Brochure Food Processing

FOOD PROCESSINGUttar Pradesh Sowing the seeds of growth

Uttar Pradesh: Sowing the Seeds of Growth l

Vast source of raw material - Uttar Pradesh dominates India’s agricultural production, accounting for about 20% of food grain, 34% of wheat, 19% of fruits and 30% of vegetables produced in the country

U.P. has the largest livestock population in the country and tops in milk production

State is the largest producer of sugarcane, accounting for 35% of total production and ranks second in the production of sugar

Four Agri Export Zones (AEZ ) for Potatoes, Mangoes, Vegetables and Basmati rice

2101 agriculture marketing hubs being set up at a cost of INR 354 crore for grain storage ,farmer service centers, banks and primary processing units

With a population of 200 million, U.P. offers the largest market for consumption of food products

Huge opportunity exists in the sector as currently only 2% of total produce of fruits and vegetables is commercially processed

Relatively low cost skilled workforce

Attractive investment opportunities driven by favourable policy environment – Mega Food Park at Jagdishpur envisioned under the new Industrial Policy

16016 15742 15357

10000150002000025000

300003500040000

4500050000

UP Punjab MP WB Haryana

Food Grains Production (‘000 FY 2009-10

Tonnes)Cropped Area (‘000 Hectares)

2554022771 22108 20657

UP Rajasthan Maharashtra MP AP

Source: India-Stat Handbook 2012

Contribution of Uttar Pradesh in Key Agricultural Products (2010-11)

All figures in Million tonnes except Livestock , which is in Million nos. Source: Dept. of Food Processing, GoUP

S. No Item India U.P. Share of UP in India’s total output (%)

1 Potato 39.66 13.58 34.24

2 Livestock (excluding Cow) 529.69 60.27 11.38 1st

3 Milk Production 121.85 21.03 17.26

4 Vegetables 146.55 43.30 29.55 2nd

5 Fruits 74.87 14.53 19.41 6th

6 Maize 16.72 1.04 6.22

7 Oil Seeds 31.10 0.91 2.93 7th

U.P.’s Rank

All figures are in lac tonnes Source: Directorate of Agriculture, GoUP

1 Food Grains 2574 517 20

2 Wheat 939 317 34

3 Rice 1043 140 13

4 Pulses 172 24 14

5 Sugar Cane 3577 1255 35

Food Processing Policy 2012- Attractive Financial IncentivesExemption from Stamp Duty

100% exemption on purchase, lease or acquisition of land by new food processing industrial units anywhere in the state

Exemption from Mandi Fees

100% exemption from Mandi fee for 10 years to all new export oriented units using perishables with an investment of INR 5 crore and above in plant & machinery and spare parts and for 15 years to such units with an investment of INR 10 crore and above

Interest subsidy

New food processing units will get reimbursement at 7 percentage points of interest rate on the loan taken for plant, machinery and spare parts maximum up to INR 50 lac in a year for a maximum of 5 years.

Capital Investment Subsidy

25 % subsidy subject to a maximum ceiling of INR 50 lac on the cost of plant, machinery and technical civil works for setting up, expansion and modernization/ up-gradation of the food processing industrial unit under the National Food Processing Mission.

50 % subsidy subject to a maximum of INR 10 crore on the cost of plant, machinery and technical civil works for setting up of integrated cold chain and processing infrastructure for non-horticultural produce under the National Food Processing Mission.

Assistance for Global competitiveness, quality & standardization

To facilitate internationally accepted quality or environmental certification, viz. ISO 14001, ISO 22000, HACCP, Sanitary- Phytosanitary certification, one time grant of 25% of fees and testing charges, maximum up to INR 50,000 will be available to new units investing minimum INR 25 lac on plant, machinery and spare parts.

Assistance for Market Development

Available to new units with minimum investment of INR 25 lac on plant, machinery and spare parts.

50% reimbursement, maximum up to INR 50,000 per beneficiary for expenses made on sending the sample of a processed food product of U.P. for test marketing in non SAARC countries. This assistance will be available only for one sample and to one country.

20% reimbursement of F.O.B. value maximum up to INR 2 lac per beneficiary per year for 3 years on export of processed products by Air/Sea to non SAARC countries.

Other Facilities

Implementation of Warehouse receipt system for availing the loan facility on the issued receipts by the accredited Warehouse under Warehouse Act.

Provision of reimbursement of 50 per cent of EPF contribution for their workers for a period of 3 years by new units after 3 years from the date of establishment of the units, if the new units give employment to 100 or more unskilled workers.

Uttar Pradesh: Sowing the Seeds of Growth l

Vast source of raw material - Uttar Pradesh dominates India’s agricultural production, accounting for about 20% of food grain, 34% of wheat, 19% of fruits and 30% of vegetables produced in the country

U.P. has the largest livestock population in the country and tops in milk production

State is the largest producer of sugarcane, accounting for 35% of total production and ranks second in the production of sugar

Four Agri Export Zones (AEZ ) for Potatoes, Mangoes, Vegetables and Basmati rice

2101 agriculture marketing hubs being set up at a cost of INR 354 crore for grain storage ,farmer service centers, banks and primary processing units

With a population of 200 million, U.P. offers the largest market for consumption of food products

Huge opportunity exists in the sector as currently only 2% of total produce of fruits and vegetables is commercially processed

Relatively low cost skilled workforce

Attractive investment opportunities driven by favourable policy environment – Mega Food Park at Jagdishpur envisioned under the new Industrial Policy

16016 15742 15357

10000150002000025000

300003500040000

4500050000

UP Punjab MP WB Haryana

Food Grains Production (‘000 FY 2009-10

Tonnes)Cropped Area (‘000 Hectares)

2554022771 22108 20657

UP Rajasthan Maharashtra MP AP

Source: India-Stat Handbook 2012

All figures in Million tonnes except Livestock , which is in Million nos. Source: Dept. of Food Processing, GoUP

1 Potato 39.66 13.58 34.24

2 Livestock (excluding Cow) 529.69 60.27 11.38 1st

3 Milk Production 121.85 21.03 17.26

4 Vegetables 146.55 43.30 29.55 2nd

5 Fruits 74.87 14.53 19.41 6th

6 Maize 16.72 1.04 6.22

7 Oil Seeds 31.10 0.91 2.93 7th

U.P.’s Rank

All figures are in lac tonnes Source: Directorate of Agriculture, GoUP

1 Food Grains 2574 517 20

2 Wheat 939 317 34

3 Rice 1043 140 13

4 Pulses 172 24 14

5 Sugar Cane 3577 1255 35

Food Processing Policy 2012- Attractive Financial IncentivesExemption from Stamp Duty

100% exemption on purchase, lease or acquisition of land by new food processing industrial units anywhere in the state

Exemption from Mandi Fees

100% exemption from Mandi fee for 10 years to all new export oriented units using perishables with an investment of INR 5 crore and above in plant & machinery and spare parts and for 15 years to such units with an investment of INR 10 crore and above

Interest subsidy

New food processing units will get reimbursement at 7 percentage points of interest rate on the loan taken for plant, machinery and spare parts maximum up to INR 50 lac in a year for a maximum of 5 years.

Capital Investment Subsidy

25 % subsidy subject to a maximum ceiling of INR 50 lac on the cost of plant, machinery and technical civil works for setting up, expansion and modernization/ up-gradation of the food processing industrial unit under the National Food Processing Mission.

50 % subsidy subject to a maximum of INR 10 crore on the cost of plant, machinery and technical civil works for setting up of integrated cold chain and processing infrastructure for non-horticultural produce under the National Food Processing Mission.

Assistance for Global competitiveness, quality & standardization

To facilitate internationally accepted quality or environmental certification, viz. ISO 14001, ISO 22000, HACCP, Sanitary- Phytosanitary certification, one time grant of 25% of fees and testing charges, maximum up to INR 50,000 will be available to new units investing minimum INR 25 lac on plant, machinery and spare parts.

Assistance for Market Development

Available to new units with minimum investment of INR 25 lac on plant, machinery and spare parts.

50% reimbursement, maximum up to INR 50,000 per beneficiary for expenses made on sending the sample of a processed food product of U.P. for test marketing in non SAARC countries. This assistance will be available only for one sample and to one country.

20% reimbursement of F.O.B. value maximum up to INR 2 lac per beneficiary per year for 3 years on export of processed products by Air/Sea to non SAARC countries.

Other Facilities

Implementation of Warehouse receipt system for availing the loan facility on the issued receipts by the accredited Warehouse under Warehouse Act.

Provision of reimbursement of 50 per cent of EPF contribution for their workers for a period of 3 years by new units after 3 years from the date of establishment of the units, if the new units give employment to 100 or more unskilled workers.

Key Investment Opportunities

Segment Key Strengths of Uttar Pradesh

Fruits & Vegetables

(34%) production

Fruit belts declared for mango, guava and aonla

Major vegetables cultivated in the state are peas, potato, cabbage, tomato, okra

& other leafy vegetables

Major fruits grown in U.P. are mango (ranks 1st ), aonla (ranks 1st), guava

(ranks 4th), banana & litchi

Major spices grown in the state are chillies, garlic, ginger & turmeric

Meat Processing Largest exporter of processed frozen meat

Contributes more than 60% of India’s meat exports annually

Buffalo meat is the main source of meat production and export; other sources

of meat include sheep and goat

15 modern integrated abattoirs in the state and 35 meat processing units

Dairy Processing Largest milk producing State in the country

Contributes approximately 1/5th of the total milk production of the country

Buffalo milk contributes 70% to the total milk production in the State

Only 5% of the fluid milk is processed and marketed in the organised sector

pointing to a huge opportunity

Per capita per day availability of milk in U.P. is 303 grams while the national

average is 245 grams

Fisheries Sector Third largest producer of inland fishes in India

Total estimated fresh water fish production of U.P. for the year 2010-11 is 4.30

lac metric tons against national production of 50 lac metric tons

Poultry Processing 1139.22 million eggs produced annually in the state

Huge opportunity exists as 365 crore eggs and 900 lac poultry chicks ,are

procured annually from other states

New scheme for enhancing poultry production on the anvil, which includes

interest subsidy and concessions related to VAT, mandi tax and stamp duty

Grain Processing Sector Largest food grain producing state & largest producer of wheat

Major food grains produced in the state include rice, wheat, maize,bajra, gram,

pea and lentils

Second largest producer of rice, accounts for about 13% of the national

production

Ranks sixth in fruits (19%), second in vegetables (30%) and first in potato

Specialized Industrial infrastructure on offer to investors

Industrial Park Product Location Facilities

Agro Parks Agro & food processing

Integrated Dairy

Multi-chamber and atmosphere controlled Cold Storages with Sorting, Grading and Cleaning facility and Quality Control Labs

4.5 lac litre per day capacity of Dairy Plant

Barabanki,Gorakhpur Saharanpur Varanasi

Lucknow

Success Stories

*Indicative

Key Investment Opportunities

Segment Key Strengths of Uttar Pradesh

Fruits & Vegetables

(34%) production

Fruit belts declared for mango, guava and aonla

Major vegetables cultivated in the state are peas, potato, cabbage, tomato, okra

& other leafy vegetables

Major fruits grown in U.P. are mango (ranks 1st ), aonla (ranks 1st), guava

(ranks 4th), banana & litchi

Major spices grown in the state are chillies, garlic, ginger & turmeric

Meat Processing Largest exporter of processed frozen meat

Contributes more than 60% of India’s meat exports annually

Buffalo meat is the main source of meat production and export; other sources

of meat include sheep and goat

15 modern integrated abattoirs in the state and 35 meat processing units

Dairy Processing Largest milk producing State in the country

Contributes approximately 1/5th of the total milk production of the country

Buffalo milk contributes 70% to the total milk production in the State

Only 5% of the fluid milk is processed and marketed in the organised sector

pointing to a huge opportunity

Per capita per day availability of milk in U.P. is 303 grams while the national

average is 245 grams

Fisheries Sector Third largest producer of inland fishes in India

Total estimated fresh water fish production of U.P. for the year 2010-11 is 4.30

lac metric tons against national production of 50 lac metric tons

Poultry Processing 1139.22 million eggs produced annually in the state

Huge opportunity exists as 365 crore eggs and 900 lac poultry chicks ,are

procured annually from other states

New scheme for enhancing poultry production on the anvil, which includes

interest subsidy and concessions related to VAT, mandi tax and stamp duty

Grain Processing Sector Largest food grain producing state & largest producer of wheat

Major food grains produced in the state include rice, wheat, maize,bajra, gram,

pea and lentils

Second largest producer of rice, accounts for about 13% of the national

production

Ranks sixth in fruits (19%), second in vegetables (30%) and first in potato

Specialized Industrial infrastructure on offer to investors

Industrial Park Product Location Facilities

Agro Parks Agro & food processing

Integrated Dairy

Multi-chamber and atmosphere controlled Cold Storages with Sorting, Grading and Cleaning facility and Quality Control Labs

4.5 lac litre per day capacity of Dairy Plant

Barabanki,Gorakhpur Saharanpur Varanasi

Lucknow

Success Stories

*Indicative

Potential projects for investment

Feature Availability of Raw Material

Demand

Potato Chips are generally manufactured from specialized varieties of potato, however flakes may be manufactured from any regular variety of potato, which is produced abundantly in U.P.

Huge availability of potato in the State. Ranks 1st in production ,with 34% share of the country’s potato output.

A huge market exists for these products.

A plant has already been established near Hapur for potato flakes manufacturing.

State Government is planning to incentivize this sector keeping in view the huge potential

Vodka Huge availability of potato in the State. Ranks 1st in production ,with 34% share of the country’s potato output.

A major distillery is in the process of establishing a plant near Rampur

Pulping and canning of Mango is a major industry in the state

Mango and guava is produced in large quantities and varieties in the state. State ranks 1st in the production of mango and 4th in the production of guava in the country.

Institutional buyers like Hotels, Restaurants have significant demand for fruit pulp.

Huge export markets for fruit pulp include UAE,UK ,Saudi Arabia etc.

*Indicative

Projects

Potato Flakes

Manufacturing

(potato based)

Mango/GuavaLitchi Pulp

About Udyog Bandhu

‘Udyog Bandhu' is an IS/ISO 9001:2008 certified agency of Government of Uttar Pradesh to facilitate industrial and infrastructure investment in the State.

It works as a bridge between the entrepreneurs and government by providing advisory services to entrepreneurs desirous of investing in Uttar Pradesh. 'Udyog Bandhu' is a proactive contributor in policy formulation for creating congenial business environment leading to industrial growth. It helps different industry related departments to simplify and deregulate their processes of clearance.

To ensure effective and timely resolution of issues of entrepreneurs, 'Udyog Bandhu' organises Tripartite Meetings involving entrepreneurs and government departments concerned. It works at three tiers of district, division and State to redress the grievances of industries.

State level Udyog Bandhu is headed by Hon'ble Chief Minister and an Empowered Committee has been constituted under the Chairmanship of Chief Secretary to decide on policy matters and coordination of interdepartmental issues for facilitating the investment in the State.

'Udyog Bandhu' has implemented 'Nivesh Mitra' - a web-based seamless interface to facilitate investment in Uttar Pradesh. 'Nivesh Mitra' is an online single window clearance facility available 24x7 to investors willing to apply for setting up industry or enterprise in the State.

Application through 'Nivesh Mitra' is mandatory for establishing all kinds of enterprises except for micro enterprises. Facility of online payment of relevant fee is also available through this web portal. 'Nivesh Mitra' is currently providing services of 12 departments concerned with industries, it works as a single point mechanism for timely issuance of approvals and clearances required for setting up enterprise anywhere in the State.