Agribusiness and Food Processing
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1 Agribusiness and Food Processing Nurturing the Future of Madhya Pradesh Madhya Pradesh Trade and Investment Facilitation Corporation Limited (MPTRIFAC) AVN Towers,192, Zone -1, M.P Nagar, Bhopal Tel.: (+91) Fax: (+91) Website: National Partner Knowledge Partner
2 Content From Farm to Fork Agriculture Horticulture Livestock Food Processing Madhya Pradesh in India Robust Infrastructure Facilities Availability of Skilled Manpower Government s Proactiveness Major Investors Investment Opportunities
3 FROM FARM TO FORK Our Edge Food Processing Horticulture Dairy and Livestock Agriculture
4 FROM FARM TO FORK Agriculture: Prime avenue for Investments Facts and Figures The agriculture and allied activities grew by 20% in , 20.16% in , and at a staggering growth rate of 25% in The state of Madhya Pradesh stands first in pulses and oil seeds production, and stands second in food grains production in the country At present, the total area under production in the state is lakh hectares and the total agricultural produce is lakh million tonnes With 5 crop zones, 11 agro-climatic zones and 4 soil types the state is favourable for agri-production The state has a robust support system of 4,500 primary agriculture co-operative societies and 240 agriculture mandis Source: Central Statistical Organisation and Department of Farmer Welfare and Agriculture Development Future Granary of India Madhya Pradesh is the fastest growing state in India. With potential to increase productivity, and scope to enhance the total cultivable land and area under third crop, the state will be the future granary of the country There is a huge potential to increase total production of mustard, sugarcane, cotton etc Basmati Rice produced in the state caters to approximately 50% of all Basmati exports to USA and Canada. The Sharbati wheat of the state is a premium brand for wheat flour not only in India, but also abroad The state produces 40% of all organic food cultivated in the country. Organic farming is promoted in 16 districts of the state Except soybean, the processing capacity of all agricultural produces has huge growth potential in the state The first state-of-the-art logistics and agri-business hub on PPP model has been established in Pawarkheda (District Hoshangabad). There is a substantial scope for more such hubs Potential Areas for Investment Agriculture implements and farm machinery: With accelerated growth in farm mechanisation and due to keeping agriculture implements free from commercial taxes Logistics hub & warehousing Processing of wheat, paddy, pulses, oilseeds, maize Sugar industry Cotton yarn industry Solvent plant, starch plants and animal feed units Export houses for premium wheat, paddy and organic foods Soya food products industry
5 FROM FARM TO FORK Horticulture- A Sunrise Sector Horticulture is one of the sunrise sectors in Madhya Pradesh, which is growing with an increasing area under crops such as fruits, vegetables and spices in the recent past The area of production (within horticultural crops area) under fruits, vegetables, spices, flowers and medicinal plants are 22%, 64%, 6%, 2% and 6% respectively. The production of horticultural crops grew at a CAGR of 39% during the period to Source: Department of Horticulture & Food Processing Livestock Madhya Pradesh is the 6th largest producer of milk in India and producing 88,38,000 tonnes of milk with a growth rate 8.6% over last year The state produces lakh eggs and 42,900 tonnes of meat with a growth rate of 4% and 11.2% respectively The state is the 5th largest producer of fish in India with a production of 75,400 tonnes Over the last few years the consumption of livestock products has witnessed an increase in the state Milk and milk products consumption has increased by around 34.4%, eggs by around 60.9%, poultry meat by around 153.3%, and meat other than poultry by around 50.3% over the last decade Source: Ministry of Agriculture and Department of Animal Husbandry, Dairying and Fisheries, National Dairy Development Board Food Processing The agro-processing sector is one of the very rapidly growing sector in the state exhibiting several distinguishing features The sector is one of the highest growing sectors in terms of gross capital formation as well as gross value addition This sector forms an average of 32% share of the total industrial output value in Madhya Pradesh There are about 22 leading processing units in the state. In addition to this, there are over 500 units in the SME sector potato processing units in Indore and adjoining districts, and flower processing units (Gulkhand, Rose water) located in Ujjain. There is potential for increase in the number of processing units, especially for Aonla, Garlic and Coriander with linkage to the proposed Food Parks Source: Government of India, Annual Survey of Industries, Data Tables, Department of Horticulture and Food Processing
6 FROM FARM TO FORK Madhya Pradesh in India The Madhya Pradesh rank in India in terms of produces Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8 Rank 10 Gram, guava, gooseberry, garlic, marigold, aromatic, soyabean, pulses and oilseeds Onion, peas, mandarin (mandarin, kinnow, orange), coriander and citrus Aonla, jowar, tur, lintil, muskmelon, bottle gourd, pumpkin, tomato, custard apple, sweet orange (malta, mosambi), rose, wheat, rapeseed & mustard, total food grains, vegetables, flowers and fruits Cauliflower, potato, ber, papaya, chilies, spices and flowers Other fruits, lime/lemon, and fish, bitter gourd, pointed gourd, sweet potato, jackfruit, pomegranate, tube rose and vegetables Milk, coarse cereals, bajara, groundnut and cotton, brinjal and fruits Papaya, cabbage, cucumber, watermelon, banana and grapes Maize, ladyfinger, apple, bael and passion fruit Carrot and Peach With highest growth rate in food grains in India, MP has received Krishi Karman award for two consecutive years ( and ) Chhindwara is home to India s first Spices Park set up by the Spices Board of India Source: National Horticulture Board, Horticulture; Ministry of Agriculture and Department of Animal Husbandry, Dairying and Fisheries, National Dairy Development Board
7 Garlic Competitive edge Coriander Chilli Orange Aonla Banana Robust Infrastructure Facilities Mango Flowers Soil The soil of MP has medium level content of nitrogen and phosphorous and is rich in potassium Water Presently, the average surface water availability is lakh hectare-meter contributed by ten major river basins viz. Chambal, Betwa, Sindh and Ken basins in North Zone and Tons river basins in the East; Benganga basin in the South and Narmada, Mahi and Tapti basins in Centre and West. In addition, lakh hectare- metre ground water is available in the state. The total availability of water in the state, thus, amounts up to 116 lakh h-m, which can optimally irrigate 113 lakh hectares of land The state has 2.87 lakh Ha of total inland water bodies, 17,088 km of rivers and canals, and 60,000 Ha of tanks and ponds. Thus, with such abundant natural resources, the state has immense potential to develop its fisheries sector Cold storages The total capacity of multi-purpose cold storage facilities was over 7 lakh tonnes before launching the National Horticulture Mission scheme. Over 50% of this capacity is utilized by potatoes alone. Additional storage capacity ( MT) of cold storage has been created after launching National Horticulture Mission scheme. Thus, at present, 144 cold storages are available in the State with a storage capacity of lakh MT Milk Chilling Plants Only 35% of the total capacity of milk chilling plants in Madhya Pradesh is used Livestock healthcare During the 11th Five Year Plan, 114 new veterinary dispensaries have been established in the state to expand animal health coverage*. Another 112 veterinary dispensaries have been upgraded into veterinary hospitals Alirajpur Jhabua Neemch Ratlam Upcoming Horticulture Hub Food Parks Spice Parks Mandsaur Dhar Barwani Ujjain Khargone Shajapura Indore Dewas Khandwa Burhanpur Rajgarh Sheopur Guna Sehore Harda Bhopal Morena Shivpuri Ashok Nagar Vidisha Hoshangabad Betul Gwalior Raisen Bhind Datia Tikamgarh Sagar Narsimhapur Chhindwara Chhatarpur Damoh Seoni Panna Jabalpur Katni Mandla Balaghat Satna Umaria Dindori Pea Tomato Onion Gram Wheat Rice Papaya Rewa Shahdol Anuppur Sidhi Singrauli
8 WILINESS TO WORK WITH THE RIGHT SET OF SKILLS Availability of Skilled Manpower Of 42% worker participation in the state, 72% of the total workers are dependent on agriculture and allied activities - which is higher than the national average of 58% The three major state universities are: Jawaharlal Nehru Krishi Vishwavidyalaya (JNKVV) Rajmata Vijayaraje Scindia Agriculture University (RVSAU) Nanaji Deshmukh Veterinary Science University, Jabalpur Source: National Skill Development Corporation
9 Government s proactiveness Agribusiness and Food Processing Agro & Food Processing Policy 2012 To minimize loss To add value at the Farm Gate To give the benefit of Policy for the farm level activity Land allotment at a concessional rate of 25% for MSME units. Stamp Duty and registration charges exemption of INR1 per INR1,000 Reimbursement at the rate of 15% to a maximum of INR 5 crore for the expenditure incurred on establishment of food park/mega food park/horticulture hub Fruits, vegetables, flowers and other notified agriculture produce purchased in any market area of the state for processing/ production, is exempt from payment of mandi fee Subsidized power rates at INR 1.50 per unit subject to a ceiling of 25% of the electric units consumed to Cold Storage, Cold Chamber, Ripening Chamber and Individual Quick Freezing Enterprise for 5 years Other Incentives provided Concessional rates of mandi fee for Banana and Orange produced in the State Establishment of value adding centers for sorting, packaging, storage and preservation, processing and transportation Foods and vegetables used for processing by a unit in Madhya Pradesh exempted from Mandi Fees Agri export zones for Potatoes, onion and garlic (8 districts) and Seed spices coriander and fenugreek (7 districts) APMC act amended to exempt trading of fruits and vegetables (as per the mentioned list) outside the market yard from trading license and Mandi Fees
10 Government s proactiveness Horticulture Horticulture Hub Establishment Policy 2012 The objectives of the policy include making horticulture crops profitable, increase in production and encouraging postharvesting management including storage, grading, packing, quality improvement and arrangements for marketing. Includes making horticulture crops profitable, increase in production and encouraging post-harvesting management including storage, grading, packing, quality improvement and arrangements for marketing. One or more centralised facilities will be made available for production of high-quality plantation material, grading, sorting, packing etc. for products to be grown in clusters of horticulture hub. Generally, more than one cluster (village groups) will be linked with a hub Hub will be established after preparing its detailed project report and getting the same endorsed by an empowered committee headed by the Chief Secretary. The hub will be run under PPP mode. A provision of INR 25 crore has been made during year for establishment of horticulture hubs Livestock Development Policy 2010: The vision of the policy is to make the State self-reliant in live stock and live stock products, distributing the benefits equitably to all segments of the society cutting across caste, creed and class to promote sustainable livelihoods for livestock producers and thereby help in poverty reduction. Livestock To improve the rearing of hybrid and improved breeds of indigenous calves the state government has launched a special Livestock Breeding Programme. The Intensive Dairy Development Project has been introduced in the state to link dairy farmers with milk collection centres and improving the marketing of milk at the district and sub-district level. To enhance the production of meat and milk in the state, goat units are also being distributed to beneficiaries through a bankable scheme. Policy provides support in the following areas: Livestock health Livestock breed improvement Extension and capacity building Marketing Fodder Development Regulations and Standardization Dairy Development Poultry Development Monitoring and Evaluation
11 Government s proactiveness Fisheries Scheme for Development of Fisheries To improve the rearing of hybrid and improved breeds of indigenous calves the state government has launched a special Livestock Breeding Programme. The fishermen credit card has been developed on the lines of the Kisan Credit Card and has benefitted over 6000 fishermen. Bank loans have also been made available for fish production in ponds under a scheme launched by the Fish Farmers Development Agency. Assistance has been given, that provides fishermen with basic amenities such as fishing boats, nets and insulated boxes that have been made available to fishermen and their societies. A provision of INR 5 Crore has been made for for the development of rearing areas in the submergence areas of irrigation reservoirs36. Though the development of peripheral rearing areas is a costly affair and would cost approximately INR 8 Lakh per Ha, the scheme focuses on the larger goal of increasing fish productivity of the irrigation reservoirs through fish seed rearing and stocking in reservoirs. Major investments
12 Across the Value-chain Investment Opportunities From Enterprise to Entrepreneurship Research & Development Primary Inputs Farm Land Seed Fertilizer Fodder Equiptment Production & Processing Agriluture Production Food Processing Horticulture Production Food Packaging Transportation and Infrastructure Machinery & Equipment Food parks Dairy Production Livestock Fishery Value-Added Processing Spice parks Horticulture hubs Green house Modern abitar Cold storage Milk chilling E-Marketing Distribution The key projects across the value chain, which the state is developing are: Retail & Exports The key projects across the value chain which the state is developing are: Areas of Focus Process-ing Capacity Enhancement Specific Opportunity Location Area in acres Estimated Project Value in INR Lakhs Proposed products for processing Pulses processing cluster Sagar ~ Gram, Pigeon Pea, Lentil, Black Gram, Green Gram etc. Wheat processing cluster Sehore ~ Packed & Branded Wheat, Atta, Maida, Rawa, Suji and Other processed products Paddy processing cluster Satna ~ Rice, Bran, Poha, Churi, Husk etc. Integrated fruits and vegetable processing facility on PPP basis Vegetable dehydration facility on PPP basis Modern slaughterhouses on PPP model Ratlam ~ 7 3,000 Tomato, Cabbage, Local Potato, Onion, Bottle Gourd, Cauliflower, Okra, Water Melon, Brinjal, Pea Neemuch ~ 6 1,960 Garlic, Onion, Tomato, Cabbage Indore and Bhopal ~ 2 per facility 430 Goat, Sheep, Buffalo Areas of Focus Specific Opportunity Location Area in acres Estimated Project Value in INR Lakhs Marketing Infrastructure Development Farmer Linkages and Empowerment Human Resource Development Development/ up-gradation of marketing facilities of the APMC s Formation of commercial poultry development societies / cooperatives Strengthening of FPOs by facilitating the formation, market linkages and capacity building Shujalpur Food Technology institute Indore 50 4,756 Contact Principal Secretary Agriculture Welfare and Agriculture Development Government of Madhya Pradesh psagriculture@mp.gov.in
13 Investment Opportunities Food processing Food processing opportunity in the state Produce Cereals and Pulses Vegetables Spices Fruits Dairy Meat Fisheries Processed Food and Other Opportunities Maize Dairy feed, Cornflakes, Starch, Oil Wheat Packed Atta, Maida, Porridge (Dalia), Suji, Pasta Soyabean Soya Milk, Soya Protein, Extruded foods, Soya flour Rice Rice Bran, Puffed Rice, Fliaked Rice, Bran Oil Potato Flour, Chips Onion Dehydrated Flakes Green Peas Dehydrated Peas, Frozen Peas Tomato Puree, Ketchup, Sauces, Concentrate Chill, Ginger, Garlic, Coriander Powder, Oleoresin, Paste Mango, Orange Juice, Pickles, Jam, Squash Processed Milk, Yogurt / Curd, Butter, Cheese, Ice-cream, Chocolate, Cottage Cheese / Paneer Meat and Meat products, Modernization of abattoirs Fish wafers, Sausages, Soup, Cutlets, Fish feed, Fish balls Horticulture hub Area in Acres Food Park Area in hectares Produce Processed Food and Other Opportunities Proposed Under Implementation Opportunity Burhanpur Nimrani Jaggakhedi Cereals and Pulses Shajapur 100 Maneri Vegetables Ujjain Mandsaur 69 Acre & 237 Acres (2 locations) Borgaon Spices Maize Dairy feed, Cornflakes, Starch, Oil Wheat Packed Atta, Maida, Porridge (Dalia), Suji, Pasta Soyabean Soya Milk, Soya Protein, Extruded foods, Soya flour Rice Rice Bran, Puffed Rice, Fliaked Rice, Bran Oil Potato Flour, Chips Onion Dehydrated Flakes Green Peas Dehydrated Peas, Frozen Peas Tomato Puree, Ketchup, Sauces, Concentrate Chill, Ginger, Garlic, Coriander Powder, Oleoresin, Paste Malanpur 62 Fruits Mango, Orange Juice, Pickles, Jam, Squash Babai 18 Meat Pipariya 32 Fisheries Meat and Meat products, Modernization of abattoirs Fish wafers, Sausages, Soup, Cutlets, Fish feed, Fish balls
14 Investment Opportunities Competitive edge Food Parks Food Park Details Location Nearest airport Nearest major railway station Nearest major cities Total area in hectares Available area for allotment in hectares Nimrani Jaggakhedi Maneri Borgaon Malanpur Babai Pipariya Nimrani, District Khargone Jaggakhedi, District Mandsaur Industrial Area Maneri, Tah- Niwas, Dist. Mandla Indore Indore Jabalpur (Dumana) 35 km Indore Indore Jabalpur 35 km Indore Indore Jabalpur 35 km Industrial Area Borgaon, Tah- Sausar Dist. Chhindwara Nagpur 55km A - Nagpur 55km, B - Pandurna 40km Nagpur 55 km On Gwalior - Bhind Etawah NH-92 State Highway No-22 (Khatagaon to Shahpura) Babai District Hoshangabad Pipariya, District Hoshangabad Gwalior Bhopal Bhopal Gwalior 20 km Gwalior 20 km Itarasi, Hoshangabad Bhopal acres - Itarasi, Hoshangabad Bhopal Food Park Details Total no. of plots developed Nimrani Jaggakhedi Maneri Borgaon Malanpur Babai Pipariya Allotted plots No. of units set up No. of vacant plots Basic available infrastructure Internal Roads Power Cold Storage Common effluent treatment plant Warehousing Internal Roads Power Cold Storage Common effluent treatment plant Warehousing Internal Roads Under Construction Power Cold Storage Common effluent treatment plants Warehousing Water Surface Transportation Internal Roads Power Cold Storage Common effluent treatment plants Warehousing Water Surface Transportation Internal Roads Power Cold Storage Warehousing Water Surface Transportation Internal Roads Power Cold Storage Common effluent treatment plant Warehousing Internal Roads Power Cold Storage Common effluent treatment plant Warehousing
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