Nurturing the Future of Madhya Pradesh

Agribusiness and Food Processing

Madhya Pradesh Trade and Investment Facilitation Corporation Limited (MPTRIFAC)AVN Towers,192, Zone -1, M.P Nagar, Bhopal 462011Tel.: (+91) 755 4270246. Fax: (+91) 755 2559973. E-mail: facilitation@mptrifac.org Website: www.investmp.com National Partner Knowledge Partner

Content• FromFarmtoFork • Agriculture • Horticulture • Livestock • FoodProcessing• MadhyaPradeshinIndia• RobustInfrastructureFacilities

• AvailabilityofSkilledManpower

• Government’sProactiveness• MajorInvestors• InvestmentOpportunities

Our Edge

AgricultureAgriculture

HorticultureHorticulture

DairyandLivestockDairyandLivestock

Food ProcessingFood Processing

FROM FARM TO FORK

Facts and Figures

Future Granary of India

Potential Areas for Investment

FROM FARM TO FORK

Agriculture: Prime avenue for Investments

• Theagricultureandalliedactivitiesgrewby20%in2011-12,20.16%in2012-13,andatastaggeringgrowthrateof25%in2013-14

• ThestateofMadhyaPradeshstandsfirst inpulsesandoilseedsproduction,andstandssecond in foodgrainsproduction in the country

• Atpresent,thetotalareaunderproductioninthestateis237.28lakhhectaresandthetotalagriculturalproduceis375.09lakhmilliontonnes

• With5cropzones,11agro-climaticzonesand4soiltypesthestateisfavourableforagri-production• Thestatehasarobustsupportsystemof4,500primaryagricultureco-operativesocietiesand240agriculture

mandis

• MadhyaPradeshisthefastestgrowingstateinIndia.Withpotentialtoincreaseproductivity,andscopetoenhancethe total cultivable land and area under third crop, the state will be the future granary of the country

• Thereisahugepotentialtoincreasetotalproductionofmustard,sugarcane,cottonetc• BasmatiRiceproducedinthestatecaterstoapproximately50%ofallBasmatiexportstoUSAandCanada.The

SharbatiwheatofthestateisapremiumbrandforwheatflournotonlyinIndia,butalsoabroad• Thestateproduces40%ofallorganicfoodcultivatedinthecountry.Organicfarmingispromotedin16districts

of the state• Exceptsoybean,theprocessingcapacityofallagriculturalproduceshashugegrowthpotentialinthestate• Thefirststate-of-the-artlogisticsandagri-businesshubonPPPmodelhasbeenestablishedinPawarkheda(District

Hoshangabad). There is a substantial scope for more such hubs

• Agricultureimplementsandfarmmachinery:Withacceleratedgrowthinfarmmechanisationandduetokeepingagricultureimplementsfreefromcommercialtaxes

• Logisticshub&warehousing• Processingofwheat,paddy,pulses,oilseeds,maize• Sugarindustry• Cottonyarnindustry• Solventplant,starchplantsandanimalfeedunits• Exporthousesforpremiumwheat,paddyandorganicfoods• Soyafoodproductsindustry

Source:CentralStatisticalOrganisationandDepartmentofFarmerWelfareandAgricultureDevelopment

FROM FARM TO FORK

• HorticultureisoneofthesunrisesectorsinMadhyaPradesh,whichisgrowingwithanincreasing area under crops such as fruits, vegetables and spices in the recent past

• Theareaofproduction(withinhorticulturalcropsarea)underfruits,vegetables,spices,flowersandmedicinalplantsare22%,64%,6%,2%and6%respectively.

• TheproductionofhorticulturalcropsgrewataCAGRof39%duringtheperiod2008–09to2013-14

• Theagro-processingsectorisoneoftheveryrapidlygrowingsectorinthestate exhibiting several distinguishing features

• Thesectorisoneofthehighestgrowingsectorsintermsofgrosscapitalformation as well as gross value addition

• Thissectorformsanaverageof32%shareofthetotalindustrialoutputvalueinMadhya Pradesh

• Thereareabout22leadingprocessingunitsinthestate.Inadditiontothis,thereareover500unitsintheSMEsector250-300potatoprocessingunitsinIndoreandadjoiningdistricts,and125-150flowerprocessingunits(Gulkhand,Rosewater)locatedinUjjain.Thereispotentialforincreaseinthenumberofprocessingunits,especiallyforAonla,GarlicandCorianderwithlinkagetotheproposedFoodParks

• MadhyaPradeshisthe6thlargestproducerofmilkinIndiaandproducing88,38,000tonnesofmilkwithagrowthrate8.6%overlastyear

• Thestateproduces8712.1lakheggsand42,900tonnesofmeatwithagrowthrateof4%and11.2%respectively

• Thestateisthe5thlargestproduceroffishinIndiawithaproductionof75,400tonnes• OverthelastfewyearstheconsumptionoflivestockproductshaswitnessedanincreaseinthestateMilkandmilkproductsconsumptionhasincreasedbyaround34.4%,eggsbyaround60.9%,poultrymeat

byaround153.3%,andmeatotherthanpoultrybyaround50.3%overthelastdecade

Horticulture-ASunriseSector

Food Processing

Livestock

Source:DepartmentofHorticulture&FoodProcessing

Source:MinistryofAgricultureandDepartmentofAnimalHusbandry,DairyingandFisheries,NationalDairyDevelopmentBoard

Source:GovernmentofIndia,AnnualSurveyofIndustries,DataTables,DepartmentofHorticultureandFoodProcessing

FROM FARM TO FORK

Madhya Pradeshin India

TheMadhyaPradesh’rankinIndiaintermsofproduces

Rank1 Gram, guava, gooseberry, garlic, marigold, aromatic, soyabean, pulses and oilseeds

Rank2 Onion,peas,mandarin(mandarin,kinnow,orange),corianderandcitrus

Rank3Aonla,jowar,tur,lintil,muskmelon,bottlegourd,pumpkin,tomato,custardapple,sweetorange(malta,mosambi),rose,wheat,rapeseed&mustard,totalfoodgrains,vegetables,flowersandfruits

Rank4 Cauliflower,potato,ber,papaya,chilies,spicesandflowers

Rank5 Otherfruits,lime/lemon,andfish,bittergourd,pointedgourd,sweetpotato,jackfruit,pomegranate, tube rose and vegetables

Rank6 Milk,coarsecereals,bajara,groundnutandcotton,brinjalandfruits

Rank7 Papaya, cabbage, cucumber, watermelon, banana and grapes

Rank8 Maize,ladyfinger,apple,baelandpassionfruit

Rank10 CarrotandPeach

With highest growth rate in food grains in India, MP has received ‘Krishi Karman’ award for two consecutive years (2011-12 and 2012-13)

ChhindwaraishometoIndia’sfirstSpicesParksetupbytheSpicesBoardofIndia

Source:NationalHorticultureBoard,Horticulture;MinistryofAgricultureandDepartmentofAnimalHusbandry,DairyingandFisheries,NationalDairyDevelopmentBoard

COMPETITIvEEDGE

Robust Infrastructure Facilities Bhind

Morena

DatiaSheopur

Shivpuri

Guna AshokNagarNeemch

Mandsaur

Ratlam

Jhabua

AlirajpurDhar

Dewas

KhargoneBarwani

Khandwa

Burhanpur

Harda

Hoshangabad

Betul

ChhindwaraSeoni

Balaghat

MandlaDindori

Narsimhapur

Shajapura

Sehore

Raisen

TikamgarhRewaChhatarpur

Panna

DamohSagarVidishaRajgarh

Satna

Sidhi

Singrauli

Katni

Umaria Shahdol

Anuppur

Gwalior

Ujjain

Indore

Jabalpur

Bhopal

Soil• ThesoilofMPhasmediumlevelcontentofnitrogenandphosphorousandisrichinpotassium

Water• Presently,theaveragesurfacewateravailabilityis81.50lakhhectare-metercontributedbytenmajorriverbasinsviz.

Chambal,Betwa,SindhandKenbasinsinNorthZoneandTonsriverbasinsintheEast;BengangabasinintheSouthandNarmada,MahiandTaptibasinsinCentreandWest.Inaddition,34.50lakhhectare-metregroundwaterisavailableinthestate.Thetotalavailabilityofwaterinthestate,thus,amountsupto116lakhh-m,whichcanoptimallyirrigate113lakhhectaresofland

• Thestatehas2.87lakhHaoftotalinlandwaterbodies,17,088kmofriversandcanals,and60,000Haoftanksandponds.Thus,withsuchabundantnaturalresources,thestatehasimmensepotentialtodevelopitsfisheriessector

Coldstorages• The total capacity of multi-purpose cold storage facilities was over 7 lakh tonnes before launching the National

HorticultureMission scheme.Over 50% of this capacity is utilized by potatoes alone.Additional storage capacity(183609MT)ofcoldstoragehasbeencreatedafterlaunchingNationalHorticultureMissionscheme.Thus,atpresent,144coldstoragesareavailableintheStatewithastoragecapacityof8.045lakhMT

MilkChillingPlants • Only35%ofthetotalcapacityofmilkchillingplantsinMadhyaPradeshisused

Livestockhealthcare• Duringthe11thFiveYearPlan,114newveterinarydispensarieshavebeenestablishedinthestatetoexpandanimal

health coverage*. Another 112 veterinary dispensaries have been upgraded into veterinary hospitals

Garlic

Coriander

Chilli

Orange

Aonla

Banana

Mango

Flowers

Pea

Tomato

Onion

Gram

Wheat

Rice

Papaya

UpcomingHorticultureHub

FoodParks

SpiceParks

WILINESSTOWORKWITHTHERIGHTSETOFSKILLS

AvailabilityofSkilledManpower

Source: National Skill Development Corporation

The three major state universities are:

Jawaharlal Nehru Krishi Vishwavidyalaya (JNKVV)

RajmatavijayarajeScindiaAgricultureUniversity(RvSAU)

NanajiDeshmukhveterinaryScienceUniversity,Jabalpur

Of42%workerparticipationinthestate,72%of

thetotalworkersaredependentonagriculture

and allied activities - which is higher than the

nationalaverageof58%

GOvERNMENT’SPROACTIvENESS

Agribusiness and Food Processing

•Landallotmentataconcessionalrateof25%forMSMEunits.StampDutyandregistration charges exemption of INR1 per INR1,000

•Reimbursementattherateof15% to a maximum of INR 5 crore for the expenditureincurredonestablishmentoffoodpark/megafoodpark/horticulture

hub•Fruits,vegetables,flowersandothernotifiedagricultureproducepurchased

inanymarketareaofthestateforprocessing/production,isexempt from payment of mandi fee

•SubsidizedpowerratesatINR1.50perunitsubjecttoaceilingof25%oftheelectricunitsconsumedtoColdStorage,ColdChamber,RipeningChamberandIndividualQuickFreezingEnterprisefor5years

Agro&FoodProcessingPolicy2012•Tominimizeloss•ToaddvalueattheFarmGate•TogivethebenefitofPolicyforthefarmlevelactivity

•ConcessionalratesofmandifeeforBananaandOrangeproducedintheState•Establishmentofvalueaddingcentersforsorting,packaging,storageandpreservation,

processing and transportation•FoodsandvegetablesusedforprocessingbyaunitinMadhyaPradeshexempted

from Mandi Fees•AgriexportzonesforPotatoes,onionandgarlic(8districts)andSeedspices–

corianderandfenugreek(7districts)•APMCactamendedtoexempttradingoffruitsandvegetables(asperthe

mentionedlist)outsidethemarketyardfromtradinglicenseandMandiFees

Other Incentives provided

GOvERNMENT’SPROACTIvENESS

Horticulture

LivestockLivestockDevelopmentPolicy2010:

ThevisionofthepolicyistomaketheStateself-reliantinlivestockandlivestockproducts,distributingthebenefitsequitablytoallsegmentsofthesocietycutting across caste, creed and class to promote sustainable livelihoods for livestockproducersandtherebyhelpinpovertyreduction.• Toimprovetherearingofhybridandimprovedbreedsofindigenouscalvesthestategovernmenthas

launchedaspecialLivestockBreedingProgramme.• TheIntensiveDairyDevelopmentProjecthasbeenintroducedinthestatetolinkdairyfarmers

withmilkcollectioncentresandimprovingthemarketingofmilkatthedistrictandsub-districtlevel.

• Toenhancetheproductionofmeatandmilkinthestate,goatunitsarealsobeingdistributedtobeneficiariesthroughabankablescheme.

Policy provides support in the following areas:

Livestockhealth

Livestockbreed improvement

Extension and capacity building

Marketing Fodder Development

Regulations and Standardization

DairyDevelopment

Poultry Development

Monitoring and Evaluation

HorticultureHubEstablishmentPolicy2012Theobjectivesofthepolicy includemakinghorticulturecropsprofitable, increase in production and encouraging post-harvesting management including storage, grading, packing,qualityimprovementandarrangementsformarketing.

• Includes making horticulture crops profitable, increase in production andencouraging post-harvesting management including storage, grading, packing,qualityimprovementandarrangementsformarketing.• Oneormore centralised facilitieswill bemade available for productionof

high-qualityplantationmaterial,grading,sorting,packingetc.forproductstobe grown in clusters of horticulture hub. Generally, more than one cluster (villagegroups)willbelinkedwithahub

•Hubwillbeestablishedafterpreparing itsdetailedprojectreportandgetting the same endorsed by an empowered committee headed by theChiefSecretary.ThehubwillberununderPPPmode.

•AprovisionofINR25crorehasbeenmadeduringyear2012-13for establishment of horticulture hubs

GOvERNMENT’SPROACTIvENESS

•To improve the rearing of hybrid and improved breeds of indigenous calves the stategovernmenthaslaunchedaspecialLivestockBreedingProgramme.

•ThefishermencreditcardhasbeendevelopedonthelinesoftheKisanCreditCardandhasbenefittedover6000fishermen.

• Bank loans have also beenmade available for fish production in ponds under aschemelaunchedbytheFishFarmersDevelopmentAgency.

• Assistance has been given, that provides fishermenwith basic amenities suchas fishingboats, nets and insulatedboxes that havebeenmade available tofishermenandtheirsocieties.

•AprovisionofINR5Crorehasbeenmadefor2012-13forthedevelopmentof rearing areas in the submergence areas of irrigation reservoirs36. Though the development of peripheral rearing areas is a costly affair and wouldcostapproximatelyINR8LakhperHa,theschemefocusesonthelargergoalofincreasingfishproductivityoftheirrigationreservoirsthroughfishseedrearingandstockinginreservoirs.

SchemeforDevelopmentofFisheriesFisheries

MAJORINvESTMENTS

ACROSSTHEvALUE-CHAIN

Investment Opportunities

Primary Inputs

Production & Processing

Farm Land Seed Fertilizer Fodder Equiptment

Agriluture Production

Horticulture Production Dairy Production Livestock Fishery

Food Processing Food Packaging Value-Added Processing

Transportation and Infrastructure

Machinery & Equipment Food parks Spice parks Horticulture

hubs Green house

Modern abitar Cold storage Milk chilling E-Marketing Distribution

Research & Development

Retail & Exports

From Enterprise to Entrepreneurship Thekeyprojectsacrossthevaluechainwhichthestateisdevelopingare:

Thekeyprojectsacrossthevaluechain,whichthestateisdevelopingare:

Areas of Focus

Specific Opportunity Location Area in acres

Estimated Project Value in INR Lakhs

Proposed products for processing

Process-ing Capacity Enhancement

Pulses processing cluster Sagar ~20 820 Gram,PigeonPea,Lentil,BlackGram,GreenGrametc.

Wheat processing cluster Sehore ~ 25 845 Packed&BrandedWheat,Atta,Maida,Rawa,SujiandOtherprocessedproducts

Paddy processing cluster Satna ~40 900 Rice,Bran,Poha,Churi,Husketc.

IntegratedfruitsandvegetableprocessingfacilityonPPPbasis

Ratlam ~ 7 3,000 Tomato,Cabbage,LocalPotato,Onion,BottleGourd,Cauliflower,Okra,WaterMelon,Brinjal,Pea

VegetabledehydrationfacilityonPPPbasis

Neemuch ~ 6 1,960 Garlic,Onion,Tomato,Cabbage

Modern slaughterhouses on PPP model

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

MarketingInfrastructureDevelopment

Development/ up-gradation of marketingfacilitiesoftheAPMC’s

Shujalpur 19 968

FarmerLinkagesandEmpowerment

Formation of commercial poultry development societies / co-operatives

- - 415

StrengtheningofFPOsbyfacilitatingtheformation,marketlinkagesandcapacitybuilding

- - 5

HumanResourceDevelopment

Food Technology institute Indore 50 4,756

ContactPrincipalSecretaryAgricultureWelfareandAgricultureDevelopmentGovernment of Madhya Pradeshpsagriculture@mp.gov.in

INvESTMENTOPPORTUNITIES

Food processing

Produce Processed Food and Other Opportunities

Cereals and Pulses

Maize–Dairyfeed,Cornflakes,Starch,OilWheat–PackedAtta,Maida,Porridge(Dalia),Suji,PastaSoyabean–SoyaMilk,SoyaProtein,Extrudedfoods,SoyaflourRice–RiceBran,PuffedRice,FliakedRice,BranOil

Vegetables

Potato–Flour,ChipsOnion–DehydratedFlakesGreenPeas–DehydratedPeas,FrozenPeasTomato–Puree,Ketchup,Sauces,Concentrate

Spices Chill,Ginger,Garlic,Coriander–Powder,Oleoresin,Paste

Fruits Mango,Orange–Juice,Pickles,Jam,Squash

Dairy ProcessedMilk,Yogurt/Curd,Butter,Cheese,Ice-cream,Chocolate,CottageCheese/Paneer

Meat MeatandMeatproducts,Modernizationofabattoirs

Fisheries Fishwafers,Sausages,Soup,Cutlets,Fishfeed,Fishballs

Horticulturehub

Area in Acres FoodParkArea in hectares

Produce ProcessedFoodandOtherOpportunities

Proposed Under Implementation Opportunity

Burhanpur 52.52

Nimrani 27.12

Cereals and Pulses

Maize–Dairyfeed,Cornflakes,Starch,OilWheat–PackedAtta,Maida,Porridge(Dalia),Suji,PastaSoyabean–SoyaMilk,SoyaProtein,Extrudedfoods,SoyaflourRice–RiceBran,PuffedRice,FliakedRice,BranOil

Jaggakhedi 20.46

Shajapur 100 Maneri 30.354 Vegetables

Potato–Flour,ChipsOnion–DehydratedFlakesGreenPeas–DehydratedPeas,FrozenPeasTomato–Puree,Ketchup,Sauces,Concentrate

Ujjain 29.5–44.5Borgaon 21.466 Spices

Chill,Ginger,Garlic,Coriander–Powder,Oleoresin,Paste

Malanpur 62 Fruits Mango,Orange–Juice,Pickles,Jam,Squash

Mandsaur69 Acre & 237

Acres (2 locations)

Babai 18 MeatMeatandMeatproducts,Modernizationofabattoirs

Pipariya 32 FisheriesFishwafers,Sausages,Soup,Cutlets,Fishfeed,Fishballs

Food processing opportunity in the state

CompetitiveedgeFoodParks

Food ParkDetails

Nimrani Jaggakhedi Maneri Borgaon Malanpur Babai Pipariya

Location Nimrani,District Khargone

Jaggakhedi,District Mandsaur

Industrial AreaManeri,Tah-Niwas,Dist.Mandla

Industrial Area Borgaon,Tah-SausarDist.Chhindwara

OnGwalior-Bhind–EtawahNH-92

StateHighwayNo-22 (KhatagaontoShahpura)BabaiDistrict Hoshangabad

Pipariya,District Hoshangabad

Nearest airport

Indore Indore Jabalpur(Dumana) 35km

Nagpur 55km

Gwalior Bhopal Bhopal

Nearest majorrailwaystation

Indore Indore Jabalpur35km

A - Nagpur 55km,B-Pandurna40km

Gwalior20km

Itarasi,Hoshangabad

Itarasi,Hoshangabad

Nearest majorcities

Indore Indore Jabalpur35km

Nagpur55km

Gwalior20km

Bhopal Bhopal

Total area in hectares

27.12 20.46 30.354 21.466 62 18 32

Availablearea for allotment in hectares

20.59 26.60 20.53 13.417 13.44 16.49acres -

Food ParkDetails

Nimrani Jaggakhedi Maneri Borgaon Malanpur Babai Pipariya

Totalno.of plots developed

169 99 76 31 70 37 51

Allotted plots 21 3 4 6 10 - -

No.ofunitsset up

4 - - 1 2 - -

No.ofvacantplots

- - 72 25 60 - -

Basicavailableinfrastructure

Internal Roads Power ColdStorageCommon effluenttreatment plant Warehousing

Internal Roads Power ColdStorageCommon effluenttreatment plant Warehousing

Internal Roads–Under Construction Power ColdStorageCommon effluenttreatment plants Warehousing Water SurfaceTrans-portation

Internal Roads Power ColdStorageCommon effluenttreatment plants Warehousing WaterSurfaceTrans-portation

Internal Roads Power ColdStorageWarehousing Water SurfaceTrans-portation

Internal Roads Power ColdStorageCommon effluenttreatment plant Warehousing

Internal Roads Power ColdStorageCommon effluenttreatment plant Warehousing

INvESTMENTOPPORTUNITIES