Coconut is referred as “KalpaVriksha”-(The Tree of Heaven) as each and every part of the palm is useful to mankind in one way or other. Millions of families depend on Coconut for their Livelihood. Coconut Production Plays an Important role in the National economy. Dr.B.R.Ambedkar Konaseema District Shares 50% of Coconut Cultivation in Andhra Pradesh and cultivated in an extent of 38983.32 ha.

           Konaseema, “Andhras Coconut Country” known for its lush greenery, coconut groves, and vast agricultural fields.Most of the coconuts produced are sold as matured nut and small portion as tender coconuts for drinking purpose. Though a lot of value added coconut products ranging from virgin coconut oil, desiccated coconut, coconut milk, coconut milk powder, coconut water vinegar, coconut shell based charcoal, activated carbon, etc. can be produced and viable technologies are available, in Konaseema District the value addition in coconut is practiced to the maximum extent of ball copra making only. One virgin coconut oil manufacturing unit in Mummidivaram and few coconut shell charcoal units are established. 

Importance of Value Addition in Coconut:

Value addition of coconut can help increase the income of farmers who cultivate coconut in the region. By processing coconut into products such as coconut oil, coconut water, coconut milk, and desiccated coconut, farmers can earn more from their produce than by selling raw coconuts alone. This can help improve their standard of living and reduce instances of poverty.

  • It also create employment opportunities in the region. Agro-based industries such as coconut oil production, coconut shell charcoal manufacturing, and coconut-based handicrafts can provide jobs for locals, especially women and youth. This can lead to overall economic development of the region.
  • It can also boost tourism in Konaseema district. Coconut-based products such as traditional sweets made from coconut, coconut water, and coconut oil are popular among tourists who visit the region. This can help promote local businesses and generate additional income for the residents.

Coconut Value Added Products:

  • Kernel Based Coconut Products
  • Coconut Water based Products
  • Coconut Inflorescence Based Food Products
  • Coconut Convenience Food Products
  • Coconut Shell Based Products

Kernel Based Coconut Products:


Virgin Coconut Oil:


Coconut oil obtained from coconut milk is called virgin coconut oil. Traditional and modern methods are available for the manufacture of virgin coconut oil. In the traditional method, milk extracted from grated coconut kernel is boiled to get oil. Of late, the traditional method has been partially mechanized using a bridge press and mechanical grater. The modern method of extracting oil from fresh coconut kernel is known as wet processing.

Composition of VCO as per APCC

Sl. No




Moisture (%)

Max 0.1


Matters Volatile at 1200 C (%)

Max 0.2


Free Fatty Acid (%)

Max 0.2


Peroxide Value meq/kg

Max 3


Relative density

0.915 – 0.920


Refractive index at 400 C

1.4480 –1.4492


Insoluble impurities per cent by mass

Max 0.05


Saponification Value

250 – 260 min


Iodine Value

4.1 -11


Unsaponifiable matter % by mass

max 0.2 – 0.5


Specific gravity at 30 deg./30 deg. C

0.915 – 0.920


Polenske Value

min 13


Total Plate Count

< 0.5



Water clean


Odor and Taste

Natural fresh coconut scent,
free of sediment,
freefrom rancid odor and taste

The Virgin coconut oil is considered superior for use as edible oil, hair oil and baby oil because of its pleasing aroma and purity. It is applied on the body of babies to protect from skin diseases. Because of its low FFA content, this oil has a longer shelf life.

Desiccated Coconut:

Dehydrated coconut meat in the grated and shredded form is desiccated coconut (DC). A large number of units in India are manufacturing DC which is mainly absorbed by the confectionery and other food industries. DC is also used as a substitute to grated coconut in various household preparations. DC is available in different grades based on the fineness of the material.

Composition of Desiccated Coconut

Sl. No
















Crude fibre


Source* – Tropical Foods, Chemistry and Nutrition,Volume 2, George E Inglett

Coconut Milk:


Coconut Milk is the oil-protein-water emulsion obtained by squeezing fresh grated coconut kernel. The undiluted and diluted forms are called coconut milk and the concentrated form is coconut cream. Coconut milk is obtained by extraction of fresh coconut wet gratings with or without water. This is an instant product, which can either be used directly/diluted with water to make various preparations such as fish & meat dishes, curries, sweets, deserts, puddings, cocktails, cakes, cookies, coconut jam, ice creams etc. It can also be used in the manufacture of bakery products and for coconut milk flavouring food stuffs. Preserved forms of coconut milk such as canned cream or milk and dehydrated whole milk are now available in many coconut growing countries. Commercial production of these products has been promoted in the Philippines, Thailand, Indonesia, Western Samoa, Sri Lanka and Malaysia and to some extent in India. Indonesia is the leading exporter of coconut milk followed by Sri Lanka, Thailand and Philippines.

Coconut Skimmed Milk:

Plant protein and is an invaluable material for the preparation of milk substitutes. Coconut skimmed milk is a solution of the soluble components of coconut after the cream is separated in a cream separator. Skimmed milk is a good source of quality protein suitable for the preparation of many useful food products or as supplemental protein source, especially in regions deficient in animal proteins. Freshly prepared coconut milk from pared kernel is filtered through a 120 mesh vibrating screen and the pH of the filtered milk is raised from 6.3 to 7.0 with the additions of sodium hydroxide. The milk is then pasteurized at about 60oC for one hour and subsequently centrifuged in a cream separator to yield the aqueous phase or the protein rich skimmed milk.

Spray Dried Coconut Milk Powder:

Spray drying is the best method for the preservation of coconut milk. Spray dried coconut milk powder is reconstituted into coconut milk by adding water which can be used to make various food preparations. The product offers additional advantages such as less storage space, bulk packaging at reduced cost and longer shelf life. Technology for the manufacture of spray dried coconut milk powder is available with the Coconut Development Board.

Coconut Cream:

Processed and packed coconut cream is a ready-touse product which can either be used directly or diluted with water in various edible preparations. Coconut cream when partially defatted is called coconut milk. Coconut cream/ milk is used as an ingredient in household recipes and as a component of processed foods. Coconut milk is also used as coconut cream, a mixer in alcoholic drinks. Coconut milk/cream is available in pouches, bottles and tetra packs. Technology for the manufacture of coconut cream is available with Coconut Development Board.

Product Specification


White smooth creamy consistency













Coconut Chips:4

Coconut chips are a ready-to-eat snack food. It is prepared in salted and sweetened forms. The Central Plantation Crops Research Institute, Kasaragod has standardized the process for preparation of chips. Coconuts of 9-10 months are used for the preparation of chips.

Composition of Coconut Chips

Sl. No


per 20 g





Lauric acid














Coconut Oil:55


Coconut oil is rather a unique cooking oil as it contains the short and the medium chain saturated fatty acids. It fi nds extensive use in the food industry due to its characteristics such as easy melting behavior, resistance to oxidative rancidity, pleasing flavour and good digestibility. Coconut oil has gained importance as a dietary fat because of its high content of lauric acid, the source of monolingual in the body and 16W content of Omega 6. It can be used for manufacturing margarine and shortenings. Coconut oil is preferred as a fat in the preparation of fi lled milk, infant milk powder, ice-cream and confectionery and bakery products. Because of its stable character, coconut oil is the preferred fat for deep frying.

Studies undertaken by the Biochemistry Department, University of Kerala showed that coconut oil:

  • Does not elevate blood total cholesterol and increases blood HDL cholesterol
  • If consumed along with coconut kernel, lowers blood cholesterol
  • Does not elevate LDL cholesterol or LDL cholesterol/HDL cholesterol ratio
  • Decreases serum triglycerides

A large number of branded coconut oil in consumer packs are marketed in the country. Coconut oil is refined for industrial use. The refined coconut oil is water white in colour with no aroma. Since coconut oil has the lowest level of unsaturated fatty acids among all vegetable oils, the cost of hydrogenation is much less than all other oils.

Coconut oil – Product Specification


Moisture % wt., Max.


Colour in 1/4 cell Lovibond Y+5R, not Deeper than


Acid value, Max.


Unsap. matter % by wt., Max.


Polenske Value, Min.



Two types of copra, namely the milling and the edible, are made in India. The milling copra is used to extract oil while the edible copra is consumed as a dry fruit. Edible copra is made in the forms of balls and cups. Copra contains the highest percentage of oil compared to other oil seeds. It contains 15-20 percent carbohydrates, 9 percent protein and 4.10 percent crude fi bre besides 65-68 percent fat. The carbohydrate fraction consists of a large percentage of cellulose and sucrose together with other sugars. Besides glucose and fructose the presence of galactose, raffi nose and pentoses is also reported.

Coconut Water based Products :11

Tender Coconut Water:

The water of tender coconut (TCW) is a sterile,

nutritious and thirst quenching health drink. It possesses therapeutic properties. The TCW has a calorifi c value of 17.4 per 100gm.


In 100 ml

Total solids%


Reducing sugars %


Minerals %


Protein %


Fat %


Acidity mg %




Potassium mg%


Sodium mg%


Calcium mg%


Magnesium mg %


Phosphorous mg%


Iron mg%


Copper mg%


TCW is rich in potassium and other minerals. Sugars form an important constituent of the TCW. The concentration of sugars in the nut water steadily increases from about 1.5 per cent to 5-5.5 per cent in the early months of maturation and then slowly falls reaching about 2 per cent at the stage of the full maturity of the nut.


Coconut vinegar is made from fermented coconut water and is used extensively as a preservative and fl avouring agent in pickles, salads, sauces and many other condiments. Coconut vinegar is also made from the sap of the coconut tree and is similar to the fresh coconut water. Naturally fermented coconut vinegar is rich in minerals and vitamins such as beta carotene, calcium, iron, magnesium, phosphorous, potassium and sodium. Raw, unfi ltered organic coconut vinegar is similar to the one that is fermented naturally. Coconut vinegar helps in digestion and improves the quality of cooked meat and fi sh. It is a healthier alternative to synthetic vinegar.

Coconut squash:

It is a nourishing and refreshing healthy soft drink concentrate prepared by mixing coconut water, sugar and natural preservatives like lemon and ginger. It is rich in vitamins and minerals with low calorie. The product has a shelf life of three months under ambient conditions. The product is a new item and is gaining popularity in Asia and Pacific countries.


Nata-de-coco a cellulosic white to creamy yellow substance formed by acetobacter aceti subspecies Xylinium, on the surface of sugar enriched coconut water / coconut milk / plant extract / fruit juices or other waste materials rich in sugar.

It is popularly used as a dessert. It is also used as an ingredient in food products, such as ice cream, fruit cocktails, etc. “Nata” is a Spanish word, derived from the latin word “Natare” meaning “to float”. Nata making plays an important role in the development of our coconut industry because of the growing interest in its production from coconut water, an abundant waste product of coconut processing units.

Nata can be prepared from various fruits like banana, pineapple, tomato etc. and the product named after the media used, like “Nata de coco” from coconut, “Nata de pina” from pineapple etc. We can also use coconut milk, finely shredded coconut meat or coconut water in preparing Nata.

Coconut Inflorescence Based Food Products :1



The vascular sap collected from immature unopened coconut inflorescence is popularly known as Neera in fresh form. It is a sugar containing juice and is a delicious health drink and a rich source of sugars, minerals and vitamins. It is sweet and oyster white in colour and translucent. It is tapped from the coconut inflorescence and is filtered, pasteurized and bio preservatives added to preserve the product. Treated Neera can be preserved in cans upto two months at room temperature. It can also be packed in tetra packs or glass bottles. Tapping can be done for six months in a year. It is an abundant source of minerals, 17 amino acids, vitamin C, broad spectrum B vitamins and has a nearly neutral pH.

The composition of Neera



Raw Neera

Packed Neera










Total sugar

15.00 %

15.00 %


Total mineral matter

0.27 %

0.26 %



0.106 %

0.106 %





Coconut Jaggery:

Fresh neera when boiled to 118-120o C and allowed to cool for solidification. The solid mass is known as coconut jaggery or ‘gur’. Coconut jaggery is made in traditional coconut growing tracts in the country on a cottage scale. Calcium and phosphorus are the important minerals contained in coconut jaggery. Treacle is another product manufactured from sweet toddy. It is obtained by boiling down the toddy. Fresh toddy is also a good source of baker’s yeast. The fresh neera rapidly ferments and the sugar is replaced by about 5-8 per cent alcohol, which on distillation yields arrack. Fermented neera on acetic fermentation yields vinegar containing 4-7% acetic acid.

Nutritional value of jaggery

Sl No


Amount (%)
















Coconut Palm Sugar:1

The coconut palm syrup or jaggery can be crystallized to produce fine granules of sugar. Transition of coconut jaggery into a ground granule sweetener is more accepted by global markets. The recovery of palm sugar from coconut palm jaggery is 15%. The application of this sugar is tremendous and offers huge potential owing to its most important health attributes, the low Glycemic index and the high nutrient content. It can be the most suited alternative sweetener, especially when agave sugar is being rejected owing to the high fructose content. This alternative sugar industry is estimated to be a $1.3 billion industry and hence the market prospects are enormous.

Neera Promotional Activities:

Coconut Convenience Food Products:

Coconut Biscuits:

Coconut biscuits are ready to eat snack products prepared from maida and coconut powder. It can be prepared in different varieties through addition of cocoa, butter; ginger etc. The product has a shelf life of three months under ambient conditions. It is mainly consumed as a snack item. Coconut biscuits are highly nutritious and delicious with low calories and high fiber content and is one of the healthiest snack items which is quite popular and is in great demand in Asia and Pacific countries, USA, European countries, Middle East and African countries.

Coconut Candy:

Coconut candy is prepared from grated coconut mixed with coconut milk. It has high fiber content and helps prevent intestinal sluggishness. It is a newly introduced product mainly produced in Asia and Pacific Countries.

Coconut Chocolate:

It is a sweet confectionery item prepared from coconut gratings sugar, milk butter with a coating of chocolate. It is rich in protein, carbohydrate and fiber. It can be made more delicious through addition of cashew, badam and other dry fruits. The product has a shelf life of three months under refrigerated conditions. The product is having extensive demand in Europe, North America, Australia, Middle East and China.1

Coconut Burfi:

It is a snack prepared by roasting coconut gratings. A procedure for preparation of coconut burfi was standardized. Coconut gratings (after extraction of fat) were roasted, then added fat at the rate of three percent and sugar at ten percent gave highest organoleptic qualities. The product has good nutritive value with protein (10.23%), Ash (2.1%) and carbohydrates (60.87%).

Coconut Shell Based Products :22

Coconut Shell Powder:1

Coconut shells free from contamination of coir pith, etc., are broken into small pieces and fed into a pulveriser. The powder from the pulveriser is fed into a cyclone and the parallel product is collected in bag filters. The shell powder is then fed into a vibrating sieving machine and packed according to mesh size requirements for various end uses. The rejects from the sieving machine can be recycled in the pulverizer for size reduction. The main requirements for consistent good quality of coconut shell powder are proper selection of shell of proper stage of maturity and efficient machinery.

Product Specification


clear light brown free flowing powder


10 per cent max.


0.6 to 0.7 g/cc

Ash content

1.5 max.


Retained on 200 mesh BS sieve shall not exceed 0.1%

Coconut Shell Charcoal:1

Shell Charcoal is obtained by burning the shell of fully matured coconuts with a limited supply of air so that they do not burn away to ash but are only carbonized. The manufacture of shell charcoal shows from the coconut shell has become a very important economic and commercial activity. Furthermore, coconut shell charcoal, which was relatively a minor product in the past, has now developed into a general commercial commodity due to its intrinsic value as a raw material for the manufacture of activated carbon. Coconut shell charcoal are of two types: viz Coconut shell charcoal and granulated shell charcoal.2

The quality standards for shell charcoal as per Asian and Pacific Coconut Community (APCC) are as follows:


Less than 10%


Not more than 2%

Volatile matter

Not more than 15%

Fixed carbon

Not more than 75%

Foreign matter

Not more than 0.5%




Not more than 5%, shall passa 0.63 cm mesh sieve.

Activated Carbon:

The process of activation is carried out in two stages. Firstly the coconut shell is converted into shell charcoal by carbonization process which is usually carried out in mud-pits, brick kilns and metallic portable kilns. The coconut shell charcoal is activated by reaction with steam at a temperature of 900oC -1100oC under controlled atmosphere in a rotary kiln. The reaction between steam and charcoal takes place at the internal surface area, creating more sites for adsorption. The temperature factor, in the process of activation is very important. Below 900oC the reaction becomes too slow and is very uneconomical. Above 1100°C the reaction becomes diffusion controlled and therefore takes place on the outer surface of the charcoal resulting in loss of charcoal.

Products Specifications

PH Value

6.5 – 7.5

Methylene Value adsorption mgm/gm

190 – 350

Adsorption capacity at % by mass (min)


Moisture (max.)


Ash (max)




   Overall, value addition of coconut has significant potential to improve the economic and social development of Konaseema district. It can increase income, create employment opportunities, and promote sustainable tourism in the region.

1) One District One Product Initiative: Product list, Action plan Report.

The ODOP initiative is aimed at manifesting the vision of the Hon’ble Prime Minister of India to foster balanced regional development across all districts of the country.

The Government of India have identified Coconut as One District One Product in Kakinada District.

The idea is to select, brand, and promote One Product from each District of the country,

  • To promote healthy food products by not using health hazardous materials in Food Processing Industries
  • For enabling holistic socioeconomic growth across all regions
  • To attract investment in the District to boost manufacturing and exports
  • To generate employment in the District
  • To provide ecosystem for Innovation/ use of Technology at District level to make them competitive with domestic as well as International market.

Action Plan:

  • Proposed various training programmes on Coconut Value Addition,Technology Transfer under various schemes of Government of India and Government of Andhra Pradesh.
  • Provide financial assistance through Department of Horticulture,Andhra Pradesh Food Processing Societies & Coconut Development Board.
  • Creating awareness on Market linkages by conducting meetings with retailers & also by conducting exhibitions
  • Empower the Industries /FPOS/Women to attain Self sustainability.

2) Details of district Nodal Officer, Nodal Department and Dedicated team for ODOP Details of Assistant Director/Development Officer of the district  (Handloom & Textiles Department).  


3) Dedicated helpline or call center/support desk for ODOP Contact Details of District Horticulture Officer.  

  • District Horticulture Officer: 8333835469

4) List of activities being undertaken by district administration under ODO initiative List of Cluster Development Program, Training Programs and    other  schemes:

 Details of Training Programmes: 

  • Organized Work shops on Cultivation aspects & Value addition in Coconut in convergence with Coconut Development Board.
  • Conducted District level training Programme with all line Departments under Chairmanship f Collector & District Magistrate,Dr.B R Ambedkar Konaseema.
  • Organized Distrct level training on financing women in convergence with SERP .

1        3

Details of Schemes implemented: 


Name of the Scheme

No.of units

Financial Assistance Provided ( in Lakhs)

No .of Beneficiaries



Minimal Processing Unit






Collection Centre






Virgin Coconut Oil






Pack houses





  2  1

1    11

5) Details of ODOP sensitization workshop being conducted for current stakeholders and next generation stakeholders List of ongoing Training Programs:  

  • Conducted Sensitization Programme on Coconut Value Addition under Chairmanship of Collector & District Magistrate .
  • Proposed to conduct meeting with Retailers to provide market linkages to FPOs / SHG members and
  • Proposed to conduct another meeting with all bankers to s
  • peed up loan process in order to establish earliest.

1    22

6) List of mentors registered with District to provide mentorship to beneficiaries







District Resource Person



District Resource Person



District Coordinator



FPO Member



Scientist,HRS, Ambajipeta



Scientist, Pandirimamidi




7) Details by account Holder of all transactions ( Sales) Consolidate sales data of ODOP product from the district


8) Mentorship support available, with clear laid out procedures to avail the same List of Cluster Development Program, Training Programs and other schemes. 

  • Sensitization Programme on Coconut Value Addition conducted at Collectorate, Dr.B.R.Ambedkar Konaseema District.

9) Funding support available, with clear laid out procedures to avail the same.

Credit facility/Scheme

Contact Details


Link to apply

Minimal Processing units






O/o District Horticulture Office ,Amalapuram

Any Coconut Farmer/Individual

Through VHS/VAA & Horticulture Officers


Pack houses

Any Coconut Farmer/Individual

Through VHS/VAA & Horticulture Officers



Any Individual/


Through DRPs

Technology assistance under technology mission

Any Coconut Farmer/Individual

Through VHS/VAA & Horticulture Officers

Processing & product diversification

Any Coconut Farmer/Individual

Through VHS/VAA & Horticulture Officers

10) Details of rules, regulations, act, Government schemes introduced or amended to propel the ODOP initiative in the district.

One District One Product:

  • The Scheme adopts One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products. ODOP for the scheme will provide the framework for value chain development and alignment of support infrastructure. There may be more than one cluster of ODOP product in one district. There may be cluster of ODOP product consisting of more than one adjacent district in a  State.
  • The States would identify the food product for a district, keeping in perspective the focus of the scheme on perishables. A baseline study would be carried out by the State The ODOP product could be a perishable agri produce, cereal based product or a food product widely produced in a district and their allied sectors. Illustrative list of such products includes mango, potato, litchi,    tomato, tapioca, kinnu, bhujia, petha, papad, pickle, millet based products, fisheries, poultry, meat as well as animal feed among others. In addition, certain other traditional and innovative products including waste to wealth products could be supported under the Scheme. For example, honey, minor forest products in tribal areas, traditional Indian herbal edible items like turmeric, amla, haldi, etc. Support for agricultural produce would be for their processing along with efforts to reduce wastage, proper assaying and storage and marketing.
  • With respect to support to existing individual micro units for capital investment, preference would be given to those producing ODOP products. However, existing units producing other products would also be In case of capital investment by groups, predominately those involved in ODOP products would be supported.
  • Support to groups processing other products in such districts would only be for those already processing those products and with adequate technical, financial and entrepreneurial strength.
  • New units, whether for individuals or groups would only be supported for ODOP.
  • Support for common infrastructure and marketing & branding would only be for ODOP products. In case of support for marketing & branding at State or regional level, same products of districts not having that product as ODOP could also be included.
  • Department of Commerce is focusing on agriculture crops on a cluster approach for support for exports under the Agriculture Export Policy and Ministry of Agriculture is also focusing on cluster approach for development of specific agri- produce in districts having comparative advantage. A number of states have adopted similar cluster based development. The ODOP approach of the Scheme would lead to ease in providing common facilities and other support.

Programme Components :

  • The programme has four broad components addressing the needs of the sector:
  • Support to individual and groups of micro enterprises;
  • Branding and Marketing support;
  • Support for strengthening of institutions;
  • Setting up robust project management framework.
  • Details of each of these components are described below.

Support to Individual Micro Enterprises :

  • Individual micro food processing units would be provided credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10.0 lakh per unit. Beneficiary contribu0imum of 10% of the project cost with balance being loan from Bank.

 Eligibility criteria for individual micro enterprises under the scheme:

  • Existing micro food processing units in operations;
  • Existing units should be those identified in the SLUP for ODOP products or by the Resource Person on physical verification. In case of units using electrical power, electricity bill would support it being in For others units, existing operations, inventory, machines and sales would form the basis;
  • The enterprise should be unincorporated and should employ less than 10 workers;
  • The enterprise should preferably be involved in the product identified in the ODOP of the district. Other micro enterprises could also be considered;
  • The applicant should have ownership right of the enterprise;
  • Ownership status of enterprise could be proprietary / partnership firm;
  • The applicant should be above 18 years of age and should possess at least VIII standard pass educational qualification;
  • Only one person from one family would be eligible for obtaining financial assistance. The “family” for this purpose would include self, spouse and children;

Willingness to formalize and contribute10% of project cost and obtain Bank loan; Cost of the land should not be included in the Project cost. Cost of the ready built as well as long lease or rental work shed could be included in the project cost. Lease rental of work shed to be included in the project cost should be for a maximum period of 3 years only.

 Selection Process for Individual Micro Units:

  • Identification of existing Units to be supported would be by a two-pronged Based on One District One Product approach, support would preferably be provided to the Units engaged in that product in the district. Other units, who have potential, would also be supported.
  • Applications would be invited at the district level on an ongoing basis for Units, from those interested in availing the benefits under the Resource Persons (RPs) would undertake survey of various clusters and identify units that show potential for availing benefits under the Scheme. For applications received directly, RPs would undertake field verification and due diligence to assess their potential.
  • All the potential cases based on identification of Units directly by RPs and application received would be submitted before the District Level Committee. District Level Committee should study the report submitted by RP for each Unit and interview the interested persons.
  • Due diligence to be carried out by the RP for each Unit should have the following details:
    1. Annual Turnover of the enterprise;
    2. Track Record of payments by the enterprise;
    3. Existing infrastructure;
    4. Backward and Forward Linkages;
    5. Proximity to clusters;
    6. Marketing linkages of the  enterprise.
  • For the cases recommended by the District Level Committee/SNA, RPs should help them in preparation of DPR for availing bank loan for upgradation of the The DPR along with necessary documents should be submitted to the Banks for sanction of loan.
  • The procedure delineated above would apply for selection of new units also, provided the ODOP baseline study throws up a need / potential for such new investments.
  • State Governments should decide at what level they would want to finalize individual micro units list to be supported, by DLC or at SNA level. Similarly, for applications for capital investment by groups, common infrastructure & marketing & branding, the states should decide the role of DLC/SNA in routing of applications.

Group Category:

  • The Scheme would support clusters and groups such as FPOs/SHGs/ producer cooperatives along their entire value chain for sorting, grading, assaying, storage, common processing, packaging, marketing, processing of agri-produce, and testing laboratories.

  Farmer Producer Organizations (FPOs)/Producer Cooperatives:

  • FPOs and Producer Cooperatives would be provided the following support:
    1. Grant @35% with credit linkage.
    2. Training support.
    3. Maximum limit of grant in such cases would be as prescribed.
  •     Eligibility Criteria for Co-operatives/FPO’s.
    1. It should preferably be engaged in processing of ODOP produce.
    2. It should have minimum turnover of 1 crore.
    3. The cost of the project proposed should not be larger than the present turnover.
    4. The members should have sufficient knowledge and experience in dealing with the product for a minimum period of 3 years.
    5. The cooperative/FPO should have sufficient internal resources or sanction from the State Government to meet 10% of the project cost and margin money for working capital;

 Self Help Groups (SHGs):

  • A number of SHGs are undertaking food processing The Scheme proposes to provide following support to SHGs:-

 Seed capital:

  1. Seed capital @ Rs40,000/- per member of SHG for working capital and purchase of small tools would be provided under the scheme.
  2. Priority would be given for SHGs involved in ODOP produce in giving seed capital.
  3. All the members of an SHG may not be involved in the food Therefore, seed capital would be provided at the federation level of SHGs.
  4. This would be given as grant to the SHG federation by SNA/ SRLM. SHG federation would provide this amount as a loan to the members of SHGs to be repaid to the SHG.
  • Support to individual SHG member as a single unit of food processing industry with credit linked grant @35% with maximum amount being Rs 10 lakh.
  • Support for capital investment at federation of SHG level, with credit linked grant @35%. Maximum limit of grant in such cases would be as
  • Training & Handholding Support to SHGs: For support to SHGs, a large number of trained resource persons are available with State Rural Livelihood Missions (SRLMs). These local resource persons of SRLM having expertise in agro-produce would be utilized for training, upgradation of units, DPR preparation, handholding support, etc..,

Eligibility Criteria for Seed Capital for SHGs:

  1. Only SHG members that are presently engaged in food processing would be eligible;
  2. The SHG member has to commit to utilize this amount for working capital and purchase of small tools and give a commitment in this regard to the SHG and SHG federation.
  3. Before providing the seed capital, SHG Federation should collect the following basic details for each of the members:
    • Details of the product being processed.
    • Other activities undertaken.
    • Annual turnover;
    • Source of raw materials and marketing of produce.

Eligibility Criteria for Credit Linked Grant for Capital Investment for SHGs:

  1. The SHGs should have sufficient own funds for meeting 10% of the project cost and 20% margin money for working capital or sanction of the same as grant from the State Government.
  2. The SHG members should have for a minimum period of 3 years’ experience in processing of the ODOP Product.

 Support for Common Infrastructure: 

  • Support for common infrastructure would be provided to FPOs, SHGs, cooperatives, any Government agency or private Common infrastructure created under the scheme should also be available for other units and public to utilize on hiring basis for substantial part of the capacity. Eligibility of a project under this category would be decided based on benefit to farmers and industry at large, viability gap, absence of private investment, criticality to value chain, etc. Credit linked grant would be available @ 35%. Maximum limit of grant in such cases would be as prescribed.
  • Types of Common infrastructure to be funded under the scheme:

  1. Premises for assaying of agriculture produce, sorting, grading, warehouse and cold storage at the farm-gate.
  2. Common processing facility for processing of ODOP produce.
  3. Incubation Centre should involve one or more product lines, which could be utilized by smaller units on a hire basis for processing of their produce. The Incubation Centre may partly be used for training purpose. It should be run on commercial basis.

Procedure for groups to send proposals for Common Infrastructure and capital investment by FPOs/SHGs/Cooperatives:

  • The following procedure should be followed for seeking funding for common infrastructure and capital investment by FPOs/SHGs/Cooperatives under the Scheme:
    1. A DPR for seeking assistance under the Scheme for capital investment and common infrastructure should be prepared, based on the format as prescribed.
    2. The DPR should have necessary details of the proposal, detailed project cost, proposed manpower, turnover, marketing channel, sources of raw material, estimated profit & loss account, cash flow statement; etc..,
    3. The DPR should be sent to State Nodal Agency (SNA). After approval of the proposal by SLAC, SNA should recommend the proposal to MoFPI. Any proposal for assistance to a group for grant above Rs.10 lakh should be sent to MOFPI for approval.
    4. After approval of the proposal by MoFPI, the proposal should be forwarded to the financial institution for sanction of loan.
    5. The DPR may also contain proposal for training support to the group members based on the training hours & modules, as prescribed and the cost norms of Ministry of Skill Development and Entrepreneurship. Component of training and capacity building would be fully funded under the Scheme.
    6. Assistance of 50,000/- per case would be provided to FPOs/SHGs/ Cooperatives for preparation of DPR.
    7. Disbursement of grant should take place to the bank account of the applicant organization after sanction of loan by the bank.

Branding and Marketing Support: 

  • Marketing and branding support would be provided to groups of FPOs/SHGs/ Cooperatives or an SPV of micro food processing enterprises under the Scheme. Following the ODOP approach, marketing & branding support would only be provided for such product at the State or regional level.

Eligible items for support

  1. Training relating to marketing to be fully funded under the scheme.
  2. Developing a common  brand and packaging   including standardization to participate in common packaging.
  3. Marketing tie up with national and regional retail chains and state level institutions.
  4. Quality control to ensure product quality meets required standards.
  • Support for marketing and branding requires developing a common brand, common packaging and product The appropriate level for common branding and packaging would differ from place to place, case to case and product to product. Whether it should be district, regional or state level would be decided by the concerned SNA in each case. Therefore, the proposal for support to marketing and branding should be prepared by the SNA. Support for branding and marketing would be limited to 50% of the total expenditure. Maximum limit of grant in such cases would be as prescribed. No support would be provided for opening retail outlets under the scheme.
  • Vertical products at the national level could also be provided support for branding & marketing on the same lines as described above for ODOP Such support for common branding/packaging and marketing would be provided at the national level. Proposal for that support should be sent to MoFPI by the states or national level institutions or organizations or partner institutions.

Eligibility criteria:

  • The proposals should fulfill the following conditions:-
    1. The proposal should relate to ODOP.
    2. Minimum turnover of product to be eligible for assistance should be Rs 5 crore.
    3. The final product should be the one to be sold to the consumer in retail pack.
    4. Applicant should be an FPO/SHG/cooperative/ regional – State levels SPV to bring large number of producers together.
    5. Product and producers should be scalable to larger levels.
    6. Management and entrepreneurship capability of promoting entity should be established in the proposal.

Procedure for applying for assistance under Branding & Marketing:

  • Detailed Project Report preparation:
    1. A DPR should be prepared for the proposal, comprising essential details of the project, product, strategy, quality control, aggregation of produce, common packaging and branding, pricing strategy, promotional details, warehousing and storage, marketing channel, plans for increase in sales etc..,
    2. Support up to Rs.5 lakh would be available from SNA for preparing DPR for proposals for marketing & branding.
    3. The proposal should also contain flow chart of activities from the procurement of raw material to marketing, critical control points, ensuring quality control,plans for five years in terms of promotional activities, increasing the number of participating producers and turnover.
    4. There should be an agreement with a business plan, executed between the cooperatives/SHG/FPO/SPV, the lead buyer(s), if any, and the SNA, which would describe the capital and services needs of the producers and proposed improvements that would allow them to upgrade their production capacities and skills to strengthen their linkage with the market, i.e. the lead buyer(s).

District Level Structures:

  • District Level Committee: At the district level, a District Level Committee (DLC) would be constituted under the Chairmanship of District Collector. The Committee would have representation from panchayats, banks, subject experts, academia, community institutions, FPOs/SHGs, etc. The District Collector may co-opt any other person as a member of The composition of the District Level Committee would be :

Composition of DLC: 


District Collector



GM, DIC, District Agriculture Officer, District

Horticulture Officer



Sarpanch of one GP



One Block Development Officer



District Lead Bank Manager



SHG/FPO representatives



Representative of NABARD



District representative of SRLM



Any other persons nominated by Collector


  • The DLC would be responsible for the following:
    1. Approvals of applications for loan and subsidy to individual micro enterprises.
    2. Recommend applications for common infrastructures & groups to SNA.
    3. Monitor handholding support being rendered to micro enterprises by District Resource Persons.
    4. Monitor the progress of the Scheme through the portal and through effective dashboard monitoring.
    5. Ensure synergy with all relevant Institutions.

Resources Persons:

At the district/regional level, Resources Persons should be appointed by SNA for providing handholding support to the RPs should have the following qualifications:

    1. Diploma/degree in Food Technology/ Food Engineering from reputed National/ International University/Institute.
    2. 3-5 years’ experience in providing consultancy services to food processing industries for technology upgradation, new product development, quality assurance, food safety management.
    3. persons qualified in food technology are not available, persons with experience in food processing industry, banking, DPR preparation and training may be engaged.
    4. Handholding support should be provided by the Resource Persons to individual units and groups for preparation of DPR, taking bank loan, support for obtaining necessary registration and licences including food standards of FSSAI, Udyog Aadhar, GST, etc..,
    5. Payment to the Resource Persons would be made on the basis of each beneficiary supported by them after sanction of loan to them by the bank. Payment to each Resources Person would be @ Rs.20,000/- per bank loan sanctioned. 50% of the payment would be made after sanction of bank loan and remaining 50% after the Units takes GST &Udyog Aadhar registration, takes standard compliance of Implement the project and is given training.
  • State Nodal Department should decide on the flow& approval process of applications and support under the Scheme. They should decide the respective roles of DLC, SNA & State Level Technical Institutions for the following:-
    1. Approval level for shortlisting of individual application;
    2. Flow of application of groups & common infrastructure within the state level;
    3. Training & capacity building activities and decision making between DLC, SNA & State Level Technical Institutions;
    4. This decision on the flow of applications & process for support within the state would apply irrespective of the roles of the agencies specified in the Guidelines.

Disbursement of Funds: 

  • The scheme is a centrally sponsored scheme with the following sharing of resources between the Centre and the States:
    1. Centre-State share at 60:40.
    2. 90:10 sharing between center and Himalayan and North Eastern States.
    3. UTs with legislature sharing would be 60:40 between the Centre and the States.
    4. UTs without legislature 100% funds would be provided by the Central Government.
  • The following components would be met 100% by the Central Government:
      1. Capacity buildings & training.
      2. Administrative cost of national PMU for MoFPI.
      3. Training support in terms of audio-visual, development of print material, development of modules at the national level.
      4. MIS.
      5. Development of technologies, products, etc.
      6. Support to national level partner institutions.
      7. Promotional activities at the national level.
      8. Any other expenditure made directly by of India would be borne 100% by MOFPI.
  • Expenditure in the first year, whether incurred by the Centre or the States would be borne 100% by the Govt. of India. This is being done because the Scheme is launched after the State budgets have been approved. Therefore, the States may be able to provide funding only after Supplementary Budgets are approved. The expenditure made in the first year would be adjusted in 60:40 ratio in the funds being transferred to the States equally in the next four years.
  • The funds would be provided to the States based on the approved PIP in two installments in a year after Utilization Certificate (UC) for the installments other than the immediate previous release, have been given. There would be no such requirement of UC for the funds transferred in the year 2020-21.
  • To meet administrative expenditure for PMUs, studies & training, grant of would be provided to the States in the second/third quarter of 2020-21. Subsequently, after the approval of PIP, funds would be provided for the full year 2020-21 to the States in a single installment.

Credit Linkage: 

  • The main expenditure under the Scheme is credit linked grant @35% for the for micro food processing enterprises subject to a maximum of 10 lakh. Additionally, credit linked grant is being provided to groups @35% for capital investment, credit linked grant for common infrastructure @ 35%. These grants would be transferred to the lending bank after sanction of the loan by the bank.
  • At the national level, a Nodal bank would be appointed for disbursement of subsidy to the banks and liaison with the  banks.
  • The bank sanctioning the loan would open a mirror account in the name of the The lending bank would report the fact of sanction of loan to the Nodal Bank at the national level. After receipt of this information, Central and State Government should respectively transfer 60% and 40% of its share of grant to the Nodal Bank. The Nodal Bank would transfer 60% of the Central share of the grant and 40% of the State share of the grant together to the concerned lending Bank branch. That Bank branch should place this amount in the mirror-bank account of the beneficiary. The lending bank should disburse sanction loan amount in accordance with normal banking practice to the beneficiary/supplier.
  • If after a period of three years from the disbursement of last tranche of the loan, the beneficiary account is still standard, and the unit is operational, this grant amount would be adjusted in the bank account of the beneficiary. If the account becomes NPA prior to three years from the date of disbursement of the loan, the grant amount would be adjusted by the Bank towards repayment by the If the grant amount is adjusted after three years against the loan amount in case of standard account, no interest would be payable by the borrower on the portion of the loan disbursed by the Bank equal to the grant amount from the date of receipt of the grant amount by the lending bank.Benefit of credit guarantee coverage for loans offered under this Scheme should be provided to the borrower under the Credit Guarantee Trust for Micro & Small Enterprises through the National Credit Guarantee Trustee Company under their usual terms & conditions. Interest subvention of 2% under the Interest Subvention Scheme for incremental credit to MSMEs 2018 would also be available to the borrowers on the outstanding balance.
  • It should be ensured by the SNA that the applications are forwarded to the banks on a regular basis rather than forwarding a bunch of them together on a monthly or quarterly basis.
  • The proposals should be forwarded to the bank branches along with basic KYC of the applicant. To minimize the processing time, applications should be forwarded to the banks along with all the requisite documents required for loan applications such as lease/ownership documents of land for setting up the unit/machinery, registration and necessary Government clearances, Applications should carry complete project details and the DPR should be commensurate with the economic viability of the locality. Project cost should be a realistic figure based on a reasonable assessment of the economic viability of the project.

Convergence Framework: 

  • Food Processing Enterprises being supported under the Scheme would be eligible for benefits under the following Government Schemes:
    1. National Rural Livelihood Mission – providing seed capital, training, handholding support and interest subvention to SHGs.
    2. Start-up Village Entrepreneurship Programme (SVEP) –It is a Centrally Sponsored Scheme, a part of NRLM, provides capital and technical support to rural start-ups through training, handholding and support through Community Enterprises Fund (CEF) as a loan up to Rs.1 lakh for individual entrepreneur and 5 lakh for group entrepreneurs at 12% interest.
    3. Interest Subvention Scheme for incremental credit to MSMEs 2018 – 2% interest subvention on outstanding balance.
    4. Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE) for collateral free loan up to Rs 2 crore.
    5. PM MUDRA Yojana for loan up to 10 lakh.
    6. A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE).
    7. Scheme for Fund for Regeneration of Rural Industry (SFURTI).
    8. Public Procurement Policy for MSEs.
    9. Benefits available under various other Schemes of MoFPI such as Backward & Forward Linkages, Agricultural Production Cluster, Cold Chain would be used to provide support to clusters/groups.pport from PMKVY and NRLM for skill training for SHGs, if falling within the guidelines would be taken. For shorter duration on site trainings, support would be provided from NRLM and the PM FME scheme, tailor-made for such purposes.

Primary Processing/Minimal Processing Units:

  • Processing of horticultural produce and value addition is an important activity. While primary / minimal processing units are promoted under MIDH, large scale processing units are promoted by Ministry of Food Processing Industries (MFPI), out of their ongoing Schemes.
  • Application form along with all required documents as per the check list has to be forwarded to State cell for taking approval from SLEC. After receiving of administrative sanction, ADH has to submit Preliminary Inspection Report. After the unit is completed ADH has to recommend for joint inspection of the unit.
  • The ADH shall conduct joint inspection with the members constituted by this office and the joint inspection reports have to be submitted in prescribed format. Based on the recommendations of the Committee, the final installment of the subsidy shall be released to the concerned bank of the promoter through hortnet.

Title of the land and copy of record of right: 

  • The title of the piece of land on which the project is proposed to be set up should be in the name of applicant in the capacity of owner or lessee for minimum period of 10 years. In case of land leased, lease deed it should be registered with the Authority like office of Sub- Registrar, etc. A latest copy of record of right showing this fact should be enclosed with the application. Mortgaged land shall not be treated at par with lease even if the credit institution might have considered so. Similarly, Power of Attorney given by owner of land in favour of applicant shall not qualify him for benefit under the scheme.

Requirements and Costing for a Pack House

Sl. No


Detail of structure







Unit rate (Rs)

Total Cost




Near Metal road, near well, power pole etc




Farmer’s Own


Expenditure Item







Civil Structure







Site levelling etc

Levelling land and to make it motorable inside the premises








30’X20’X12’ Packing hall

30X20X12 ft with GI/Asbestos roof, Hard cement flooring, Windows doors of country



















Packing /grading Table (for Mango growers only)

4’X8′ of GI or SS material, with 100mm side protection to stop roll off and with provision to

drain water










Washing sheets (HDPE)

Of plastic of not less than 5′ length and 2.6′ ft width






Weighing Machine

To weigh upto 300 kgs with an accuracy of + or – 0.1 Kg with atleast 400X 600mm plat form






Chemical Treatment Washing Tubs (Cement)








Desaping Units (for Mango growers only)

1.2 – 1.5mtr.(L)x0.8 –

1.0mtr.(W) x20cm (H);GI rods covered with ½”PVC Pipes










Dhapoli Harvestors (for

Mango growers only)














Meter with connection

Single Phase or three phase connection including deposit







Electrical Wiring with fuses, switches, holders, bulbs, fans etc.

5 Tube lights, 3 Fans with           2 Hrs. back up










Water System









Water tank with support

Plastic “Sintex” or equivalent or cement based located at height either outside or with separate

support of at least 2000 litres capacity












Watering pipe

Running parallel to packing hall with at least three taps and flexible water pipe with shower arrangement of 50′ length minimum.










Other assets Small office table, three chairs, almairah, Wooden












Plastic Crates

40 Ltrs. Capacity (25 kgs.)






Inverter (Optional)













Details of Quality assurance Labs / Certification Labs / Processing Units/Quality infrastructure with Contact Details :

Food Safety & Standard Authority of India ( FSSAI)- Assistant Food Controller,Kakinada,9989688699.

Details of department providing institutional support to beneficiaries availing support under ODOP initiative :

Name of SPOC











80750 14843