Confederation of Indian Industry. Opportunities in ORGANIC. Food in India. Ministry of Food Processing Industries. Government of India
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1 Confederation of Indian Industry Opportunities in ORGANIC Food in India Ministry of Food Processing Industries Government of India
2 Advantage India One of the fastest growing economies in the world Largest producer of several agri commodities Second largest consumer market Significant investments in world-class ports, logistics & supply chain infrastructure Proactive Government policies Investor friendly incentives Highly skilled manpower pool Why India for Organic? Indian traditional farming is organic in nature The total area under organic cultivation in India including wild area is close to 4.5 Mn Ha ( ), of which the certified farm area is 31% or 1.4 Mn ha while 69% or 3.1 Mn ha is wild collection area. India is amongst the top 10 countries in terms of land area under organic agriculture India produced around 1.2 Mn MT ( ) of certified organic products which includes Sugarcane, Oil Seeds, Cereals & Millets, Cotton, Pulses, Medicinal Plants, Tea, Spices, etc. India exported around 3 lakh MT of organic products worth USD 370 Mn in Besides the large export market, India also has a fast growing domestic market The entire North Eastern Region of India is organic by default. There are other regions as well, where the pesticides, consumption is negligible and have the potential to be easily converted into certified organic areas. India has around 0.5 Mn farmers- the largest in the world who practice organic farming
3 Production of Certified Organic Crops in India India produced around 1.2 million MT of certified organic products in Oilseeds, sugar crops and cereals and millets are the key categories produced under organic in India. Category Production in '000 MT ( ) Oil seeds Sugar crops Cereals and millets Fiber crops Pulses 62.7 Plantation crops 47.8 Spices and condiments 36.2 Medicinal, Herbal and Aromatic 33.5 Source: Agricultural and Processed Food Products Export Development Authority (APEDA)
4 Key States Madhya has the largest area under organic cultivation followed by Maharashtra and Rajasthan. In production terms also, Madhya is the leading producer, followed by Maharashtra and Karnataka. Sikkim is the first 100% organic state in India. Jammu and Kashmir Top 5 Organic Producing States in India Himachal Cultivated Area under Organic (Lakh ha) 7.84 Punjab Chandigarh Uttarakhand Sikkim Haryana Delhi Arunachal Uttar Rajasthan Bihar Assam Meghalaya 2.8 Nagaland Manipur 2.29 Gujarat Diu Dadra and Nagar Haveli Tripura Jharkhand Madhya West Bengal Chhattisgarh Daman Odisha Maharashtra Telangana Goa Madhya Maharashtra Rajasthan Odisha Uttar Karnataka Lakshadweep Islands Andhra TamilNadu Puducherry Kerala Source: Agricultural and Processed Food Products Export Development Authority (APEDA), Opportunities in Organic Sector Indian Heritage Crops Rice Spices & Condiments Tea & Herbal Beverages Untapped Stars in Organic Future Direction Fresh and Processed Fruits and Vegetables Processed, Packaged Food Small Millets Ingredients Nuts & DryFruits Mizoram
5 Exports 8 India exported around 3 lakh MT of Organic products worth USD 370 Mn in The major categories included oil seeds, cereals and millets, sugar, tea, mango pulp etc. 7 The major export destinations for organic food products were the USA, European Union, Canada, Switzerland and Australia with a combined share of around 90% in value terms.
6 Policy Support and Key Fiscal Incentives 100% FDI in trading, including through e-commerce, for food products produced and/or manufactured in India. 100% FDI permitted through automatic route in food processing sector. Food processing units can avail preferential rates under Priority Sector Lending. Special fund of INR 2,000 crore (USD 300 Mn) with NABARD for designated food parks and processing units. Food safety standards harmonized with international standards. GST implementation to harmonize the tax regime-seamless operations across states. 100 % Income Tax Deductions on: o o Capital expenditure for cold chain / warehouse Profit for new food processing, preservation and packaging units Basic custom duty reduced on refrigerated containers from 10% to 5% Concessional customs duty on imported equipment 4
7 Schemes of Ministry of Food Processing Industries Scheme for Mega Food Park (MFP) Government of India has approved setting up of 42 MFPs in the country, out of which 41 have been sanctioned by MoFPI. Of the 41 MFPs, 9 have already commenced operations. The parks have more than 1,200 developed plots (of approximately 1 acre each) with basic infrastructure enabled, that entrepreneurs can lease for the setting up of food processing and ancillary units. Scheme for Integrated Cold Chain and Value Addition Infrastructure Scheme for Food Safety and Quality Assurance Infrastructure Scheme for Infrastructure for Agro-Processing Clusters Scheme for Creation of Backward and Forward Linkages Scheme for Creation/Expansion of Food Processing and Preservation Capacities Scheme for Human Resources and Institutions
8 Contact Ministry of Food Processing Industries, Govt. of India Tel: / / / Web: YES BANK Ltd. Tel: Web: Confederation of Indian Industry Confederation of Indian Industry (CII) Tel: Web:
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