculture production of Visakhapatnam district in 2019-20 is 10.92 lakh tons. Food
grains contribute 38.80% to total agriculture production in the district followed by fruits
34%, vegetables 21.80%, oil seeds 4.90%, and commercial crops 0.50% respectively.
4.90% 0.50%
Food grains
21.80%
38.80% Fruits
vegetables
Oil seeds
Commercial
34%
1.2ODOP produce as a percentage of the total agricultural production of the

district-
The total agricultural production of the Visakhapatnam district in the year 2019-20 is 10.92
lakh tons. Sugarcane crop production in the district for the year 2019-20 is 0.02 lakh tons
which are 1% of the total agricultural crop production in the district.
% share of Sugar cane production in the total agricultural
production in the district
1%
Sugarcane production
Total agricultural
production
99%
% of Sugarcane production in in Visakapatanam compared

to the total suagrcane production in the state
28.60%
Visakapatanam district
Andhra pradesh
71.40%
1.3Perishable nature of the produce-

The sugar accumulated in the stem of sugarcane represents a balance between the
synthesis of sugar and its utilization. A well-ripened harvested crop may lose its sugar within
a few days after harvest, which tends to increase further due to high ambient temperature,
pre-harvest burning, harvest and transportation injuries, and microbial infestation.
Sucrose losses after the harvest of sugarcane and during the subsequent milling operation
are one of the most serious problems in many sugar processing mills in India. Staling beyond
24 hours results in a considerable loss in cane weight due to moisture loss and reduction in
juice sucrose content due to inversion such juice also creates problems in processing.
Particulars Fresh Refrigerator

Sugarcane juice 1 day 2 months
Jaggery 8 months 20 months
Raw sugar 6 to 8 months
Molasses 12 to 15 months
1.4Production of ODOP agriculture produce in that district compared to

other districts and states-
The total production of sugarcane crop in the Andhra Pradesh for the year 2019-20 is 6716
MTs. Among all the districts producing the sugarcane, Visakhapatnam is the highest
producer of the sugarcane with 28.6% of the total crop production in the state followed by
Chittor district 20.3%, Krishna district 12.4%, West Godavari 11.30%, East Godavari 10.8%,
and Vizianagaram 8.50%of the total crop production respectively.
% of sugarcane production in the districts in the

states
8.50% Visakhapatnam
East Godavari
12.40% 28.60%
West Godavari
Chittoor
20.30%
10.80% krishna
vizianagaram
11.30%
During the year 2019-20, sugarcane production in India is 362996 Thousand tones in the
total area of 4633 thousand Hectares. Uttar Pradesh leads the sugar cane production with
47.9% of the total production and 46.43% of the total area in India. Maharashtra is the
second highest producer of sugar cane with 20.1% of the total production and 21.13% of the
total area followed by Karnataka with 11.2% of the total sugarcane production in India and
9.73% of the total area. Andhra Pradesh contributes 2.6% of the total production and 2.72%
of the total area.
State Area in ‘000Ha Production in ‘000 % of area % of

Tones production
Andhra Pradesh 126 9593 2.72 2.6
Gujarat 153 9198 3.30 2.5
Karnataka 451 40612 9.73 11.2
Madhya Pradesh 118 5733 2.55 1.6
Maharashtra 979 73090 21.13 20.1
Orissa 2 141 0.04 0.0
Tamilnadu 206 20600 4.45 5.7
Bihar 233 12833 5.03 3.5
Haryana 118 9484 2.55 2.6
Punjab 96 7896 2.07 2.2
Uttar Pradesh 2151 173816 46.43 47.9
Total production 4633 362996 100 100
1.5Number of workers engaged in the cultivation of each of the ODOP

products-
According to the 2011 census Visakhapatnam district has a population of 42.91 Lakhs. The
average size of the land holdings in the district is 0.91 ha. The total area under sugarcane
cultivation in 2011is 38 thousand ha with the production of 2153 thousand tones in the
district. Approximately 41 thousand households are involved in sugarcane cultivation in the
district.Around 1 percent of the total population in the district is engaged in sugarcane cultivation.
Non-ODOP
1. What other Major crops are being cultivated apart from the chosen
ODOP Product-
Paddy, Bajra, Maize, Ragi, Minor millets like Korra, varugu, samai etch and sesamum are the
major crops produced in the Visakhapatnam district.
2.Total Production of each of the Produces in the District
Crop Area in Ha Production in 000’ Tones

Paddy 103557 374.272
Bajra 1057 1.101
Maize 5555 21.252
Ragi 18132 20.461
Minor millets 4408 1.752
Sesamum 3369 7.41
3Non-ODOP produce as a percentage of total agricultural production of the

district
In the year 2019-20, the Ragi crop in the Visakhapatnam district contributes 54% of the
total agricultural area under the Ragi crop in Andhra Pradesh with 46.2% of the total
Ragi production in the state. Minor millets contribute 18.9% of the total agricultural
area under the minor millets in the district and contribute 15.2% of the total minor
millets production in the state.
Crop % of the area to the total % of production to the total

agricultural area in the district agricultural production in the
district
Paddy 4.4 2.7
Bajra 4.2 2.1
Maize 1.8 1.0
Ragi 54.0 46.2
Minor millets 18.9 15.2
Sesamum 8.6 5.5
% of production of the Non ODOP crops in the

Visakapatanm district in the year 2019-20
Paddy
34.3 Bajra
Maize
Ragi
60.9
Sesamum
0.1
1.9 Other crops
1.9
0.1
4. Perishable nature of the produce:

S. No. Value-added products Shelf life
1 Paddy
I Papad 6 months
II Flaked rice 6 months
2 Maize
I Starch powder 6 to 9 months
II Maize flour 6 months
3 Minor millets
I Millets flour 4 to 6 months
II Millets biscuits 6 months
III Millets flakes 6 to 9 months
5. Number of workers engaged in the cultivation of the non ODOP produce

in the district:
The total area under Paddy, maize, Bajra, Ragi, Minor millets like Koora, Varugu, Samai,
etc., and sesamum is 173 thousand ha with the production of 324 thousand tones.
Around 190 thousand households are involved in the cultivation of the paddy, Bajra, Ragi,
minor millets, and sesamumin the Visakhapatnam district. Almost 5% of the households
in the Visakhapatnam district are involved in the cultivation of the Non-ODOP.
Coffee is one of the other plantation crops cultivated in the district of Vishakhapatnam
Coffee is grown significantly in the Araku Mandal where coffee is grown ata higher altitude
of nearly 910 meters. Selection -5, Selection -9, Chandrika, Arabica, and Robusta coffee
varieties are grown in this region.
In the Mandal of Araku, the major coffee-growing regions (panchayats) are Sunkaramattu,
Chinna Labudu, Baski, Pedda Labudu, Padmapuram, Sirgam, Sonti, Madagada &, etc.,
Sunkaramattu is a major region where coffee is grown more
During this year the blossom was developed very well and the fruit setting was also
satisfactory and made the farmers happy and optimistic to achieve significant production.
The cultivation of Selection- 5 and S- 9 is significant while Robusta & Arabica is very less
Crop Calendar of Coffee crop
Variety Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
S-5 & 9
Robust
a
Blosso Fruit
m development Harvesting
Fruitsetting Ripening stage
The average yield per acre is 150-200 kg of Parchment. The approximate cost of cultivation
is nearly 15000 per acre. Here the coffee farmers/growers grow coffee organically they do
not use fertilizers or pesticides.
Trader information:
Here the general practice of the coffee growers is after harvesting the fruit the necessary
pulping and drying is done to make parchment and the growers sell their produce to the
traders. M/s. GCC also procures coffee from the growers. At present, the Selection 5 and 9
parchment are being sold at 120/kg
In this Araku Mandal, there are nearly 10 traders who deal in coffee and procure from the
growers. Harvesting commences from December and ends by Feb of every year. Traders buy
coffee directly from the farm gate or some of the farmers bring the parchment in the 40 kg
bags to the trader's point. Payment is made immediately or settles in a couple of days.
Each trader normally procures 4000-6000 bags in a season and the 10 traders procure
nearly 40000-60000 bags of 40 kg in a season. Further, these traders supply their major
procured material to the big traders or processors of Karnataka. During the season
processors from Karanataka will be very active for three months in procuring their material
from the Araku Mandal. Local traders keep the lesser margin and do not hold any significant
stocks with them.
In the Araku Mandal, the processing of coffee is taking place on a small scale. Only a few
people are processing coffee and selling it in the local market. There is badly requirement
for processing activity on large scale.
Two processors from Anantagiri Panchayat are processing coffee and their total processing
capacities are very less. Each processor is processing 3 tonnes a month and the total
processing in this Panchayat is only 6 tonnes per month. While another processor located in
Araku Valley is also processing below 10 tonnes per month. There is not much processing
activity happening in the Araku Mandal. Even the raw material and processed material are
supplied to the neighboring Mandal of Paderu where Coffee is grown there.
Totally 16-20 tonnes of coffee are being processed in the Araku Mandal for a month.
However, because of the pandemic from the past year, the processing activity has come
down significantly.
The processors are supplying the processed coffee to the other districts as well as to
Hyderabad. The processed coffee is being sold at INR 240- 500 per kg depending upon the
quality.
Existing infrastructure:
Roaster, Grinder, packing machine
Gaps observed:
• No auction process to sell growers produce

• No financial support from the bankers
• No government system to procure or buy coffee from the farmers
• No proper study is taking place to estimate the correct acreage
• No training is provided to the growers/traders/processors from the end of the Coffee
board/government/horticulture department.
• Marketing issues are existing to promote their processed product
• A big processing plant is required to support growers
Financial support:
Expecting financial support to upgrade their existing plant, construct godown, capital
expenditure, and packing machine.
In Vishakapatnam, district Araku Coffee can be considered as NON-ODOP and extend the
support to the existing processors for the development of the coffee trade. Many people
are interested to start coffee processing in the Mandal and they only require is financial and
marketing support. If the government provides the latest techonology at subsidized prices
and helps in marketing their processed product within the district, state, and other states it
will be very encouraging. They have sufficient raw material and labor for processing the
Coffee. Araku coffee is having a special & unique flavor.
B. Assessment of the existing Policy and Regulatory frameworks

for FPI and FPI Micro Enterprises in the State:
C. Profiling of existing Micro Enterprises eco system:

1. Industrial Profile of the Districts in the State
In the year 2018-19, there are 125 large and medium scale industries are working in the district with
70206 and 25660 male and female workers respectively. Coal, Sugar, cotton, Chemical fertilizers,
Drugs and Pharmaceuticals, edibles oils PVC pipes, cement concrete sleepers, granite slabs, etc are
the major products produced from the industries. There are 1753 Mandal wise working factories
registered under the factories act-1948 in the year 2017-18 with 126442 male workers and 28971
female workers.
Small scale industries-2017-18
S.No Category No. of units Capital Employees

investment( Rs.
In lakhs)
Male Female
1 Micro enterprises 322 2957 1912 956
2 Small enterprises 268 200408 3244 1620
3 Medium enterprises 12 7884 983 491
Total 602 31249 6139 3067

Identified non-ODOP products through a primary survey in the district are listed
S. No Crop Value-added products

1 Sugar cane Jaggery
2 Jaggery powder
3. Information Sources –
ODOP – List of units visited

Already shared
Non-ODOP- DIC secondary info
4. District wise profiling based on secondary research

S. no. Item Units 2015-16 2016-17 2017-18
1 Sugar Tonnes 726.76 8600 799.98
2 Cotton yarn 1000 Kgs. 2845.97 0 3134.42
3 Cotton fabrics 1000 MTs 174.17 0 192.14
5 Edible oils Tonnes 7177.65 56600 7895.96
6 Food products Tonnes 1759.78 221600 1936.31
Source: District statistics handbook, Visakhapatnam.
a. Is the district recognized with the ODOP product?
Yes the district is recognized with ODOP product of Sugarcane
b. Has the product been granted Geographical indication status by the Government of India?
No,the products have not been granted Geographical indication status by the Government of India?
c. Special nature and relationship of the product with the district, uniqueness, history, etc.?
Sugarcane is one of the important cash crops in the state of Andhra Pradesh. The major districts
growing sugarcane in Andhra Pradesh are Vishakapatnam, West Godavari, and Krishna, and
Vishakapatnam rank first in the terms of area and production of sugarcane two major sugarcane-
based industries in Vishakapatnam are Sugar and Jaggery.
Jaggery is a natural, traditional sweetener made by the concentration of sugarcane juice and is
known all over the state. It is a traditional unrefined non-centrifugal sugar consumed in the state of
Andhra Pradesh. Containing all the minerals and vitamins present in sugarcane juice, it is considered
the healthiest sugar in the world. Sugarcane is processed into sugar, gur (jaggery). The methods of
converting sugarcane and manufacturing sugar& gur are different but a great value is added in the
manufacturing of these consumable final products. Jaggery is a traditional non-centrifugal cane
sugar consumed in India. Jaggery is used as an ingredient in sweet and savory dishes in the cuisines.
Across the state and India, a pinch of jaggery/powder is sometimes added to sambar, rasam, and
other staples. Jaggery is added to lentil soups to add sweetness to balance the spicy, salty, and sour
components. In Andhra, Telangana, and Karnataka on Ugadi festival day (New Year), Ugadi Pachadi
is made from jaggery and is consumed symbolizing life as a mixture of happiness, disgust, fear,
surprise, anger, and sadness.
Other uses include regional jaggery toffees, cashew nuts, peanuts, and spices. Jaggery may be used
in the creation of alcoholic beverages such as palm wine. Besides being a food, jaggery may be used
(mixed in an emulsion with buttermilk.
d. Level of processing happening for ODOP in the district, in other districts, and outside the
state.
employed. However, there is a labor problem in the Jaggery making
Most of Jaggery processing is made during the season from December to April of every year.
the district and nearly 3850 laborers are engaged in this jaggery making. It requires less
infrastructure like furnace, pans, motor, crusher, wooden made buckets, and sugarcane for
processing jaggery.
The cut and cleaned sugarcane are crushed and the extracted cane juice is collected in a large vessel.
A quantity of the juice is transferred to a smaller vessel for heating on a furnace. The vessel is heated
for about an hour. Dried wood pulp from the crushed sugarcane is traditionally used as fuel for the
furnace. While boiling the juice, lime is added to it so that all the wood particles rise to the top of the
juice in a froth, which is skimmed off. Finally, the juice is thickened. The resulting thick liquid is about
one-third of the original volume. This hot liquid is golden. It is stirred continuously and lifted with a
spatula to observe whether it forms a thread or drips while falling. If it forms many threads, it has
completely thickened. It is poured into a shallow flat-bottomed pan to cool and solidify. The pan is
extremely large to allow only a thin coat of this hot liquid to form at its bottom, to increase the
surface area for quick evaporation and cooling. After cooling, the jaggery becomes a soft solid that is
molded into the desired shape. Recovery is nearly 11%-12%
Jaggery is made in different colors like black, brown, white, pure gold, and the majority of the stocks
are sold in black. The price difference will be 100-200/QTL for each color. The quality of jaggery is
judged by its color brown means it is higher in impurities and golden-yellow implies it is relatively
pure. Due to this grading scale, colored adulterants are sometimes added to jaggery to simulate the
golden hue. The jaggery made in Black colors are sold in larger quantities than brown and Pure
Gold/white. Approximately 50% of sales are made in black and 25% in brown and 25% in Pure
Gold/White. Black jaggery is also sold to Cattle feed of poultry, fish, and prawn apart from human
consumption.
Even though there is a testing facility at the Market yard but no chemical testing is done. While
making jaggery in Pure Gold color more chemicals are used which is not good for human
consumption and no necessary testing is done for testing the strength and color.
Year on Year the production and sales of Jaggery is declining in the Vishakhapatnam district and the
sales from 2017 are hereunder
The shelf life of the Jaggery is nearly 1 year when it is properly stored and normally farmers make
packing jaggery into 15kg lumps. Also, a few processors are making Jaggery powder and selling it in
the retail market.
After the jaggery is processed and packed into 15kg buckets normally the crusher/farmer stores it in
cold storage in anticipation of a better price. In the Anakapalli region, there are 3 cold storage
however only two cold storages are operational and each cold storage capacity is 8000 metric
tonnes. The main advantage of depositing in cold storage is it will not lose its color.
After the crusher/farmer whoever makes jaggery will bring it to the market yard to sell in autos. 90%
of the crushers/farmers/jaggery unit holders sell their produce through Anakapalli market yard on
auction. The market yard officials regularly conduct an auction and farmers sell their produce in the
auction at the day-to-day price. From there the entire product is supplied across the district, state,
and other states in the entire country. The trade takes place through a broker/commission agent and
about 90% of sales are done through commission agents only from this market. Traditionally it is
happening. From here the majority of the jaggery is supplied to Orissa, Jharkhand, West Bengal,
Telangana, etc., Majority of the sales are taking place over the phone and through brokers/Licensed
traders/stockiest. Commission agents charge 2% on the sale of the amount and the commission
agent's role is to execute the auction and pay to the farmer. Normally traders operate on a 5-10%
margin. However, farmer margin depends on the yield he gets and also on the quality of the Jaggery
he makes.Even though e-Nam is there but not in execution.
e. Mapping of the Micro, small, medium, and large industries in the district(Total number of
units)Secondary sources may be used for the same
I Will be sharing later
f. Number of workers engaged in the ODOP processing
employed. However, there is a skilled labor problem in the Jaggery making
Labor working in Jaggery processing units in Vishakapatnam district per day

No laborers
Classification of Total production per
No of units required per
unit day in Tons (Apprx)
unit
Small/Medium 700 5 3500

Big 50 7 350
Total 750 3850
g. Marketing linkages within a district, state, and outside
Farmers/unit holders bring jaggery to the market yard to sell. 90% of the crushers/farmers/jaggery
unit holders sell their produce through Anakapalli market yard on auction. The market yard officials
regularly conduct an auction and farmers sell their produce in the auction at the day-to-day price.
From there the entire product is supplied across the district, state, and other states in the entire
country. The trade takes place through a broker/commission agent and about 90% of sales are done
through commission agents only from this market.
Traditionally it is happening. From here the majority of the jaggery is supplied to Orissa, Jharkhand,
West Bengal, Telangana, etc., Majority of the sales are taking place over the phone and through
brokers/Licensed traders/stockiest. Commission agents charge 2% on the sale of the amount and the
commission agent's role is to execute the auction and pay to the farmer.
Normally traders operate on a 5-10% margin. A trader supplies the jaggery to the
wholesalers/retailers/modern malls/online. Supplies are made through trucks across the districts,
states.
A few traders/units are making jaggery powder by adding elaichi and other ingredients for better
taste and supplying to the retailers and supermarkets. Nowadays people are using jaggery powder as
an alternative to sugar and using it in tea, coffee, and other food items where sugar is used.
However, the sales of this Jaggery powder are meager but there is every opportunity to increase in
the future. Even though e-Nam is there but not in execution.
h. Level of infrastructure for ODOP processing within the district, in other districts and states.
• Land
• Raw material
• Labor
• Logistics
• Roads
• Cold storages
i. Total production value of the ODOP product manufactured in the district as % of total
agricultural produce
Nearly 32588 tonnes of Jaggery is produced in the district each year
j. Number of enterprises involved in the processing of this product and as a % share of the
total number of micro food processing enterprises in that district.
k. The number of self-help groups and farmers producer organizations engaged in the
processing of this produce.
l. Sale of this product to other districts states and exported other countries.
Each year more than 25000 tonnes of jaggery is supplied with in, other districts/States from
this market.
The merchant’s/traders are selling 15-16 kg jaggery lumps only traditionally. Here there is no
practice of selling 1kg, 2kg, and 5kg lumps. The majority of supplies are made to Orissa, Bihar,
Jharkhand, West Bengal, and Telangana. The exporters/traders participate in the auction during the
season and purchase the material and stitch the lumps in jute clothes and make supplies to the
other states as well as within the state and also deposit in the cold storage in anticipation of a better
price.
5. Mapping the value chain aspects
After the planting of a new crop takes place in July-October in Vishakhapatnam of Andhra Pradesh.
The season lasts about 14-18 months, wherein two crops of sugarcane are harvested. The second
harvest of the crop (Ratoon) has a smaller yield compared to the first harvest. The yields are
approximately 50 tons per hectare for the first harvest and 45 tons per hectare for the second
harvest.
Jaggery units become operational in the month of mid-November and continue to operate until
March or April, depending upon the availability of sugarcane. Most of the jaggery unit holders
cultivate sugar cane on their lands and small farmers involve their families in harvesting and
transporting the sugarcane to their processing units, the medium and large farmers hire contractors
who bring labor either from the nearby villages or arrange migrant workers. The migrants’ families,
including children, are involved in harvesting, bundling, and loading. The workers are paid between
INR 200-250 per ton(approx) of sugarcane harvesting. Harvesting is a hazardous task, as it involves
the use of machetes without any protection. Moreover, workers often work without shoes in the
fields, exposing them to risks of snake and scorpion bites.
Some jaggery processors buy sugarcane directly from the farmers or traders/commission agents.
Jaggery units get sufficient raw material from November to April. The sugarcane is then loaded onto
trucks by the labor to the processing unit. The loading charges are paid nearly INR 30 per ton.
Loading is a dangerous task, and accidents are frequent. The transporter, who is paid INR 400-
500per ton, depending upon the distance, transports sugarcane from the field to the processing unit.
Payment to the farmer is generally made later after the sugarcane has been supplied.
After the cane attaining to the harvesting stage, the sugarcane is harvested. The canes are harvested
properly to not mix more soil particles in cane juice. To improve the quality of jaggery, the canes
should be cleaned thoroughly under high-pressure water guns to eliminate soil and dust particles,
waxes, insects, and other impurities present on the sugarcane stalk.
After pre-cleaning canes are crushed with the help of sugarcane crushers to extract cane juice. The
cane juice is collected in clean stainless steel or plastic containers. Power, operated crushers are
mostly used due to higher crushing power. The crushers are of two types viz. vertical and horizontal.
The horizontal crushers were observed to be 2-4 % more efficient in juice extraction than the vertical
crushers.
Harvested (Suarcane)
Pre cleaning
Crushing
Clarification
Boiling and Concentration
Cooling & Drying
Packaging
Storage and Marketing
The clarification of cane juice is necessary for making light-colored, crystalline, hard, less
hygroscopic, and hygienic jaggery. Earlier clarification was mostly furnished by the heating method.
Alum used for sedimentation of impurities, exhibited greater improvement in color, while utilization
of phosphoric acid exhibited the best golden yellow color of quality jaggery. Sodium hydrosulphate
makes the color of jaggery very attractive, but from a health point of view, the utilization of
detrimental chemicals degrades the quality of jaggery. Hence their use should be avoided. Natural
clarifying agents should be used for clarification. of cane juice.
Boiling and Concentration of Cane juice the juice is transferred from the settling tank to boiling pans
situated over pit furnaces. The sugarcane juice is now heated up to 80° C by firing under the boiling
pan. All impurities float up during boiling, which is removed by strumming. After that, it is set to
boiling. While boiling, the sugarcane juice gets concentrated and after evaporating almost all the
water, a pasty crystalline yellow substance known as slurry is left in the boiling pan, which becomes
solid after cooling. The cane juice is concentrated until the striking temperature is reached.
Scientifically, the striking point for solid jaggery is 120-122°C depending upon the varieties, paddling,
and allowed to cooling.
Alternatively, the clarified juice can be concentrated by heating in steam-driven energy-efficient

multistage evaporators. Due to the controlled boiling of sugarcane juice in stainless steel
evaporators, the formation of dark-colored compounds is minimized. The juice is further
concentrated to its final consistency in a secondary concentrator to produce jaggery.
Once the striking point reached the concentrated cane juice, is poured into a cooling pan made up of
wood or iron. The slurry is cooled here for some time and then puddle with the help of a ladle
Jaggery can be packed in attractive packaging material that should protect jaggery from insects, dust
particles, moisture, and direct contact with hands, while handling and distribution. The composition,
weight, name of manufacturing agency, date of manufacturing, date of packaging, and health-
related aspects of jaggery, etc. may be printed on the packet for enhancing its marketing.
The maximum returns can be obtained by selling jaggery in the off-season. Thus, jaggery should be
stored in cool and dry places to avoid direct contact with moisture, because microorganisms
exhibited maximum growth at 10% moisture content and 30°C temperature. The moisture content
of freshly prepared jaggery ranged from 4-11%, while the optimum moisture for storage should be
7-8%.
regularly conduct an auction and farmers sell their produce in the auction at the day-to-day price
through merchants.
commission agent's role is to execute the auction and pay to the farmers immediately or after two
days.
states.
6. Understanding the infrastructure constraints faced by micro-enterprise
In the district of Vishakhapatnam, the jaggery industry faces many problems. Some of the
constraints are:
The jaggery industry is facing a shortage of skilled labor for jaggery processing. The unavailability of
skilled labor and demanding higher wages are creating a major problem. However, to overcome the
labor problems, there is a need for automatization of jaggery processing.
The juice extraction efficiency of the cane crushers is less than 50-60 %, which is reducing jaggery
production. Hence, there is a need for the latest technological crushers, to improve the juice
extraction efficiency by more than 60-70 %.
Non-availability of High yielding cane Varieties. To improve the jaggery industry there is a need to
develop such varieties, which can produce high yielding.
There is fluctuation in market Prices in market rates of jaggery. If the cane production is higher the
prices go down and vice-versa, resulting in a narrow margin of profit to the jaggery producers,
therefore they don’t want to take a risk and sell out jaggery immediately at whatever may be the
market price.
To increase consumption of jaggery, the need of consumer awareness towards the consumption of
jaggery at the state level is required. There is a good scope to increase jaggery consumption by
introducing and making various value-added products. Jaggery can be used in manufacturing Jaggery
products, chocolates, confectionery, beverages, etc. The usage of sugar can be replaced or
minimized by jaggery wherever it is possible.
Storage of Jaggery is essential however the non-availability of proper storage facilities to all unit
holders/farmers are incurring nearly 10-15%, losses. So to reduce the economical losses of jaggery,
necessary production technology, and quality packaging and storage structures should be made
available to the jaggery producers.
The jaggery industry is facing a shortage of skilled labor for jaggery processing. The unavailability of
skilled labor and demanding higher wages are creating a major problem. However, to overcome the
labor problems, there is a need for automatization of jaggery processing.
Tabular format Infrastructure Up-gradation proposals

Public infrastructure Jaggery processing units in the Vishakhapatnam district do not have
proper road facilities to transport the raw material while procurement
and selling the finished products, however roads across the district
need to be renovated While there is no shortage or interruption of
power and water in the district.
Common facilities Marketing support and Mentorship services are badly required for the
processors to expand their business and to increase the product quality
and quantity. While branding will improve to increase their volumes
not only in the district but also across the state and country
Testing facilities At present, there is no practice of testing the jaggery products made by
the processors periodically and there is badly need for a testing facility
in the district to test their products periodically in the laboratories
recognized by the FSSAI
Safety standards Jaggery is one of the largest and ancient cottage industries of the
unorganized sector in India. Jaggery-making plants are generally tiny in
size and the machinery of the plants are fabricated by local artisans or
engineering workshops and they do not possess the FSSAI certificate.
The majority of the jaggery processing units are not following the
norms set by the FSSAI
7. Mapping the market potential of FPI micro enterprises
D. Mapping the firm level issues

• In the Vishakhapatnam district, even though the availability of sugarcane is there but the
prices use to trade on the higher side.
• With the increasing day-to-day fuel prices, the transportation charges are significantly
increased to transport the cane to the processing units as well as the finished product to the
market yard.
• Unskilled workers employed in jaggery manufacturing. It is very much required for the up-
gradation of technology in processing, packaging, and storing jaggery.
• The jaggery is stored in god owns at producer/ farmer level, household kitchens which are
very poor storage systems where environmental conditions are unhygienic, which gives
favorable conditions for the growth of microorganisms, because of such conditions several
pathogenic and non-pathogenic microorganisms get attracted.
Table 3: Firm-level gaps and recommendations

1 Skill training needs Shortage of Skilled labor Necessary training has to be 50000
to process Jaggery and provided to train the labor
Jaggery powder
2 Manufacturing Raw material Jaggery processor is buying
practices Procurement, processing, the raw material at a higher
Packing, Marketing, and price, adopting new
Branding technology in processing &
packing. Expansion of
marketing and creating
brand awareness of their
products
technology technology- latest crushers,
furnace, packing material
4 Access to finance Lack of capital Support the processors with
expenditure and subsidies and extend loans at
investment to buy new a lower rate of interest to
machinery expand their business
branding
a. Detailed cluster study for ODOP products-How are going to do a

cluster study

The production of sugarcane in India in the year 2019-20 is 362.9 million tons which is the second-
highest production in the world after Brazil. In India, Uttar Pradesh produces 47.9% of the total
sugarcane crop production in India followed by Maharashtra 20.1%, Karnataka 9.7%, Bihar 5.03%,
Tamilnadu 4.45%, and Andhra Pradesh 2.72% of the total sugar cane production in the country
respectively.
State-wise Production of the sugar cane in India:
State 2017-18 2018-19 2019-20 % Share of the

states in the
total sugarcane
production in
India(2019-20)
Andhra Pradesh 7948 8091 9593 2.6
Gujarat 12052 12036 9198 2.5
Karnataka 28263 42006 40612 11.2
Madhya Pradesh 5430 6956 5733 1.6
Maharashtra 83134 92443 73090 20.1
Orissa 240 381 141 0
Tamilnadu 16536 16208 20600 5.7
Bihar 236 226 233 3.5
Haryana 9633 7571 9484 2.6
Punjab 8024 7774 7896 2.2
Uttar Pradesh 177056 179715 173816 47.9
% Share of the states in the total sugarcane
production in India(2019-20)
2.6 2.5 Andhra Pradesh
Gujarat
11.2 1.6
Karnataka
47.9 Madhya Pradesh
20.1 Maharashtra
Orissa
0.0 Tamilnadu
5.7 Bihar
2.2 2.6 3.5
Thailand, China, Pakistan are followed by India in the quantity of sugarcane production with 6.72%,
5.61%, 3.43% of the total sugarcane production in the world respectively.
AP and TG Sugarcane Area, Yield and Production from 2016 along with estimated 2021
VishakapatnamSugarcane Area, Yield and Production from 2016 -2019-20

Market information in Vishakapatnam
Most of the Jaggery processing is made during the season from December to April of every year.
• There are nearly 750 jaggery processing units established in Vishakhapatnam and almost all
are unregistered cottage industries. Seasonality is from Dec-Apr
• Jaggery processing takes place nearly 150 days. Approximately from 750 units, nearly 25000
tonnes of jaggery are being sold in the Anakapalli market of Vishakapatnam district.
• Jaggery is made in different colors like black, brown, white, pure gold, and the majority of
the stocks are sold in black. The price difference will be 100-200/QTL for each color.
• After the crusher/farmer whoever makes jaggery will bring it to the market yard to sell in
autos. 90% of the crushers/farmers/jaggeryunitholders sell their produce through Anakapalli
market yard on auction.
• The market yard officials regularly conduct an auction and farmers sell their produce in the
auction at the day-to-day price.
• From there the entire product is supplied across the district, state, and other states in the
entire country.
• The trade takes place through a broker/commission agent and about 90% of sales are done
• Traditionally it is happening. From here the majority of the jaggery is supplied to Orissa,
Jharkhand, Bihar, West Bengal, Telangana, etc., Majority of the sales are taking place over
the phone and through brokers/Licensed traders/stockiest.
• Commission agents charge 2% on the sale of the amount and the commission agent's role is
to execute the auction and pay to the farmer. Normally traders operate on a 5-10% margin.
However, farmer margin depends on the yield he gets and also on the quality of the Jaggery
he makes. Even though e-Nam is there but not in execution.
Jaggery product size:
The majority of the Jaggery makers traditionally make 15kg lumps however a few makers are
making 1/4kg, 1/2kg, and 1kg lumps and supplying them to the market. Major supplies i.e. in the
sizes of 1/4kg, 1/2kg, and 1kg lumps and jaggery powder are supplied into the Andhra Pradesh
market from Kolhapur and Mandya regions of Maharashtra & Karnataka states.
Brands:
Milton (Natural cane) Milton exports, Mukesh, Ligade’sParth,

JeetKolhapuri,ChetanJaggery,Maharaja Kolhapurijaggery, etc.,
Product placement:
Jaggery in the sizes 1/4kg, 1/2kg, and 1kg lumps and jaggery powder are being sold in all Kirana,
wholesale and semi-wholesale, modern malls like Reliance, More, D mart, Spencers, Purna
market, etc.,
Merchants in Anakapalli market:
There are nearly 50-60 merchants who deal in jaggery and supplies to the entire Andhra
Pradesh, Telangana, Orissa, West Bengal, Jharkhand, Bihar, etc., The jaggery supplied to other
states are in 15kg lumps and the retailers sell it in loose quantity as per customer requirement.
In the Purna market of Vishakapatnam, there are nearly 20 jaggery wholesale and semi-
wholesale merchants who sell nearly 50-70 tonnes a month.
There are nearly 4000 Kirana outlets in Vishakapatnam city where each outlet sells nearly 150 kg
a month.
Pricing:
At present 15kg lump is being sold at 570-590 , 1kg branded jaggery is being sold at INR 47 and
branded Jaggery powder at INR 70 per kg. Unbranded jaggery is sold at INR 38-42 per kg.
However, Maharashtra and Karnataka jaggery are always higher by INR 2 per/kg owing to their
better quality.
The jaggery powder sale is minimal in this market. Jaggery in lumps is sold majorly 95% and
jaggery powder in 5% approximately.
Quality
• The quality of jaggery is judged by its color brown means it is higher in impurities and
golden-yellow implies it is relatively pure. Due to this grading scale, colored adulterants are
sometimes added to jaggery to simulate the golden hue.
• The jaggery made in Black colors are sold in larger quantities than brown and Pure
Gold/white.
• Approximately 50% of sales are made in black and 25% in brown and 25% in Pure
Gold/White. Black jaggery is also sold to Cattle feed of poultry, fish, and prawn apart from
human consumption.
Testing:
No chemical testing is done. While making jaggery in Pure Gold color more chemicals are used
which is not good for human consumption and no necessary testing is done for testing the
strength and color.
Shelf life:
The shelf life of the Jaggery is nearly 1 year when it is properly stored and normally farmers
make packing jaggery into 15kg lumps.
Cold storage:
• In the Anakapalli region, there are 3 cold storage however only two cold storages are
operational and each cold storage capacity is 8000 metric tonnes. The main advantage of
depositing in cold storage is it will not lose its color.
1.1 Introduction
the district and nearly 3850 laborers are engaged in this jaggery making. It requires less
infrastructure like furnace, pans, motor, crusher, wooden made buckets, and sugarcane for
processing jaggery.
The cut and cleaned sugarcane are crushed and the extracted cane juice is collected in a large vessel.
A quantity of the juice is transferred to a smaller vessel for heating on a furnace. The vessel is heated
for about an hour. Dried wood pulp from the crushed sugarcane is traditionally used as fuel for the
furnace. While boiling the juice, lime is added to it so that all the wood particles rise to the top of the
juice in a froth, which is skimmed off. Finally, the juice is thickened. The resulting thick liquid is about
one-third of the original volume. This hot liquid is golden. It is stirred continuously and lifted with a
spatula to observe whether it forms a thread or drips while falling. If it forms many threads, it has
completely thickened. It is poured into a shallow flat-bottomed pan to cool and solidify. The pan is
extremely large to allow only a thin coat of this hot liquid to form at its bottom, to increase the
surface area for quick evaporation and cooling. After cooling, the jaggery becomes a soft solid that is
molded into the desired shape. Recovery is nearly 11%-12%
1.2 Benefits of the Product
Jaggery processors buy sugarcane directly from the farmers or traders/commission agents. Jaggery
units get sufficient raw material from November to April. The sugarcane available in this district is
very much suitable for making jaggery and is very popular for its sweetness and from here it is
supplied across all the surrounding states
Nutritive Value and Health Benefits
Nutrients of raw sugar (100gm)
➢ Total mineral salts-740 mg
➢ Phosphorus(P)-3.9 mg
➢ Iron (Fe)- 1.3mg
➢ Magnesium (Mg)- 23 mg
➢ Potassium(K)- 100 mg
➢ Calcium (ca)- 85 mg
Composition of 100g of jaggery.

Carbohydrates g Vitamins mg
Sucrose 72-78 Provitamin 2
Fructose 1.5-7 Vitamin A 3.8
Glucose 1.5-7 Vitamin B1 0.01
Minerals Mg Vitamin B2 0.06
Calcium 40-100 Vitamin B5 0.01
Magnesium 70-90 Vitamin B6 0.01
Phosphorus 20-90 Vitamin c 7
Sodium 19-30 Vitamin D2 6.50
Iron 10-13 Vitamin E 111.30
Manganese 0.2-0.5 Vitamin PP 7
Znic 0.2-0.4 Protein 280 mg
Chloride 5.3-0 Water 1.5-7g
Copper 0.1-0.9 Calories 312
Health benefits of the sugarcane juice -
➢ Helps in digestion
➢ Keeps kidney healthy
➢ Protects liver
➢ Prevents cardiac problems
➢ Improves bone and muscle health
➢ Aids weight loos
➢ Fights cancer
➢ Promotes skin health
➢ Boosts immunity
➢ Cures jaundice
➢ Maintains oral health
➢ Provides instant energy
➢ Eliminates toxins
➢ Heals wounds
➢ Keeps nails and hair stronger
➢ Cures acne
The product is helping in the uplifting of the local culture, traditionally the jaggery is
made since decades and serving the people and it created a lot of employment nearly
4000 people are employed from the nearly 750 jaggery processing units and also
supporting the farmers in increasing their income levels by making the jaggery and other
products from the sugarcane produced by them.
1.3 Global Market for the Product
Major sugarcane producing countries in the world and their % of share in total production-
Countries Production (Million Tons)

2019 2018 2017 % share of the countries inthe
year 2019
Brazil 752.9 747.1 758.6 38.62
India 405.4 379.9 306.1 20.80
Thailand 131.0 135.1 104.4 6.72
China 109.4 108.1 93.1 5.61
Pakistan 66.9 67.2 83.3 3.43
Mexico 59.3 56.8 57.0 3.04
Colombia 32.7 33.5 36.6 1.68
Australia 32.4 33.5 30.2 1.66
Indonesia 29.1 31.3 29.3 1.49
Guatemala 29.1 29.5 28.0 1.49
Other countries 301.1 308.9 309 15.45
Total production 1949.3 1930.5 1835.5 100.00
Source: FAOSTAT
In the year 2019 Brazil is the major producer of the sugarcane crop in the world with 752.9 million
tons which is 38.6% of the total sugarcane crop production in the world. India is the second-largest
producer of the sugarcane crop with 405.4 million tons which are 20.80% of the total world sugar
cane production. Brazil and India combine to produce approximately 60% of the world's sugarcane
crop production.
1.4Indian Market & Valuation for the Product
1.4.1What is the strategic importance of the product in India:
In India, it is mainly used as an ingredient in sweet and savory dishes. Further, its use in many herbal
and traditional medicines.Jaggery is used in all kinds of sweets from laddoos and Puran polis to
kheer and pithy. In Maharashtra, for instance, Makar Sankranti is celebrated jaggery balls.
It’s not surprising, for long before sugar came into our lives, there was gur. The gritty brown sugar of
India is guda in Sanskrit, gur in Hindi, vellam in Tamil, and jaggery in English.Though the sugarcane
itself is mentioned even in Rigveda, the viscous phanita [thickened juice] and solid guda made by
boiling down its juice.
Gur is to refined sugar in food value, and if the villagers cease to make gur as they are already
beginning to do, they will be deprived of an important food adjunct for their children. They may do
without gur themselves, but their children cannot without undermining their stamina. Gur is
superior to bazaar sweets and to refined sugar
India imports of the Agro-food products- Jaggery and Confectionery.
Country 2018-19 2019-20

Qty (MT) Value (Lakhs) Qty (MT) Value (Lakhs)
USA 15583.08 11043.33 19088.96 16852.10
Netherland 11484.67 17474.43 8961.07 14557.06
Germany 7936.22 11489.93 9667.91 12715.36
China 18704.54 5887.98 10975.16 5158.49
Bangladesh 2250.64 2693.13 5588.81 4394.37
Source- APEDA AgriXchange
Exports from India:
Jaggery is an unrefined natural sugar that is produced without adding any chemicals. More than 70%
of the total world jaggery production is done in India. Jaggery is popularly known as the “medicinal
sugar” and is nutritionally comparable with honey. Andhra Pradesh exported 1914.19 Quintals of
jaggery and confectionery worth Rupees 556.14 lakhs.
Product: Jaggery and Confectionery
Other products under this category are-
• Cane jaggery
• Palmyra jaggery
• Raw cane Jaggery
• Sugar confectionery
• Chocolates
• Chewing gum
1.4.2The valuation of the product in India
S.No Country 2019-20

Qty(MT) Value( In lakhs)
1 Sri Lanka Dsr 51210.12 12812.82
2 Nigeria 15150.59 11729.73
3 Nepal 15309.21 9831.63
4 Malaysia 29330.88 9348.87
5 Tanzania Rep 27513.08 8172.20
6 USA 8200.90 7958.36
7 U Arab Emts 10558.17 6603.86
8 Indonesia 15988.10 5307.30
9 Kenya 17327.97 5274.39
10 Uganda 17124.12 4496.18
11 Other
12 Total 207713.14 81535.34
Source: DGCIS Annual export
As the major producer of Jaggery, the country has been recognized as one of the leading traders and
exporters of Jaggery to the world. India exported 3,41,155.34 MT of jaggery and confectionery
products to the world for the worth of Rs. 1,633.22 crores/ 227.90 USD Millions during the year
2019-20.
Exports from the states:
2019-20
State
Qty Rs. Lacs
Maharashtra 182568.73 84130.61
Gujarat 76305.15 27309.53
Tamil Nadu 19298.56 11449.97
Telangana 11389.56 10177.81
Uttar Pradesh 10221.61 8362.02
Karnataka 8754.52 4464.39
Bihar 6184.38 2897.91
Delhi 3769.44 2829.65
Rajasthan 6229.84 2501.39
Kerala 3218.5 2458.62
West Bengal 3656.4 1970.08
Haryana 3591.56 1604.16
Madhya Pradesh 834.82 949.72
Punjab 849.51 774.42
Andhra Pradesh 1914.19 556.14
Uttarakhand 936.69 373.89
Goa 1008.11 295.83
Odisha 282.57 142.37
Sikkim 104.12 52.24
Assam 1.82 3.91
Total 341,120.08 163,304.66
Source-DGCIS Annual report
1.4.3 What does it lack to be a better-quality product?
While processing the Jaggery, owing to excessive heating of the sugarcane, sugars in the juice
caramelize and form dark-colored compounds, excessive use of lime and leaching of iron from pans
also result in dark color. And to improve the color of Jaggery, the processors use Sodium
Hydrosulphite, and also harmful chemical Hydros is used to change the color of Jaggery to golden
yellow. It ultimately releases Sulphur dioxide in Jaggery which is harmful to health. The entire
process of Jaggery production is conducted manually by traditionally skilled persons without having
any scientific knowledge
1.4.4 The significance of the product in that particular district/state
Jaggery is used in all kinds of sweets from laddoos and Puran polis to kheer and pitheys. In Andhra
Pradesh, Makar Sankranti is celebrated jaggery balls. Before sugar came into our lives, there was
Jaggery. The gritty brown sugar.Though the sugarcane itself is mentioned even in Rigveda, the
viscous phanita [thickened juice] and solid guda are made by boiling down its juice.
How does the general public perceive the product?
The general public owned jaggery as one of the beneficiary food products in their life like which only
adds empty calories to our body, it also has several health benefits, including its ability to cleanse
the body, aid in digestion and provide good amounts of minerals.
1.5Manufacturing Process:
Manufacturing the raw sugar from the Sugarcane:
Raw sugar is produced by extracting sugar from crushed sugarcane. Depleted cane (bagasse) can be
used as fuel in plant power generation or paper or cardboard can also be manufactured from surplus
bagasse.
The juice is heated and filtered, then sent to a series of crystallization steps to create crystals of raw
sugar, followed by centrifugation to remove any remaining juice or syrup.The last step produces a
small stream of remaining syrup called cane mill molasses containing up to 55% (wt.) sucrose and
substantial amounts of invert sugar (glucose/fructose mixture) impurities. Sucrose is the fraction
that becomes crystallized sugar, and has considerable commercial value but cannot be extracted
economically because of the impurities.
Machinery used in the manufacturing of the raw sugar from the sugarcane crop.
Manufacturing the Jaggery from the Sugarcane:
Jaggery making is a simple process comprising crushing of sugarcane for juice extraction, filtration,
and boiling of juice for concentration and then cooling and solidifying to give jaggery blocks.
The juice is extracted in a conventional crusher this is then filtered and boiled in shallow iron pans.
During boiling chemical bleaching agents or natural vegetable items like Bhindi (Lady Finger) are
added to clean the juice and the extraneous matter is constantly removed to give a bright golden
color. The boiled juice is then left to cool in iron/ Aluminum pots to form the jaggery blocks. The size
of these molds is specific and depends on the weight of the block of jaggery varying from 1kg
onwards. The blocks are packed in jute cloth and dispatched. The yield rate of jaggery is about 10%,
100kg of sugarcane yields 10kg of jaggery.
Heating the juice extracted from the sugarcane crop in the open pan
Collection of the scum( semi mass) formation from the pan.
Filling the semi mass formation in the aluminum or iron blocks
Formation of the jaggery blocks on cooling the scum (semi mass) formation
Preparation of the sugarcane juice from the sugarcane crop:
Sugarcane juice is prepared by crushing the sugarcane crop in the machine and can be serviced
directly or with lemon or ginger which has numerous health benefits on human health. Sugarcane is
of one the highest consumed natural juice in India.
Sugarcane juice extraction machine
1.6 Tests done for the product
1.6.1 Qualitative Tests: the tests that determine the quality parameters for the product in
factual terms.
No test is done at the jaggery processing units that determine the quality parameters for the product
infactual terms.
1.6.2 Quantitative Tests: the tests concluding the parameters of the product in numerical
terms.
No test is done at the jaggery processing units that conclude the parameters of the product in
numerical terms.
2. District Profiling
2.1Socio economic profiling
Visakhapatnam district is one of the north eastern coastal districts of Andhra Pradesh and it lies
between 17°-15’ and 18°-32’ northern latitude and 18°-54’ and 83°-30’ in the eastern longitude. It is
bounded on the North partly by the Orissa state and partly by the Vizianagaram district. On the
South by East Godavari, on the west by Orissa, and the east by the Bay of Bengal.
Visakhapatnam is one of the fastest-growing districts and the fourth cleanest city in the country.
Population density is 384 persons per square km and population growth was 11.89% during 2001
and 2011. GDVA was growing at an impressive rate of 10.62 during the last three years.
Visakhapatnam is popularly known as “The jewel of the east coast” and has a coastal line of 132 km.
It has a natural port, airport, national highway, and rail network connecting major cities. It has a
good number of both private and public sector organizations generating a significant number of jobs
which help in economic development at both state and central levels. Visakhapatnam district
receives annual normal rainfall of 1202 mm and is a zero deficient rainfall district. It has a
geographical area of 11.16 lakh hectors of the land of which 32.5% is the cultivable area, 39.5% is
forest area, barren and uncultivable land is 11.7% and non-agriculture use is around 10%. Suitable
interventions have been taken to improve land use.
Vishakhapatnam is divided into four mandals i.e. Paderu, Visakhapatnam, Narsipatnam, Anakapali,
and 43 mandals under these revenue divisions. Greater Visaka municipal corporation, Narsipatnam,
and Yelamanchili are the 3 municipal corporations in the Visakhapatnam.
2.2 Demographic profiling
Comparison of the district with the State- 2011 Census
S. No Item Unit State District

1 Geographic area 000’Sq.Km. 160.20 11.2
2 Population as per 2011
A Total population In lakhs 493.87 42.91
B Male population In lakhs 247.38 21.4
C Female population In lakhs 246.49 21.52
D Sex ratio Females for 1000 males 996 1006
E Rural population In lakhs 347.76 22.55

F % of the rural population to the Percentage 70.42 52.55
total population
G Urban population In lakhs 146.11 20.36

H % of the urban population to Percentage 29.58 47.45
the total population
I No. of households In lakhs 126.65 10.97

J Density of population Person per Sq.Km. 308 383
K Growth rate over the previous Percentage 9.21 11.96

census(2001-2011)
3 Child population(0-6)
D Rural population In Lakhs 37.61 2.58
E Urban population In lakhs 14.61 1.94
4 Literacy rate
A Total literacy rate Percentage 67.41 66.91
B Male literacy rate Percentage 74.83 69.52
C Female literacy rate Percentage 60.01 53.23
5 House hold size
A Total No. of persons per 4 4
household
B Rural No. of persons per 4 4
household
C Urban No. of persons per 4 4
household
6 Scheduled Caste population
D % of the SC population to the Percentage 17.1 7.68
total population
7 Scheduled Tribes population
C % ST population to total Percentage 5.33 14.42
population
8 Workers
A Total Workers In lakhs 229.70 18.89
B Agriculture workers In lakhs 142.94 5.79
C Non-agriculture workers In lakhs 86.76 13.10
9 Villages/Gram panchayats/Mandals/Mandal Parishads

A Census villages No. 17039 3265
B Revenue villages (2017 census) No. 3108
C Grampanchayats(2017 census) No. 12920 925
D Revenue mandals(2017 census) No. 664 43
E Mandal parishads (2017 No. 654 39
census)
F Towns No. 195 12
2.3 Industrial Profiling
Approximately there are more than 750 jaggery-making units in the district while most of the units
are unregistered. Total number of enterprises involved in the processing of this product and as a %
share of the total number of micro food processing enterprises in that district
Jaggery processing & capacities in Vishakapatnam district per day
Cane
Classification Avg Prodn per
No of units processing Recovery in %
of unit day(Tons)
per day (tons)
Small/Medium 700 2.5 11 193
Big 50 5 11 28
Total 750 7.5 11 220
3. Cluster Analysis
3.1 Location of Cluster:

Vishakhapatnam district map
Anakapalli has the second-largest jaggery market in the country which is facing stiff competition
from Maharashtra and Karnataka states. This is the right location to be considered for the cluster.
The Jaggery season begins in October and ends by April. Peak season runs between January to
March.
district while most of the units are unregistered. The total number of enterprises involved in the
processing of this product and as a % share of the total number of micro food processing enterprises
in that district.
3.2Turnover& Employment:
Nearly 32588 tonnes of Jaggery is produced in the district each year

Approximately 20 lakh lumps are being traded in a year from this market. The major supplies are
made to Orissa, Bihar, Jharkhand, West Bengal, and Telangana from this market. Two cold storages
are functioning in this region and nearly 60% of stocks are deposited in the cold storages after
necessary auction and packing take place.
employed. However, there is a skilled labor problem in the Jaggery making
3.3 socioeconomic Profile of the ODOP Producers: Information not available
3.4 Infrastructure:
Required the following infrastructure for making the jaggery and jaggery powder
• Land
• Raw material
• Skilled labor
• Machinery (Crusher, motor, pans, packing material, etc.,)
• Cold storage for depositing the produce
• Logistics
• Roads
• Market to sell their produce
3.4.1 Essential amenities required for the production of the product:

• Necessary land with land clearance certificate in the ideal location
• Skilled labor
• Machinery
• Logistics availability
• Necessary Water and Electricity
• Proper roads and accessibility to the market to sell the produce
• Cold storage for depositing the produce
3.4.2 Existing infrastructure:

• Land
• Raw material
• Labor
• Logistics
• Roads
• Cold storages
3.4.3 Additional infrastructure required

• Skilled labor
• Advance technology (Boilers, motors)
• Transport vehicles
• Marketing facility
3.5 Raw Materials
Andhra Pradesh. The coastal areas of A.P. have high sugarcane productivity. In the tropical region
climatic conditions are more favorable for its growth. It is cultivated with the better package of
practices and higher irrigation levels.
Further, in Visakhapatnam district, there are three sugar factories, about 750 micro, small & big
Jaggery manufacturing units are established as well as one huge famous Gur marketing yard at
Anakapalli.
Every year approximately 19 lakh tonnes of sugarcane is produced across the district and is supplied
to the sugar mills and jaggery-making units. Famers themselves act as a supplier and traders also
supply cane to the millers and Jaggery units. Jaggery unit microprocessors who are involved in the
processing are most of them are sugarcane cultivators.
3.5.1 The vital raw materials and all the added materials along with that
Sugar cane is harvested by manual or mechanical methods. Canes are cut at

ground level, leaves are removed and the top is trimmed off by cutting off the
last mature joint. Canes are then placed into large piles, picked up, and tied. The
sugarcanes should be cut and transported to the processing unit. Sugarcane is
processed into sugar, Jaggery &, etc.,
3.5.2 The quality parameters are being checked for all the raw materials.
Farmer or processor knows the quality of the cane and by looking at the cane at the
field they can access the quality and buy from the co-farmer/trader/agent.
3.5.3 Whether the raw materials are perishable.

Sugarcane is a perishable commodity and must be processed into sugar/Jaggery
quickly after it is harvested. Post-harvest sucrose losses will be there and are
linked with low sugar recovery and several problems during sugar processing
3.6 Production Process

Harvested (Sugarcane)
Pre cleaning
Crushing
Clarification
Boiling and Concentration
Cooling & Drying
Packaging
Cleaning of sugarcane is done, this helps to reduce the contamination of the juice by dirt, straw, and
other strange materials.
Extraction of Juice Generally three roller mills are used for juice extraction. These are driven by an
electrical motor or diesel engine. The extraction of juice is in the range of 60 to 70%. After
extraction, suspended matters are removed by cotton cloth or fine mesh screen.
Clarification of juice Sugarcane juice contains colloidal matter, inorganic salts, fiber, various
nitrogenous substances, lipids, gums, wax organic acid, inorganic acid, pectin, etc. All these
impurities were removed totally or partially in this clarification process.
Filtered juice is taken in an open pan and heated slowly so that dissolved air escapes and gummy,
colloidal substances get coagulated by the adding of clarifying agents as per requirement. They form
a scum at the top surface of the juice which is removed continuously using perforated strainers.In
this process temperature requirement is 70- 80°C. A simultaneously small quantity of lime water is
added to reduce the acidity of juice but not to the extent to make juice neutral because the taste
and color of Jaggery produced will be inferior. In this lime, process pH is maintained at required
levels.
The concentration of juice After clarification, the temperature of boiling mass is further increased to
around 110 - 115°C. Boiling takes place for about 2 to 3 hours. After the striking point temperature
and Brix content are reached, the slurry (semi-fluid, pasty concentrate) formed is tipped off and
further cooled/ processed to reach the desired end form (molding/ liquid/ granulation) The striking
point/ Brix content is different for the different forms of jaggery. Recovery of jaggery is in the range
of 8 to 12% that depending upon the total solids in the cane.
Composition and specification of Jaggery Jaggery contain all the nutrients and substances present in
cane juice. Jaggery is graded in the market according to the basis of color, taste, hardness, and
crystallinity which is judged by visual appearance.
Jaggery deteriorates quickly in the monsoon season when relative humidity is more than 65%.
During this season Jaggery absorbs moisture from the atmosphere and becomes viscous and dark in
color. Hence jaggery blocks are packed in juteclothes.
3.7 Product Range:
At Anakapalli of Vishakhapatnam district majority of the processors make Black, Yellow, and
Gold color jaggery in 15-16 kg lumps.
3.8 Technology:
• Cane Crushers
After necessary pre-cleaning sugar canes are crushed with the help of sugarcane crushers to
extract cane juice based on rollers present in the crushers, two/three/four rollers.
• Cane Juice filtration:

After extracting the cane juice, it is filtered and filtration is carried out through a different
layered filter and after filtering the majority of impurities like dust particles, bagasse waste,
leaves, etc. are removed from the cane juice
• Clarification of Cane juice: Natural clarifying agents are being used for clarification. of cane
juice.
• Boiling pans
The sugarcane juice is now heated up under the boiling pan. All impurities float up during
boiling, which is removed by scumming. While boiling, the sugarcane juice gets concentrated
and after evaporating almost all the water, a pasty crystalline yellow substance known as
slurry is left in the boiling pan, which becomes solid after cooling.
• Jaggery powder making machine

The granules or powdered jaggery are made in a granular jaggery-making machine or
powder-making machine
• Solar dryers
The jaggery powder is dried to 1-2% for good keeping quality by the solar dryers. Solar
drying will help to maintain keeping quality intact.
• Packaging
Jaggery can be packed in attractive packaging material with help of a packing machine that
should protect jaggery from insects, dust particles, moisture, and direct contact with hands,
while handling and distribution.
• Cold Storage:
For getting the maximum returns by selling jaggery in the off-season, jaggery is being stored
in cold storage to avoid direct contact with moisture, because microorganisms exhibited
maximum growth at 10% moisture content and 30°C temperature. The moisture content of
freshly prepared jaggery ranged from 4-11%, while the optimum moisture for storage should
be 7-8%.
3.9 Marketing:
Manufacturer
Agent/ Broker (Auctioning)
Wholesaler/Distributor
Retailer
Consumer
regularly conduct an auction and farmers sell their produce in the auction at the day-to-day price.
commission agent's role is to execute the auction and pay to the farmer.
states.
3.10 Human Resource:
Rich human resources are available in the district that takes care of the operations like
cleaning, supporting in the processing, however, there is a scarcity of skilled labor and
approximately 3500-4000 laborers are working in the 750 processing units
3.11 Skill Development

Workers engaged in manufacturing the sugarcane products like Jaggery, Jaggery powder are mostly
illiterates however only a few are educated. However, the majority are aware of the processing the
sugarcane products manually. Even though labor is available who does manually however there is
high demand for skilled labor for operating the modern technology machinery. The existing
enterprises need training on handling the advanced machinery which is used of increasing the
production in the units.
3.12 Testing:
No proper testing facilities are available with the processors and no necessary is test done at the
majority of units.Since the majority of the units are unorganized do not possess the FSSAI license
and do not conduct any inspections of the manufacturing units
3.13 Institutional Support

The agricultural dept, horticultural dept, marketing departments, bankers, trade
associations, who aredirectly and indirectly involved with the micro food processing industry
are extending their support forthe growth of the industry with the implementation of
schemes that are beneficial to the unitholders
3.14 Support Infrastructure:

Necessary roads, electricity, skilled labor, raw material, water, and port facilities are
available to support the industry
3.15 Financial Linkages:
The jaggery unitholders are getting support from the banks and other financial institutions at a lower
rate of interest to support the unit holders while some processors are taking loans from the private
bankers at a higher rate of interest.
3.16 Environmental Impact:

Jaggery industries produce Jaggery from sugarcane juice and are one of the agro-based
unorganized cottage sectors in India. This is mainly an air-polluting sector impacting the
environment to some extent. The Central Pollution Control Board (CPCB) has conducted
studies of Jaggery making industries and conducted studies to address pollution problems
from such industries
3.17 Cluster Actors:

No of skilled and semi-skilled Workers
Labor working in Jaggery processing units in Vishakapatnam district per day
Classification of No of laboruers Total production per day in

No of units
unit required per unit Tons (Apprx)
Small/Medium 700 5 3500

Big 50 7 350
Total 750 3850
Raw Material Suppliers
Andhra Pradesh. The coastal areas of A.P. have high sugarcane productivity. In the tropical region
climatic conditions are more favorable for its growth. It is cultivated with the better package of
practices and higher irrigation levels.
Further, in Visakhapatnam district, there are three sugar factories, about 750 micro, small & big
Jaggery manufacturing units are established as well as one huge famous Gur marketing yard at
Anakapalli.
Every year approximately 19 lakh tonnes of sugarcane is produced across the district and is supplied
to the sugar mills and jaggery-making units. Famers themselves act as a supplier and traders also
supply cane to the millers and Jaggery units. Jaggery unit microprocessors who are involved in the
processing are most of them are sugarcane cultivators.
Enterprise Promotion Councils: No such promotion councils are existing here in this
district
Industrial Associations: There is no jaggery units association but there is a traders

association in Anakapalli.
Nationalize banks are extending loans to purchase the machinery as well as towards
working capital to the unitholders.
Marketing players
It is a general practice of the Jaggery unit processors to sell their products i.e Jaggery made in their
units in the Anakapalle market yard through the agent in the auctionon the day-to-day price.
Traders and brokers are involved in the trade and the Jaggery is supplied across the district, state,
and other states in the entire country through them, and about 90% of sales are done through
commission agents. The majority of the jaggery is supplied to Orissa, Jharkhand, West Bengal,
Telangana, etc., Majority of the sales are taking place over the phone and through brokers/Licensed
traders/stockiest. Commission agents charge 2% on the sale of the amount and the commission
agent's role is to execute the auction and pay to the farmer.
.3.18Existing Government Schemes:
I. Micro and Small Enterprises

Men
3% for 5 Years
3% for 5 Years
3% for 5 Years
Hypothecation duty
FPOs, BC/Minority
Entrepreneurs:
Registration 100% of the cost incurred limited to Rs. 3 lakhs
parks

1 SGST Reimbursement (for 5 Years) Medium Enterprises, Large and Mega Industries
Reimbursement
<1000 50%
1000 to 2000 75%
2000+ 100%
FPOs, BC/Minority Communities (Women) and
SC/ST Entrepreneurs
❖ All the incentives and other initiatives laid down in AP industrial policy 2020-23 are applicable
and implemented in AP Food Processing Policy 2020-25 For private enterprises
3.19Cluster Map:
The stakeholders involved in the process of Jaggery and Jaggery powder
Raw material supplier:
Vishakapatnam sugarcane AYP

Cane Acreage Cane Yield Total Cane Production
Year
(Lakh ha) (ton/ha) (lakh ton)
2016-17 0.32 58.97 18.87
2017-18 0.32 57.47 18.39
2018-19 0.31 62.75 19.45
2019-20 0.30 63.00 19.17
% Dev -1.8% 0.4% -1.4%
Rawmaterial
supplier/Farmer/T
rader/Agent
(Sugarcane)
Processor
Trader/ Broker
Cold storage keeper/

Trader/Transporter
Wholesaler/distributo
r/Retailer
Consumer/Customer
3.20 Value Chain:
Harvested (Sugarcane)
Crushing, Boiling, Concentration,Cooling & Drying
Moulding the processed jaggery
Scumming/Powdering
Packaging
3.21 Product Cost Analysis:
Sugar cane cost of production:

Andhra Pradesh
Variables (Cost per/Ha) Plant-Cane Ratoon
Own Rental Own Rental
Land Preparation 7,500 7,500 7,500 7,500
Seed 18,000 18,000 3,000 3,000
Fertilizer 15,000 15,000 15,000 15,000
Pesticide 1,250 1,250 1,250 1,250
Labour Charges 25,000 25,000 21,000 21,000
Irrigation Charges 12,000 12,000 12,000 12,000
Harvest and Threshing 21,000 21,000 20,000 20,000
Total Direct Costs 99,750 99,750 79,750 79,750
Repairs and Maintenance 1,500 1,500 1,500 1,500
Land Taxes 100 100 100 100
Depreciation 1,000 1,000 1,000 1,000
Interest on WC 7,980 7,980 6,380 6,380
Rental Value 25,000 25,000
Total Indirect Costs 10,580 35,580 8,980 33,980
Total Costs 1,10,330 1,35,330 88,730 1,13,730
Yield(tons) 75.0 75.0 70.0 70.0
Cost of Production (per 1,471 1,804 1,268 1,625
ton)
Farmer Price (Rs/ton) 2,500 2,500 2,500 2,500
Total Revenue 1,87,500 1,87,500 1,75,000 1,75,000
Return on direct Costs 87,750 87,750 95,250 95,250
Return on Total Costs 77,170 52,170 86,270 61,270
% Return on Direct costs 88.0% 88.0% 119.4% 119.4%
% Return on Total costs 69.9% 38.6% 97.2% 53.9%
Jaggery cost of production in the Vishakhapatnam district
Jaggery Cost of Production

Cane Purchase Cost (Rs./MT) Vishakapatnam
Cane Price 2700
Jaggery Processing cost(Inclusive of 650
labor, chemicals & miscellaneous exp
Transportation 200
Total expenditure for one tonne 3550
\
Revenue per MT
Jaggery recovery 11.5% (kg/ton) 115
Rate of Gur (Rs/Kg) 34
Total Revenue from Gur 3910
Net profit/Loss per MT 360
4.7 SWOT Analysis

Strength:
• Nutritional benefits of the various products from the sugarcane crop
• Less capital investment in manufacturing the jaggery and making the sugarcane juice
• Strengths:
• The major strengths of processing the Sugarcane products Jaggery and Sugar powder are:
• There is sufficient availability of raw material sugarcane is an important strength of jaggery
production because sugarcane is one of the most important commercial crops and nearly
40% of sugarcane produced is available for jaggery making.
• Family labor can be effectively utilized in the production of jaggery and other products. Each
processing unit employed 6-8 persons per day.
• Quicker repayment than sugar factories is also acting as a strength of the jaggery industry.
The payment in sugar factories takes a long time and farmers sometimes cannot wait till the
payment is made. Hence, they find it easy to supply the sugarcane to the jaggery production.
• Jaggery processing units have been considered as small-scale and village industries. These
units have plenty of potentials to generate employment in rural areas. The average crushing
period is about 140 days a year.
• Each processing unit provided 6-8 man-days employment per day. Thus, each processing
unit was found to generate 840-1120 man-days employment annually. From these results, it
could be said that the processing units generate adequate employment in the rural areas at
a very low cost. Hence, the jaggery production sector has vast potential to improve the
socio-economic status of the farmers and strengthen the rural economy.
• While jaggery can be stored for the realization of a better price. The availability of traditional
knowledge of jaggery processing with the local people and the requirement of less technical
labor.
• Regular consumption of raw sugar and jaggery as additives in different dishes like tea,
coffee, and different sweets.
• No wastage in the preparation of the raw sugar as the by-products like Bagasse and
Molasses can be used in generating electricity and used as additives in the different sweets
respectively.
Weakness:
• Seasonality in the production of the crop

• The major weaknesses in jaggery processing are the requirement of high working capital for
jaggery processing is the major weakness because the average investment required for
establishing a jaggery processing unit with a capacity of one tonne per day is nearly 2-2.5
lakhs, most of the small farmers do not have sufficient capital to invest on crushers, pans,
etc. and working capital like raw material, labor, and other variable costs.
• The non-availability of hired labor is also one of the weaknesses. Sugarcane is cultivated
extensively in the study area and hence, the available labor force was engaged in cane
harvesting in peak season.
• The crushers that are being presently used are old and highly inefficient to crush more
quantities of cane and have less extraction efficiency. Hence, there is a need for the
modernization of existing crushers for effective juice extraction.
• The furnaces and boiling pans that are presently used have many disadvantages. The type of
furnace for jaggery making plays an important role in deciding the efficiency and quickness
of juice boiling besides other factors. Hence, it is very much essential to improve the
combustion and heat utilization efficiency of existing furnaces.
• The quality of jaggery/ other products depends on the infrastructure they have. Fuel use
efficiency in traditional methods is very poor.
• several chemicals like sodium hydrosulfite, sulphoxylate, sodium bicarbonate, sodium
carbonate, superphosphate, phosphoric acid, alum, and lime at higher concentrations and
dosage. Sodium hydrosulfite and sodium carbonate (washing soda) are liberally used to get
attractive colors without knowing the deleterious effects on human health. Hence, extensive
research has to be carried out on the use of chemicals.
• Many of the farmers are preparing jaggery by age-old methods under highly unhygienic
conditions and it is considered that the whole process is scientifically inefficient to produce
quality jaggery. Hence, they are incurring losses in quality and quantity of jaggery
production.
• Lack of information and lack of storage facilities are the major weaknesses in jaggery
processing.
Opportunities:
• Awareness about the health benefits of jaggery and sugarcane juice among people.
• Increasing demand for jaggery/other sugarcane products in the domestic market and
improvements in the production technologies are the major opportunities for jaggery
processing.
• The demand for organically produced jaggery is increasing. Being a healthy sweetener,
quality jaggery, and its value-added products such as jaggery chocolate and confectionaries
made of various combinations of cereals.
• It is possible to significantly increase the export of jaggery in solid powder and liquid forms.
India contributes a significant percentage to the jaggery production of the world. It is being
exported to many countries like Bangladesh, Great Britain, Canada, Chili, Egypt, Fiji, Iran,
Iraq, Kuwait, Malaysia, Nepal, and the USA.
Threats:
• Competition from a different kinds of flavored ready to drink juices available in the market
• Competition from the honey products which can be used as a substitute to the raw sugar
and Jaggery. Fluctuation in the jaggery price and competition from sugar factories is high
which is hindering the growth of jaggery production.
• Credit constraint was the major problem in producing jaggery. Lack of timely and adequate
credit from credit institutions led farmers to go for loans from commission agents. This
results in pre-harvest contracts and exploitation of the farmers.
• Jaggery making as a cottage industry, being operated at the decentralized level in
unorganized rural sectors needs institutional support for quality jaggery production,
handling, storage, management, and higher returns at low cost.
• The commission agents were found to charge two to three percent commission when the
produce was disposed of through: Producer → Commission agent Wholesaler → Retailer→
Consumer.
• The commission charges are still higher when the jaggery was sold by the processors in the
neighboring state of Orissa.
• Owing to lack of storage facility, the processors were found to dispose of their produce
immediately after processing.
• Loss of trained manpower to other industries and other professions is posing a serious
threat to the jaggery industry.
4. Stakeholder Consultation- will be shared later
5. Need Assessment & Gap Study:
Gaps Remarks
Infrastructure- Public No proper road facilities are there in the villages of the
infrastructure, common Vishakhapatnam district to transport the Jaggery made by the
facility center, testing facility processors. The road needs to be renovated.
center, and safety standards
Testing facilities No testing facilities are available with the processors to test
the product periodically
Cold storage facilities No sufficient storage facilities are available for the small
processors to deposit their finished products for a longer time
to sell at a better price.
Latest Machinery The majority of the jaggery processors doesn’t have the
modern machinery like the latest crusher and furnace for
processing the Jaggery
Finance Doesn’t have sufficient financial assistance to improve the

business and turnover
Technology Not aware of new technology in making value-added products

like Jaggery powder, organic jaggery, etc.,
Marketing support There is badly requirement for marketing support to market

their products and make better money
Skilled labor In the jaggery processing units industry, a large number of

laborers is required for jaggery processing. The unavailability
of skilled labor and higher wages is a severe problem.
Mentorship services At present no suggestions are provided to the enterprises from

any of the stakeholders.
7.2 Vision statement& Key objectives

Vision statement:
The key objective is to encourage and support the existing and new microprocessing units to
enhance their product quality and to improve the production YOY and also expand their
business across the states.
Objectives:
• Up-gradation of the existing jaggery manufacturing units
• To increase the number of value-added sugarcane products
• Identifying the potential benefits to the manufacturing units from the stakeholders
Upgradation possibility summary:
Category – for ODOP Current Number of Up-gradation New Enterprises Other

Enterprises Possible in Number Possible in ODOP Intervention
s
Individuals 374 96 0 -
Group 0 0 0 -
Common 0 0 1 -
Infrastructure
SHG's Involved in 2 0 0 -
Food Processing
Seed Capital 0 0 0
Branding and Some of the unitholders have requested branding and marketing
Marketing
Need for funds by the respondents (From the primary survey observation
Proposed interventions
• Funding to the ODOP and Non-ODOP enterprises

• Development of common facility center for branding and marketing of locally
produced products
• Advertisement/Promotion/Exhibition of the local manufacturing products to
increase the awareness about the products to the local consumers.
• Extending financial support and incentives to the ODOP and Non-ODOP
enterprises
• Training to handle the new technology machines which will be used to increase
the production capacity of the cane products like Jaggery and jaggery powder
• To develop the common facility center for branding and marketing of locally
produced products
• To promote the products manufactured in the district by giving advertisement in
TV, paper, and print media and exhibiting products in the malls, food festivals,
etc., to increase the awareness in the public about the products.
Key impacts
• Increase in the income of the micro food processing enterprise that is involved in
manufacturing the Jaggery products.
• Creating employment opportunities to the individuals by providing the training on
manufacturing of Jaggery products
• New enterprises can be setup by providing financial support to the aspirants in the
Jaggery making sector
Recommendations:
• Storing Jaggery and maintaining the quality of jaggery is a big challenge for any unitholder.
Traditionally, jaggery is being stored in earthen pots or wooden boxes or metal drums which
could not sustain the quality for a longer period so to enhance the quality of jaggery PET
film, edible film coating, drying cum storage bins, low-temperature storage techniques can
be adopted to increase the shelf life of the Jaggery.
• At present, there is meager support from the government to the Jaggery industry and Govt
should come up with the necessary policies to support the industry and increase the income
level of the unitholders.
• Jaggery unitholders at present are suffering/facing financial problems to adopt new
technologies
• The skilled labor whoever is involved in processing the Jaggery production are illiterates and
badly require the skill training and development programs
• Jaggery industry is working on very thin margins the unitholders are not getting the desired
income or profits and some of the Jaggery unitholders are on the verge of closure as a result
of traditional technologies as well getting very low market price.
Vizianagaram
Contents
EXECUTIVE SUMMARY ............................................................................................................... 554
PROJECT METHODOLOGY ........................................................................................................... 560
1. Baseline Assessment studies: .............................................................................................. 561
1.1. Agriculture Profiling of the Districts in the State................................................................ 562
1.2. Percentage Share of Area under Agriculture and Horticultural Crops in Vizianagaram
District in 2019-20 ..................................................................................................................... 563
agricultural produce of the district- ............................................................................................. 563
1.4. Perishable nature of the produce – .................................................................................. 564
states 565
1.6. Number of workers engaged in the ODOP cultivation........................................................ 566
Product. .................................................................................................................................... 566
1.8. Non-ODOP produce as a percentage of total agricultural produce of the district ................ 566
1.9. Perishable nature of the produce..................................................................................... 567
1.10. Number of workers engaged in the cultivation of each of the Non-ODOP products. ........ 568
Enterprises in the State: ............................................................................................................. 568
2.1. Assessment of Food Processing Policies in the State: ........................................................ 568
sectors: ..................................................................................................................................... 570
2.3. Assessment of existing Regulatory frameworks for FPI ...................................................... 570
3. Profiling of existing Micro Enterprises eco system: ............................................................... 570
3.1. Industrial Profile of the Districts in the State ..................................................................... 570
3.2. Identifying Non-ODOP Products ....................................................................................... 571
3.4. Detailed Cluster Study for ODOP Products - How are going to do cluster study. .................. 590
4. Industry and Market Analysis .............................................................................................. 590
4.1. Introduction ................................................................................................................... 594
4.2. Nutritive Value and Health Benefits ................................................................................. 596
4.3. Global Market for the Product ......................................................................................... 597
4.4. Indian Market & Valuation for the Product ....................................................................... 598
4.5. Manufacturing Process:................................................................................................... 603
4.6. District Profiling .............................................................................................................. 607
4.7. Industrial Profiling........................................................................................................... 610
4.8. Cluster Actors ................................................................................................................. 621
4.9. Existing Government Schemes: ........................................................................................ 622
4.10. Cluster Map: ............................................................................................................... 622
4.11. Value Chain:................................................................................................................ 622
4.12. Product Cost Analysis: ................................................................................................. 623
4.13. SWOT Analysis: ........................................................................................................... 624
5. Benchmarking Studies ........................................................................................................ 625
6. Stakeholder Consultation .................................................................................................... 625
7. Agenda points & discussions ............................................................................................... 626
8. Recommendations:............................................................................................................. 628
EXECUTIVE SUMMARY
The geographical area of the Vizianagaram district is 6.54 thousand square kilometers. The
net sown area and gross cropped area in the district is 271.38 thousand hectares (including
fish pond) and 345.86 thousand hectares respectively in 2018-19. The major crops grown in
the district are Paddy, Maize, Mesta, Green gram, Black gram, Groundnut, Sugarcane
mango, tomato, and cotton, etc.
Foodgrains contribute 47% to total agricultural production inthe district followed by

fruits42%, Oilseeds 7%, Vegetables 3%, and Commercial Crops 1% respectively.Total
agriculture production in the district is 1900 thousand tons and mango contributes 25% to
the total agriculture production in the district during 2019-20. The total area under the
mango crop in the Vizianagaram district is 36.79 thousand hectares with 478.34 thousand
tons of products which contributes 10% total area under the crop and 10% of the total crop
production in the state in the year 2019-20.
The production of mango in India is around a 22.3million tons, contributing 46% of the total
world production of mango crops. The main mango producing states in India are Uttar
Pradesh (20.46 %), Andhra Pradesh (22.36%), Bihar (10.88%), Karnataka (8.34%), Gujarat
(5.45%), Tamil Nadu (5.59%), and Telangana (4.83%) in 2018-19. Total export of fresh
mangoes and mango pulp from India is 49.7 ‘000 MT and 85.7 ‘000 MT, valuing Rs. 400.2
crores and 584.3 crores during 2019.20.
APFPS department identified mango as the ODOP of the district based on the number of
existing micro food processing units and the commodity largely grown in the district and
through the primary survey are Paddy, Maize, Mesta, Sugarcane and Groundnut are
identified as the Non-ODOP products of the district.
During the primary survey visited 268 processing industries. Among the 268 units, 159are
operating at the micro-level, 65 are small units and 43are medium-level enterprises.From
the primary survey, it is observed that the units required funding for the common
infrastructure, machinery, training, and branding. To address the constraints/gaps they
would need credit to the tune of INR 4.009 crore to set up the above aspects. For Marketing
and Branding of their products Industries have opined that they need funds for training and
skill development. (For which the estimated cost could be INR 65 lakhs).

Vision Statement:

since the unit holders at present are drying the pulp naturally under the hot sun so
(Quantity wise)
Objectives

Products

Labeling/ Packaging
Vizianagaram District Mango product awareness
/Outside district
Total
Fund Requirement
Category Wise Fund Requirement by ODOP Processing Units in Vizianagaram District
During a primary survey in Vizianagaram, District respondents expressed that they required
funds to upgrade their existing units. 96% of the respondents require funds for the purchase
of machinery followed by 3% for the infrastructure development and 1% for the packaging
facility respectively.
Sl.No Particulars Fund Category Wise Fund Requiremnet by ODOP

Requirement Processing Respondents in Vizianagaram
District
(Rs. in
96%
Crores)
1 Infrastructure 0.133
2 Machinery 3.871
3 Packaging 0.005 3% 0%
4 Total 4.034 Infrastructure Machinery Packaging

have surveyed 252 samples are falling under ODOP micro-enterprises. Since the number is
Sl. What for No. of Approximate amount (Rs. in Subsidy (Rs.in Lakhs)
No Responden Crores) Individual
ts
I Infrastructu 7 0.133 10
re
Godown 6 0.098
Transportati 1 0.035
on
II Machinery 244 3.871 10
Cutting 121 1.481
Machine
Filling 7 0.21
Machine
Packing 1 0.03
Machine
Pulping 115 2.15
Machine
III Packaging 1 0.005 0.18
Packaging 1 0.005
IV Grand Total 252 4.009
Common infrastructure
Aseptic
1 Machinery 140 8 crore
2 Ripening chambers & Shed 2.5 crore
3 Land & Vehicles 3 crore
Caning industry
1 Machinery 140 0.8 crore


Beauty of product
Natural/organic
Sugar content
Recommendations
➢ The mango processing industry should be supported as the unit value growth and
firms. Since the small firms are viable, support and incentive should be given to them so
that they overcome the problems.
➢ The cooperative societies should be set up to help the small firms to increase their
➢ Nearly, 5-10% of mango fruits are wasted due to faulty Post-harvest practices during
harvesting packaging, storage, grading, etc. This wastage can be reduced to some extent
through proper and scientific methods Post-harvest management can be considered as a
second production operation to add value to the products.
➢ While processing the pickles the semi-finished pickle is stored in plastic barrels. Pickle
units are in badly need of plastic barrels or storage tanks for storing the semi-
finished/salted pickles and the semi-finished produce is taken as and when required in
necessary quantities for manufacturing the pickles. The Agency can support the small
and micro pickle units by providing mixer machines for easy making of pickles at subsidy
prices
➢ Packaging fresh mango pickles/Thandra/pulp is one of the most important steps in the
long and complicated journey from grower to consumer. Bottles, aseptic bags, covers,
cartons, barrels, crates, baskets are convenient containers for handling, transporting,
and marketing fresh produce. Packaging of fruits in standard containers is one way to
reduce cost,
➢ The number of self-help members can form a cooperative society and market their
products like pickles, Thandra, pulp they can supply to the other districts, states, and can
export to other countries.
➢ Govt should promote their product sales by organizing exhibitions, stalls. They have to
extend financial assistance towards capital expenditure like procuring raw materials,
storing material, opening outlets/showrooms to operate their products.
➢ For the Thandra/jelly manufacturers government should provide the boilers, pans, air
dryers, & packing machines, etc., at subsidy prices for the smooth running of the
business. At present they are heating the pulp normally which is not hygienic. Also, they
support the Thandra unitholders by providing cutting machines. Since there are more
untapped markets for Thandra in Telugu states, creating awareness in the untapped
districts can promote Thandra sales.
➢ Transportation subsidies can offer to the farmers/traders during the raw/ripen mangoes
are trading at significantly lower prices
➢ With the support of state government policies, the value chain of mangoes can be
➢ Self Help groups and NGOs in the state must promote mango processed products like
pickles to strengthen the value chain. Policy suggestions, training to mango growers at
the time of harvesting, encouraging investments in the value chain processors to reduce
post-harvest loss, and provide advance credit or loan facilities should be the norm.
➢ Mango growers in the state are facing problems owing to the erratic climatic conditions,
high cost of cultivation, and lack of support in providing the minimum support prices,
and remunerative prices for farmers.
➢ The absence of mechanized grading systems has left the farmers with manual methods.
They also face constraints when it comes to the availability of packaging material and
unscientific pre and post-harvest management, limited processing units close to mango
growing areas, lower production of a suitable variety of processing mangoes, lack of
quality and suitable variety, lack of transportation, and storage facilities, among other
issues.
➢ Increasing the finances for mango production, improving efficiency and repayment of
loans, strengthening linkages among participants in value chains are badly needed.
➢ The state government should be helping in providing market intelligence to the farmers
which, in turn, will strengthen the value chain of mangoes.
➢ During the productive years, the price of mango fruits should be declared by the
➢ The government and cooperatives need to develop the processing units in the mango
growing areas. This will help processors purchase raw materials at a reasonable price.
➢ The majority of the consumers purchase both fresh/table consumption as well as
arrangements for domestic and export promotion of value-added products of mango.
➢ The mango value chain analysis is a market-oriented approach. It is important to
➢ There is a strong need to discuss and sort out various issues related among people of
various categories to increase the level of value addition and improve the quality of
value-added food products for the domestic market as well as export.
PROJECT METHODOLOGY
37) Study area
Study Area
The study on State Level Up-gradation Plan is conducted in the entire Vizianagaram district
of Andhra Pradesh State of India.
Sample Size: Sample Size in Vizianagaram district 420 and out of which 268 respondents are
covered so far and the draft is prepared based on covered sample size.

Primary Data
India is one of the leading producers and processors of Mango products. Mango processing
has undergone a lot of developments from traditional to modern processing. The survey was
conducted in various Mango processing units located in different mandals of the
Vizianagaram district. In the process of the primary survey, we met different unit holders
registered and unregistered of Pickle & Thandra manufacturers, farmers, agriculture
department officials, horticulture department officials, raw material suppliers, skilled labor,
district industries center officials, farmer producer organizations, retailers, logistics officials
concern, etc., and gathered the necessary information like the availability of raw materials,
year on year production, varieties cultivated, problems facing by them, production process
and the technology adopted by unitholders, availability of skilled labor and their wages,
range of products, value chain, the testing methodology adopted by them, packaging,
marketing, exports and other information from them.
Secondary Data
The secondary data is collected from various sources like DICGS annual report, Vizianagaram
Statistical, APEDA, Indiastat.com, Journals and Articles, and other internet sources to know
the area, production, export, import of Cashew and Cashew processed products.

VIZIANAGARAM DISTRICT
Major mango growing states in

India
Mango is grown in India in

tropical and subtropical regions
from sea to an altitude of 1500
meters. It is grown almost in all
states of India. However, it is
mainly cultivated in, Andhra
Pradesh, Bihar, Gujarat,
Karnataka, Kerala, Maharashtra,
Orissa, Tamil Nadu, Uttar Pradesh, and West Bengal.
Mango is the national fruit of India, known as the 'King of Fruits'. It is one of the most
important and popular Asian fruits. The cultivation of Mangoes is deeply embedded in
Indian history. Mangoes are mentioned in early Arialkrit literature. Mangoes are widely
available year-round, as fresh fruit and in frozen and processed foods. Mangoes thrive in
tropical regions and are cultivated throughout India and even in-home yards, along field
boundaries and roadside avenues.
The fruit is very popular with the masses due to its wide range of adaptability, high nutritive
value, and richness in variety, delicious taste, and excellent flavor. The fruit is consumed in
both forms raw and ripe. Raw fruits of local varieties of Mango trees are used for preparing
various traditional products like raw slices in brine, Aamchur, pickle, murabba, chutney, etc.
Raw fruit of local varieties of Mango is used for preparing pickle and raw slices in brine on
commercial-scale while fruits of Totapuri variety are used for squash.

The geographical area of the Vizianagaram district is 6.54 thousand square kilometers. The
net sown area and gross cropped area in the district is 271.38 thousand hectares (including
fish pond) and 345.86 thousand hectares respectively in 2018-19.
The major agriculture crops grown in the district are Paddy, Maize, Mesta, Green gram,
Black gram, Groundnut, Sugarcane, and cotton in 2018-19. The predominant fruits and
vegetable crops cultivated in districts are Banana, Guava, Mango, Papaya, Pineapple, Bitter
Gourd, Bottle Gourd, Brinjal, Cabbage, Carrot, Cauliflower, Chillies, Ladies finger, and
Tomato. And plantation crops grown in the district are Cashew nut, Coconut, Oil palm, and
Cocoa.
Sl.N Particulars Unit Year State Distric

o t
(a) Gross Cropped Area In '000' 2018- 7,296.6 345.86
Hect. 19 3
(b) Net Cropped Area (including fish In '000' 2018- 6,048.5 271.38
ponds) Hect. 19 3
(c) Gross Irrigated Area In '000' 2018- 3,634.9 183.06
Hect. 19 1
(d) Net Area Irrigated In '000' 2018- 2,795.6 154.01
Hect. 19 2
26.2. Percentage Share of Area under Agriculture and Horticultural Crops in

Vizianagaram District in 2019-20
Total agriculture production of Vizianagaram district in 2019-20 is 1900 thousand tons.
Foodgrains contribute 47% to total agriculture production inthe district followed by fruits
42%, Oilseeds 7%, Vegetables3%, and Commercial Crops1% respectively.
The total area under mango in Vizianagaram district is 36.79 thousand hectares and contributes
around 10 % to the total mango area in the state in 2019-20.The production of mango is 478.34
thousand tons in the district and contributes around 10% to total state mango production in
2019-20.
overall agriculture production in the district during 2019-20.
Mango is a highly perishable fruit. The Perishability of the fruit is attributed to rapid
deterioration after harvest. It is also susceptible to insect-pest infestation and decay-causing
postharvest losses due to a lack of proper pre-harvest practices. Mango has a short shelf life
and is vulnerable to environmental stress, especially high temperatures. Considerable
quantities of mangoes are lost every year during harvesting, transport, and marketing.
Properly stored, mangoes will become fully ripe in about 2 to 5 days at normal room
temperature. The below table represents the Perishability of fresh mango and processed
mango in different conditions.
Particulars Fresh Refrigerator Freezer

Mango (Whole) lasts for 4-6 Days 7-14 Days 10-12 Months
Mango (Cut) lasts for 2-4 Hours 4-7 Days 10-12 Months
Mango Pickles after packaging 6-9 Months
Mango Pulp after canning 18- 24 Months
26.5. Production of ODOP Agriculture Produce in that district compared to other
During 2019-20 the total production of mango is 4688.09 thousand tons in Andhra Pradesh
State. Chittoor, Krishna, and Vizianagaram districts contribute 1460.08 thousand tons, 687.7
thousand tons,and 478.3 thousand tons of mango to the total mango production to the
state.
During 2018-19, mango production in India is 22372.02 thousand tons. Andhra Pradesh was
the leading mango producing state in India with the contribution of 22.36 percent of the
total mango production; Uttar Pradesh was the second leading mango producing state with
the contribution of 20.46 percent and other major mango producing states are Bihar
(10.88%) and Karnataka (8.34%).
Mango production in Uttar Pradesh state is 4577.17 thousand tons and Vizianagaram
district (Andhra Pradesh State) mango production is around 12 % of the Uttar Pradesh state
total mango production in 2018-19 and also contributes around 3 % to overall India mango
production in the same year.
Sl.No States Production % Share to All India Mango Production

1 Andhra Pradesh 5001.74 22%
a. Vizianagaram District 565.16 3%
b. Krishna District 922.68 4%
c. Chittoor District 1458.46 7%
2 Uttar Pradesh 4577.15 20%
4 Bihar 2434.65 11%
5 Karnataka 1866.23 8%
6 TOTAL 22372.02 100%
According to the 2011 census Vizianagaram district has a population of 23.44 Lakhs. The
average size of the landholdings in the district is 2.68 (Medium) ha. The total area under
mango cultivation is 36.79 thousand hectares with the production of 478.3 thousand tons in
the district. Approximately 13.7 thousand households are involved in mango cultivation with
a population of around 55 thousand. Around 2 percent of the total population in the district
is engaged in mango cultivation.
Non-ODOP:
The Non – ODOP crops/products chosen in the Vizianagaram district are Paddy, Maize,
Mesta, Sugarcane, and Groundnut.
26.7. What other Major crops are being cultivated apart from the chosen ODOP
Product.
The major crops grown in the district are Paddy, Maize, Mesta,Green gram, Black gram,
Groundnut, Sugarcane, and cotton.
Sl.No Crop Area (‘000 Ha) Production ('000Ton)

1 Paddy 126.65 611.55
2 Maize 37.93 245.47
3 Green Gram 12.79 9.20
4 Ground Nut 1.50 2.47
5 Cotton (Lint) 12.26 15.73
6 Mesta 1.23 2.51
7 Sugarcane 8.97 0.57
26.8. Non-ODOP produce as a percentage of total agricultural production of the

district
contributes around 32% to total agriculture production of value around 1.11 crores in
Vizianagaram district in 2019-20.Other Non-ODOP produce in the district is Maize, Mesta,
sugarcane, and Ground Nutwith the production of 245.5 thousand tons, 2.5 thousand tons,
0.6 thousand tons, and 2.47 thousand tons respectively.

1 Paddy 611.5 1.11 32%
2 Maize 245.5 0.43 13%
3 Mesta 2.5 0.02 0%
4 Sugarcane 0.6 0.00 0%
5 Ground Nut 2.47 0.01 0%
Production

Non-ODOP processed products such as rice flour, papad, flaked rice, maize starch powder,
maize flour, raw sugar, groundnut milk powder, peanut flour, and peanut biscuits are
nonperishable.

I Paddy
1 Papad 6 Months
II Maize
III Sugarcane
2 Sugarcane Juice Refrigerated upto 2 to 3 Weeks, fresh juice upto 8 hours
VI Ground Nut
Ground Nut Milk Powder 3 Months
Peanut Flour 6 to 9 Months
Peanut Biscuits 6 Months
26.10. The number of workers engaged in the cultivation of each of the
Non-ODOP products.
The total area under paddy, Mesta, maize, sugarcane, and groundnut is 176.28 thousand
hectares with a production of 862.6 thousand tons. Around 127 thousand households are
involved in paddy,Mesta, maize, sugarcane, and groundnut cultivation with a population of
around 508 thousand people. Approximately 22 percent of the total population in the
Vizianagaram district is engaged in Non-ODOP cultivation.
Enterprises in the State:

In Vizianagaram district of Andhra Pradesh state, to facilitate more mangos processing in the
mango value chain to maximize their return, a scheme is promoted by Andhra Pradesh
Food, Processing Society to support the food industries and the scheme is furnished
hereunder.
Scheme Incentives as per industries policy 2020-2023
S. No
45% Limited to Rs. 1.00 Crore for Women

and Men
3% for 5 Years
3% for 5 Years
3% for 5 Years


4 Stamp duty and Transfer duty for 100% Reimbursement for MSEs, FPOs, BC/
the purchase of land, Lease of Minority Communities (Women), and SC/ST
Land/ Shed/Buildings, Mortgage, Entrepreneurs
and Hypothecation duty
5 Land Conversion Charges 25% Land Conversion Charges upto Rs. 10
lakhs for MSEs, FPO, BC/Minority
Communities (Women), and SC/ST
Entrepreneurs
FPOs, BC/ Minority Communities (Women),
and SC/ST Entrepreneurs.
Reimbursement of 100% net SGST for 5

Years
FPOs, BC/Minority

Entrepreneurs:
Registration
100% of the cost incurred limited to Rs. 3
lakhs


parks
27.2. Assessment of ongoing and proposed State Government programs in the

FPI and allied sectors:

We will complete this section after the stakeholder meeting and our surveyor is
still collecting the information from govt officials.

products.
In the Vizianagaram district of Andhra Pradesh State, there are 43 existing Large &
Mega industries with an investment of Rs. 2909.96 crores and employing 24025 persons
and 7 Large & Megaprojects are under implementation with a proposed investment of
Rs. 625.70 crores and create employment for 1070 persons. And also there are 4288
existing MSME in the district with an investment of Rs. 1369.37 crores and employing
34,232 persons.The major sectors are Steel, Ferro Alloys, pharmaceuticals, Sugarcane,
Chemical, Cashew processing, Flour Mills, Fish Processing, etc.

Identified Non – ODOP products through a primary survey in the district are listed below
table;
Sl. Crop Value Added Products

No Name
3 Ground Dried Powder, Cheese/Puree, Peanut Flour, Peanut Butter, Biscuits,
Nut Groundnut Milk, Cookies, Chikki, Candy
4 Sugarca Raw Sugar, Juice, Jaggery
ne

Vizianagaram District in 2018-19
S.NO. Name of the Industry No. of Factories Employees

Male Female
1 Dairy Products 9 172 12
2 Vegetable Preservation 12 206 18
3 Sugar Factories 2 1168 16
4 Flour Mills 3 108 6
5 Rice Mills 178 2406 172
6 Dall Mills 20 28 36
7 Vegetable Oil Mills 36 604 92
8 Mfg. Of Starch 1 450 50
9 Jute Mills 7 17176 295
10 Cashew Manufacturing 0 0 0
11 Mfg. Of Fruit & Vegetable Juice 2 58 0
12 Mfg Of Oil Cakes & Meals 1 29 0
13 Mfg. Of Cereal Breakfast Foods 2 24 1
14 Processing Of Edible Nuts 18 398 554
Factory –Wise Sugar Cane Crushed and Sugar Produced in MT in Vizianagaram District
Sl.No Name of the Factory/Location Sugar Cane Crushed Sugar Produced
2017-18 2018-19 2017-18 2018-19

1 N.C.S.Sugars Ltd,Latchayyapeta 206166 223623 18890 26941
2 M/s S.V.G.S.Ltd, Bheemasingi 15238 23942 14698 26861
3 M/s EID Parry (INDIA)Ltd, 62975 82106 78146 84168
District Total 284379 329671 111734 137970
vv. Is the district recognized with the ODOP product?
Based on the existence of micro-units and the relevant commodity is grown largely in the
district the ODOP product is identified by the APFPS department and Mango is recognized as
an ODOP product.
Awareness about the ODOP Product in Vizianagaram District
The primary survey observed that the majority (99%) of respondents are not aware of ODOP
products in the district.

Count Percentage
No 267 100%
Yes 0 0%
Not 1 0%
Responded
Total 268 100%
ww. Has the product been granted Geographical Indication status by the
Government of India?
Mangoes need to be identified and given a geographical identity. Such varieties are
dependent on specific soil and climatic conditions. The Department of Horticulture may
identify and make efforts to enlist the places linked with a particular variety of mango and
thereafter attempt for registration of geographical identity of such local varieties, branding
mango in such a way that it would lead to integrated growth of that crop.
xx. Special nature and relationship of the product with the district, uniqueness,
history, etc?
In India, about 1,500 varieties of Mango are grown including 1000 commercial varieties.
Each of the varieties of mango has a unique taste and flavor.
In Indian mango production, AP and UP states stand at the top place, followed by Karnataka,
Bihar, and Tamil Nadu.
Mango is one of the important horticulture crops in the Vizianagaram district. L Kota,
Parvateepuram, Komarada, Ramabhadrapuram, Gajapathinagara & Gummalkshmipuram
other mandals are famous for mango crops.
Mango Thandra is prepared from selected varieties of Fresh Mango Fruits cultivated in
Vizianagaram. The Thandra made from the villages of Bheemali (l Kota) is very popular for
its taste and flavor.
yy. Level of processing happening for ODOP in the district, in other districts, and
outside the State.
Mango is one of the important horticulture crops in the Vizianagaram district with farmers
growing mangoes in over 70,000 hectares. Vizianagaram, Parvathipuram, Gajapatinagaram,
Bobbili, Ramabadrapuram, etc., and other mandals are famous for mango crops.
Presently, mangoes from the state could not be exported to countries like U.S, Japan, and
Europe due to the problem of fruit fly and corona.
The majority of the mango gardens in the state are having a Benishan variety, which is not a
pulp variety. The remaining is accounted for Totapuri (Collector) and Suvarnarekha.
Thandra making is done as a cottage industry by sun drying. But, they do not maintain
proper hygiene. There are also problems with storage and maintenance. Solar driers can be
used to make Thandra at the village level.
•Total area under mango cultivation is 36.79 thousand hectares with the production
of 478.3 thousand tons in the district. Approximately 13.7 thousand households are
Total mango involved in mango cultivation .
production
•The percentage of mango production in the state being processed is estimated to

be around12- 15% only. There are several products in mango-like Mango pickle,
Mango squash, bars, jelly/ Thandra making is done as a cottage industry by sun
drying. But, they do not maintain proper hygiene conditions. Major mango under
Diversion to processing is diverted for mango pickle-making/Thandra making and the rest of
Processing the quantity is being sold as table consumption supplied within the district, state,
and the other states
•Nearly 1444 workers engaged in ODOP processing industries/units in Vizianagaram

Labour district.
invoved
Normally people used to make pickles at home and use to preserve them in ceramic jars or
earthen pots, but with due course of time, its popularity and demand increased which made
people use it commercially. Mango pickle is an essential part of typical Andhra cuisine.
Vizianagaram, the district is renowned for the preparation of the pickles at households. But
the preparation of pickles became a cottage industry providing livelihood to thousands of
women. Mango pickles and other mango products even mango itself have a very good
export as well as domestic market.
On average, an Indian family consumes around 2.2 kilograms of pickles per year. As life is
becoming fast and hectic, people want ready-made quality products that can provide them
a homemade taste. The pickles market in the Vizianagaram district is increasing YOY in the
Andhra Pradesh state.
However, new flavors and the purported health benefits of pickles have
attracted consumers in the market. Based on distribution channels, the market is divided
into grocery retailers, hypermarket/ supermarkets, online retailers, and others, etc.
Supermarkets are likely to hold the major share in the market and also the segment is
expected to witness strong growth.
Mango puree, which is often called mango pulp, is a smooth and thick product that is
processed in such a way that the insoluble fibrous parts of the ripe mangoes are broken up.
It retains all of the fruit juice and a huge portion of the fibrous matter naturally, which is
found naturally in the raw fruit. . In few industries, the mango puree is pasteurized to
increase its shelf life.
zz. Mapping of the Micro, Small, Medium and Large Industries in the District (Total
number of Units)
Mode of Operation
The primary survey observed that among 268 respondents, 143 respondents own the
proprietorship of the company/unit and 122 respondents are operating business with the
partnership.

Count Percentage
Partnership 122 46%
Household 1 0%
State Govt. 1 0%
Undertaking
Not 1 0%
Responded
Total 268 100%
Classification of ODOP and Non-ODOP Processing Industries in Vizianagaram District
The primary survey observed that among 268 visited industries, 159 industries are micro-
units followed by 65 small units and 43medium units.
Count Percentage
Micro 159 59%

Small 65 24%
Medium 43 16%
Not 1 0%
Responded
Total 268 100%
The primary survey observed that among the visited ODOP and Non-ODOP processing
industries in the Vizianagaram district, 263 industries/units are unregistered and 4
industries/units are registered.
Count Percentage
No 263 98%
Yes 4 1%
Not 1 0%
Responded
Total 268 100%
Classification of Industries by Registration in Vizianagaram District
The primary survey observed that out of 159micro units only 3 units are registered ODOP
and Non-ODOP processing industries/units in Vizianagaram district.
Micro 3 156
Small 0 65
Medium 1 42
Total 4 263
aaa. Number of clusters engaged in the processing of this product;
There is no Mango cluster established in the Vizianagaram district however there is a

potential to form a cluster in the region of Parvathipuram region.
bbb. Number of workers engaged in the ODOP processing;
Number of Workers Engaged in ODOP and Non-ODOP Processing Industries in

Vizianagaram District
The primary survey observed that 1444 workers engaged in ODOP and Non-ODOPprocessing
industries/units in the Vizianagaram district.
Micro 434 262 696
Small 172 247 419
Medium 144 185 329
Total 750 694 1444
ccc. Marketing linkages within the district, state, and outside
Mango is a perishable commodity that cannot be stored for an extended period. The whole
mango crop is harvested within one month after getting maturity in this region which results
in a glut in the local market. Besides this, most of the farmers sold their orchards to pre-
harvest contractors, and few farmers sold fruits in the local market. The number of
intermediaries in a traditional marketing channel is more and this reduces the profitability
of farmers considerably
Mangoes for table consumption
Preharvest Wholeseller
contractor
Commission Buyer/Expor
Farmer Trader
Agent ter/Importer
Commission
Agent
Raw material procurement for Pickle manufacturers & Jelly/Thandra makers
Preharvest Pickle/thandra
Farmer
contractor manufacturers
Commission Pickle/thandra
Farmer
Agent/Trader manufacturers
Intermediaries in the marketing chain and exploring new and distant markets to get rid of a
glut in the local market. Marketing linkages were established long back. The farmers sell
their produce through commission agents to the traders and as well as to the exporters.
Commission agent charges 3-5% as commission from both buyer and seller and payment
risk will be borne by Commission agent and payment is made within mutually agreed time.
In another attempt, Pickle/Thandra manufacturers procure their raw material from farmers
through preharvest contractors/commission agents or from traders.
Market linkages – Selling pickle /Thandra

Retialer/Consumer
Finished product i.e. Mango pickle and Thandra is sold through the agents/ traders and thru
the distribution network to the retailers from the regions of L Kota, Parvateepuram,
Komarada, Ramabhadrapuram, Gajapathinagaram, Gummalkshmipuram. The
pickle/Thandra manufacturers sell the pickle manufacturers across the state and other
states. The pickle manufacturers buy the semi-finished product according to their
requirements and add their value addition and sell to the consumers thru their supply chain.
Others have their business contacts and supply directly to the retailers, supermarkets,
hotels, restaurants, caterers, and big institutions. The pickle manufacturers who have
distribution networks like Super stockiest/ C & F Agency, distributors are supplying to
retailers and consumers thru this network like Priya Foods, MTR, Telugu Pickles, Agri gold,
etc.,
While Thandra manufacturers sell their products through distribution networks as well as
directly to the retailers, supermarkets.
Swagruha foods are selling their products pickles and Thandra through their outlets across
the district.
Self-help group women who are manufacturing pickles/Thandra on small scale also sells
their products directly to the consumers, retailers, households, hotels, restaurants, caterers,
supermarkets and making attractive profits. They also participate in exhibitions regularly to
sell their products.
ddd. Level of infrastructure for ODOP processing within the district, in other districts,
and States
Most processing plants in the district are small and medium enterprises. For the fresh fruit,
traders and aggregators procure fruit from the local producer, aggregate the fruit, and ship
it to traders at distant markets across the country. The preharvest contractors also operate
similarly; in this case, they contract with the mango producer for the entire production for
one or more seasons and, in turn, finance the farm operations for that particular season.
Mango jelly and pickles are manufactured by small or cottage-scale processors with
capacities of less than two tonnes per day.
Export contractors are licensed to export the Mango Thandra and Pickle and have good
downstream linkages.
They procure and supply organic Pickle and Thandra to the export market, mostly from
small processors who are not represented at terminal markets. In some cases, export
contractors finance the operations by entering into toll production agreements.
Both men and women are engaged in grading, sorting, and packaging. These people are
typically landless laborers who are hired from the surrounding areas or are migrant laborers.
Workers are usually employed for the entire season
Vizianagaram region is creating employment for about 1500 people, directly at processing
plants and indirectly in allied services. Fewer women than men are employed at processing
plants, employed in operations, quality assurance, planning, and management. An equal
number of men and women were observed to be taking part in processing operations as
workers.
Location:
The pickle/Jelly/Pulp units are located in the mandals of Vizianagaram district preferably
near to the availability of raw materials.
Land and Building:
The said units required a building area of 900 Square Feet. The land and building space are
enough for proper carrying out of activities of the unit.
Raw materials:
The important raw materials required by the units are Mango, Ginger, Garlic, Salt, Chilli
powder, and Oil, etc., All the raw materials required for the unit are available in any quantity
at a reasonable rate from a local market. So there will not be any scarcity for the availability
of raw materials.
Transportation: The location of the unit is aside from the main road and is also nearest to
the urban center. There is enough space in premises for parking the vehicles and smooth
flow of men and materials.
Labour: The labor can easily procure from local places at a reasonable cost at any volume.
Power: The required power to commence production is available.
Water: The main water requirement for the unit is for the drinking and sanitation purposes
of workers. There is enough well water facility on the premises of the unit. Thus it can be
concluded that the location of the unit is equipped with all infrastructural facilities.
Other districts and state infrastructure:
In the Krishna district, people are going only for Pickle and Thandra making, because of
lower Brix content available in the Totapuri fruit as well as more water content and other
varieties are not suitable for pulp making so people are preferring pickle industry which is
very much suitable. However, a few industries are processing mango pulp. There is huge
scope for other processing industries like mango jelly and pickles. However, Priya foods are
processing the pickles from mango. Thus, the district can have the potential to produce
more pickle for the demand of the growing population
Two main clusters of Mango Pulp are there in the country, which has more than 100
processing units with a good backward linkage of Alphonso and Totapuri variety of
mangoes. These clusters are Chittoor in the state of Andhra Pradesh, Karnataka, and
Krishnagiri in the state of Tamil Nadu. Some of the Processing units are in the state of
Maharashtra and Gujarat.
Chittoor district has a good horticulture production base and enjoys easy access to leading
horticulture bases in Andhra Pradesh, Tamil Nadu, Karnataka, and Maharashtra. Mangoes
dominate the horticulture resources of the Chittoor district. Of the various varieties grown,
Totapuri accounts for nearly 50 percent, Neelam 25 percent, and other varieties 25 percent.
Chittoor district is surrounded by other fruit growing belts YSR Kadapa and Anantapur
districts of Andhra Pradesh; Dharmapuri district of Tamil Nadu and Kolar district of
Karnataka. There exists a lot of variation in the commencement seasons for various fruits
across regions and varieties. Similarly, the arrivals of Alphonso's variety of mangoes from
Channapatana, Dharwad, Hubli, Pune, and Ratnagiri areas commence towards the beginning
of May. It is observed that the majority of the small scale and medium scale units start their
processing operations during the May-July months, covering 30-75 days, to produce mango
pulp.
The pulp is produced from the Totapuri, Raspuri, and Alphonso variety of mangoes which
are considered the best for mango pulp. Most of the sampled units process mango as raw
material to produce pulp.
eee. Total production value of the ODOP product manufactured in the district
and as % of total agricultural production.
Total agriculture production in the district is 1900 thousand tons and mango contributes
25% to overall agriculture production in Vizianagaram district during 2019-20.
Valuation is difficult to analyze
Number of enterprises involved in the processing of this product and as a % share of

the total number of micro food processing enterprises in that district;
There are 268 units are involved in the processing of ODOP products in the district and
there are 4288 MSME units are existing in the district which includes food processing,
service, and manufactured sector.
fff. The number of Self Help Groups and Farmer Producer Organizations engaged in
theProcessing of this product.
Farmer producer organization (FPO) is the collectivization of Producers, especially small and
marginal farmers to form an effective association to collectively address many challenges of
agriculture effectively such as improved access to investment, technology, inputs, and
markets. Department of Agriculture and Cooperation under Ministry of Agriculture, Govt. of
India has identified ‘Farmer Producer Organizations ‘registered under the special provisions
of the Companies Act, 1956 as the most appropriate Institutional form around which the
mobilization of farmers is to be made for building their capacity to collectively leverage their
production and marketing strength.
To significantly improve the terms of smallholder farmers’ access to the market and
strengthen their position in agri-value chains, it is gradually being realized that if federated;
small farmers can easily bargain for better prices, both while buying inputs and selling their
produce. This belief has led to the concept of establishing “Farmer Producer Organizations”
(FPOs) in the country. Small Farmers’ Organizations such as FPOs are expected to overcome
the constraints of farmers imposed by the small size of their farms by leveraging the
collective strength and bargaining power to access financial and non-financial inputs,
services, technologies, enhance incomes, reduce costs of input purchases along with
transaction costs, create opportunities for involvement in value-addition including
processing, distribution, and marketing.
In the district of Vizianagaram, there are more than 15 Farmers Producers Organizations
(FPO’s / FPC’s) registered with the Dept. of Horticulture, A.P. covering 2000 farmers.
ggg. Sale of this product to other districts, states and exported to other
countries
The main sales channels of mango in the Vizianagaram district of Andhra Pradesh include
direct sales from farmers to large retailers, supermarkets, wholesalers, and small retailers
through commission agents/traders/exporters. Large quantities of mango of different
varieties are supplied from this region during the season to all parts of the states.
A majority of farmers sell their produce at the farm gate to the pre-harvest contractors, who
in most cases are also the wholesale agents at the APMC yard, under a mutually agreed
contract. The contract is verbal in a majority of cases. The contractors visit the farm during
the post-flowering period and evaluate the farm. Based on their evaluation, an amount is
decided and payment is made in full.
During the marketing of mango, smallholder farmers use corrugated boxes, baskets, plastic
boxes, and wooden boxes to pack mango to keep safety and postharvest loss of mango
during transportation.
India has also not been able to export mangoes successfully because of the lack of
infrastructure for complying with food safety standards. Among the top export destinations,
the United Arab Emirates (UAE) imports almost 69% to 70% of India’s total fresh mango
exports.
Pickle/Thandra
Retialer/Consumer
No Indian meal is complete without a smidgen of the pickle. Ready to eat pickle is very
popular in almost every household. Apart from the domestic market, Indian pickles have
very inspiring export demand. Pickles can be packed in different weights ranges from few
grams to 5 kg so that it becomes useful for one-time use to a month’s consumption. There
has to be the implementation of systems for following food standards like FSSAI.
Mango pickle and Thandra are sold through the agents/ traders and thru the distribution
network to the retailers. The oldest firms have their business contacts and supply directly to
the retailers, supermarkets, hotels, restaurants, caterers, and big institutions. The pickle
manufacturers who have distribution networks like Super stockiest/ C & F Agency,
distributors are supplying to retailers and consumers through this network like Priya Foods,
MTR, Telugu Pickles, Agri gold, etc.,
The demand for Indian pickles in foreign countries like Saudi Arabia, America, Australia,
Europe, Russia, and many other countries is high. Day-by-day demand for pickles is acquiring
thrust in every part of the world because of its global quality standard. On average, an
Indian family consumes around 2 kilograms of pickles per year.
The global pickles market has been divided, by packaging type, into jars, bottles, pouches,
tubs, and others. The pouches segment is projected to record the highest sales as pouches
offer ease of storage and usage and can be used as refill packs. Furthermore, longer shelf
life can be achieved by using Tetra Pak pouches.
In other states
In Srinivasapura, of Karnataka within a radius of 200 kilometers, there are 18 retail

marketing centers, bordering the states of Andhra Pradesh and Tamil Nadu. The farmers in
the region sell their products through three predominant marketing channels: they sell at
the farm gate to the pre-harvest contractor; they sell at the village Agricultural Produce
Marketing Commission (APMC) yard, or they sell directly in city retail markets or
government authorized wholesale centers such as the Horticultural Producers’ Co-operative
Marketing and Processing Society (HOPCOMS) and Safal.
The prices are fixed by wholesale agents operating in the yard, with farmers lacking any
power to negotiate them. For small farmers, the volume produced usually is below the
minimum quantity required by corporate buyers. Hence, they are forced to sell at the APMC
yard at a fixed rate. The farmers from nearby villages travel to the market yard to sell their
produce. In many cases, the farmer sells it to the wholesale agent or the pre-harvest
contractor, who pays the farmer in advance after deducting a 10% commission. All the costs
related to activities like grading, transportation, packing, and storage are borne by the
contractors. The wholesale commission agents have tie-ups with agro-processing units like
Mother India farms, Pepsi and Dabur, which are located in Andhra Pradesh.
hhh. Mapping the value chain aspect

Pre Harvest
Fruit Growers
Contractors
Commission
Cold Storage
Agent &Traders
Exporters Retailers
Consumer
Pre-harvest contract: Pre-harvest contract is the most commonly used sales system of
mangoes. The contractors evaluate the orchard during the initial stage of fruiting and
payment is done to the farmer on a per kg basis. Some of the farmers also negotiate the
price of their orchards on a lump-sum basis. The quantity, quality, and rates are negotiated
based on mutual agreement between the farmer and the contractor. The cost of activities
such as harvesting, packing, and transportation at the farm gate takes care of by the
contractor.
Purchase by Processing Units: Processing units are directly procuring the raw material at
the farm gate. Apart from this, they also procure through agents/suppliers. Processors are
more price-sensitive and quality is the major concern for them.
APMC Market yards: Farmers in the catchments of nearest APMC bring their produce which
is sold under an open auction mechanism. It is observed that at times, farmers do not bring
the product to the nearest market yards and travel to a bigger market yard in expectation of
a better price. The volume of trade through this mechanism is estimated to be about 5-10%
of the total Mango trade.
Wholesaler: The wholesaler is responsible for the distribution of products to various

retailers. The second level of sorting/grading has also been observed at the
secondary/terminal markets. Accordingly, the produce is sold to the retailer based on
specific grades.
Understanding the Infrastructure constraints faced by Micro Enterprises:
• The mango processing industry in the Vizianagaram district faces some constraints.
Among the infrastructural constraints.
• The high cost of credit was reported to be the major problem by the firms. The
processing sector is very labor-intensive, with the majority of laborers coming from
within the region to meet the labor deficit of the neighboring regions.
• In recent years there has been a spurt in wages of the laborers adding to the cost of
production of the processing firms. About 60 percent of those employed in the
processing sector are women and only 40 percent are menfolk. This is mainly
because the activities involved are more suited to the womenfolk, secondly to
minimize the cost of production also the processors favor the employment of
women folk. However, more than 75 percent of the firms reported the problem of
inadequate supply of labor and high cost of labor.
• The processing industry is raw material intensive. The industry faces some problems
related to raw material supply. The supply is not consistent owing to the
dependence of production on weather variations.
• In years of deficit, the firms meet out the raw material supply with procurements
from nearby regions and neighboring districts. The mango fruit is available for
processing only for 120 days, the large firms take up the processing of some
commodities however, the small firms process the only mango. This has implications
for capacity utilization.
• The prices of raw fruits and processed products are highly fluctuating in domestic
markets, thereby causing higher risk, particularly to small-scale processing units.
Consequently, the small-scale units were not working on their account, instead, they
were working on a pre-contract basis.
• Lack of domestic demand for mango processed Thandra was reported to be a major
problem by the majority of the firms.
• The pack houses need to have adequate capacity and should have a pre-cooling unit/
cold storage. The development of adequate cold storage capacity with the latest
technology/ cold chain would help in increasing the shelf life minimizing post-harvest
losses through proper storage and help the unitholders in taking timely marketing
decisions. Cold storages with multi-chamber/ multi-commodity facilities need

Public infrastructure Mango processing units in the Vizianagaram district do not have
proper road facilities to transport the raw material while
procurement and selling the finished products, however roads
across the district need to be renovated While there is no
shortage or interruption of power and water in the district.
Common facilities Marketing support and Mentorship services are badly required
for the processors to expand their business and to increase the
product quality and quantity. While branding will improve to
increase their volumes not only in the district but also across the
state and country
Testing facilities At present, there is no availability of testing facilities at the units
for testing the mango processed products and there is badly
need for a testing facility in the district to test their products
periodically in the laboratories recognized by the FSSAI
Safety standards Thandra and pickling are developing industries in the district and
most of the units are unregistered in the district. Thandra and
Pickle making plants are generally tiny in size and the machinery
of the plants do not possess the FSSAI certificate. The majority of
the mango processing units are not following the norms set by
the FSSAI
iii. Mapping the market potential of FPI micro enterprises-
Marketing/sales of the mango pickle/Thandra made by micro-units are happening

within the district and there is no export of processed products to other states and
courtiers from the district. But there is a scope for expansion of marketing and sales
to the other districts in the state and also other states.
The below table contains a list major of market players who are in the mango pickle
business in India
Product Major manufacturers in Demand The willingness of the national

AP Specification and international retailers to
from Buyers link with the potential FPI
micro-enterprises under FME.
Mango • Swastik Masalas • No • National and

Pickle And Pickles harmful International mango
• Ushodaya Entps chemicals pickle retailers will not
(Priya Food or link with micro-
division) preservati enterprises because the
• Telugu Foods ves added taste will differ from
• Amma Pickles • Proper one micro-unit to
• Aachi Masala packaging other.
Foods
• Naturally
• Sri Vijaya Pickles
• Mambalam Pickle fermente
• Iyer Pickles d
• Quality
certificati
on by
fssai
• Budget-
friendly
price
• Long shelf
life
• Less oily
and salty
jjj. Mapping the Firm-level issues-
In the Vizianagaramdistrict, there are no proper roads in some mandals, and there is a
shortage of labor but there is an uninterrupted power supply to the processing units.
The unitholders are facing problems with the capital expenditure, acute shortage of
godowns, storage tanks, machinery, solar driers, washing equipment, etc., unitholders are
unable to buy necessary equipment and construct godowns for storing the finished product
since the product life is 7-8 months after processing so they need to take proper care in
storing the finished pickle. If they are provided with financial assistance there is every
chance to improve their business as well as income and can provide much employment.
The prices of raw fruits and processed products are highly fluctuating in domestic as well
as international markets, thereby causing higher risk, particularly to small-scale processing
units. Consequently, the small scale units were not working on their account, instead they
were working on a pre-contract basis
Lack of domestic demand for mango Thandra was reported to be a major problem of the
firms.
Proper testing facilities are not available in this region. They don’t have the proper
marketing experience to export the finished product. If they are supported to export the
finished products then they can develop their business in turn India gets more money from
other countries.
Table 3: Firm-level gaps and recommendations

1 Skill training needs Shortage of labor to Necessary training has to 50000
process Thandra/Jelly. be provided to train the
Since labor need to labor and to handle
work under the sun modern technology.
while drying
2 Manufacturing Raw material Thandra and Pickle's
practices Procurement, processors are buying the
processing, Packing, raw material at a higher
Marketing, and price, adopt new
Branding technology in processing
& packing. Expansion of
marketing and create
brand awareness of their
products
technology technology- solar dryers,
latest crushers, Boilers,
mango cutters, packing
material
4 Access to finance Lack of capital Support the processors
expenditure and with subsidies and extend
investment to buy new loans at a lower rate of
machinery interest to expand their
business
5 Access to Lack of suggestions to Need to provide support
mentorship services the processors in adopting new
regarding the technology for processing,
expansion of business marketing, and branding
Detailed Cluster Study for ODOP Products
Industry and Market Analysis

characteristics, including the distinctiveness and range of its flavor, its nutritional and
dietary qualities, and its many industrial uses and derivatives.
The production of mango in India is around a 22.3million tons, contributing 46% of the total
world production of mango. The main mango producing states in India are Uttar Pradesh
(20.46 %), Andhra Pradesh (22.36%), Bihar (10.88%), Karnataka (8.34%), Gujarat (5.45%),
Tamil Nadu (5.59%), and Telangana (4.83%) in 2018-19. Total export of fresh mangoes and
mango pulp from India is 49.7 ‘000 MT and 85.7 ‘000 MT, valuing Rs. 400.2 crores and 584.3
crores during 2019.20. The major importing countries of India’s fresh mangoes during 2019-
20 were UAE (35.3%), UK (17.1%), USA (7.7%), Oman (7%), and Qatar (6.8%). And the major
importing countries of India’s mango pulp during 2019-20 were Saudi Arabia (21.5%),
Yemen Republic (10.6%), Netherland (10.5%), Kuwait (7.9%), and the USA (6.7%).
Mango Pickle Marketing Information in Vizianagaram
In the Vizianagram district, trade is classified into General trade & modern sale. Under general
trade, there is Wholesale and Retail sale trade and under modern sale, there are Hypermarkets.
General trade is classified into ABCD and under the A segment all hypermarkets, supermarkets are
involved in trade and at Vizianagram town there are nearly 30-40 supermarkets, and out of this,
there are nearly eight hypermarkets who are operating their sales in different locations thru
different branches.
Sl.NO Chain
3 VISHAL MART
5 SUPERMARKET GROCERY SUPPLIES PVTLTD-Big Basket-
Online
Under the B segment, wholesale trade is involved, nearly 15-20 traders are trading masalas, spices,
and pickles in markets like PW market and Chinna market, etc., There are nearly 15 outlets that sell
pickles exclusively in the town.
Through distributor networks, the supplies are made to the retailers, wholesellers in a rural and
urban region.
Under the C segment, 1500 retailers are there who deal in spices, masalas, and Pickels across the
Vizianagaram city/town.
Under the D segment, there are nearly 500 shops like pan shops, milk parlors, cool drink shops, etc.,
Pickles, Spices, and Masala powders, etc., are major commodities these segments deal with.
While in the Vizianagaram pickle market, tomato pickle is mostly sold by nearly 25% followed by
Gongura, 23% Mango 16%, Red chilli 3%, Lime 23%, and others 10%.
% of Share of Pickels in the Viziangaram market
10% Tomato
25% Gongura
Mango
23%
Redchilli
Ginger
20% Lime
3%
16% Ohers
3%
Major players dealing in Pickels and their share in the market
% of market share of Pickels brands in Vizianagara market

3% Swastik
5%
5% Priya, Delite & Ramya
5% Sri Durga
27%
Telugu
5%
Aachi
10% Swastiks
Maatha
22% Siri
5%
10% Ayyappa
3%
G Chip
Approximate sale of pickles (Mango, Tomato, Gongura Lime, Red Chilli, etc., in the state of Andhra
Pradesh through general trade, modern and online sale. The approximate sale of pickles in AP is
nearly 345 lakhs per month. While in the Vizianagaram district the sale of pickles is nearly 50 lakh
per month.
Even though there is no significant pickle manufacturing is happening in the Vizianagaram district
however the supplies are made from Rajahmundry, Anantapur, Krishna, Nellore districts. The
general practice of the local vendors is they sell majorly in loose. Local pickle selling outlets get the
pickle supplies in 5kg pouches the retailers store the same in big glass bottles and sell in loose.
Here only one unit is manufacturing the mango and other pickles on the Ayyappa brand and selling
in the market however the quality is not up to the mark and the sale is also not encouraging. The
local manufacturer is supplying in 5kg pouches as well as in 0.50 paise pouch. These 0.50 paise
pouches are moving mostly at wine shops, bars. etc.,
Each retailer (exclusive pickle) normally sells nearly 30-50 kg of mango pickels in a day and all others
like Kirana/grocery, pan/ milk selling outlets are selling in brands like Priya, Swastik, Sri Durga,
Telugu, etc.,
Out of a total sale, the Swastik brand is the highest seller followed by Priya, Sri Durga, Siri, Maatha
Telugu, etc., in branding, and nearly 40-50% is sold as unbranded.
Under the modern sale segment Reliance retail is selling nearly 350 kgs of Mango pickle of all brands
like Swastik, Priya, Telugu, etc., in a month followed by More nearly 400 kg, Spencers 300 kgs, Vishal
mart 50kg, etc.,
• At present, modern sale management is procuring some products directly from the
manufacturers who are registered under GST/VAT, etc.,
• They have plans to buy from the SHG’s and FPOs who are into processing by eliminating the
middlemen like distributors and pass on the same to the consumers but the majority of the
SHG’s are not registered and cannot procure from them without raising a purchase order so
they are suggesting that all the FPO’s and SHG’s who are into processing to get it registered
to enable them to procure from them also.
• However, the wholesalers are procuring directly from the manufacturers as well as with the
unregistered firms
• There are nearly 1500 outlets are established in Viziangaram and the majority of the outlets
are selling pickles while the majority of the outlets like a wholesaler, retailers, modern sale
managements are procuring material from the state of Andhra Pradesh However
• Problems faced by the General traders, modern sale, wholesale, Retail management, etc.,
• Traders expressed their opinion that they are facing Quality issues regarding pickles (Fungus
and other problems with Siri and Ayyappabrand in local)
Thandra/Jelly Marketing Information in Viziangaram

Vizianagaramis one of the commercial districts in the state of Andhra Pradesh and the Thandra is
manufactured widely in the district, in the Bheemali village of L Kota Mandal Mango Thandra/Jelly is
made and nearly 300 families or unorganized units make Mango Thandra in the season.
Nearly 300 units are involved actively in processing Mango Thandra and out of this Micro units are
250, medium scale units are 45 and big is 5 units.
The raw material used for making Thandra is Totapuri and Kolangova.
The estimated Mango Thandra production in this district is nearly 27920 tonnes during the season
from this district.
The shelflife is nearly 2 months if not stored in cold storage. If it is deposited in Cold storages the
shelf life will be 1 year. Here the general practice of the unitholders is they deposit 80% of their
produce in cold storage available in the district they withdraw as and when they require. Normally
they operate on the hand-to-mouth requirement.
Trade is happening in General trade. Under general trade, there is Wholesale and Retail sale trade.
The majority of the produce is being sold as a commodity, not in the brand.
The total produce is supplied from here to the neighboring districts i.e. to Vishakapatnam and
Srikakulam.
There are nearly 30 wholesale and semi-wholesale outlets in the Vizianagaram where the
Thandra/Jelly is being sold. Nearly each outlet sells approximately 250-300 kg in a month which is
packed properly in a plastic can ( which is cut into pieces) and it is sold to the retailer at INR 185 per
container and in a transparent plastic cover without any brand. While there are nearly 10 exclusive
Mango Thandra/Jelly outlets in the Vizianagaram town and where they sell nearly 100 kgs in a day
and sell at INR 140 per kg.
In the Vizianagaram town, there are nearly 2000 provision/grocery stores where some of the grocery
shops sell Thandra nearly 5-10 kg each in a month. Similarly in the entire district, there are exclusive
outlets where the Thandra is being sold like in Bheemali village there are more than 20 outlets
where nearly 20-30 kg of Thandra is being sold in each outlet.
Problems identified :
• Labor problem – In summer labor is not ready to work under the hot sun while making the
Thandra so the production is coming down
• Many times unseasonal rainfall is disturbing the processing activity
• Cold storage is required
• Selling at a very less margin by the makers
• Capital expenditure is required
• Unable to market the product to the other districts/states
• Requesting the government to support in buying Packing machines, extending loans for
capital expenditure, and to support to market their products.
28.4. Introduction
Mango (Mangifera indica Linn) is the most important fruit of India and is known as the “King
of fruits”. Indian mangoes come in various shapes, sizes, and colors with a wide variety of
flavors, aromas, and tastes. The Indian mango is a special product that substantiates the
high standards of quality and bountiful nutrients packed in it. A single mango can provide up
to 40 percent of the daily dietary fiber needs – a potent protector against heart disease,
cancer, and cholesterol build-up.In addition, this luscious fruit is a warehouse of potassium,
beta-carotene, and antioxidants. In India, mangoes are mainly grown in tropical and
subtropical regions from sea level to an altitude of 1,500m. Mangoes grow best in
temperatures around 27˚C.
State-wise Production of Mango in India
Andhra Pradesh was the leading mango producing state in India with the contribution of
22.36 percent of the total mango production; Uttar Pradesh was the second leading mango
producing state with the contribution of 20.46 percent and other mango producing states
are Bihar (10.88%), Karnataka (8.34%), Gujarat (5.45%), Tamil Nadu (5.59%), Telangana
(4.83%), Madhya Pradesh (2.88%) and Maharashtra (2.53%). Dadra and Nagar Haveli U.T
contributes a negligible amount of mango production i.e. 0.09 percent.
States 2015-16 2016-17 2017-18 2018-19 Share in 2018-19 (%)

Andhra Pradesh 2803.66 4043.47 4373.61 5001.74 22.36
Uttar Pradesh 4512.71 4341 4551.83 4577.15 20.46
Bihar 1464.93 1472.38 2443.47 2434.65 10.88
Karnataka 1725.67 1719.73 1760.6 1866.23 8.34
Gujarat 1241.59 1424.87 1207.78 1219.86 5.45
Tamilnadu 975.11 1282.44 1234 1250.77 5.59
Telangana 1778.32 482.46 1080.14 1080.13 4.83
Madhya Pradesh 371.48 586.24 654.79 643.62 2.88
Maharashtra 463.17 603.83 791.36 566.37 2.53
Dadra and Nagar Haveli 15.18 16.5 18.7 19.19 0.09
Others 3305.88 3549.78 3724.75 3712.36 16.59
TOTAL 18657.7 19522.7 21841.03 22372.02 100.00
Doesn’t have any issues regarding the quality of the product

Vizianagaram district is famous for its mangoes. A large number of varieties are found in
major mandals of the district. Mango Pickle& Jelly is prepared from selected varieties of
Fresh Mango Fruits. This district is one of the largest mango exporters in India. Mango
production is throughout the state of Andhra Pradesh.However, Jelly/ pickle industries are
established in this district.

Mango Nutritive Value per 100g
Energy 250 KJ (60 kcal)

Carbohydrates 15g
Sugar 13.7
Dietary Fibres 1.6g
Fat 0.38g
Protein 0.82g
Vitamins
Vitamin A 54 µg
Beta-Carotene 640 µg
Lutein Zeaxanthin 23 µg
Thiamine (B1) 0.028 µg
Riboflavin (B2) 0.038 µg
Niacin (B3) 0.669 µg
Pantothenic Acid (B5) 0.197 µg
Vitamin (B6) 0.119 µg
Folate (Bg) 43 µg
Choline 7.6 mg
Vitamin E 0.9 mg
Vitamin C 36.4 mg
Vitamin K 4.2 µg
Minerals
Calcium 11 mg
Copper 0.111 mg
Iron 0.16 mg
Magnesium 10 mg
Manganese o.o63 mg
Phosphorus 14 mg
Potassium 168 mg
Selenium 0.6 µg
Sodium 1 mg
Zinc 0.09 mg
Water 83.5 g
Health Benefits of Mango
• Helps in fighting against acidity
• Cures stomach and digestion issues
• Helps in treating blood disorders
• Helps in maintaining dental hygiene
• Helps the body in boosting immunity
• Helps in enhancing eye vision
• Helps in keeping the liver healthy

characteristics, including the distinctiveness and range of its flavor, its nutritional and
dietary qualities, and its many industrial uses and derivatives. However, most mangoes are
consumed fresh. The socioeconomic importance of mango is great, not only for local
societies in rural producing regions but also increasingly in countries that benefit from its
trade and consumption.
Major Producing Countries of Mango and its Share in the World
Country Production in MT % share

India 22,300,000 46%
China 4,771,038 11%
Thailand 3,432,129 8%
Mexico 2,197,313 5%
Indonesia 2,184,399 5%
Pakistan 1,606,091 4%
Brazil 1,417,149 3%
Egypt 1,277,008 3%
Bangladesh 1,161,685 3%
Others 7,800,188 17%
Total 44,626,000 100%
Source: APEDA
• Global production of mangoes is concentrated mainly in Asia and more precisely in

India which produces an average of 22 million MT a year.
• The total world production of mangoes is about 44 million MT.
• World demand for mango is increasing particularly from temperate countries where
mangoes are rapidly gaining.
• The leading importing country is the US and in the EU it is Netherlands, France,

England, Portugal, Spain, Belgium, Denmark, and Sweden.
• Apart from India, other major producers of mango are China, Mexico, Thailand,
Indonesia, Pakistan, Philippines, Nigeria, Brazil, Peru, Australia, South Africa,
Malaysia, and Venezuela.
• India’s major marketing season is April to July while harvesting continued for 8-10
months a year in Brazil, Columbia, Kenya, and Venezuela.

India imports 139 MT of fresh/dried mangoes, a value of 221.03 lakhs from other countries
(Malawi, South Africa, Thailand, Bangladesh, and Vietnam) in 2019-20.
Import of Mangoes (Fresh/Dried) in India from Other Countries

Value in Rs.Lac and Qty in MT
2017-18 2018-19 2019-20
Malawi 0 0 16.5 30.23 63.8 150.13
South Africa 12.1 18.5 10 18.52 65 41.85
Thailand 0.05 0.04 0 0 9.8 29.05
Bangladesh Pr 0 0 4 1.8 0 0
Vietnam Soc Rep 0 0 0.06 0.02 0 0
Total 12.1 18.5 30.5 50.57 139 221.03
India imports 500.1 MT of mango pulp, a value of 370.7 lakhs from other countries (Sri
Lanka, China, USA, Netherland, U K, Saudi Arab, andSpain) in 2019-20.
Import of Mango Pulp in India from Other Countries
Value in Rs.Lakh and Qty in MT
2017-18 2018-19 2019-20
Sri Lanka Dsr 0 0 0 0 304.1 186.2
China P Rp 0 0 28.1 26.88 192.5 161.5
USA 0 0 18 18.38 3.54 22.91
Netherland 0 0 0 0 0 0.07
UK 0 0 0 0 0 0.03
Saudi Arab 0 0 37.2 17.28 0 0
Spain 0 0 4.08 4.34 0 0
U Arab Emts 0 0 72.8 38.74 0 0
Total 0 0 160 105.6 500.1 370.7
India exports 135384 MT of fresh mangoes (37%) and mango pulp (63%), a value of 984.43
crores with a contribution of 400.21 crores (41%) from fresh mangoes and 584.32 crores
(59%) from mango pulp in 2019-20. The export of mango pulp in 2019-20 is decreased by
11.15 percent compared to the previous year.
Export of Mango and Mango Pulp Exported from India
Commodi April-March(2018-19) April-March(2019-20) % % Share in

ty Quantity Value Quantity Value Change APEDA's total
(MT) (Rs. (MT) (Rs. Export
Crores) Crores)
Mango 105,873.22 657.67 85,725.57 584.32 -11.15 0.51
Pulp
Fresh 46,510.22 406.5 49,658.68 400.21 -1.55 0.35
Mangoes
Total 152,383.44 1,064.17 135,384.25 984.53
Major fresh mangoes export destinations are U Arab EMTS, U K, U S A, Oman, Qatar, Nepal,
Kuwait, and Saudi Arab
Country Wise Export of Fresh Mangoes from India in 2019-20

Country 2019-20
Quantity Value
U ARAB EMTS 16567.22 142.87
UK 4356.26 67.62
USA 1095.42 30.56
OMAN 3636.81 27.57
QATAR 2744.95 27.4
NEPAL 11975.04 24.51
KUWAIT 1170.85 16.05
SAUDI ARAB 1517.39 13
CANADA 492.95 5.81
MALAYSIA 240.36 2.37
FRANCE 196.75 2.34
GERMANY 185.67 2.33
HONG KONG 156.19 1.98
ITALY 123.84 1.51
MALDIVES 115.69 1.22
JAPAN 54.71 0.95
RUSSIA 38.93 0.76
NORWAY 51.87 0.65
KOREA RP 45.97 0.6
POLAND 67.51 0.55
SWEDEN 27.25 0.35
IRAN 14.54 0.24
BRUNEI 11.9 0.21
CHINA P RP 4.09 0.13
MAURITIUS 7.04 0.12
SPAIN 9.6 0.12
ARGENTINA 3.1 0.12
BELGIUM 4.7 0.07
IRELAND 2.75 0.06
KAZAKHSTAN 2.59 0.05
CONGO P REP 1.5 0.03
AFGHANISTAN TIS 10.02 0.03
TURKEY 1.22 0.02
MYANMAR 0.93 0.01
Total 49,656.21 400.21
Major mango pulp export destinations are Saudi Arabia, Yemen Republic, Netherland,
Kuwait, U S A, U K, China, Germany, Canada, U Arab EMTS, Oman, and France.
Country Wise Export of Mango Pulp from India in 2019-20

Country 2019-20
Quantity Value
SAUDI ARAB 22889.58 125.67
YEMEN REPUBLC 12116.38 61.99
KUWAIT 7293.24 46.4
USA 3749.46 39.12
UK 3385.37 30.59
CHINA P RP 3617.66 30.23
GERMANY 2711.03 25.61
CANADA 1792.77 17.93
U ARAB EMTS 2280.56 14.31
OMAN 2204.66 13.05
FRANCE 832.47 9.83
POLAND 1034.38 9.73
SUDAN 1599.8 8.5
JAPAN 573.07 7.62
SPAIN 859.29 7.38
MALAYSIA 1416.92 6.99
TAIWAN 797.03 6.69
QATAR 654.48 4.8
BELGIUM 752.2 4.49
PORTUGAL 518.73 4.18
LEBANON 594.4 4.09
ITALY 257.23 2.31
IRELAND 480.4 2.13
GEORGIA 340.83 2.02
RUSSIA 234.79 1.88
TUNISIA 207 1.54
AUSTRIA 158.48 1.43
INDONESIA 239.8 1.38
TANZANIA REP 319 1.36
SRI LANKA DSR 204 1.07
KOREA RP 107.16 1.05
HONG KONG 72.31 0.97
ALGERIA 136.2 0.96
JORDAN 136.69 0.94
EGYPT A RP 183.72 0.91
NORWAY 109.19 0.78
FR POLYNESIA 69.96 0.77
UGANDA 132 0.66
ANGOLA 89.4 0.59
CZECH REPUBLIC 79.15 0.56
TURKEY 104 0.54
JAMAICA 36.12 0.43
LIBYA 73 0.38
FINLAND 24.48 0.37
SOUTH AFRICA 63.64 0.37
IRAN 51.6 0.36
NEPAL 68.53 0.31
MAURITIUS 29.66 0.31
BARBADOS 34.4 0.29
UKRAINE 32.24 0.26
FIJI IS 22.1 0.22
CHILE 28 0.19
BHUTAN 53.74 0.18
UNSPECIFIED 10 0.15
VIETNAM SOC REP 11.37 0.15
DENMARK 18.24 0.14
THAILAND 9.3 0.11
CYPRUS 17.6 0.1
KENYA 17.76 0.09
HUNGARY 4.6 0.06
SWEDEN 16 0.05
MALDIVES 2.5 0.03
SLOVENIA 2.04 0.02
PANAMA REPUBLIC 2 0.02
REUNION 0.88 0.01
DJIBOUTI 1 0.01
MALAWI 0.56 0.01
NIGERIA 0.7 0.01
Total 85,723.52 584.32
Source: APEDA

Pickle is one of the oldest and most successful methods of food preservation known to
humans. The optimization of pickle quality depends on the maintenance of proper acidity,
salt concentration, temperature, and sanitary conditions. Pickle products add spice to meals
and snacks. The skillful blending of spice, sugar, and oil with fruit and vegetable gives crisp,
firm texture and pungent, sweet-sour flavor. Pickles serve as appetizers and help in
digestion by aiding the flow of gastric juices. Fermented pickles also have beneficial bacteria
that can control harmful intestinal microbes.
Mango pickle
Mango slices 1.0 kg, Salt 200g, red chili powder 10g, turmeric powder 10g, asafoetida 5g,
black pepper, cardamom (large), fenugreek, cinnamon (ground), and cumin 10g each.
Procedure: Wash the mature green mango fruits, cut into 4 equal pieces (depending upon
fruit size) and remove the kernel. Mix the fruit slices with salt and turmeric powder. Fill
mango slices in glass jars and keep them covered jars in sunlight for 7-10 days. Shake the jar
at least 2-3 times during drying. Mix the ground spices in well-dried mango slices. Store the
pickle in a cool and dry place.
Washing and
Cutting/slicing curing/Brining Blending Oil topping packing Storing
cleaning
According to FPO specifications, the minimum percentage of salt in a pickle in brine shall be
12% while for pickling in citrus juice the acidity as citric acid shall not be less than 1.2%. For
oil pickles, any edible vegetable oil like rapeseed, mustard, olive, etc can be used. Other
general characteristics for these pickles include the use of wholesome fruit which are free of
fungal or insect attack or any rotting. All ingredients shall be thoroughly clean and free from
extraneous matter. The only substances that may be added are spices, salt, garlic, benzoic
acid, soluble calcium salts. Pickles shall be free from added copper, alum, mineral acids, or
other preservatives
The preservation by using common salt, spices, and vinegar is a common method for the
preparation of pickles. Salt is mostly used as a preservative in pickles in combination with
acid. The minimum concentration of salt to act as a preservative is about 12%. Similarly, the
addition of acid to the food lowers the pH of the food which inhibits the growth of spoilage-
causing microorganisms. The addition of spices and edible oil in these products besides
improving flavor and taste also helps in preservation. Thus preservation by using salt, spices,
and acid is one of the most ancient and effective methods of food preservation.
The preservation of fruit in salt and vinegar is called pickling. Pickles may prepare without
fermentation or with partial or complete fermentation. Spices, edible oil, sugar/jaggery, etc
are added to improve the taste and palatability of the product. The nutritive value of pickles
varies with the kind of raw material used and method of preparation such as with or
without fermentation.
The manufacturing of pickles has developed as an industry in the country. Mango pickles
are the commercial products available in the market.
Pickling process
Mango pickle is prepared by using salting. The procedure for dry salting mangoes is washed,
sliced, and placed in a barrel in layers to which salt is sprinkled followed by placing another
vegetable layer and sprinkled with salt. Generally, 3 kg dry salt is used for each 100 kg of
prepared vegetable. The salt is added in layers till the barrel is ¾ full. The barrel is placed in
a warm and dry place.
Types of Pickles
Pickles are generally categorized into fermented pickles and partial or non-fermented
pickles. While non-fermented pickles are of different types depending upon the covering
medium used. Pickles preserved with salt and mango pickle.
Mango Pulp
Mango Pulp is prepared from selected varieties of Fresh Mango Fruit. Fully matured
Mangoes are harvested, quickly transported to the fruit processing plant, inspected, and
washed. Selected high-quality fruits go to the controlled ripening chambers; Fully Ripened
Mango fruits are then washed, blanched, pulped, deseeded, centrifuged, homogenized,
concentrated when required, thermally processed, and aseptically filled maintaining
sterility. The preparation process includes cutting, de-stoning, refining, and packing. In the
case of an aseptic product, the pulp is sterilized and packed in aseptic bags. The refined pulp
is also packed in cans, hermetically sealed, and retorted. Frozen pulp is pasteurized and
deep-frozen in plate freezers. The process ensures that the natural flavor and aroma of the
fruit are retained in the final product.

water and dried
Extracted Pulp
Pasteurized
Preservatives added
Cooled and labelled
Raw material mangoes at ripening chambers Mangoes cleaning with

chlorinated water
After de stoning sending for pulp crushing Pulping process
Pulp section machine Fruit preparation

Fruit Conveyor
Marketing Channel in Mango Pickle
Producer
Trader Wholesaler
Retailer Consumer Retailer
District Vizianagaram
The geographical area of the district is 6539 Sq.Kilometers and district is divided into 34
Mandals covering 2 Revenue Divisions.Vizianagaram district consists of 9 taluks, 1551
revenue villages, 921-gram panchayats, and 4 municipalities.
According to the 2011 census Vizianagaram district has a population of 23.44 lakh
comprising of 11.61 lakh male population and 11.83 lakh female populations. It has a
population density of 361 inhabitants per square kilometer.The district has a sex ratio of
1019 females for every 1,000 males, and a literacy rate of 58.89%.
Sl.N ITEM UNIT STA DISTRI

o TE CT
1 Geographical Area: 000'Sq.Km. 162. 6.54
97
(a) Total Population In Lakhs 495. 23.44
77
(b) Male Population In Lakhs 248. 11.61
3
(c) Female Population In Lakhs 247. 11.83
47
Males
(e) Rural Population In Lakhs 349. 18.54
67
3
(g) Urban Population In Lakhs 146. 4.91
1
7
(i) No. of Households In Lakhs 127. 5.87
19
(h) Growth Rate over the previous Census Percentage 9.21 4.22
(2001-2011)
4
7
7
3
1
4 Literates
(a) Total Literates In Lakhs 298. 12.39
6
(b) Male Literates In Lakhs 165. 7.08
5
(c) Female Literates In Lakhs 133. 5.31
1
5 Literacy Rate
5
7
6
6 No. of Households
(a) Total In Lakhs 127. 5.87
19
5
4
7 Household size
household
household
(c) Urban No. of Persons per 4 3.97
household
9
9
8
2
8
(d) % ST Population to Total Population Percentage 5.53 10
10 Workers
(a) Total Workers (Main+Marginal) In Lakhs 230. 11.57
81
(b) Agriculture Workers (Cultivators+ Agri. In Lakhs 143. 7.69
labor) 93
industries+Others) 8
Number of Villages/Gram Panchayats/Mandals/Mandal Parishad in Vizianagaram District
Sl.N Name of Villages/Gram Panchayats/Mandals/Mandal Uni State Distric

o Parishad t t
(a) Census Villages (including uninhabitated villages) Nos 17,36 1,550
. 6
(b) Revenue Villages Nos 17,39 1550
. 8
(c) Gramapanchayats Nos 12,91 921
. 8
(d) Revenue Mandals Nos 670 34
.
(e) Mandal Parishads Nos 670 34
.
(f) Revenue Divisions Nos 51 2
.
(g) Towns (Statutory and Census,2011) Nos 195 14
.
(h) Municipal Corporations Nos 14 0
.
(i) Municipalities/ Nagar Panchayats Nos 96 5
.

products.
Cluster Analysis –
Turnover & Employment: Turn over of the existing units per yearr (INR)
Particulars Turn over /yr (INR) 18596000
Mango Thandra 38307000 38307000
Mango pickles 18596000

Mango Thandra Mango pickles
In Vizianagaram district, during the primary survey, we were able to meet nearly 274 micro
unitholders who are majorly unregistered and out of that nearly 70 unitholders are dealing
in Mango pickle and nearly148 are into Mango Thandra/Jelly making and sales and their
turnover per annum is approximately INR 3.83 crores and Mango pickle turnover is INR 1.85
crores
According to the 2011 census Vizianagaram district has a population of 23.44 Lakhs. The
average size of the landholdings in the district is 2.68 (Medium) ha. The total area under
mango cultivation is 36.79 thousand hectares with the production of 478.3 thousand tons in
the district. Approximately 13.7 thousand households are involved in mango cultivation with
a population of around 55 thousand. Around 2 percent of the total population in the district
is engaged in mango cultivation.
The primary survey observed that 1444 workers engaged in ODOP and Non-ODOP
processing industries/units in the Vizianagaram district.
Micro 434 262 696
Small 172 247 419
Medium 144 185 329
Total 750 694 1444
Location
In the Vizianagaram district of Andhra Pradesh state, Mango is grown in the Mandals of
Vizianagaram, Parvathipuram, Gajapatinagaram, Bobbili, Ramabadrapuram,and other
mandals.
Even though mango is grown significantly in this district however so far no cluster is
established in the district. Different varieties of mangoes are produced from this region and
the majority is exported to the other districts and states on regular basis in the season.
During the season from the Parvathipuram market, significant supplies are made and
different varieties of mangoes are supplied for table consumption, pickle making, and
Thandra making. This region is famous for pickle/Jelly manufacturing and a lot of self-help
groups, individuals; swagruha foods manufacturer’s different pickles, and Thandra are
established in the district.
There are about 10 traders in this market who deal in mango, supplying to other districts
and states like Kerala, Telangana, Rajasthan, Maharashtra, Madhya Pradesh, etc.,
The mango produced in the mandals of Vizianagaram and Parvathipuram is famous for
pickle/Jelly making and table consumption and there are pickle and mango trading
companies that supply mangoes to the other states and manufacturers pickles like Amma
Pickles and others While there are Thandra/Jelly making units.
So there is every need to form a cluster in Parvathipuram Mandal and organize the trade in
a better way and support farmers eliminating the middlemen and provide financial
assistance and subsidies for the development of the cluster.
• During the primary survey,it is observed that the majority of the unit owners belong
to an age group of 30 to 60 years and their education level lies between
intermediate to graduation.
10th standard.
• The majority of the workers in processing units/SHG’s are female.
Infrastructure-
Thandra/Jelly: At present crushers are used for crushing the fruits, boilers are used for
boiling the pulp extracted, and manually it is dried under the sun however only a few
unitholders have solar dryers for necessary drying.
Storage tanks and machinery:
There is an acute shortage of storage tanks to deposit the semi-finished or finished products
like pickle, Thandra, and pulp, and washing/cleaning, mixing, and packing machinery are not
available with all processors. Air dryers, heaters are also not available with the Thandra
makers to improve their production and quality.
Roads, Electricity and water:
Proper roads are constructed to transport the raw material and finished products, while
uninterrupted electricity is provided in the state and sufficient water is available.
Since the creation of post-harvest infrastructure requires huge capital investment initially,
its creation has to be considered on merit so that the proposed infrastructure remains in
operation for at least 200-250 days in a year.
Pack House:
For far-away markets, the establishment of pack houses with automatic sorting, washing,
packing, precooking, storage, and marketing on large scale could be considered by the
public and private sector. These facilities could be made available on a hire basis to the
farmers. Certain criteria like urban areas with concentrated pockets of production, having
good connectivity, availability of electricity, the water round the year, and hygienic
surroundings, etc, need to be considered for setting up packhouses.
Cold Storage
The pack houses need to have adequate capacity and should have a pre-cooling unit/ cold
storage. The development of adequate cold storage capacity with the latest technology/
cold chain would help in increasing the shelf life minimizing post-harvest losses through
proper storage and help the unitholders in taking timely marketing decisions. Cold storages
with multi-chamber/ multi-commodity facilities need to be popularized.
Vapour Heat Treatment Plant:
There is a need to establish one Vapour Heat Treatment Plant (VHTP) to sort out the
problem of fruit fly, which is the main hindrance for exporting mangoes to Japan, the USA,
and European countries.
Road Transport:
Mangoes are transported in trucks, open pickups, or bigger trucks. Specialized transport
vehicles should be used, which may have separate cabins and partial shades so that losses
during transport are minimized.
Raw Materials
Mango grows significantly in Vizianagaram district and major mango growing mandals are
Vizianagaram, Parvathipuram, Gajapatinagaram, Bobbili, Ramabadrapuram, etc, and other
mandals.
About area, production, and productivity of mango in Andhra Pradesh, Vizianagaram district
secured Majority of the mango gardens in the state are having Baneshan variety, which is
not a pulp variety. The remaining is accounted for Totapuri (Collector) and Suvarnarekha.
The percentage of mango production in the state being processed is estimated to be around
5 percent only.
There are some products in mango-like squash, bars, jelly, etc., Canned mango pieces,
canned mango pulp, mango juice, nectars and drinks, freeze pulp, wine, pulp in aseptic
packing, mango powder, mango bar, carbonated beverage, etc. Kernel oil, vinegar, fiber, etc
are the products of mango waste. Thandra making is done as a cottage industry by sun
drying.
Mango is a perishable commodity that cannot be stored for an extended period. The whole
mango crop is harvested within one month after getting maturity in this region. Besides this,
most of the farmers sold their orchards to pre-harvest contractors, and few farmers sold
fruits in the local market. The number of intermediaries in a traditional marketing channel is
more and this reduces the profitability of farmers considerably
The farmers sell their produce through commission agents to the traders and as well as to
the exporters. Commission agent charges 3-5% as commission from both buyer and seller
and payment risk will be borne by Commission agent and payment is made within mutually
agreed time. In another attempt, Pickle/Thandra manufacturers procure their raw material
from farmers through preharvest contractors/commission agents or from traders.
Out of the total produce, 95% goes for table consumption and 5% goes for processing pickle,
Thandra, and pulp industries. Sufficient raw material is available in the district for
processing. Nearly 70000-75000 tonnes are required for the processing of pickle, Thandra,
and pulp in the district.
Skilled labor:
Sufficient labor is available for processing the mango in the district. Nearly 3000-4000 labor
is required for the processing of the mango industry i.e. Pickle, Thandra, and pulp. In each
large scale industry, 300 people work a day and in the medium industry nearly 50-100
people work and in the small and micro industries, 10-25 people work. However, the labor
will get employment for four months only.
Testing facilities: No proper testing facilities are available in the district to test their finished
products.
Export support:
No proper guidance is available to promote the export sales of the mango products
The quality of a fruit that is free from internal and external disorders is judged by various
parameters such as size, shape, weight, color, speciﬁ c gravity, acidity, pH, TSS,
carotenoids, vitamins, and other trace elements and volatile compounds responsible for
their aroma. Viscoelastic, rheological properties, and TSS of mango are important from a
processing point of view.
Quality parameters of mango change almost daily and consumers cannot measure them
during purchase. It is therefore essential that all the major quality parameters be correlated
in such a manner that size, shape, color, or aroma should reveal the overall quality of fruit.
Mango is a highly perishable fruit. The Perishability of the fruit is attributed to rapid
deterioration after harvest. It is also susceptible to insect-pest infestation and decay-causing
postharvest losses due to a lack of proper pre-harvest practices. Mango has a short shelf life
and is vulnerable to environmental stress, especially high temperatures. Considerable
quantities of mangoes are lost every year during harvesting, transport, and marketing.
Properly stored, mangoes will become fully ripe in about 2 to 5 days at normal room
temperature.
Production Process:
Pulp Making:

water and dried
Extracted Pulp
Pasteurized
Preservatives added
Cooled and labelled
Product Range:
Pickles: There are several pickle varieties in the mango and it is available from 5 grams
pouch to 5 kgs bucket. Priya foods sell their products in 5 grams pouch to 1kg pet bottle. It is
also available in 250 gms, 500gms however other companies sell in pouches on-brand as
well as unbranded. Some supply their products in bulk 5kg buckets to the hoteliers,
institutions, marriages, caterers, etc.,
The majority of the pulp is exported to other countries and the remaining is sold in the
domestic market. Pulp is available in 1kg can and 2kg cans as well as in 15kg bags.
Thandra is sold in packets, bottles, and pet jars
Technology:
Technology for processed products like pickles:
The majority of the mango pickle unit holders, like large, medium, small and micro
(swagruha pickle makers, and self-help group) pickle makers while preparing mango pickle
use to cut the raw mango by hand with the help of labor. In the Vizianagaram district, there
are nearly 250-300 pickle-making units, however, the majority of these unitholders are using
labor to cut the mangoes but a few manufacturers are using cutting machines and mixing
machines for preparing mango pickles. The new technology here in pickle making is hand
cutting machine where with the help of a cutting machine (Vtech, Coimbatore cost 14500)
where mango is cut into 10-15mm it reduces microorganism development and reduces 2
nos of unskilled labor. For mixing the mango pickle in large and medium scale mango mixing
machines (GK cooking mixer) are used to reduce the usage of more labor and semi-skilled
labor is enough, reduces time and fuel, while unique mixing system enhances the taste, and
reduces production cost
Mango Thandra:
Mango Thandra is made with the support of machines as well as manually. The ripened
mangoes are cleaned and crushed the necessary sugar and preservatives are added to the
mango pulp, heated, and dried under the sun. Here some manufacturers are drying under
the sun and others are using boilers and electrical dryers. However, packing is made
manually.
Marketing
Marketing players:
The Agents/ traders/processors during the season normally go to the nook and corner of the
The traders/agents who collect the produce from the farmers in each village supply to the
small/big mango processors and Pickle and Thandra making industries like Amma pickles
etc.,
After the mango is processed into different products like Pickle, Thandra, Pulp, Aamchur,
countries.
Human Resource
Skilled labor:
There is a shortage of trained and skilled manpower for the management and operations at
the field level.
Skill Development
Govt should provide skill development programs and offer free training to the female and
male workers with a stipend to improve their income levels as well as to start their own
small business. They can teach how to make different types of pickles, Thandra and how to
extract the pulp from the mangoes manually as well as from machines.
Testing: No proper testing facilities available in the district
Nationalize banks are extending loans
Post-harvest infrastructure requires huge capital investment initially, its creation has to be
considered on merit so that the proposed infrastructure remains in operation for at least
200-250 days in a year.
International trade demands mango varieties that are with fiber-less flesh, good aroma,
attractive color, and better sugar and acid blend. Efforts are not being made to produce and
grade mango, based on such tastes and varieties.
Pack House:
For far-away markets, the establishment of pack houses with automatic sorting, washing,
packing, precooking, storage, and marketing on large scale could be considered by the
public and private sector. These facilities could be made available on a hire basis to the
farmers.
Cold Storage:
Vapour Heat Treatment Plant:
There is a need to establish one Vapour Heat Treatment Plant (VHTP) to sort out the
problem of fruit fly, which is the main hindrance for exporting mangoes to Japan, the USA,
and European countries.
Road Transport:
Mangoes are transported in trucks, open pickups, or bigger trucks. Specialized transport
vehicles should be used, which may have separate cabins and partial shades so that losses
during transport are minimized.
Skilled labor:
There is a shortage of trained and skilled manpower for the management and operations at
the field level.
God owns:
In the Vizianagaram district, the unitholders are facing problems with the acute shortage of
godowns, storage tanks, machinery, driers, washing equipment, etc., Big unit holders
process nearly 8-10 thousand tonnes per year while small unit holders process nearly 4-5
thousand tonnes in a year. Their profit margins are very less i.e. they are operating the
business under 2-3 % margin and they are unable to buy necessary equipment and construct
godowns for storing the finished product since the product life is 7-8 months after
processing so they need to take proper care in storing the finished pickle. If they are
provided with financial assistance there is every chance to improve their business as well as
income and can provide much employment.
At present they are supplying the finished product across the states in India and they are
supplying against cash and credit to their customers and they don’t have proper marketing
experience to export the finished product. If they are supported to export the finished
products then they can develop their business in turn India gets more money from other
countries.
Financial Linkages:
Since the mango processing units are located in the outskirts of the residential area and
there is no such environmental impact from these units and are obtained all the necessary
permissions from the government
Cluster Actors
Nearly 1000- 1500 laborers are working across the Vizianagaram district in about 50
processing units and skilled and unskilled labor that is who operates the machinery, boiler,
who performs fruit cutting, grading, and packing.
Manufacturers:
There are a total of 34 mandals and the total villages are 1551 while the Mango processing
mandals are Vizianagaram,Parvathipuram, Gajapatinagaram, Bobbili, Ramabadrapuram,etc.,
There are nearly 50 units are located around the districts.
Raw Material Suppliers:
The farmers sell their produce through commission agents to the traders and as well as to
the exporters. Commission agent charges 3-5% as commission from both buyer and seller
and payment risk will be borne by Commission agent and payment is made within mutually
agreed time. In another attempt, Pickle/Thandra manufacturers procure their raw material
from farmers through preharvest contractors/commission agents or from traders.
Enterprise Promotion Councils: No enterprise council exist in the district for ODOP product
In the Vizianagaram district region, where the different varieties of mangoes are grown and
processed here we don’t find any significant or registered association for, pickle/Thandra
processors, and pulpers.
Nationalize banks are extending loans to purchase the machinery as well as towards
working capital to the unitholders.
Marketing players:
The Agents/ traders/processors during the season normally go to the nook and corner of the
The traders/agents who collect the produce from the farmers in each village supply to the
small/big mango processors and Pickle and Thandra making industries like Amma pickles
etc.,
After the mango is processed into different products like Pickle, Thandra, Pulp, Aamchur,
countries.

Need to collect the information
28.12. Cluster Map:
NRLM SHG DIC
Agriculture Farmers
Inputs Processing Financial

Units Institution
Commission
Agent &
Traders
Horticulture
Exporters Consumer
28.13. Value Chain:

• Fresh Market 78 % (14952.1 MT)
Total Mango
Production is • Process and Industrial Consumption 22 % (4222.9 MT)
19195 (MT)
• Local Fresh Consumption Within U.T is 45 % (8637.7 MT)

Fresh Market • Out State Fresh Consumption is 33 % (6334.3 MT)
Demand
• Local Processing 1.5% (287.9 MT)

Process and
• Processing Outside 20.5% (3934.9 MT)
Industrial
Consumption

Average Cost and Returns per Quintal of Mango Pickle
The total cost of production of mango pickle per quintals is Rs. 13660, of which 68 percent is
a variable cost, 18 percent is fixed cost and 14 percent is a marketing cost. Net income
generated per quintal is Rs.7760 with a benefit-cost ratio of 1.57.
Unit: Rs/Quintal
Sl.N Particulars Quantity Average Rate Cost Percent to
o (kgs) (Rs./kg) (Rs.) Total
Variable Cost
I. Raw Materials
1 Mango 100 25 2500 18.30
2 Salt 15 20 300 2.20
3 Fenugreek Powder 2.5 150 375 2.75
4 Turmeric Powder 1.5 70 105 0.77
5 Red Chilli Powder 1.5 130 195 1.43
6 Clove 2.5 180 450 3.29
7 Black Pepper 1.5 280 420 3.07
8 Cumin 1.5 110 165 1.21
9 Mustard Oil 25 120 3000 21.96
10 Asafetida 2 150 300 2.20
II. Packaging Material
11 Polythene bags 400 1.5 600 4.39
III Labor Cost 0
12 Labor Charge (No. and 5 180 900 6.59
Rs./100kg)
IV Fixed Cost
13 Rent Value of Building (Per 2500 2500 18.30
Month)
V Marketing Cost
14 Transportation (Rs.) 350 2.56
15 Marketing Cost (Rs.) 1500 1500 10.98
VI. Total Cost 153 13660 100.00
VII. Total Revenue 153 140 21420
VIII. Net Income 7760
IX. Benefit-Cost Ratio 1.57
Strength:
• There is a gradual rise in the demand for pickles, Thandra, and pulp across India as
well as overseas.
• Increasing demand for organically cultivated mangoes and their products
• A strong online presence is an added advantage for mango products.
• Less capital investment is required to start the mango pickle/Thandra-making unit
and requires no special training.
Weakness:
• Always there are fluctuations in the raw material prices.

• Mango Pickle/Thandra making is a seasonal business, as mangoes are not available
throughout the year.
• For mango pickle-making business from home requires a place and storage
tanks/barrels for storage with the preservation.
Opportunities:
• There is a gradual growth in the Food Processing Industry

• The growing number of hotels and restaurants and Pickle/Thandra/Pulp products
have the opportunity in selling at grocery stores, malls, food mess, canteens, etc.
• Mango Pulp/Thandra/pickle-making business has the scope of arranging stalls at
exhibitions, retail shops, selling door to door, etc, and online also.
• Mango products have good export demand.
Threats:
• Have a tough competition for the products in the market

• Competing substitutes such as lemon pickle, mixed pickle, chilli pickle, etc.
A Case Study on Pickle Manufacturer in Dadra and Nagar Haveli
This is the story of Shankar Pickles, a micro-unit from Silvasa Head Quarters in Dadra and
Nagar Haveli Union Territory.
Name of the Organization Shankar Pickle

Founded By Shankar Patel
Started In 2001
Number of Persons Involved 5
Manufacturer Praveen Shankar Patel, Dhokwadi, Silvasa,
Dadra, and Nagar Haveli
Formed and Support By None (Individually Established)
Training Received On None
Turn Over Per Annum Rs.8,00,000
Net Profit Per Annum Rs. 2,50,000 to 3,00,000
Shankar pickles were founded in 2001 by Shankar Patel with family members in Dhokwadi,
Silvasa headquarters in Dadra, and Nagar Haveli U.T, he started the business on his own
without any support from the government. Now his son Praveen Shankar Patel is looking
towards the business with his family and they are doing a transaction of Rs.8,00,000 per
annum with a net profit of Rs.2,50,000 to Rs. 3,00,000. They use to sell the pickles in
polythene covers without packaging, labeling, and branding.
Types of Pickles and Average Monthly Sale of Pickles
Sl.N Type of Average Monthly sale (in Price Monthly Turn over
o Pickle Kgs) (Rs./Kg) (Rs.)
1 Mango 350 120 42000
2 Lemon 120 120 14400
3 Chilli 150 120 18000
4 Mixed 100 120 12000
5 Total 720 86000
International Benchmarking-
Stakeholder Consultation
Individual Meeting- Need to conduct

Mediator’s exploitation:
In the absence of a direct link with the consumers, the farmers and processors are at the
mercy of the middlemen. This makes middlemen very powerful and the farmers often find
themselves at a disadvantage despite being the producers. In the Vizianagaram district, it’s
profitable for them to form a cartel and deliberately decrease the bids, pushing prices
lower.
Adequate marketing facilities are absent to the farmers and no room for an alternative
marketing system.
Processors need fair pricing of their raw material procured from the market. Presently, the
supply chain should be shortened to bring the producers as close to farmers as possible. Too
many intermediaries can be a deterrent to a processor, leaving them with an unfairly small
return on their produce.
To combat the exploitation of farmers and processors, we need to take active policy action
to increase farm productivity, post-harvest technology, and better storage facilities. If we
want the consumer to pay less and the farmer to gain more the role of private sector role
has to be enhanced by setting up private mandis where farmers can come and sell their
crops directly.
Machinery - Solar dryers:
There are nearly 20 units in the Vizianagaram district and they make about 750- 1,000 MT of
jelly during the season. None of these run the processing activity round the year except in
the season by processing the mango pulp. Some of these units use machinery process for
extracting the pulp from mango fruits.
Farmers require solar dryers at a subsidized price to improve the hygiene and quality of the
products. A mango jelly manufacturer in this district said that the increased cost of labor
and other expenditure, the returns in the form of financial aspect from the market are not
that much encouraging. The main drawback in this aspect is the open drying of mango jelly.
If the drying can be taken up in hygienic conditions get better than the present price. To get
a better price for mango processors they require solar dryers for a drying capacity of 1.50
MT at a time. The estimated cost of this is Rs 14.25 lakh for each dryer.
Storage tanks/ Godowns:
There is an acute shortage of storage tanks godowns, storage tanks, machinery, driers,
washing equipment, etc., Big unit holders process nearly 8-10 thousand tonnes per year
while small unit holders process nearly 4-5 thousand tonnes in a year. Their profit margins
are very less i.e. they are operating the business under 2-3 % margin and they are unable to
buy necessary equipment and construct godowns for storing the finished product since the
product life is 7-8 months after processing so they need to take proper care in storing the
finished pickle. If they are provided with financial assistance there is every chance to
improve their business as well as income and can provide much employment.
Cold Storage:
At present they are supplying the finished product across the states in India and they are
supplying against cash and credit to their customers and they don’t have proper marketing
experience to export the finished product. If they are supported to export the finished
products then they can develop their business in turn India gets more money from other
countries.
Rating of Response Count and Response Percentage
• Public infrastructuremajority of respondents expressed that they are having good

• Access to Common Facilities majority of respondents expressed that they are having
moderate access to common facilities such as grading, sorting, packaging, etc within
the district.
• Access to Testing Facilities majority of respondents expressed that they are not
having good testing facilities in their respective units.
• Compliance with standards and the frequency of inspections from the safety
regulators majority of respondents expressed that they are not undergone any kind
of inspection for safety regulators.
• Skill training needs a majority of respondents are semi-skilled laborers and

expressed the need for training to improve their skills.
• Technologies Availablemajority of the respondents opined that they are not having
modern technologies and expressed that they need training on post-harvest
technologies.
• Access to finance most of the respondents are seeking finance to upgrade their
existing units and currently, they are having poor access to finance.
• Access to mentorship/ servicemost of the respondents are seeking for good

mentorship to expand their business and to improve their livelihood.
• Awareness of Govt Policies among micro /small manufacturesmajority of them are

not much aware of government policies in the MSME sector.
• Awareness on ODOP product of the District majority of them are not aware of
ODOP product in district
• Marketing/sales facilitiesmost of them are expressed that they have proper

marketing and sales facilities.
Response
Particulars
Count
Not
Responded
A - Public infrastructure such as roads for
20 11 24 5 207 1 268
B - Access to common facilities such as
grading, sorting, packaging, cold chain 16 50 2 0 199 1 268
facilities, etc.
D - Compliance to standards and the
frequency of inspections from the safety 222 29 14 2 0 1 268
regulators
J - Awareness on Govt Policies among micro
231 34 2 0 0 1 268
/small manufactures
K - Awareness on ODOP product of the District 221 43 3 0 0 1 268
31. Recommendations:

Vision Statement:
since the unitholders at present are drying the pulp naturally under the hot sun so
(Quantity wise)
Objectives

groups, and common infrastructure unitholders

InLakhs)
together
Common Infrastructure (incubator) 4 100 The high potential that this
lines common infrastructure will be
successful
Training, Branding & Marketing 65 There is a lot from Vizianagaram
to be marketed. Training goes
hand in hand
Incubation Center
Incubation Center will be made available for the end-users on a custom hiring basis for start-
ups and smaller food processing units. But it should run on a commercial basis for full
minimum of 7000 sq. ft.
Cost norms for setting up Incubation Center at Vizianagaram District

Center shall be supported by PM FME Scheme with a grant of Rs.1.0 crore (Rupees One
Products

Labeling/ Packaging
/Outside district
Total
Fund Requirement (Observation from Primary Survey)
Category Wise Fund Requirement by ODOP Processing Units in Vizianagaram District

During a primary survey in Vizianagaram, District respondents expressed that they required
funds to upgrade their existing units. 96% of the respondents require funds for the purchase
of machinery followed by infrastructure development (12%) and capital investment (1%)
respectively.
Sl.No Particulars Fund Category Wise Fund Requiremnet by ODOP

Requirement Processing Respondents in Vizianagaram
District
(Rs. in
96%
Crores)
2 Machinery 3.871
3 Packaging 0.005 3% 0%
4 Total 4.034 Infrastructure Machinery Packaging
have surveyed 252 samples are falling under ODOP micro-enterprises. Since the number is
S.N What for No. of Approximate amount (Rs. Subsidy (Rs.in Lakhs)
o Respondents in Crores) Individual
I Infrastructu 7 0.133 10
re
Godown 6 0.098
Transportati 1 0.035
on
II Machinery 244 3.871 10
Cutting 121 1.481
Machine
Filling 7 0.21
Machine
Packing 1 0.03
Machine
Pulping 115 2.15
Machine
III Packaging 1 0.005 0.18
Packaging 1 0.005
IV Grand Total 252 4.009
Common infrastructure
Funds required for common Infrastructure-
Establishing a pulp unit requires nearly 13-15 crores if it is an aseptic unit and it requires 6-7
crores for establishing a canning unit. Generally, mango processing is done in season for 60-
75 days only. The Vizianagaram district does not have processing units so they supply raw
material to the processing units located in Chittoor district and get it job work done.
In the Vizianagaram district, Parvathipuram is the right place where the common
infrastructure is suggested since the raw material is available on large scale and the big
farmers, traders can go for job work.
Aseptic
1 Machinery 140 8 crore
Caning industry
1 Machinery 140 0.8 crore


Beauty of product
Natural/organic
Sugar content
firms. Since the small firms are viable, support and incentive should be given to them
so that they overcome the problems.
• The cooperative societies should be set up to help the small firms to increase their
harvesting packaging, storage, grading, etc. This wastage can be reduced to some
extent through proper and scientific methods Post-harvest management can be
considered as a second production operation to add value to the products.
• While processing the pickles the semi-finished pickle is stored in plastic barrels.
Pickle units are in badly need of plastic barrels or storage tanks for storing the semi-
finished/salted pickles and the semi-finished produce is taken as and when required
in necessary quantities for manufacturing the pickles. The Agency can support the
small and micro pickle units by providing mixer machines for easy making of pickles
at subsidy prices
• Packaging fresh mango pickles/Thandra/pulp is one of the most important steps in
the long and complicated journey from grower to consumer. Bottles, aseptic bags,
covers, cartons, barrels, crates, baskets are convenient containers for handling,
transporting, and marketing fresh produce. Packaging of fruits in standard containers
is one way to reduce cost,
• The number of self-help members can form a cooperative society and market their
products like pickles, Thandra, pulp, and dehydrated mango slices they can supply to
the other districts, states, and can export to other countries.
• Govt should promote their product sales by organizing exhibitions, stalls. They have
to extend financial assistance towards capital expenditure like procuring raw
materials, storing material, opening outlets/showrooms to operate their products.
• For the Thandra/jelly manufacturers government should provide the boilers, pans,
air dryers, & packing machines, etc., at subsidy prices for the smooth running of the
business. At present they are heating the pulp normally which is not hygienic. Also,
they support the Thandra unitholders by providing cutting machines. Since there are
more untapped markets for Thandra in Telugu states, creating awareness in the
untapped districts can promote Thandra sales.
• Transportation subsidies can offer to the farmers/traders during the raw/ripen
mangoes are trading at significantly lower prices

• With the support of state government policies, the value chain of mangoes can be
• Self Help groups and NGOs in the state must promote mango processed products
like pickles to strengthen the value chain. Policy suggestions, training to mango
growers at the time of harvesting, encouraging investments in the value chain
processors to reduce post-harvest loss, and provide advance credit or loan facilities
should be the norm.
• Mango growers in the state are facing problems owing to the erratic climatic
conditions, high cost of cultivation, and lack of support in providing the minimum
support prices, and remunerative prices for farmers.
• The absence of mechanized grading systems has left the farmers with manual
methods. They also face constraints when it comes to the availability of packaging
material and unscientific pre and post-harvest management, limited processing units
close to mango growing areas, lower production of a suitable variety of processing
mangoes, lack of quality and suitable variety, lack of transportation, and storage
facilities, among other issues.
• Increasing the finances for mango production, improving efficiency and repayment
of loans, strengthening linkages among participants in value chains are badly
needed.
• The state government should be helping in providing market intelligence to the
farmers which, in turn, will strengthen the value chain of mangoes.
• The government and cooperatives need to develop the processing units in the
mango growing areas. This will help processors purchase raw materials at a
reasonable price.
• The majority of the consumers purchase both fresh/table consumption as well as
arrangements for domestic and export promotion of value-added products of
mango.
• The mango value chain analysis is a market-oriented approach. It is important to
• There is a strong need to discuss and sort out various issues related among people of
various categories to increase the level of value addition and improve the quality of
value-added food products for the domestic market as well as export.
Contents
1. Baseline Assessment studies: ....................................................................................................... 638
1.1. Agriculture Profiling of the Districts in the State ...................................................................... 641
1.2. Percentage Share of Area under Agriculture and Horticultural Crops in West Godavari
District in 2019-20 ................................................................................................................................. 642
agricultural produce of the district- ...................................................................................................... 642
1.4. Perishable nature of the produce – .......................................................................................... 643
states 643
2.1. Number of workers engaged in the ODOP cultivation ............................................................. 644
Product. ................................................................................................................................................. 645
2.3. Non-ODOP produce as a percentage of total agricultural produce of the district ................... 645
2.4. Perishable nature of the produce ............................................................................................. 646
2.5. Number of workers engaged in the cultivation of each of the Non-ODOP products. .............. 646
Enterprises in the State:........................................................................................................................ 647
3.1. Assessment of Food Processing Policies in the State: ................... Error! Bookmark not defined.
sectors: ....................................................................................................... Error! Bookmark not defined.
3.3. Assessment of existing Regulatory frameworks for FPI ................. Error! Bookmark not defined.
3.4. Stakeholder Mapping ................................................................................................................ 649
4. Profiling of existing Micro Enterprises eco system: ...................................................................... 649
4.1. Industrial Profile of the Districts in the State............................................................................ 649
4.2. Identifying Non-ODOP Products ............................................................................................... 650
4.3. District wise profiling based on secondary research ................................................................ 650
4.4. Detailed Cluster Study for ODOP Products - How are going to do cluster study. .................... 664
5. Industry and Market Analysis ....................................................................................................... 665
5.1. Introduction .............................................................................................................................. 665
5.2. Nutritive Value and Health Benefits ......................................................................................... 665
May boost brain health ......................................................................................................................... 665
A good dietary sources of vitamin D ..................................................................................................... 666
May help prevent asthma in children ................................................................................................... 666
Fish may improve sleep quality ............................................................................................................ 666
5.3. Global Market for the Product .................................................................................................. 667
5.4. Indian Market & Valuation for the Product .............................................................................. 670
5.5. Manufacturing Process: ............................................................................................................ 671
5.6. District Profiling......................................................................................................................... 672
5.7. Industrial Profiling ..................................................................................................................... 672
5.8. Cluster Actors ............................................................................................................................ 682
5.9. Existing Government Schemes: ................................................................................................ 684
5.10. Cluster Map: .......................................................................................................................... 691
5.11. Value Chain: .......................................................................................................................... 693
5.12. Product Cost Analysis: ........................................................................................................... 694
5.13. SWOT Analysis:...................................................................................................................... 695
6. Benchmarking Studies................................................................................................................... 696
7. Stakeholder Consultation.............................................................................................................. 697
8. Agenda points & discussions......................................................................................................... 698
9. Recommendations: ....................................................................................................................... 699
WEST GODAVARI DISTRICT

India has vast potential for fisheries in view of our long coastline of about 8,118 kms apart
from the inland water resources. The fish production estimated for the country in 2019-20 is
about 14.16 million tonnes. Fishery business has enormous potential to accelerate Indian
Economy by earning foreign currency and the contribution of fisheries sector in Indian
economy is 212915 crores , approximate total quantity of exports are 12,89,651 tonnes and
exports value of fisheries is INR 46,662 crores
Indian climate conditions are very much suitable for the development of aquaculture.
Countries like the U.S.A., Japan, and other European countries consume more aqua foods
but they don’t have proper climatic conditions to adopt this culture
In India, the first feed company was in Andhra
Pradesh at Nellore named as Water Base. The tropical conditions are suitable to do this type of
culture in Andhra Pradesh and the remaining other Coastal states in India. The total requirements of
the feed-in doing culture are consumed around 80% by Andhra Pradesh. The major companies are
Water base at Nellore, and Avanti Feeds Limited at Kovvuru, West Godavari district, Andhra Pradesh
occupies second place in feed production. Major aqua feeds industries are located in India.
West Godavari District is well developed in Fisheries with Resources of Fishery wealth in Marine,
Brackish Water, Reservoir, and Inland Fisheries. It is the aqua hub of Andhra Pradesh. Blue
Revolution is well expressed in this district through a multi-pronged approach which includes the
introduction of fast-growing, high-yielding species
West Godavari district lies between 16ο 15′ and 17ο 30 N and 80ο 55′ and 81ο 55′ E and has an area
of 10,807 sq. km. It is a major rice-producing region in the state with 56% of the total area of the
district under rice cultivation. Generally, farmers of the district culture both L. vannamei and tiger
shrimp Penaeusmonodon, because of their high market value. Out of the 46 mandals of the district,
7 (Narsapur, Mogalthur, Elamanchili, Palakol, Palakoderu, Veeravasaram, and Bhimavaram) mandals
are major mandals where aquaculture practices, water, feed, and health management are followed
by the farmers.
In West Godavari district there are nearly 60 processing units located in the mandals of Bhimvaram,
Tanuku, and Narsapuram, etc., while major aqua cultured mandals are Narsapuram, Mogalthur,
Elamanchali, Palakollu, Palakoderu, Veerasaram, and Bhimvaram and the marine products and their
varieties are Shrimp( Vannamei& Tiger),Dry Shrimp,Frozen
shrimp,Fish(Vanjaram,Konam,fungus,Isukadondu,Kattiparugulu,Bommidai,Tilapai,Nethallu,Pandugu
ppa,Korramenu,Catla and RohuEtc),Live fish and Frozen fish
Total Aqua Culture area Registered 67,518.30 ha

Area Registered 59,602.80 ha
Area unregistered 7915.50 ha
No of Aqua farmers 26,580 (registered)
Total Mandals 48

The geographical area of the West Godavari district is 8.50 thousand square kilometers. The net
sown area and gross cropped area in the district is 396.36 thousand hectares (including fish pond)
and 660.42 thousand hectares respectively in 2018-19.
The major agriculture crops grown in the district are Paddy, Maize,Green gram, Black gram,
Groundnut, Chillies, Sugarcane, Tobacco, and cotton in 2018-19. The predominant fruits and
vegetable crops cultivated in districts are Banana, Guava,Lemon, Mango, Papaya, Pineapple,Sapota,
Water Melon, Brinjal, Cabbage, Cauliflower, Chillies, and Tomato. And plantation crops grown in the
district are Cashew nut, Coconut, and Cocoa.
Sl.No Particulars Unit Year State District

(a) Gross Cropped Area In '000' Hect. 2018-19 7,296.63 660.422
(b) Net Cropped Area (including fish ponds) In '000' Hect. 2018-19 6,048.53 396.367
(c) Gross Irrigated Area In '000' Hect. 2018-19 3,634.91 594.176
(d) Net Area Irrigated In '000' Hect. 2018-19 2,795.62 330.121
32.2. Percentage Share of Area under Agriculture and Horticultural

Crops in West Godavari District in 2019-20
Total agriculture production of West Godavari district in 2019-20 is 5517 thousand tons. Foodgrains
contribute 56% to total agriculture production inthe district followed by Oilseeds 25%, Fruits15%,
Vegetables3%, and Commercial Crops1% respectively.
32.3. Total Production of the Produce in the District and ODOP

produce as a percentage of total agricultural production of the
district-
In West Godavari district Fish and Prawn Culture grew in 66066 hectares in 2018-19. Total fish
production (Inland + Marine) in the district is 1051.7 thousand tons and a value of INR 13066crores.
Inland fish production contributes 99% of total fish production in the district in 2018-19.
Sl.No Particulars Production ('000 Tons) Value Rs. in Crores

1 Inland Fish 1037.0 12959.8
2 Marine Fish 14.7 106.2
3 Total 1051.8 13066.0
Fish and its value-added products are highly perishable. Raw fish can be stored for upto 10 days with
proper ice packing and other fish value-added products of perishable nature are listed below the
table.
Name of the Perishable nature of the Shelf-life of the product

produce produce
Fish Highly perishable Can be stored for up to 10 days with ice
packing
Fish Pickle Moderately perishable Can be stored for up to 1 year
Canned fish Moderately perishable Can be stored 12-18 months
Dried/smoked fish Moderately perishable Can be stored for up to 6 months
32.5. Production of ODOP Agriculture Produce in that district

compared to other districts and states
During 2018-19 the total production of fish is 3992.36 thousand tons in Andhra Pradesh State.
Krishna and West Godavari districts contribute 1230.55 thousand tons and 1051.75 thousand tons of
fish to the total fish production to the state.
During 2018-19, fish production in India is 13421.56 thousand tons. Andhra Pradesh was the leading
fish producing state in India with the contribution of about 30 percent of the total fish production;
West Bengal was the second leading fish producing state in India with the contribution of 13 percent
and other major fish producing states in India are Gujarat (5%) and Kerala (5%).
Fish production in West Bengal state is 1770.31 thousand tons. West Godavari district (Andhra
Pradesh State) fish production is around 59 % of the West Bengal state total fish production in 2018-
19 and also contributes around 8 % to overall India fish production in the same year.
Sl.No State Fish Production ('000 Tons) % Share to All India Fish Production
1 West Godavari 1051.75 8%
2 Krishna 1230.55 9%
II West Bengal 1770.31 13%
III Kerala 714.46 5%
IV Gujarat 724.67 5%
V India 13421.56 100%
33.

West Godavari district is well developed in fisheries with resources of fishery wealth in Marine,
Brackish Water, Reservoir, and Inland fisheries.2.69 lakh populations depend on fisheries for their
livelihood in the district and 39% of them are active fishermen.
Sl.No Particulars Fishermen Population Active Fishermen

1 Marine Fisheries 56890 21867
2 Inland Fisheries 213030 84120
3 Total 269920 105987
Nearly 13000-14000 laborers are working across the West Godavari district in about the 50-
60processing units and skilled labor that is who does cutting, grading packing will be nearly 30-40%
and the other labor i.e. who does other activity (Semi-skilled labor) will be nearly 60-70%.
Non-ODOP:
The Non – ODOP crop/products chosen inthe West Godavari district are Paddy, Sugarcane, Maize,
Tobacco, and Coconut
33.2. What other Major crops are being cultivated apart from the
chosen ODOP Product.
The major crops grown in the district are Paddy, Maize,Green gram, Black gram, Groundnut, Chillies,
Sugarcane, Tobacco, and cotton.
33.3. Non-ODOP produce as a percentage of total agricultural

production of the district
contributes around 48% to total agriculture production of value around 4.81 crores in West Godavari
district in 2019-20.Other Non-ODOP produce in the district is Maize, sugarcane, Tobacco, and Cotton
as the production of 431.81 thousand tons, 0.76 thousand tons, 24.91 thousand tons, and 6.62
thousand tons respectively.
1 Paddy 2649.96 4.81 48%
2 Maize 439.81 0.77 8%
3 Sugarcane 0.76 0.00 0%
4 Tobacco 24.91 0.19 0%
5 Cotton 6.62 0.03 0%
Production
Non-ODOP processed products such as rice flour, papad, flaked rice, maize starch powder, maize
flour, raw sugar, cotton vegetable oil, and cottonseed meal are nonperishable.

I Paddy
1 Papad 6 Months
II Maize
III Sugarcane
2 Sugarcane Juice Refrigerated upto 2 to 3 Weeks, fresh juice upto 8 hours
VI Cotton
1 Cotton Seed Oil 6 Months
2 Cotton Seed Meal 12 Months
33.5. The number of workers engaged in the cultivation of each of

the Non-ODOP products.
The total area under Paddy, Maize, Sugarcane, Tobacco, and Cotton is 472.6 thousand
hectares with a production of 3122.06 thousand tons. Around 177 thousand households are
involved in Paddy, Maize, Sugarcane Tobacco, and Cotton cultivation with a population of
around 708 thousand people. Approximately 18 percentof the total population in the West
Godavari district is engaged in Non-ODOP cultivation.
34. Assessment of the existing Policy and Regulatory frameworks for FPI and FPI
Micro Enterprises in the State:
Aquaculture and processing are some of the sources of food and income in the West
Godavari district. Management of a sector that has major implications for the aquatic
ecosystem, environment, and general aquatic health, must be based on a sound regulatory
framework that is managed by stable institutional set-ups. Many considerations must be
taken into account. Public sector institutions play a particularly important role in this regard,
which should carefully map out the objectives and goals of a national aquaculture sector.
The institutional foundations and the basic legal rules should support and protect
aquaculture farmers, encourage investments in the country, ensure that the production
sustains regional and international standards for export and consumption, and in general
protect the environment.
This framework should include minimum requirements for the procedures. Other possible
methods for regulating aquaculture activities include bans, restrictions, land-use
classification and zoning, environmental impact assessment, mitigation plans, permits, and
monitoring requirements. Specific methods applied widely to regulating aquaculture include
environmental impact assessments, effluent discharge permits, limitations on the use of
non-native species, restrictions on drug and chemical uses, standards for feed composition,
restrictions on feed use, and other management practices.
The most important role for national governments is to plan and sustainably administer the
expansion of aquaculture. It is the exclusive role of the government to set the national
agenda for aquaculture development, including the necessary administrative, regulatory,
and enforcement mechanisms for its realization. Comprehensive public-sector development
and planning for aquacultural policy have become more prevalent. Governments wanting to
foster sustainability should develop clear and achievable policies for aquacultural
development, based on financial, social, and environmental sustainability
Legal requirements for developing industrial aquaculture
The aquaculture legal framework must provide the operator with a secure right to conduct
aquaculture operations on the property where the fish farm will be located, and to the
water of good quality.
Licensing system:
The first step in controlling aquaculture activities is to require an operator to obtain

authorization or a license before undertaking aquaculture activities. The title of the
document is not important whether it is called authorization, permit, or license, the term
employed will depend on its common usage or practices within an individual.
However, the document needs to perform two basic functions.
First, the permit must provide the government authorities with the legal basis to control all
aquaculture operations and to supervise their environmental impacts. This enables the
government to assess the environmental sustainability of the proposal, and to impose
conditions that require that the farm be operated sustainably. Secondly, the permit should
also provide farmers with a clear right to operate the aquaculture facility, as long as the
operator complies with the terms of the permit, the relevant environmental laws.
Access to land
The acquisition of land for aquaculture activities depends on the general system of land
ownership and landholding in each national jurisdiction.
The farmer must obtain a secure legal right to the lands on which the farm is located. In the
case of freshwater aquaculture, this is most often not a major problem, as land laws
typically allow farmers to obtain ownership interests. However, when the land is owned by
the state, located in coastal zones, or held under a traditional tenure system, special
considerations may apply.
Access to water resources
Although the supply of an adequate quantity of water, of sufficient quality, is essential for
any aquaculture installation, meeting this need can also lead to conflicts with other water
users who seek to use the same water for other purposes such as agriculture, fishing,
industry, recreational activities, or drinking water supply purposes. Because of this
competition, there can be major problems with access to water for fish farming. The general
tendency is for states to control water use through environmental licenses.
Environmental management in aquaculture
Government and the private sector traditionally share the responsibility of ensuring
environmental quality. Government is responsible for establishing standards for
environmental management and adopting regulations and laws to enforce compliance with
these standards. The private sector is responsible for the cost of evaluations to determine
possible ecological impacts, but governments must provide guidelines and approve the
conclusions and recommendations of such evaluations.
Effluent regulation
A major concern arising from the operation of aquaculture farms lies in their capacity to
produce large amounts of waste products which, if not properly managed, are capable of
having serious detrimental effects upon the environment. Waste products can impact the
receiving aquatic environment and pose a hazard to human health.
There are two distinct regulatory approaches to the control of unsatisfactory effluent from
fish farms. The first is the imposition of a discharge licensing scheme that sets maximum
quantities of contaminants that may be present in wastewater from fish farms, with an
associated sanction when these quantities are exceeded.
The second approach involves the prohibition or restriction of the use of particular drugs
and chemicals which are known to have a damaging effect upon the quality of receiving
waters and ecosystems.
Discharge licensing systems that include water quality and/or water volume criteria require
regular monitoring at specified intervals to demonstrate compliance. This kind of discharge
licensing is suitable for large operations with one or more effluent outfalls.
Shrimp farming offers an excellent employment opportunity through a series of backward and
forward linkage activities and accordingly, a different group of people (stakeholders) are directly and
indirectly involved in the shrimp industry and they are shrimp farmers, shrimp farm laborers,
traders, exporters, workers and owners of related.
Stakeholders are:
• Aquaculturists
• Feed suppliers & manufacturers
• Wholesalers & Retailers
• Drug, chemical & equipment suppliers
• Govt officials in aquaculture, fisheries & coastal zone management
• Traders & Exporters

produce, and Agro-based products, Handicrafts, and Engineering products.
In the West Godavari district of Andhra Pradesh State, there are 69 large-scale industries, and
2090 MSME factories are registered and provided employment around 25165 persons during
2019-20. The major activities of the industries in the district are Textile & Jute, Food Processing,
Chemical & Allied Industries, Metal-based industries, Mineral based industries, and Paper
products.

Identified Non – ODOP products through the primary survey in the district are listed below table;

4 Sugarcane Raw Sugar, Juice, Jaggery
kkk. Is the district recognized with the ODOP product?

Yes the district recognized the ODOP product
Awareness about the ODOP Product in West Godavari District
The primary survey observed that a cent of respondents is not aware of ODOP product in the
district.
Response Response
Particulars
Count Percentage
Yes 0 0%
No 386 100%
Total 386 100%
lll. Has the product been granted Geographical Indication status by the Government of India?
No, and there is a need to be identified and given a geographical identity. The Department of
Fisheries Horticulture may identify and make efforts to enlist the places linked with a particular
variety of marine foods.
mmm. Special nature and relationship of the product with the district, uniqueness,
history, etc?
The uniqueness of shrimp is characterized by a semitransparent body flattened from side to side
and a flexible abdomen terminating in a fanlike tail.
nnn. Level of processing happening for ODOP in the district, in other districts, and
outside the State.
Nearly 50- 60 processing units are functioning in the district and nearly 13000-14000 laborers are
working in the 60 processing units across the West Godavari district and skilled labor is who does
cutting, grading packing will be nearly 30-40% and the other labor i.e. who does other activity (Semi-
skilled labor) will be nearly 60-70%.
Shrimp Culture :
• Litopenaeusvannameiis the scientific name of our culture shrimp.

• It is a low saline species that can grow in salinities ranging from 0 to 10 ppt
• It is having good export demand and a highly profitable culture
Best Management Practices adopted
• Drying of the pond for 1 month between every crop

• Maintenance of 2 reservoir ponds for filling of stocking ponds
• Hatchery seed
• Acclimatization of seed during stocking
Nursery Management for seed rearing
• Continuous Aeration to avoid depletion of Dissolved oxygen

• Testing of water quality parameters fortnightly
• Maintenance of bird and crab fencing as a biosecurity measure
Culture Practice adopted
• The pond will be dried for one month after every cycle of culture.
• After filling treated water from the reservoir, seed from the hatchery i.e., PL 10 to 15
will be stocked in nursery ponds
• Up to one-month seed rearing activity will be taken in nursery ponds
• Then the seed will be transferred to the culture pond for the remaining culture period
i.e., for 2 to 3 months.
• After attaining the marketable size harvest will be done
Processing :
Peeling
The change in shrimp size from shell-on through peeling, cooking, and breading.
Tail on
Headless, peeled & deveined shrimp in which the tail has not been removed.
Tail off
Headless, peeled & deveined shrimp in which the tail has been removed.
ooo. Mapping of the Micro, Small, Medium and Large Industries in the District (Total
number of Units)
In the West Godavari district of Andhra Pradesh State, there are 69 large-scale industries, and
2090 MSME factories are registered and provided employment around 25165 persons during
2019-20.
Mode of Operation
The primary survey observed that among 386 respondents, 250 respondents own the proprietorship
of the company/unit followed by 103 respondents are operating a business at the household level,
20 respondents are operating a business with a partnership, and 12 respondents who are operating
the business as a private company.

Count Percentage
Household 103 27%
Partnership 20 5%
Pvt. Ltd 12 3%
Society/SHG 1 0%
Total 386 100%
Classification of ODOP and Non-ODOP Processing Industries in West Godavari District
The primary survey observed that among 386 visited industries, 155 industries are small units
followed by 101 micro-units, 94 household units, and 36medium units.

Count Percentage
Small 155 40%
Micro 101 26%
Household 94 24%
Medium 36 9%
Total 386 100%
Count Percentage
Yes 156 40%
No 228 59%
In Process 2 1%
Total 386 100% Registration of Industries
The primary survey observed that among the

visited ODOP and Non-ODOP processing industries in West Godavari district, 228 industries/units are
unregistered and 156 industries/units are registered.
Classification of Industries by Registration in Krishna District
The primary survey observed that out of 155small units 97 units are registered ODOP and Non-ODOP
processing industries/units in West Godavari district followed by 33 registered micro-units and 27
registered medium units in the district.
Particulars Registered Unregistered Total
Small 97 58 155
Micro 33 68 101
Household 1 93 94
Medium 27 9 36
Total 158 228 386
ppp. Number of clusters engaged in the processing of this product;
qqq. Number of workers engaged in the ODOP processing;
The total number of Workers Engaged in ODOP Processing Industries in West Godavari District are
approximately 13000-13500
Number of Workers Engaged in ODOP and Non-ODOP Processing Industries in West Godavari
District
The primary survey observed that 5934 workers engaged in ODOP and Non-ODOPprocessing
industries/units in the West Godavari district.
Medium 1260 1957 3217
Micro 499 301 800
Small 676 668 1344
Total 2704 3230 5934
rrr. Marketing linkages within the district, state, and outside
In the West Godavari district, it is the regular practice of the trader's purchase product from
farmers &sells to Processing units and other mandals wholesalers, retailers, etc.
State:Mediators purchase products from farmers,process them,pack them in iceboxes, and
export them to other states as well as to the other countries. Processing units will export
products to other states as Blocked Ice Frozen Shrimp
sss. Level of infrastructure for ODOP processing within the district, in other districts, and
States.
In the West Godavari district out of 48 mandals the total aquacultured registered area, total
area registered, unregistered area, and the total number of Aqua farmers are furnished
hereunder.
Total Aqua Culture area Registered 67,518.30 ha

Area Registered 59,602.80 ha
Area unregistered 7915.50 ha
Total Mandals 48
In West Godavari district there are nearly 60 processing units located in the mandals of
Bhimvaram, Tanuku, and Narsapuram, etc., while major aquaculturedmandals are Narsapur,
Mogalthur, Elamanchali, Palakollu, Palakoderu, Veerasaram, and Bheemavaram and the
marine products and their varieties are Shrimp( Vannamei& Tiger),Dry Shrimp,Frozen
shrimp,Fish(Vanjaram,Konam,fungus,Isukadondu,Kattiparugulu,Bommidai,Tilapai,Nethallu,P
anduguppa,Korramenu,Catla and RohuEtc),Live fish and Frozen fish.
Presently, the fish processing industry is utilizing less than 30 to 40% of its installed capacity
due to raw material shortage and its inability to meet the market demand for value-added
products and safety-related regulations of importing countries.
Shrimp Cultivation is a three-stage process:
1. Hatcheries
2. Cultivation
3. Processing Plants
Hatcheries:
The hatcheries prepare seeds for the farmers. The production of seeds in
hatcheries depends on the available stock and quality. By collecting matured
individuals from the wild (seas) and taking care of them for a few more weeks in
the hatcheries.
Selection of land for culture:

The most important step is to select the land carefully with facilities like 24hrs power supplyline,
human workforce, soil, and transportation, etc.
Soil type:
The soil type is most critical in site selection since the shrimp will spend most of the time on the
pond bottom during the culture period.
Construction of ponds:
There is no unique design for the construction of ponds and design should be based on physical and
economic conditions, Caring should be taken from birds and animals.
Pond management:
Before a pond is used to obtain a new crop, wastage that comes from the previous crop should
remove, check soil and water condition.
Stocking:
The most suitable species for culture in Andhra Pradesh are the Indian white prawn(Vannamei) and
Tiger prawn.
Seed Selection:
We should select good quality seeds for good production, this plays a crucial role. We can purchase
healthy seeds from good hatcheries.
Feeding in Shrimp Cultivation:

The cost of feed plays a major part in shrimp cultivation, it consists 50-70% of the total production
cost. If we use good feed within the time then we can get good production which increases profits.
We should check every week to observe the growth of shrimp and diseases, if in case no growth is
seen in the first week then we have to harvest that pond earlier which leads to saving investment for
further. This process we can call Weekly netting.
Water Quality Management:
We have to check water quality in Aqua labs,in our district we had more than 500 aqua labs.
Aerators:
These are used to give more oxygen to shrimp. Paddlewheel or spiral aerators are used in shrimp
cultivation.
Harvesting:
The best time for harvesting is early in the morning and we should be complete before mid-
morning,harvesting can be done by removing water from the pond and by handpicking and nets. We
can get two crops per year. Harvesting depends on the size and condition of the shrimp.Later shrimp
should be iced and transported to cold storage or processing plants in less than 10hrs
Processing Plants:
Preprocessing, Processing, Packaging & Storage along with transportation facilities and
technology to the processing industries, both farmers and processors engaged in the aqua
food processing industry.
Processing units established backward and forward linkages covering the entire aqua food
processing value chain, quality assurance, food safety, and implementation of best practices
in post-harvest management. The processing units shall make available the latest food
processing technologies to Fish & Shrimp farmers, Companies, Exporters, and Marketers
through international tie-ups. The profit can be increased by value-addition to the shrimp in
the form of shrimp pickles, ready-to-cook, etc.
ttt. Total production value of the ODOP product manufactured in the district and as % of total
uuu. Number of enterprises involved in the processing of this product and as a % share
of the total number of micro food processing enterprises in that district;
In West Godavari district there are nearly 60 processing units located in the mandals
of Bhimvaram, Tanuku, and Narsapuram, etc., while major aquaculturedmandals are
Narsapur, Mogalthur, Elamanchali, Palakollu, Palakoderu, Veerasaram, and
Bheemavaram
vvv. The number of Self Help Groups and Farmer Producer Organizations engaged in
the processing of this product.
There are nearly 79,249 Self Helf Groups in the West Godavari district
www. Sale of this product to other districts, states and exported to other countries
West Godavari Market information:

Total registered aqua area and farmers
Total Aqua Culture area Registered 67,518.30 hect
Area Registered 59,602.80 hect
Area unregistered 7915.50 hect
Total Mandals 48
No of mandals in which aquaculture exists 29
Products:
Shrimp Export
Shrimp Pickle
Shrimp Powder
Dry Shrimp
Shrimp export sales :

Classification of No of units Production per Production per Sales Per
units day (approx) in month(approx) Month(Approx)in
Tonne in Tonne Tonne
Small 50 70 2,200 2000
Medium 200 120 3,000 3,000
Large 18 250 7,500 7,000
Total 268 440 12,700 12,000
80% Production From Large Units Will Be Export Other Countries Like Japan, USA,
European countries, China, South East & Middle East, etc.
Country-wise exports from India:

Market 2019-20(MT) 2020-21(MT)
Japan 78500 86000
USA 305000 291000
European 165000 153000
China 330000 218500
South East 223500 217800
Middle East 57500 48000
Size of Packing-250Kg Box With -18 Degrees Temp

(Frozen Shrimp, Dried Item & Chilled Item)
Production from medium units are exported to the other states like Telangana, Karnataka,
Kerala, Mumbai, Kolkatta, etc.,
Production from Small & Medium units are supplied to household restaurants, functions,
Supermarkets & Local Markets.
Size Of packing-Kg bags (Raw Shrimp)
Price range:
30 count- INR 430/-
40 count-INR 310/-
50 count-INR 260/-
70 count-INR 220/-
80 count- INR 200/-
90 count- INR190/-
100 count-INR 180/-
Note: Pieces per kg is considered as COUNT
Port wise exports:

From these ports Frozen shrimp, headloss tail-on will be exported.
Port 2019-20(MT) 2020-21(MT)

Vishakapatnam 242000 210000
Kakinada 8900 8900
Krishnapatnam 97000 65000
Shelf life:
Blocked Ice Frozen Shrimp (-18degrees): 18-24 months
Raw Shrimp(Thermacol Box Packing)-3Days with Blocked Ice Packing
Raw Shrimp in Markets-5 Days When kept In Freezer
Shrimp Pickle sales per month:
Sales of each unit / Total Sales per

Classification of units No of units (aprx) Month(Approx)in Kg Month(Approx)in Tonnes
Small 350 150 53
Medium 50 500 25
Total 360 650 234
The price range of different varieties:

• Shrimp(small)-1000/- Kg
• Shrimp(Large)-1200/- Kg
• Fish(Seelavathi)-600/-Kg
• Fish(Korameenu)-1200/-Kg
• Fish(Panduguppa)-1200/- Kg
• Fish(Metthallu)-1000/-Kg
Packaging: 1/4kg to 1kg

Shelf life: 45Days – 60 days When stored In the freezer.
The majority of pickles are made and sold in Bhimavaram which is called as aqua hub of Andhra Pradesh and the
larger quantity i.e. nearly 80% is sold unbranded and nearly 20% is being sold in the brand.
Dry Shrimp Powder:
Sales of each unit / Total Sales per

Classification of units No of units (aprx)
Month(Approx)in Kg Month(Approx)in Tonnes
Small 80-100 200-250 25
Packaging: 200gm to 1Kg Shelf life: 4Months
Dry Shrimp
Sales of each per month Sales per month(Approx)in
Classification of units No of units
(Approx)in KG tonnes
Small 100 120-150 15
Price range: 300-500/-Kg

Items:
Poturoyyalu, oosaroyyalu
Shelf life:
2 months when stored in the freezer.
xxx. Mapping the value chain aspect
Domestic fish marketing is primarily dominated by the private players with the involvement of
different stakeholders across the hierarchy thereby reducing the fishermen’s profit margin. The
bulkiness, perishable nature, poor handling, heterogeneity, high transportation, and storage costs
are the major constraints faced by this sector. The different stakeholders involved in the value chain
include: Fishermen, Commission agent, Processor, Traders, Wholesalers, and Retailers
Capture fishery plays an important role in supplying fish to cater to consumer demands. To keep
increasing fish supply, aquaculture is becoming an important occupation while bridging the gap
between demand and supply.
Fishermen and fish farmers

Capture fishery is composed of two main actors, artisanal and industrial fishermen. Industrial fishers
are concerned more about a few economically important species and their scale of production is
large compared with artisanal fishers. Fishermen work will be harvesting fishes
Commission Agent/Wholesaler
They buy in bulk and sell further in the chain. Value addition is done in terms of sorting, grading
cleaning, and Packaging. The profit margin depends upon the demand in the market supply of the
species.
Processors
Processors then sell their processed fish to Buyers in the next segment of the value chain. This
segment includes traders, Retailers, wholesalers, and exporters. Value addition is done here in terms
of Sorting, Grading, Salting, Drying, smoking, and Fermenting. A similar kind of value addition will be
seen, next stakeholder.
Retailer
They directly sell to the consumers are engaged in the maximum value addition in terms of grading,
cleaning, Icing, packing, and dressing of the fish. The profit margin extends up to 20%. Sometimes, a
group of retailers directly purchase from auctioneers.
yyy. Understanding the Infrastructure constraints faced by Micro Enterprises:

• Raw material
• Processing facilities for Fish
• Processing facilities for Shrimp
• Freezing facilities for Shrimp
• Cold Storage for Shrimp
• Microbial Testing Laboratory
• Reefer Trucks, Insulated Trucks & Trailers
Mapping the Firm-level issues

loading and
unloading,
grading, and
sorting should
provide by
Fisheries dept
practices method automated
machines for
value addition
and packaging of
the product
new technologies at a subsidized
and machinery rate
Also, the fish processing industry is utilizing less than 30 to 40% of its installed capacity due
to raw material shortage and its inability to meet the market demand for value-added
products and safety-related regulations of importing countries.
36. Detailed Cluster Study for ODOP Products –

In West Godavari district there are nearly 60 processing units located in the mandals of
Bhimvaram, Tanuku, and Narsapuram, etc., while major aquaculturedmandals are Narsapur,
Mogalthur, Elamanchali, Palakollu, Palakoderu, Veerasaram, and Bheemavaram and the
marine products and their varieties are Shrimp( Vannamei& Tiger), Dry Shrimp, Frozen
shrimp,
Fish(Vanjaram,Konam,fungus,Isukadondu,Kattiparugulu,Bommidai,Tilapai,Nethallu,Pandugu
ppa,Korramenu,Catla and RohuEtc), Live fish and Frozen fish.
Bhimavaram is the right place for the considering the cluster in the West Godavari district
Nearly 13000-14000 laborers are working across the West Godavari district in about the 50- 60
processing units and skilled labor that is who does cutting, grading packing
37.1. Introduction
India is the second-largest aquaculture producer in the world with a production of about 82 lakh
tonnes. There is considerable scope for marine exports through value addition. Fish/prawns are
highly perishable. It is necessary to preserve them into a self-stable value-added product.
Considering the market potential and ease of manufacturing, the pickling process is the best-opted
method. Fish pickle prepared under the hygienic condition with salt, spices, and preservative has a
shelf life of 8-10 months. The fish pickles are an excellent table enhancer for nonvegetarians.
The fisheries and fish processing industries play a dynamic role in the Indian economy. Fish products
contribute a major share to our foreign earnings. Like vegetable pickles, fish/prawns pickles also
gained popularity in the recent past. Households, hotels, restaurants, canteens, etc. are few
potential customers of fish pickles. In addition, it is necessary to have an authentic traditional taste
to product for the market acceptability and success.

Fish is among the healthiest foods on the planet. It’s loaded with important nutrients, such as
protein and vitamin D. Fish is also a great source of omega-3 fatty acids, which are incredibly
important for your body and brain. Here are some health benefits of eating fish that are supported
by research.
High in important nutrients

• Fish is packed with many nutrients that most people are lacking.
• This includes high-quality protein, iodine, and various vitamins and minerals.
• Fatty species are sometimes considered the healthiest. That’s because fatty fish, including
salmon, trout, sardines, tuna, and mackerel, are higher in fat-based nutrients.
• This includes vitamin D, a fat-soluble nutrient that many people are lacking.
• Fatty fish also boast omega-3 fatty acids, which are crucial for optimal body and brain
function and strongly linked to a reduced risk of many diseases
May lower your risk of heart attacks and strokes

• Many large observational studies show that people who eat fish regularly have a lower risk
of heart attacks, strokes, and death from heart disease
May boost brain health

• Your brain function often declines with aging.
• While the mild mental decline is normal, serious neurodegenerative ailments like
Alzheimer’s disease also exist.
• Many observational studies show that people who eat more fish have slower rates of mental
decline Studies also reveal that people who eat fish every week have more gray matter —
your brain’s major functional tissue — in the parts of the brain that regulate emotion and
memory.
May help prevent and treat depression

• Depression is a common mental condition.
• It’s characterized by low mood, sadness, decreased energy, and loss of interest in life and
activities.
• Although it isn’t discussed nearly as much as heart disease or obesity, depression is currently
one of the world’s biggest health problems.
• Studies have found that people who eat fish regularly are much less likely to become
depressed
• Numerous controlled trials also reveal that omega-3 fatty acids may fight depression and
significantly increase the effectiveness of antidepressant medications
A good dietary source of vitamin D
• Vitamin D functions like a steroid hormone in your body — and a whopping 41.6% of the
U.S. population is deficient in it.
• Fish and fish products are among the best dietary sources of vitamin D. Fatty fish like salmon
and herring contain the highest amounts
• A single 4-ounce (113-gram) serving of cooked salmon packs around 100% of the
recommended intake of vitamin D.
• Some fish oils, such as cod liver oil, are also very high in vitamin D, providing more than
200% of the Daily Value (DV) in a single tablespoon (15 ml).
It May help prevent asthma in children

• Asthma is a common disease characterized by chronic inflammation of your airways.
• Rates of this condition have increased dramatically over the past few decades.
• Studies show that regular fish consumption is linked to a 24% lower risk of asthma in
children, but no significant effect has been found in adults
• If you don’t get much sun and don’t eat fatty fish regularly, you may want to consider taking
a Vitamin D Supplement.
Fish may improve sleep quality

• Sleep disorders have become incredibly common worldwide.
• Increased exposure to blue light may play a role, but some researchers believe that vitamin
D deficiency may also be involved).
• In a 6-month study in 95 middle-aged men, a meal with salmon 3 times per week led to
improvements in both sleep and daily functioning
• The researchers speculated that this was caused by the vitamin D content.
Export Performance
During 2019-20, India has exported 12, 89,651 MT of Seafood worth US$ 6.68 Billion. USA and China
are the major importers of Indian seafood. Frozen Shrimp continued to be the major export item
followed by frozen fish.
Export Details 2019-20 2018-19 Growth %

Quantity in Tons 1289651 1392559 -7.39
Value in Crores 46662.85 46589.37 0.16
USD in Million 6678.69 6728.5 -0.74
In 2019-20 the export has improved in rupee term by 0.16%, however, the quantity and US dollar
value has declined by 7.39% and 0.74% respectively.
Major item-wise exports details
Frozen shrimp continued to be the major item of export in terms of quantity and value, accounting
for a share of 50.58 % in quantity and 73.21% of the total USD earnings. Shrimp exports during the
period increased by 6.04% in USD value and 6.20% in quantity.
The overall export of shrimp during 2019-20 was to the tune of 6, 52,253 MT worth USD 4,889.12
Million. USA is the largest market imported (2, 85,904 MT) of frozen shrimp followed by China (1,
45,710 MT), European Union (74,035 MT), Japan (38,961 MT), South East Asia (34,439 MT), Middle
East (32,645MT) and Other Countries (40,560 MT).
The export of Vannamei shrimp has increased from 4, 18,128 MT to 5, 12,189 MT in 2019-20. Out of
the total Vannamei shrimp exports in value terms, about 51.07 % was exported to the USA followed
by 21.81% to China, 8.19% to European Union, 4.73% to South East Asia, 4.51% to Japan, 3.66% to
the Middle East and 6.03% to Other Countries. USA is the major market for Black Tiger shrimp too
with a share of 36.88% in terms of value followed by Japan (31.55%) and the European Union
(10.40%) in USD.
Frozen Fish is the second-largest export item, accounting for a share of 17.32% in quantity and
7.69% in USD earnings. This year the export of frozen fish has declined by 34.11% in Quantity and
26.53% in terms of USD value.
Export of Frozen Cuttlefish has shown a positive growth of 17.76 % in quantity, 1.71% in rupee value,
and 1.45% in USD terms
Frozen Squid has shown a decline of 13.32%, 12.38%, and 12.64% in terms of quantity, rupee value,
and USD earnings respectively.
Export of Chilled items has shown a positive growth of 23.22 %, 2.53%, and 1.29% in terms of
quantity, rupee value, and USD earnings respectively.
Dried items have shown a decline of 11.42%, 25.84%, and 25.72% in terms of quantity, rupee value,
and USD earnings respectively.
Live items have shown a decline of 28.41%, 16.62%, and 16.93% in terms of quantity, rupee, and
USD value respectively. However, the unit value realization increased from 5.49 to 6.37 USD this
year.
Other items have also shown a decline of 8.26%, 9.92%, and 10.04% in terms of quantity, rupee, and
USD value respectively.
Items Unit 2018-19 2019-20 Share %

Quantity in Tons 614145 652253 51%
FROZEN SHRIMP Value in crores 31800.51 34152.03 73%
USD in Million 4610.59 4889.12 73%
FROZEN FISH Value in crores 4916.82 3610.01 8%
USD in Million 699.09 513.6 8%
FR CUTTLE FISH Value in crores 1975.97 2009.79 4%
FR SQUID Value in crores 2506.99 2196.59 5%
USD in Million 359.71 314.23 5%
DRIED ITEM Value in crores 1323.45 981.5 2%
USD in Million 189.58 140.81 2%
LIVE ITEMS Value in crores 388.88 324.26 1%
CHILLED ITEMS
Value in crores 616.22 631.84 1%
OTHERS Value in crores 3060.53 2756.84 6%
USD in Million 442.16 397.77 6%
Quantity in Tons 1392559 1289651 100%
TOTAL Value in crores 46589.37 46662.85 100%
USD in Million 6728.5 6678.69 100%
Market-wise export details
USA continued to be the major importer of Indian seafood with a share of 38.37% in terms of USD.
USA imported 3, 05,178 MT of seafood in the current financial year. Export to the USA has shown a
growth of 8.25% in quantity 10.38% in rupee value and 9.30% in USD terms. Frozen Shrimp
continued to be the principal item exported to the USA with a share of 95.54% in USD value. Exports
of Vannamei shrimp to the USA showed a growth of 18.94% in quantity and 19.02% in USD terms.
The Black Tiger Shrimp exports to the USA decreased by 36.69%, 33.69% in terms of Quantity and
USD terms respectively.
China is the second-largest market for Indian Seafood with a share of 20.58% in USD earnings and
25.55% in quantity terms. Exports to China increased by 46.10% in quantity, 69.54% in rupee value,
and 69.47% in USD terms. Frozen Shrimp is the major item of exports to China accounting for a share
of 44.22% in quantity and 62.65% in USD earnings. China imported 3, 29,479 MT of Seafood worth
USD 1,374.63 million.
European Union continued to be the third-largest destination for Indian Seafood with a share of
13.12% in USD. Frozen Shrimp continued to be the major item of exports to the EU accounting for a
share of 44.66% in quantity and 58.53% in USD earnings out of the total exports to the EU. Export of
frozen shrimp to EU increased by 5.21% and 1.63% in quantity and USD value.
Southeast Asia is the fourth largest market of Indian Marine products accounting for a share of
10.57% in USD terms. Overall exports to South East Asia declined by 50.02% in quantity 53.32% in
rupee value and 53.90% in US $ earnings.
Japan is in fifth largest destination for Indian seafood with a share of 6.32% in USD earnings and
6.09% in quantity terms. Exports to Japan have shown a positive growth of 0.02 % in rupee value
however, shown a decline of 6.63% in quantity and 0.24% USD earnings. Frozen Shrimp continued to
be the major item of exports to Japan accounting for a share of 49.63% in quantity and 78.10% in
USD earnings. Exports of Frozen shrimp to Japan increased by 6.31%, 6.92%, and 5.91% in quantity,
rupee value, and USD value respectively.
Exports to the Middle East have shown a growth of 5.04% in rupee value and 3.82% in USD value,
however, shown negative growth in quantity by 4.72%.
The exports to Other Countries showed positive growth of 1.29%, 3.19%, and 1.92% in quantity,
rupee value, and USD value respectively when compared to the previous year.
Market Unit 2018-19 2019-20 Share %
JAPAN Value in crores 2919.75 2920.28 6%
USD in Million 423.27 422.24 6%
USA Value in crores 16220 17904.37 38%
USD in Million 2344.43 2562.54 38%
EUROPEAN UNION Value in crores 6256.2 6136.71 13%
USD in Million 900.5 876.47 13%
CHINA Value in crores 5672.76 9617.44 21%
USD in Million 811.14 1374.63 21%
SOUTH EAST ASIA Value in crores 10561.31 4929.9 11%
USD in Million 1531.53 705.99 11%
MIDDLE EAST Value in crores 1979.34 2079.12 4%
OTHERS Value in crores 2980.02 3075.03 7%
Quantity in Tons 1392559 1289651 100%
TOTAL Value in crores 46589.37 46662.85 100%
USD in Million 6728.5 6678.69 100%

State-Wise Fish Production (‘000 Tons) in India from 2014-15 to 2018-19
During 2018-19, fish production in India is 13421.56 thousand tons. Andhra Pradesh is the leading
producer of fish in India and contributes 30% to total fish production in India followed by West
Bengal 13%, Gujarat 5%, and Kerala 5%.
States/UTs 2014-15 2015-16 2016-17 2017-18 2018-19

Andaman and Nicobar Islands 37.18 37.33 38.81 39.5 41.19
Andhra Pradesh 1978.58 2352.26 2766.19 3449.56 3992.36
Arunachal Pradesh 4.00 4.05 4.11 4.25 4.67
Assam 282.70 294.20 306.6 327.26 331.53
Bihar 479.80 506.89 509.08 587.85 602.13
Chandigarh 0.12 0.13 0.13 0.14 0.16
Chhattisgarh 314.16 342.30 376.8 457.17 469.76
Dadra and Nagar Haveli 0.06 0.00 0 0 0
Daman and Diu 31.82 23.03 24.02 24.68 5.38
Delhi 0.68 0.71 0.95 0.8 0.79
Goa 117.98 111.91 117.89 124.01 120.29
Gujarat 809.93 809.56 815.56 834.53 724.67
Haryana 111.20 121.00 144.21 190 217.53
Himachal Pradesh 10.74 11.80 12.51 12.77 13.4
Jammu and Kashmir 20.30 20.08 20.39 20.7 22.44
Jharkhand 106.43 116.00 145.16 190 208
Karnataka 623.24 580.57 557.49 602.52 587.41
Kerala 726.01 727.51 592.85 562.62 714.46
Lakshadweep 13.19 15.94 29.8 20.77 21.91
Madhya Pradesh 109.12 115.02 138.69 143.42 173.19
Maharashtra 608.07 579.69 662.91 606.01 583.38
Manipur 30.50 32.04 32 33 32.15
Meghalaya 6.04 11.34 12.33 11.96 0.01
Mizoram 6.39 6.83 7.63 7.64 7.23
Nagaland 7.84 8.22 8.61 8.99 9.78
Odisha 469.55 521.28 608.1 684.96 733.43
Puducherry 47.40 64.04 50.25 49.92 31.38
Punjab 114.77 120.09 132.72 136.64 135.83
Rajasthan 45.42 42.46 50.2 54.04 55.85
Sikkim 0.44 0.40 0.38 0.38 0.39
Tamil Nadu 697.61 709.16 669.31 712.04 730.67
Telangana 268.36 236.75 198.92 270.04 328.41
Tripura 65.16 69.06 72.45 76.8 84.53
Uttar Pradesh 494.27 504.00 617.69 628.75 4.95
Uttarakhand 3.94 4.14 4.3 4.58 662
West Bengal 1617.32 1671.42 1701.82 1742.09 1770.31
India 10260.28 10761.76 11430.8 12620.4 13421.56

District West Godavari

The fish production estimated for the country in 2019-20 is about 14.16 million tonnes.
Fishery business has enormous potential to accelerate Indian Economy by earning foreign
currency and the contribution of fisheries sector in Indian economy is 212915 crores ,
approximate total quantity of exports are 12,89,651 tonnes and exports value of fisheries is
INR 46,662 crores
Nearly 13000-14000 laborers are working across the West Godavari district in about the 50- 60
processing units and skilled labor that is who does cutting, grading packing will be nearly 30-40% and
the other labor i.e. who does other activity (Semi-skilled labor) will be nearly 60-70%.
Infrastructure
Infrastructure for Processing:
1. Pre-Processing facilities for Shrimp:
Washing & Grading, De-heading & Gutting, Weighment& Packing
2. Processing facilities for Fish:
De Skinning, Filleting Grading Machines, Flake Ice, Soaking machines
3. Processing facilities for Shrimp :
Shrimp Peeling, Deveining, Grading, Soaking, Flake Ice machines
4. Freezing facilities for Shrimp :
IQF (Individual Quick Freezers) & Plate Freezers
5. Cold Storage for Shrimp :
Racking with Pellets
6. Block Ice Plant

7. Microbial Testing Laboratory :
Water Analysis, Microbial Analysis, Antibiotic testing
8. Reefer Trucks, Insulated Trucks & Trailers :
for Raw & Finished goods

• Pre-Processing facilities for Shrimp:
Washing & Grading, De-heading & Gutting, Weighment& Packing
• Processing facilities for Fish:
De Skinning, Filleting Grading Machines, Flake Ice, Soaking machines
• Processing facilities for Shrimp :
Shrimp Peeling, Deveining, Grading, Soaking, Flake Ice machines
• Freezing facilities for Shrimp :
IQF (Individual Quick Freezers) & Plate Freezers
• Cold Storage for Shrimp :
Racking with Pellets
• Block Ice Plant

• Microbial Testing Laboratory :
Water Analysis, Microbial Analysis, Antibiotic testing
• Reefer Trucks, Insulated Trucks & Trailers :
For Raw & Finished goods
• Water Reservoir: with Over Head Tank

• Intake Water Treatment System (WTP)
• Central Effluent Treatment System (ETP)
• Aquaponics System
• Central Power Distribution System
• Diesel Generators for power back up
• Weighbridge
• Parking Area
• Roads with Street lighting
Raw Materials
Production Process:
Product Range:
Shrimp Export
Shrimp Pickle
Shrimp Powder
Dry Shrimp
Technology:
The development of the fisheries sector has not been able to tap the aquatic productivity in many
areas owing to the lack of technology so much so that the production potential on this account
remains unassessed.
The broad areas of fish production affected by the technology gap would include the following
1. Alternate species to shrimp for coastal aquaculture

2. Marine culture technology in respect of crab, mussels, oysters, lobster, ornamental fish,
etc.
3. Intensive aquaculture
4. Commercialization of ornamental fish culture
5. Aquaponics
In the absence of appropriate technology and policy framework, large aquaculture resources such as
inland open waters (reservoirs, lakes, and bells) and marine resources for cage fish farming are yet
to be realized.
As the harvest from capture fisheries is stagnant, itis imperative that the aquaculture base of the
countries widened to tap the hitherto unaccounted resource with the potentials of doubling the
country’s fish production. Under such circumstances, the only option would be to import suitable
technologies with tie-up arrangements for its transfer to Indian counterparts. Such technology
transfer is the need of the hour for various marine culture activities, cage culture, and ornamental
fishery.
The efforts in the development of SPF (Specific pathogen-free)broodstock of prawns and disease-free
seeds are worth mentioning. Marine finfish culture technology, which has been successfully
commercialized in other countries with very high production, should be considered for the
development of the vast stretches of seacoast and marine waters for aquaculture.
The technologies for inshore cage fish farming and that for offshore areas using submersible type
cages are at present not available within the country. Since the technologies in this connection are
very exacting and capital intensive, only big corporate houses may be able to mobilize the resources
to undertake these activities. Emerging technologies like aquaponics could transform the production
and supply of fish and promote entrepreneurship in rural areas.
Marketing
Marketing players:
• Anand Exports
• Anand Sea Foods
• Aswini Sea Foods
• Devi Sea Foods
• Haripriya Marine Exports
• Jagadeesh Marine Exports
• Jayalaxmi Sea Foods
• Jaya Satya Marine
• KRM
• Kadher Sea Foods
• M.S.C.,
• Nalamati Sea Foods
• Sai Marine Sea Foods
• Sandhya Marine Sea Foods
• Surya Marine
• Swarna Sea Foods
• Universal Cold Storage
• VenkataPadmavathi Marine Sea Foods
• VijayaLaxmi Sea Foods
• Welcome Fisheries
Human Resource
Skilled labor:
.
Skill Development
Required skill development training for thelabor for processing the technology
Testing:
Financial Linkages:
• All nationalized Scheduled Commercial Banks.

• All scheduled commercial private banks.
• P. State Financial Corporation.
• Small Industries Development Bank of India (SIDBI).
Environmental Impact:
no such impact
Manufacturers:
Major processors and their plant capacities

•Unit Owners :
Already shared
Marketing players:
Major marketing players in the district of West Godavari are
• Anand Exports
• Anand Sea Foods
• Aswini Sea Foods
• Devi Sea Foods
• Haripriya Marine Exports
• Jagadeesh Marine Exports
• Jayalaxmi Sea Foods
• Jaya Satya Marine
• KRM
• Kadher Sea Foods
• M.S.C.,
• Nalamati Sea Foods
• Sai Marine Sea Foods
• Sandhya Marine Sea Foods
• Surya Marine
• Swarna Sea Foods
• Universal Cold Storage
• VenkataPadmavathi Marine Sea Foods
• VijayaLaxmi Sea Foods
Welcome Fisheries
Department West Godavari
West Godavari is an Agricultural Based District with 2.44 Lakh Ha. Agricultural
Crop Sown Area with paddy as the main crop with a cultivable extent of 2.26
lakh Ha. (93% of total area) .The Farmer welfare Schemes implemented
through Agriculture Department are as follows.
Agriculture
1. YSR RYTHU BHAROSA – PM KISAN:
Under this scheme, the Government is supporting farmers by giving Rs.
13,500/- (6000/- under PM KISAM &Rs. 7500/- under YSR RythuBarosa
scheme) per year in three phases towards input assistance. In West
Godavari District During the year 2021-22 an amount of Rs246.84
Cr. was credited to 329121 Farmer families.
2. RYTHU BHAROSA KENDRALU:

• RBCs were established at every Secretariat where Farmers in the
secretariat will get all Agricultural services and also act as Single stop shop
with all the inputs like Fertilizers, Pesticides & seed
• In West Godavari 948 RBKS were established at every secretariat.
• As of now 175 no. new buildings were constructed and the remaining no.
of RBKs is under construction.
3. SUNNAVADDI PANTA RUNALU (SVPR) :

• YSR-SunnaVaddiPantaRunalu Scheme is in implementation from Kharif
2019 onwards.
• Reducing the financial burden to the small and marginal farmers by
providing the Crop loans on SunnaVaddi.
• Applicable to all the farmers who availed crop loans up to Rs.1.00 Lakh
and repaid within the stipulated time i.e maximum period of one year.
• In 2019-2020, an amount of Rs.29.18 Cr. was Paid for 145769 farmers.
4. AGRICULTURE ADVISORY BOARDS:
• In West Godavari District, the District level, 48 Mandal levels, and 938
Y.S.R. RBK Level Agriculture advisory boards were formed. These
advisory boards will help for better crop planning and marketing of
Agriculture produce based on the RBK level Cropping pattern.
5. e CROP BOOKING :
Every farmer data and crop is sown data will be registered through the
UDP APP and this data through e-Crop will be the single platform for
implementing all farmer welfare programs which include, distribution of
subsidy seed, input subsidy, crop insurance, Procurement of produce
through Procurement.
6. INTEGRATED LABS :
To supply Quality Inputs to the Farmers Input testing labs will be
established in every Constituency. The Farmers can get services like
Agricultural Input (Seed, Fertilizer, Pesticides)testing, Cattle Disease
Diagnosis, Aqua Lab through these labs. Out of 15 Constituency level
Labs 1 is already existing (Tadepalligudem), 1 is inaugurated on 8th July
(Bhimadole), 13 are under construction.
7. INPUT SUBSIDY FOR CALAMITIES:

Input subsidy is provided for the farmers where the crop loss is more
than 33% in the field when the calamity/Disaster occurs.
Input subsidy for the damaged crops per Hectare as follows.
Paddy - Rs. 15000/Ha
Sugarcane - Rs. 15000/Ha
Groundnut - Rs. 15000/Ha
Cotton - Rs. 15000/Ha
Maize - Rs. 12500/Ha
Pulses - Rs. 10000/Ha
8. FARM MECHANIZATION:
At every RBK to overcome labor shortage, to save time, and to reduce the
cost.of cultivation farm implements will be distributed to the farmers in the
Farm mechanization scheme in groups (Custom Hiring Center groups).
During the first phase no CHC was established and during the second phase
no CHCs are under process.
9. SUBSIDY SEED PLAN:
• Blackgram and Greengram on 33.3% subsidy and paddy Rs.5/- per kg seed has
been distributed. To improve soil fertility status and reduce chemical fertilizer
usage Green manure seed will be distributed to the farmers on 75% subsidy.
10. SEED VILLAGE PROGRAMME:
• To produce quality seeds at the village level and to prevent seed shortage
this program is organized in selected villages.
• Supply of foundation seed on 50% subsidy for cereals and 60% subsidy for
oilseeds and pulses.
• A compact area approach needs to be followed under this scheme.
• Many farmers for a unit of 10 ha with a minimum of 25 and a maximum of
150 members.
•
11. POLAMBADI:
• To reduce the cost of cultivation and Increasing productivity is the main
objective of Polambadi.
• Duly empowering the farmers to take economical decisions by adopting
practices of integrated crop management.
• Polambadi is in the crop field and study is being done in the field of one of
the trainee participant farmers in about 2 acres.
• The training is fully field-oriented, participatory, and discovery-based i.e.,”
learning by doing”.
• The training aims at teaching science to the farmers in his fields.
• The Training curriculum is based on local needs.
14 . TO TENANT CROP LOANS FARMERS:
• An amount of Rs.233 crores were sanctioned to 54641 farmers as against the
target of Rs.1000crores during 2020-21 as of date.
15. NFSM:
• Large blocks of crop areas will be taken up for a demonstration of
production & protection technologies in a cropping system mode.
• Field demonstrations of an improved package of practices will be
conducted on the cropping system as well as on the sole crop.
• The demonstrations are done in cropping sequence.
• The demonstrations will be conducted in a contiguous block by dividing
the fields into two blocks.
• One for improved practice and the other for farmers practice in a cluster
of 100 ha.
• The farmers who are adopting NPM and achieving good results should be
selected as a resource persons to train the farmers under cropping
system-based pieces of training.
16. NMOOP :
• Increasing the certified seed availability by maintaining the seed chain of
recently released varieties.
• Integrated crop management by the increasing area under IPM/ INM/
Micro-irrigation and demonstrating the latest production/ protection
technologies at farmers' fields through FLD/demonstrations.
• Promotion of mechanization through the distribution of improved farm
implements/equipment.
• Capacity building of farmers/ extension workers through inter/ intra
training including FFS.
17.RODENT CONTROL PROGRAMME:
• RCP is conducted to control the rodent pest which is causing loss to the
crops.
• The Rodenticide (Bromodiolone 0.25% CB) treatment has to be covered in
the total village cropped area at a time for effective control of rodents.
• Poison baits should be prepared preferably at a common place in the
village in stipulated time and made available to the farmers at that place.
• Poison baits should be distributed to all the farmers on 100% subsidy.
• Coordinate and motivate all institutional agencies at the village level for
massive campaigning.
Major Crops:
Paddy -2,23,249Ha,
Maize -1369Ha,
Sugarcane-3109Ha
Met Person:MJaggaRao
Designation:Joint Director
Location:Eluru(West Godavari)
Contact: +91 8331056634
Email [email protected]
Data Given By,

Name:Prasuna madam
Designation:Agriculture Officer
Location:Eluru
Contact:+91 8331056671
Self Helf Groups:79,249

Met Person: VijayaKumari
Designation:DPM(DRDA)
Contact:9866656732
SHG in Eluru:
SriramaSangam
Near Galigopuram,Sanivarapupeta
Members-10
Contact: Sridevi ( +91 9010093913)
Farmer Producer Organisations: 22

Met Person: Prabhavathi
Designation:APM
Contact: +91 9121284833
Met Person: RatnaKumari
Designation:APM FPO
Contact: +91 9121284907
Co-operative Societies:72 (EluruDivison)

They are 3 Divisions for cooperative societies(Kovvur,Bhimvaram&Eluru)
Data collected from Cooperative Society office,
Met Person:Narsimha Murthy
Designation:Asst Register
Contact:+91 9440639037
1.AP MATHSYAKARA BHAROSA:

*Compensation increased from 4000/- to 10000/- duringthe fish ban period (April
Fisheries 15-June 15).
*Accidental death at sea while fishing-Compensation 10lakhs,
(5lakhs from Fisheries ex gratia
5lakhs from General YSR from DRDA)
**Eligibility:
-Resident of Andhra Pradesh,
-occupation should be fishermen
**Documents:
-Adhar
-Voter Id
-Occupation Certificate
-photograph
Power subsidy-1.50/per unit

Diesel Subsidy-9/litre
3.PRADHANA MANTHRI MATSYA SAMPADA YOJANA (PMMSY):

(PMMSY) is designed to address critical gaps in fish production and
productivity, quality, technology, post-harvest infrastructure and management,
modernization and strengthening of the value chain, traceability, establishing a
robust fisheries management framework, and fishers‟ welfare.
Aim:
The objectives of the PradhanMantriMatsyaSampadaYojana are: Harnessing of the
fisheries potential in a responsible, inclusive, sustainable, and equitable
manner. Enhancing fish productivity and production through diversification,
intensification, expansion, and productive utilization of water and land
BENEFICIARIES
The intended beneficiaries under the
PradhanMantriMatsyaSampadaYojana(PMMSY) amongst the others include the
following:
(i) Fishers
(ii) Fish farmers
(iii) Fish workers and Fish vendors
(iv) Fisheries Development corporations
(v) Self Help Groups (SHGs)/Joint Liability Groups (JLGs) in the fisheries sector
(vi) Fisheries cooperatives
(vii) Fisheries Federations
(viii) Entrepreneurs and private firms
(ix) Fish Farmers Producer Organisations/Companies (FFPOs/Cs)
(x) SCs/STs/Women/Differently abled persons
LIST OF ACTIVITIES
ENHANCEMENT OF PRODUCTION AND PRODUCTIVITY
*Development of Inland Fisheries And Aquaculture
*Development of marine fisheries including mariculture and seaweed cultivation
*Development of ornamental and recreational fisheries
*Technology infusion and adaptation
INFRASTRUCTURE AND POST-HARVEST MANAGEMENT
*Post-harvest and cold chain infrastructure
*Markets and marketing infrastructure
*Aquatic health management
*Development of deep-sea fishing
FISHERIES MANAGEMENT AND REGULATORY FRAMEWORK
*Monitoring, Control, and Surveillance
*Strengthening of safety and security of fishermen
*Fisheries extension and support services
*Livelihood and nutritional support for fishers for conservation of fisheries
resources
*Insurance of Fishing Vessels and Fishermen
SC,ST & WOMEN-60% Subsidy
Others-40% Subsidy
4.FFPOS:1
5.SHGS:0
6.CO OPERATIVE SOCIETY:272
Met Person: Naga Linga Chari sir,

Designation: Joint Director of Fisheries,
Location: Eluru,
Contact:+91 9440814728
Email ID:[email protected]
Data Given By,

Met Person:M Vijay Kumar
Designation: Assistant Director of Fisheries,
Contact:+91 9441096429
Horticulture West Godavari has made significant contributions to AP's traditional Horticulture
crops cultivation. Increased area and production under Horticultural crops have put
the west Godavari in a stronger position in terms of attracting investments from the
private sector.
*Ap stands at 1st position in OIL PALM which is the major crop in the West
Godavari district.
*APMIP
Andhra Pradesh Micro Drip Irrigation:
Met Person: Ravi RajuGaru

Designation: Micro Irrigation Engineer
Contact No : +91 7995009880
Location: Eluru
Scheme: PMKSY(PradhanMantriKrishiSinchayeeYojana)-Per Drop More Crop
Subsidy pattern:
a) Drip Irrigation:
GOI Matching Additional Farmer

Sl. Total State Total
Category Share State State share Contribution
No Share (%) Subsidy (%)
(%) Share (%) (%) (%)
Marginal and
Small farmers in
1 33 22 35 57 90 10
the entire State
(< 2 Ha)
Other farmers in
Rayalaseema and
2 27 18 25 43 70 30
Prakasam District
(2 to 4 Ha)
Other farmers in
Coastal Districts
3 except Prakasam 27 18 5 23 50 50
District
(2 to 5 Ha)
b) Sprinkler Irrigation:
Subsidy(%) on
Farmer
S.No Category the unit cost of
share(%)
Sprinkler
All farmers
irrespective of
1 50 50
category in all the
Districts
*MIDH
The mission for Integrated Development of Horticulture
The mission for Integrated Development of Horticulture (MIDH) a Centrally
sponsored scheme has been launched for the holistic development of
Horticulture in the country during the XII plan from 2014-15.
Objectives:
a) Promote holistic growth of the horticulture sector, which includes research,
technology promotion, extension, post-harvest management, processing, and
marketing.
b) Enhance horticulture production, income and strengthen nutritional security.
*RKVY
RastriyakrishiVikasojana
A.P. being endowed with diversified agro-climatic conditions has helped for the
production of various horticulture crops. The horticulture sector has been
identified as one of the growth engines for increasing overall agriculture
growth. RashtriyaKrishiVikasYojana (RKVY) aims at achieving 4% annual
growth in the agriculture sector by ensuring a holistic development
to 4-5 MTs of Palm Oil and 0.4-0.5 MT Palm Kernel Oil (PKO). Palm oil
constitutes about of Agriculture and allied sectors.
*NFSM-OIL PALM
Oil Palm is the highest yielding crop compared to all vegetable oil seed crops
which can yield up to 20-25 MTs FFBs and in turn 80% of total edible Oil
import, and hence Oil palm is identified as one of the potential crops which
significantly contribute to increasing in edible Oils production in the Country.
NFSM-Oil Palm activities
). Subsidy @ 85% is being provided on Plant Material under Oil Palm Area
Expansion Programme.
2). 50% assistance is being provided to the beneficiaries for the components like
Maintenance, Inter cropping, Borewell& Pump set, Vermi Compost units, and
Machinery and tools.
3). 100% assistance is being provided for Capacity Building / Farmers Trainings
Horticulture major crops:

Oil Palm-53711Ha
Coconut-24423Ha
Cashewnut-11618Ha
Industries Center To promote Andhra Pradesh as an attractive and competitive destination for
industrial investments, the State Government has offered various
incentives/benefits such as power cost reimbursement, sales tax, capital subsidy
incentive among others to all eligible new and existing industrial enterprises in the
state.
*Industrial Development Policy:

the state offers the best logistics infrastructure for investors interested in targeting
both domestic as well as export market. Additionally, the state is blessed with
abundant mineral resources, agricultural base, water, and surplus electricity making
it an attractive investment destination.
1.Y.S.R JAGANANNA BADUGU VIKASAM POLICY 2020 - 2023

Y.S.R JAGANANNA BADUGU VIKASAM POLICY (The policy) offers a
special package of incentives for S.C/S.T entrepreneurs announced by the State
Government
Maximum Limit
S. Enterprise Category % of subsidy
No.
SC/ST
(Manufacturing)
1 4 Rs 1,00,00,000/-
5
MSME,
LARGE & %
MEGA SC/ST
2 4 Rs 75,00,000/-
(Service/Transport)
5
%
2.Special Industrial Policy For SC And ST Entrepreneurs 2020-2023

The government of Andhra Pradesh is committed to providinga conducive
business environment for investors by developing a strong regulatory framework
through ease of doing business and robust industrial infrastructure to propel the
state on the path of industrialization.
Proprietary Unit- Unit where SC/ST entrepreneurs owns 100% stake
Partnership Unit-Firm where SC/ST partners have 100% stake infirm
Private unit-Where promoter & director are from sc/st community and they have
100% controlling Stake in Company
NRLM aims to alleviate rural poverty and create sustainable livelihood

National Rural opportunities for the rural poor. Towards this objective, NRLM seeks to promote
Livelihood Mission sustainable community-based institutions which will facilitate the provision of
(NRLM) financial services, economic services, and other entitlements to the rural poor.
They are involved in the processing, packaging, and marketing of agricultural
Self Help Groups produce.
(SHG’s) Fisheries-0
Agriculture-79,279
They are involved in the production and supply of raw materials to processing
Farmers units, SHGs, individuals, and Traders
They are involved in grading, branding, and packaging of processed products and
Traders also supply required quality of raw materials to processing units
1.1. Cluster Map:

West Godavari District is well developed in Fisheries with Resources of Fishery wealth in Marine,
Brackish Water, Reservoir, and Inland Fisheries. It is the aqua hub of Andhra Pradesh. West Godavari
district lies between 16ο 15′ and 17ο 30 N and 80ο 55′ and 81ο 55′ E and has an area of 10,807 sq.
km. Generally, farmers of the district culture both L. vannamei and tiger shrimp Penaeusmonodon,
because of their high market value. Out of the 46 mandals of the district, 7 (Narsapur, Mogalthur,
Elamanchili, Palakol, Palakoderu, Veeravasaram, and Bhimavaram) mandals are major mandals
where aquaculture practices, water, feed, and health management are followed by the farmers.
In West Godavari district there are nearly 60 processing units located in the mandals of Bhimvaram,
Tanuku, and Narsapuram, etc., while major aquaculturedmandals are Narsapuram, Mogalthur,
Elamanchali, Palakollu, Palakoderu, Veerasaram, and Bhimvaram and the marine products and their
varieties are Shrimp( Vannamei& Tiger), Dry Shrimp, Frozen shrimp, Fish(Vanjaram, Konam,fungus,
Isukadondu,Kattiparugulu ,Bommidai, Tilapai, Nethallu, Panduguppa, Korramenu, Catla and
RohuEtc), Live fish and Frozen fish
Bhimavaram is the right place for considering the cluster in the West Godavari district
1.2. Value Chain:
Farmers after harvesting Fish/Shrimp from the aqua pond, Shrimps will be graded, sorted,
and weighed by count methodology and later the head will be cut and cleaned after the
same will be packed in the frozen box meant for export or local.
While in other units the Shrimp processing is involved in different ways like sorting, grading,
hand beading, hand peeling and after performing this activity the shrimp is packed into 1 or
2 kg boxes and finally, these iceboxes are packed in 8, 10, 16kg cartons for export
In the process of the value chain, the Shrimp powder is made from the dry shrimps procured
from the market, and while processing shrimps are first roasted and the required tamarind,
salt, chili powder, coconut are mixed well and after heating the roasted shrimps are mixed
properly and after cooled, it is grinded to powder and the Shrimp powder is packed into
small jars
The cost involved at each stakeholders level
Particular Avg Price/Kg
Price Without Value Addition 60
Preprocessing cost
Cleaning 2
Sorting 4
Grading 5
Weighing 3
Icing 4
Packaging 5
Commission/ Wholesalers level
Purchase cost 83
Storage Cost 3
Value Addition cost 3
Loading 0.1
Unloading 0.1
Processors Level
Sorting 1
Grading 2
Salting 4
Drying 1
Smoking 2
Fermenting 4
Processing Cost 3
Value Addition cost 5
Retailers
Grading 2
Total cost 113.2
Selling price (retail) 170
Net Profit 56.8
BC ratio 1.5
Fishermen to Consumer
Particular Avg Price/Kg
Cost of Catching 10
Transportation Cost 2
Price Without Value Addition 60
Preprocessing cost
Cleaning 2
Sorting 4
Grading 5
Weigning 3
Icing 4
Packaging 5
Total cost 95
Selling price (retail) 120
Net Profit 25
BC ratio 1.26
1.4. SWOT Analysis:
Strength: Weakness:
▪ Over 8000 km length of coastline • Prices are fixed for the processed
▪ Sizeable seafood resources are available products by giants (big buyers)
▪ India is a leading player in the global • Poor marketing strategy doesn’t have
seafood business brand value.
▪ The products are exported to more than • Shortage of seed.
70-80 countries • Even though skilled labor is available but
▪ Producing quality products at a lower not coming forward to work
cost of production • Over-dependence on shrimp and in the
▪ Availability of skilled workers. commodity form
▪ Has well-developed processing • Excluding shrimp, no other product like
infrastructure with world-class squid, cuttlefish, etc. is value-added
processing plants enough to get the latest technical
▪ Vast untapped resources for developments not implemented due to
Aquaculture, capital constraints
• Slowly adopting the new technology
• Value-added products account for a
small volume of the total export
• Poor packaging
• Shortage of peeling sheds, adequate
storage facility, and processing centers at
the landing centers
• The comparatively weak economic base
of the units makes it difficult for
appropriate business decisions in time
• Lack of expertise and resources for retail
marketing
• A large untapped market, • Buyers/Importers are controlling the
• Introducing new products, which have Indian market
so far not been figured in our export • The continuing threat of disease in
basket shrimp farms.
• Potential to create a better image and • Climatic Changes
higher value for production • Competition from newly emerging
• Opportunity for development brands exporting countries
and certified products • Indian products are still treated as raw
• Improving capacity utilization of existing material by many importing countries
plants and doing nothing will serve to lower the
• Opportunity for importing raw material, image of Indian products further.
processing it, and export making India as • To meet the stringent EU standard, high
a processing hub capital investment is required for the
• Opportunity for expanding value-added pre-processing industry as well as for the
seafood products processing units.
• Expansion of fresh and brackish water
aquaculture production
• To attract FDI from overseas importers
of seafood and other investors thereby
overcoming the inherent weakness of
the industry.
A Case Study on Krishna Frozen Foods, Diu
Name of the Unit:Krishna Frozen Foods

ShriRamjibhai N. Solanki, the Managing Director of M/s Krishna Frozen Foods, belongs to the
fishermen community, and his whole family is involved in the various fishing and aquaculture
activities. They are having their own Vannamei Aqua Culture Farms near our unit in the Diu district.
ShriRamjibhai N. Solanki was earlier a Fisherman and Struggled a lot during earlier life. He became
Fish Supplier which was his first business initiative and finally with the blessings of lord "KRISHNA"
he and his family members decided to set up a small Fish Processing Unit in the Diu district. The
name is given in the international market as "M/s Krishna Frozen Foods" established in the year
2008 which is the first Fish Processing Unit in the Diu district. "M/s Krishna Frozen Foods" is a
registered partnership firm. There are five family members in the partnership firm as mentioned
below.
Aim: We believe in excellent quality & hygienic seafood. That is our achievement & and always will
be our primary goal. We always strive towards better quality products and customer satisfaction is
our ultimate objective.
Address:Goa Industrial Development Corporation area, Daman and Diu 362520
Year of Operation:2011
Processing Products:Frozen Fish, Crabs, Shrimp, Squid, and Octopus
Turnover:65Crores
No of Employees: 150
Gaps: Land is a big issue in Diu, the government should provide land and develop fish Market and
Fish related tourist Places
Roads are good Need to more Develop
Finance and Subsidy on investment
Certifications
EU APPROVAL NO. 1147 CERTIFICATE
HACCP MANUAL COMPLAINT
USFAD REGISTRATION CERTIFICATE
APPLIED FOR CERTIFICATE OF RUSSIAN FEDERATION & VIETNAM
APPLIED FOR FOOD SAFETY LICENCE
Landing Centre and Fishing Vessels
There are two major clean and nonpolluted fish landing centers in the Diu district. Both fish landing
centers are 4 km., away from our unit and it is easy to transport fresh fish raw material to our
unit.There are 1500 fishing vessels in the Diu district. We easily get the fresh raw material from the
Diu district.
Individual Meeting
Rating of Response Count and Response Percentage

Not
Rating 1 2 3 4 5 Respon Total
ded
3 5 22 324 29 3 386
B - Access to common facilities such as
grading, sorting, packaging, cold chain 1 8 34 337 3 3 386
facilities, etc.
D - Compliance to standards and the
frequency of inspections from the safety 3 86 123 161 9 4 386
regulators
J - Awareness on Govt Policies among
5 28 193 156 1 3 386
micro /small manufactures
K - Awareness on ODOP product of the
195 2 22 163 1 3 386
District
Particulars Response Percentage

Rating 1 2 3 4 5 Not
Responded

backward and forward linkages 1% 1% 6% 84% 8% 1%
B - Access to common facilities such as grading,
sorting, packaging, cold chain facilities, etc. 0% 2% 9% 87% 1% 1%
C - Access to testing facilities 3% 22% 29% 43% 2% 1%
D - Compliance to standards and the frequency
of inspections from the safety regulators 1% 22% 32% 42% 2% 1%
E - Skill training needs 2% 9% 43% 45% 0% 1%
F - Manufacturing practices 2% 9% 43% 45% 0% 1%
G - Technologies Available 1% 22% 35% 40% 1% 1%
H - Access to finance 2% 8% 29% 60% 1% 1%
I - Access to mentorship/ service 1% 10% 50% 37% 1% 1%
J - Awareness on Govt Policies among micro
/small manufactures 1% 7% 50% 40% 0% 1%
K - Awareness on ODOP product of the District 51% 1% 6% 42% 0% 1%
L - Marketing / sales facilities 1% 24% 27% 47% 0% 1%
M - Facilities to the workers 0% 0% 5% 46% 48% 1%

Gaps Remarks
Acute shortage of raw • There is an acute shortage of seeds and at present farmers are
material facing severe scarcity of seeds and getting from West Bengal and
there is badly need for hatcheries.
Infrastructure- Public • In some pockets/mandals roads are not proper and the
infrastructure, common unitholders are facing problem while
facility center, testing transporting the finished goods and getting raw material from
facility center, and safety
the interior villages so they require proper infrastructure (road
standards
)facilities.
• The majority of the small unit holders require godowns to store
their processed material
• Despite providing all facilities like a free bus for transportation,
free food, free medicine, PF, other amenities skilled labor
problems are existing here.
• Even though there are private testing laboratories in the West
Godavari district small unit holders feel that the charges levied
by them are higher and expect a Govt lab for the necessary
testing.
Skill training • Required skill training to operate the new technology
Technology • The processing & other practices such as packaging & labeling
that are being followed by entrepreneurs in the district are
traditional & manual leading to lower efficiency & less aspired
product packaging
Finance • The micro-entrepreneurs and unregistered enterprises find it

very difficult to get loans from banks without collateral support
for the expansion of their units.
5. Recommendations:
Fund Requirement (Observation from Primary Survey)
Category Wise Fund Requirement by ODOP Processing Units in West Godavari District.
During the primary survey in West Godavari District respondents expressed that they required funds
to upgrade their existing units. 65% of the respondents require funds for purchase machinery
followed by the purchase of the vehicle for transportation (21%), infrastructure development (8%),
and financial assistance for business development respectively.
Sl.No Particulars Fund Requirement
(Rs. in Crores)
1 Finance 0.175
3 Machinery 2.095
4 Transportation 0.67
5 Total 3.205

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Contents

1 Agronomic crops 58.8 85% 210.2 45%

2 Horticultural 10.0 15% 257.4 55%

3 Total 68.8 100% 467.6 100%

B. Profiling of existing micro-enterprises ecosystem in the state

C. Food processing policy in the state

Farmer Producers Organization (FPs):35% uptoRs. 50 Lakhs

BC/Minority Communities (Women): 35% uptoRs. 50 Lakhs

SC/ST Entrepreneurs:45% Limited to Rs. 1.00 Crore for

Farmars Producers Organization (FPOs):3% for 5 Years

SC/ST Entrepreneurs:Upto 9% over and above 3% for 5

BC/ Minority Communities (Women):@1.25 per unit for 5

SC/ST Entrepreneurs:@1.50 per unit for 5 Years

8 Quality Certification / SC/ST Entrepreneurs:100% of cost incurred limited to Rs. 3

Parameter Andhra Pradesh, Vijayawada

Name of Policy: • Incentives for Micro and Small Enterprises

Nodal Agency • Industries & Commerce Department – Andhra Pradesh

Uninterrupted Power 100% Reimbursement of net SGST accrued to the

1. Total production and acreage of the produce in the district

Horticultural crops in the district (2019-20)

Area and production of the agricultural crops in Anantapur district

777027 825887 968851

Agronomic Horticulture Total

2. ODOP produce as a percentage of total agricultural production of the district

Commodity Area ( Lakh Production % of area % of Production

Other Agricultural 9.68 59.77

% of Groundnut crop area in the % of Groundnut crop production in

3. Perishable nature of the produce

S.No Name of the produce Shelf life period Packaging material

4. Production of ODOP agriculture produce in that district compared to other

District Area (Ha) Production Share in the Share in the

In 2019-20, 9.95 millionTones of groundnut cropswere produced in India. Gujarat,

Sr No. State Production(000 Tons) Share(%)

3 Tamil Nadu 1,033.00 10.38

4 Andhra Pradesh 848.79 8.53

5 Karnataka 502.81 5.05

6 Madhya Pradesh 350.66 3.52

7 Maharashtra 308.99 3.11

8 Telangana 265.37 2.67

9 West Bengal 156.1 1.57

10 Uttar Pradesh 88.55 0.89

11 Orissa 43.29 0.44

13 Jharkhand 28.78 0.29

14 Punjab 3.56 0.04

20 Arunachal Pradesh 0.91 0.01

21 Bihar 0.86 0.01

25 Himachal Pradesh 0.05 0

Total production 9,951.34

(APEDA Agri Exchange, 2019-20)

Total 198 9659.298 100% 91%

2. Total requirement and movement of Raw material or Agricultural produce

Category Number of units Quantity of processing per Total processing

Decorticators 100 96 9600

Oil expeller 80 72 5760

Total groundnut production in Anathapuram district 343519.4

Percentage of processing out of total production 4%

3. Identifying Non-ODOP Products

Crop Area(Ha) % Area Production (MT) % Production

Category Number of Sum of Total Investment (Rs. Employment