Andhra Pradesh Mango Processors Seek Central Government Support Amid Export Disruptions
Andhra Pradesh mango pulp industry seeks central support
The Economic TimesImage: The Economic Times
Mango processors in Andhra Pradesh are urging the central government for assistance as exports are hindered by ongoing conflicts in West Asia. With 2.5 lakh tonnes of mango pulp valued at approximately ₹1,000 crore stuck in warehouses, they are requesting financial support and inclusion in various government schemes to prevent spoilage and manage high inventory costs.
- 012.5 lakh tonnes of mango pulp valued at ₹1,000 crore are currently stuck due to export disruptions.
- 02Processors are requesting support under the ₹10,000 crore SME Growth Fund.
- 03They seek a credit guarantee scheme for additional working capital.
- 04Inclusion in the RELIEF scheme is requested for reimbursement of freight costs.
- 05Immediate action is necessary to prevent spoilage of mango pulp.
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Mango processors in Andhra Pradesh, particularly in Chittoor district, are facing significant challenges due to export disruptions caused by conflicts in West Asia. They have reported that 2.5 lakh tonnes of mango pulp, valued at around ₹1,000 crore (approximately $120 million USD), is currently stuck in warehouses, posing a risk of spoilage. The All India Food Processors Association has formally requested intervention from the central government through local MP PV Midhun Reddy. They are seeking financial assistance under the ₹10,000 crore SME Growth Fund to manage high inventory levels without immediate pressure on Equated Monthly Installments (EMIs). Additionally, they are advocating for inclusion in a credit guarantee scheme to secure 20% additional working capital and requesting a 3-6 month moratorium on term loans for Micro, Small, and Medium Enterprises (MSMEs) affected by trade disruptions. The association also aims for recognition as a priority commodity under the Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme to ensure prompt reimbursement for increased freight and insurance costs.
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If the situation is not addressed, mango processors could face significant losses due to spoilage, affecting their livelihoods and the local economy.
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