Andhra Pradesh is becoming a significant hub for edible oil refinery units, benefiting from improved port infrastructure and connections to countries like Indonesia and Malaysia. Currently, Krishnapatnam port hosts over 10 edible oil refining companies.
Recently, agricultural projects worth Rs 650 crore were inaugurated, expected to create 2,120 jobs and bolster the food processing and edible oil refinery sectors. ANA Oleo Private Limited, an Indian subsidiary of Singapore's ANA International Pte. Ltd., has invested Rs 650 crore in a new edible oil manufacturing and Oleo chemical processing unit near Krishnapatnam port, providing over 2,100 jobs.
The state of Andhra Pradesh houses around 30 oil refineries and related companies, with eleven located in the Krishnapatnam area. These include notable names like Cargill, Agrawal Industries Limited, South India Krishna Oil and Fats limited, Emami Agrotech Limited, Adani Wilmar Limited, Gemini Edibles and Fats India Private Limited, Santhoshimathaa Oils and Fats Private Limited, and Universal Biofuels Limited.
Under the AP Industrial Investment Promotion Policy 2010-15, seven edible oil industries were established. A 2020 report on Krishnapatnam port projected that edible oils imports could surpass 3 million tonnes annually. The refineries at Krishnapatnam port benefit from direct unloading of crude palm oil from ships via pipelines and primarily serve the Southern and Eastern parts of India. Recently, two more refineries opened in the state: Godrej Agrovet in Eluru district (Rs 100 crore investment) and Gokul Agro in Nellore district (Rs 250 crore investment).
Investments in the edible oil refinery sector, along with chocolate, coffee processing, and other areas, were highlighted at the Global Investor Summit-2023. The development of additional ports, including Mulapaeta, Machlipatnam, Kakinda Gateway, and Ramayapatnam port, is expected to further boost this sector.