In a significant collaboration aimed at fostering the growth of microfood processing enterprises, the Andhra Pradesh Food Processing Society (APFPS) has joined forces with the State Bank of India (SBI). The partnership is geared towards upgrading and facilitating the establishment of a minimum of 7,500 microfood processing units within the state of Andhra Pradesh. This strategic alliance is set to unfold during the ongoing fiscal year 2023–24, falling under the ambit of the Prime Minister’s Formalisation of Micro Food Processing Enterprises (PMFME) scheme.
APFPS Chief Executive Sridhar Reddy expressed enthusiasm about the collaboration with SBI, a financial powerhouse, which he believes will provide a substantial impetus to microfood processing enterprises across the state. He emphasized the broad scope of this initiative, with a commitment to cover the maximum number of such units. As a pivotal part of this accord, SBI will extend collateral-free loans of up to Rs 10 lakh to eligible beneficiaries, adhering to the guidelines established by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) under the Agri Infrastructure Fund.
In the previous fiscal year, SBI had already sanctioned over 500 loans under the PMFME scheme, emerging as a prominent lending partner in this vital endeavour. The bank has also pledged its support for the promotion of food processing units in collaboration with farmer-producer organizations (FPOs). In addition to loans, the banking giant will furnish essential working capital loans to ensure the successful operation of supported enterprises. The partnership promises streamlined loan processing with minimal documentation and processing time, coupled with attractive interest rates and various other benefits.
This collaborative effort between the Andhra Pradesh government and SBI marks a significant step towards fostering economic growth and the development of microfood processing units, ultimately contributing to the prosperity of the state’s agricultural and food processing sectors.