Mango processors in Andhra Pradesh face export challenges. A significant quantity of mango pulp is stuck due to shipping lane disruptions. Processors are requesting government support. They seek equity capital and credit guarantees. Moratoriums on loan payments are also requested. Inclusion in export facilitation schemes is a priority.

Andhra Pradesh mango pulp industry seeks central support

Synopsis

Mango processors in Andhra Pradesh face export challenges. A significant quantity of mango pulp is stuck due to shipping lane disruptions. Processors are requesting government support. They seek equity capital and credit guarantees. Moratoriums on loan payments are also requested. Inclusion in export facilitation schemes is a priority.

Hyderabad: Mango processors in Andhra Pradesh have sought an intervention from the central government as the escalating conflict in West Asia disrupts exports. The All India Food Processors Association has made a representation to the ministries of finance and commerce and industry through Rajampet's MP PV Midhun Reddy, while processors from Chittoor have also written to the finance minister.

The association's letter said 2.5 lakh tonnes of mango pulp, valued at around ₹1,000 crore, is currently stuck across warehouses and export hubs as the result of the disruption of shipping lanes to the Middle East and Europe. The situation is particularly acute in Chittoor, India's largest mango pulp hub, which along with Tamil Nadu's Krishnagiri cluster, accounts for a bulk of the country's processed mango exports.

"With a 12-month shelf life for the 2025 stock, there is an imminent risk of spoilage if not moved immediately," K Govardhana Bobby, chairman (South Zone) of the association wrote in the letter.

Processors have sought support under the ₹10,000 crore SME Growth Fund, seeking equity capital to manage high inventory without immediate EMI pressure. They have also sought Inclusion in an Emergency Credit Line Guarantee Scheme style credit guarantee scheme to provide 20% additional working capital, besides a 3-6 month moratorium on term loans and interest payments for MSME exporters grappling with trade disruptions.

They have also sought inclusion as a priority commodity under RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme to ensure immediate reimbursement for freight escalations and insurance surcharges.

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