Business Opportunities in Chillie Processing In Andhra Pradesh

1. BUSINESS OPPORTUNITIES IN
CHILLIE PROCESSING IN ANDHRA
PRADESH
 chilli is one of the most important commercial crops of India. It is grown almost throughout the
country. There are more than 400 different varieties of chillies found all over the world
 In Indian subcontinent, chillies are produced throughout the year. Two crops are produced in kharif
and rabi seasons in the country. Chilli grows best at 20–30°C. Growth and yields suffer when
temperatures exceed 30°C or drops below 15°C for extended periods
• Pungency in chilli is due to the alkaloid “capsaicin” contained in the pericarp and placenta of fruits,
it produces mild to intense spice when eaten.
• Capsaicin is being studied as an effective treatment for sensory nerve fiber disorders, including
pain associated with arthritis, psoriasis, and diabetic neuropathy. When animals injected with a
substance that causes inflammatory arthritis were fed a diet that contained capsaicin, they had
delayed onset of arthritis, and also significantly reduced paw inflammation .

2. NUTRITIONAL VALUE OF CHILLI

3. MAJOR CHILLI PRODUCING COUNTRIES IN
THE WORLD:-
• Chilli is raised over an area of 1832 thousand hectares in the World, with a
production of 2959 thousand tons.
• Major chilli growing countries are – India, China, Indonesia, Korea, Pakistan,
Turkey and Sri Lanka in Asia; Nigeria, Ghana, Tunisia and Egypt in Africa; Mexico,
United States of America in North – Central America; Yugoslavia, Spain, Romania,
Bulgaria, Italy and Hungary in Europe and Argentina and Peru in South America.
• India is the world leader in chilli production followed by China and Pakistan. This
shows that the bulk share of chilli production is in Asian countries

4. MAJOR CHILLI PRODUCING STATES IN INDIA
• In India, Chillies are grown in almost all the state through out the country. Andhra Pradesh is the
largest producer of Chilli in India and contributes about 26% to the total area under Chilli,
followed by Maharashtra (15%), Karnataka (11%), Orissa (11%), Madhya Pradesh (7%) and
other states contributing nearly 22% to the total area under Chilli.

5. • India harvested a bumper crop from 1998 to 2001, with an average yield of 1174.25 kg/ha. Crop damage due
to floods in major producing regions of South India, particularly in 2005 - 06, resulted in a sharp decline in
production to 10.14 lakh tonnes.
• In 2007 - 08, the total acreage brought under chilli cultivation is around 7.2 lakh ha, an increase from last
year’s 7 lakh ha. Rising export demand coupled with higher price realization in the domestic market have
motivated farmers to bring more area under chilli cultivation.

6. RED CHILLI SOWING AND PRODUCTION IN
ANDHRA PRADESH
• In Andhra Pradesh, Red Chilli sowing as on 29 August 2018 reported 69,890 hectares as
compared to 43,313 hectares in the corresponding period last year, 56% sowing
completed from season normal. Till now, Guntur region reported 36,688 hectares
compared to last year 26,516 hectares, Kurnool reported 11,303 hectares compared to
last year 6,475 hectares and Krishna reported 11,377 hectares compared to last year
6,390 hectares etc.
• First production estimate, Red Chilli production for 2019-20 is estimated at 1,253,683
MT compared to previous year’s 1,050,481 MT.

7. COMMERCIAL VARIETIES OF RED
CHILLIES IN A.P
• Jwala, X-235, G-1, G-2, G-3, G-4, G-5, LCA-205, 206, 235, Karakulu, Sannalu,
Dippayerupu, Punasa, Maduru, Pottibudaga, Hybrid, Bharat, Aparna, Pottikayalu,
Cullakayalu, Barak, Mota, Chapta, DesiSindu, Kiran, Chikkaballapur (Lavangi), Sapota.
Improved CFTRI method of sun - drying:
• CFTRI has developed a four - tier system of wire - mesh trays or a single tray of
perforated Aluminium. It took 14 days in sun to dry fruits having a moisture content of
72 to 74% reducing it to about 6%, the traditional method of sun drying takes about 3
weeks to achieve a moisture level of 15-20%.

9. PLEDGE FINANCE FOR FARMERS
• A Scheme under Andhra Pradesh (Agril.Produce & Live Stock) Markets Act, 1966
provides advances against pledge to the producers. The advance is given to the
extent of 75 per cent of the value of the produce pledged with the Market Committee
subject to maximum limit of Rs.50,000/-. The pledge stocks may be sold within 90
days. The advance is free of interest for the first 90 days. Interest @ 6 per cent per
annum is charged from the 91st day till the date of disposal

10. EXPORT CHILLIE PRODUCTION
• According to the Spices Board, the total export of chillies from India in 2007-08 touched a record
high of 2.09 lakh tones, valued Source : Spice Board at 1097.59 crore, up 41.2%, against 1.48
lakh tones valued at 807 crore shipped 2006-07.
• In 2007-08, India exported 16.4% of its total chilli production. The export of chilli accounts for
48% in terms of quantity and 28% in terms of value of the total export of spices from India.
• It exports in different forms like chilli powder, dried chilli, pickled chillies and chilli oleoresins.
Chillies consumed in the food processing industry are known for its colour and pungency,
whereas countries like the US, the UK, Germany and Sweden use chilli for manufacture of
oleoresins and extracts on a large scale.

11. SHORT TERM AND MEDIUM TERM LOANS FOR
FARMERS IN A.P

16. CHILLI MARKET PLACE IN ANDHRA PRADESH
• The main trading place for Guntur chilli is called Guntur Mirchi Yard which is Asia's
largest dried red chilli market. Market wise Chilli prices are accessible on National
Agriculture Market
• They are renowned globally and exported to Asia, Canada, and Europe. Guntur
district is the main producer and exporter of most varieties of Chillies and chilli
powder from India to countries like Sri Lanka, Bangladesh, Middle East, South
Korea, U.K. and USA & Latin America. Chilies have various colors and flavors
because of the level of Capsaicin in them.
• Guntur chilies form an important part of curries and various popular dishes of the
state of Andhra Pradesh in India.

17. EXPORT POTENTIAL ANDHRA PRADESH
• Value of exports in the sector has been showing an increasing trend with Average Annual Growth
Rate (AAGR) of 20.53% for five years ending 2013-14.
• The value of processed food exports during 2013-14 (Provisional results) was of the order of
US$ 37.79 Billion (total exports US$ 312 Billion) constituting 12.1% of India’s total exports.

18. ANDHRA PRADESH'S POTENTIAL AS A
FOOD PROCESSING HUB

19. FOOD PARKS IN ANDHRA PRADESH
• GoAP would strive to setup Integrated Food Parks across all districts of Andhra Pradesh. These
Integrated Food Parks will be setup in 3 categories as follows:
• Integrated Food Park: The Minimum area of each Food Park will be 30 acres, with a minimum
of 10 food processing units in each. GoAP will provide a grant of 50% of project cost for setting up
these food parks, with a limit of 20 crore.
• Mega Food Park: The Minimum area of each Food Park will be 50 acres, with a
minimum of 20 food processing units in each. GoAP will provide a grant of 50% of
project cost or setting up these food parks, with limit of 50 crore.
• Ultra Mega Food Park: GoAP will strive to develop an Ultra Mega Food Park in
Kuppam with state-of art infrastructure providing plug-and-play facilities to industry.
For this park, incentives would be customized as per applicable business case.

20. FOOD PROCESSING FISCAL INCENTIVES
IN A.P
• Land conservation charges
• Capital subsidy
• Interest Subsidy
• Tax incentives
• Stamp duty
• APMC cess/fees
• Marketing Assistance
• Quality certification
• Transportation
• Export Incentives

21. CONCLUSION
• Andhra Pradesh One of the largest food producers in India.
• Large and diverse raw material base suitable for Food Processing Industries.
• Huge scientific and research talent pool with 70% literacy rate, 58 Agricultural and
Horticultural and one Sugar Cane Research Station.
• Rapid Urbanization, Changing life style, Increase in number of women work force,
Rising per capita income leading to new opportunities in Food &Beverages Sector.
• 4 Major river systems and 17 Minor rivers.
• 8.45 Million Ha. net cultivable area.
• Industrial Local Authority status for Food Parks.
• Single Window clearance for Food Processing Units

22. • Schemes oF A.P is have the Food Parks 50% of the Project Cost and Up to 50 crs of
Maximum Limit of grants.
• 25% of Project of Eligibility and Rs. 5 Crs and Interest (Includes Plant &machinery,
subsidy 5 years from technical civil works) COD @ 7% (subject to Max 2 Crs
• The value addition of the food processing sector as a share of GDP manufacturing
was 9.8% in 2012-13.
• Foreign Direct Investment (FDI) inflows in Food Processing sector in the country
during 2013-14 was US$ 3.9 billion.
• Food processing industry is one of the largest employment generators, with growth
in direct employment in the organized food processing sector standing at 6.05%
between 2010-11 and2011-12.

23. • The value of processed food exports during 2013-14 (Provisional results) was of the order
of US$ 37.79 Billion (total exports US$ 312 Billion) constituting 12.1% of India’s total
exports.
• For food processing units and cold chain infrastructure, GoAP will offer interest subsidy
of 7% per annum on the term loan taken for fixed capital investment, for a period of 5
years from the commencement of operations, with a maximum limit of 2 crore.
• For Primary Processing Centers (PPCs) and Primary Collection Centers (PCCs), GoAP
will offer interest subsidy of 7% per annum on term loan taken for fixed capital
investment, for a period of 5 years from the commencement of operations, with a
maximum limit of 1 crore.
• Govt. finance (Bank Loan Amount): 11,47,500/- under Mudra Scheme A.P Govt by
Nabard
• Chilli Processing Products are chilli powder, Masala Powder,chillie flakes,
chillie soups, sauces and Snacks Oleoresin for Painting Industry.

24. Thank You