Contentmsmeodisha.gov.in/PDF/2. Investing in Maize Processing.pdf · Content Production &...
Transcript of Contentmsmeodisha.gov.in/PDF/2. Investing in Maize Processing.pdf · Content Production &...
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Production & consumption scenario of maize in Odisha 4
Odisha as an investment destination for maize processing 10
Doing Business in Odisha 19
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Production & consumption scenario of m aize in Odisha
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Odisha is a corn surplus state
• Sevendistrictscontributetoaround74%ofthetotalproduction
• Nabarangpurdistrictalonecontributestoaround30%shareintotalproduction
• Adoptionofhighyieldingvarietyseedscontributesto89%oftotalareaand93.3%ofthetotalproduction
• Almost92%ofthetotalmaizeisproducedinKharifseason
Area and Production scenario of major corn clusters of Odisha (2013-14 data)
NabarangpurKalahandiKoraputRayagadaKendujharKandhamalMayurbhanjOdisha Total
0.690.190.300.160.270.170.151.93
1.920.750.700.620.470.290.247.79
28.5%11.0%10.5%9.0%7.0%4.5%3.5%
73.8%
Area in Lakh HaDistricts Production in Lakh Tones % of total production
Source: Directorate of Agriculture and Food Production, Odisha
Maizegrowingdistricts
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Area and production has been increasing over the last decade
Averagemaizeyieldincreasedfrom1.32tons/hain2004-05to2.78tons/hain2013-14
1.321.50 1.60
2.242.29 2.19
2.582.32 2.41
2.78
1.85
2.44
1.87
2.8
1.99
3.19
2.15
4.82
2.24
5.14
2.28
4.99
2.52
6.49
2.62
6.8
2.81
6.76
2.8
7.79
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Area(inlakhha) Production(inlakhtones) Productivity(inTones/ha
Source:DirectorateofAgricultureandfoodproduction,Odisha
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Agro-climate of Odisha is suitable for corn production
Suitableagroclimaticconditions,availabilityofhighyieldingvarietiesandincreasingpricerealisationatfarmlevelhasapotentialofshiftingcultivationfromothercropstowardscorn
Agro-climatic factor Requirement Odisha
Soiltype
SoilpH
Rainfall
Temperature
Photoperiod
Fertilewelldrainedalluvialorredloamsfreefromcoarsematerialsandrichinnitrogen.
7to8.5
Annualrainfallof50-75cm
21°Cto30°C.
11.5to12.5hourperday
Source:FICCIreport-EmpoweringIndia-RedesigningG2Brelations,DirectorateofAgricultureandfoodproduction,Odisha
A number of seed varieties are used by Odisha farmers - based on maturity period
AgricultureDepartment,Odishaispromotinganddistributingthefollowingcertifiedhybridseedsundervariousprograms-
• PEHM-5,Deccan-103,Shakti,HQPM-1andNavjyot
Type Extra Early maturity Early maturity Medium maturity
Hybrid
Composite
Vivek27
D994 - -
Parkash,HIM129,X3342
HM9,Malviyahybridmakka2,DK701,DMH115,Pro345
Pro311,Bio9681,SeedTech2324,
PAC705
-
Late maturity
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High potential for leveraging value addition opportunities
• About10unitsareinvolvedinflakemanufacturingandoilproduction
• Annualprocessingcapacityofanimalfeedisabout2.6lakhtonnes
• Thereishighpotentialforestablishingunitsproducingindustrialorconsumerproductssuchasstarchs,sweeteners,ethanoletc
Source:InteractionwithNabarangpurMandiSecretary,IFC’sMaizeValuechainReport
Given the production surpluses, the state caters to neighboring states as well• SurpluscornistransportedfromOdisha
toChhattisgarhWestBengal,AndhraPradeshandKarnatakaforvalueadditionandprocessing
• ChhattisgarhandAndhraPradeshhavemajorshareinimportfromOdisha
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Post harvesting
Value added products are imported from other states
50%ofthecobsareshelledatvillagelevelandsoldtoaggregatorsatfarmgate
Around7lakhtonnesmaizeisproducedeveryyearinOdisha
Villagelevelaggregatorsatfarmgateselltowholesalerswhoforwardselltotradersandprocessors
Only48%surplustradedthroughRMCs
Onlyabout25%ofcornisutilisedforprocessingwithinthestateindicatingtheuntappeddomesticpotentialforsettingupofprocessingunits
Almost75%-80%ofproductionisexportedtoneighboringstates(WestBengal,ChhattishgarhandAndhraPradesh)forprocessing
Consumerbuysvalueaddedproductsprocessedoutsidethestate
Production Agri Marketing Agri Logistics ConsumptionProcessing&Value addition
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Odisha as an investment destination
for maize processing
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In addition to the production surplus, the state is well located to source off-season (rabi) raw material from surrounding production centres
• MajorproductionclustersofAPandChhattisgarharesituatedwithin500Kmradius.
• TheseStatescontributesto25%ofIndia’stotalcornproduction
• 92%productionofmaizeinOdishaisinKharifseason.70%ofmaizeinneighbouringstateisproducedinrabiseason,thusensuringyearroundsupply
The state is well connected to these centres through road and rail
Nabarangpur(majormaizeproductioncenterofOdisha)isaround270KmfromRaipur(CG)and300KmfromVisakhapatnum(AP)viaroad
Kharif Maize
Rabi Maize
AndhraPradesh
Bihar
Odisha
WestBengal
Jharkhand
Chhattisgarh
IndiaTotal
StatesProduction
(in Lakh MT
44.8
15.41
6.76
4.20
4.08
1.75
214.9
% ofProd.
20.9%
7.2%
3.1%
2.0%
1.9%
0.8%
Neighboring State
Maize prod. Centers
Distance from Jeypore (Nabrangpur dist) in Kms
Distance from Khurda district in Kms
Telangana & AP
Karimnagar 533 1000 Warangal 457 930 Nizamabad 670 1120 Vijayawada 463 755
ChhaCsgarh Ambikapur 660 575
Jharkhand West Singhbhum 765 400
Palamu 828 734
Bihar
Begusarai 1056 856 Bhagalpur 1140 776 Purnea 1232 915
WB Dinajoor 1251 861
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Government of Odisha is keen on promoting private sector investments across the Maize value chain
DA&FP*-DepartmentofAgricultureandFoodProduction,OdishaISOPOM-IntegratedSchemeforOilseeds,Pulses,OilPalmandMaize
5 priority areas to facilitate private investment
Animalfeedprocessingunit
Valueaddedproductslike-cornflakes,popcorn,cornsweetenersetc.
Cornbasedstarchproducingunits
Cornoilunits Ruralwarehousingunits
• DA&FP*OdishaisincentivizingHybridMaizeCultivationbyprovidingincentivesupto50%ofcostoftheinputstohybridmaizegrowers
• CentrallySponsoredSchemeISOPOM(Maize)isimplementedtoprovidetrainingonbetterproductiontechnologiestofarmers
ProductionPost harvest handling, Logistics and warehousing
Processing and value addition
• TwodedicatedmaizemandiswithallfacilitiesestablishedinmajormaizeproducingareasUmarkoteandRaigarh
• AdditionalwarehousingcapacitywillbeaddedbyOSWCandRMCtobringstoragecapacityto~15000MT
• AgroProcessingSectorisidentifiedasoneoftheprioritysectorinIndustrialPolicyResolution2015andhenceiseligibleforvarioustaxincentivesandcapitalsubsidy*
• IncentivesarealsoavailableunderOdishaFoodProcessingPolicy,2013
Government support across the value chain
Source:AnnualactivityreportofAgricultureDepartment,GoO
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Government of Odisha provides a number of incentives for investment in Maize
Other incentives
• GovernmentearmarkedlandwillbeallottedtoenterprisesatprevailingratesasprovidedbyGoOandIDCO• CapitalInvestmentsubsidytoenterprises@25%oftheprojectcostsubjecttoalimitofINR2crores(33%Maxupto
INR3croreforunitspromotedbywomen,SC&STentrepreneursandunitspromotedinKBK(Kalahandi,Balangir,Koraput)areas
• 5%perannumbackendedinterestsubsidyonworkingcapitalloanforfirst5yearsfromcommencementofoperationsoftheunitssubjecttoalimitofINR5lakhperyearfor5years
• ElectricityDutyexemptionforamaximum10yrs.fromdateofcommercialproduction• Reimbursementupto50%ofcostofqualitycertificationsubjecttoceilingofINR2lakh
TheDepartmentofAgriculture(DoA)hassetupdedicatedcentersformaizeprocurementatUmerkotandRaigharundertheNabarangpurRegulatedMarketCommitte.Thesecentersaremeanttoservefarmersandprivateplayerswithaccuratepriceandmarketinformationandfacilitatefairtransactions
ReimbursementofVATonMaizeusedforpoultryfeed
OdishaStateWarehousingCorporationissupportingentrepreneurstosetupwarehousesof2,500MTorlessunderOdishaPEGschemethroughPPPmodel
Source: IPICOL Website, MSME Department, Govt. of Odisha, APICOL
Industrial Policy Resolution (IPR), 2015AgroProcessingsectorisidentifiedasoneoftheprioritysectorsinIPR2015
FCI- Fixed Capital Incentive
Exemptionfrompaymentoflandpremium,leviableunderOLRAct,1960
EntryTaxexemption
Stampdutyexemption
VATexemption
Interestsubsidy
Power:ElectricityDutyexemption
Patentsregistrationcostreimbursement
Qualitycertification(ISO)chargesreimbursement
TechnicalKnow-howcostreimbursement
Incentive Provision
100%exemptionupto100acresand50%forbalancearea
1.100%onacquisitionofplant&machineryforsettingupofindustrialunits
2.100%ofFCIonpurchaseofrawmaterialsforaperiodoffiveyears
100%exemption
100%ofVATpaidfor7yearsofFCI
5%perannumontermloanfor5yearsavailedfromPFI’s/banksuptoINR1crore
100%Exemptionfromelectricitydutyfor5yearsforcontractdemandupto5MW
100%oftheregistrationcostuptomaximumofINR10Lakh
Renewalforconsecutive2yearsi.e.,foraperiodof3yearsat100%toatotalmaxi-mumofINR3Lakhs
100%oftheexpenditurewithlimitofINR1lakhforindigenoustechnologyandINR5lakhforimportedtechnology
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And Odisha supports this positive business environment with excellent infrastructure
Source: Team Odisha website www.teamodisha.org, IPICOL
Advantage Odisha
Excellent road and rail network
Robust power infrastructure
Availability of
trained human
resources
Well connected ports
Land parcels earmarked for food parks
Availability of water
Excellent road and rail network• 15nationalhighways
• RoadDensityof161Kmper100squarekmarea
• RailwaynetworkoftheSouthEasternRailwaysandtheEastCoastRailways
Well connected ports• 2major,2minorports
and4otherportsareinconstructionphase
• Portconnectedtobroad-gaugeandbyNationalHighway-5A
Efficient measures to meet industrial water requirement• Sufficientavailabilityofwaterresources
throughnaturalsources
• PresenceofHirakudreservoir&riverslikeTel,Mahanadicatertoindustrialwaterrequirement
Robust power infrastructure• Powersurplusstate
• 7296.3MWofinstalledcapacity
• 29powercompanieshavesignedMoUtosetupthermalpowerplantswithaninstalledcapacityof37,000MW
Availability of trained human resources• Technicaleducationis
impartedthroughqualityeducationalinstitutesandcolleges
• Stategovt.focusedonskilldevelopmentforMSMEsector
Land parcels earmarked for food parks• GoOisinprocessofsetting
up3megafoodparksandoneseafoodparkatstrategiclocationsinthestate
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Doing Business in Odisha
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Easier and faster approval process…
OdishaIndustriesFacilitationAct(OIFA)2004allowsallclearancesrequiredtostartandoperateanindustrythroughasinglepointwithinasettimeperiod
Source: www.investodisha.org
SWCA: Single Window Clearance Authority
Tostrengthentheinvestorfacilitation,theGovernmenthasconstituteddedicatedInvestorFacilitationCellsattheStateandDistrictlevels.Thekeyobjectiveistoguidetheinvestors,assesstheprojectproposalsforlandandutilityrequirementsandfollowupfortimelyapprovalsforestablishment&operationoftheunits.
Investment Facilitation Cell
MorethanINR50Crores
ChairedbyCMD,IPICOLandconvenedbyCGM/GM,IPICOL.
RepresentativesfromIDCO,SPCB,OPTCL,DoF&B,WaterResourceDepartmentandIndustryassociation
ChairedbytheGM,RIC/DICandconvenedbyAs-sistantManagerDIC/RIC.
RepresentativesfromIDCO,SPCB,DoF&Banddis-trictlevelindustryassociation.
Investmentsize
Structure
LessthanINR50crores
State Level facilitation cell District level facilitation Cell
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Investment promotion and Investor facilitation for approvals
Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL)
Promotion, establishment and operation of industries in the state
Industrial Development Corporation of Orissa Limited (IDCOL)
Financial support and subsidy for promotion and development of agro-based and food-processing industries.
Agricultural Promotion and Investment Corporation of Orissa Limited (APICOL)
Financial assistance to small and medium scale industries
Provides soft loans and margin money for rehabilitation of sick industrial units
Land acquisition
Infrastructure Development
Project construction
Industrial promotion
Orissa Industrial Infrastructure Development Corporation (IDCO)
Export promotion of goods from Odisha
Marketing assistance to SSI units of the state
Aiding and assisting SSI units in the state for their sustained growth and development
Orissa Small Industries Corporation Ltd (OSIC)
Facilitation of business in pisciculture in brackish water areas, freshwater ponds and other water sources.
Orissa Pisciculture Development Corporation Limited (OPDC)
Industrial promotion facilitators
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20Developed under Odisha Inclusive Growth Partnership (OIGP)
Come. Invest. Grow.
Industries DepartmentGovernmentofOdishaBhubaneswar-751001,Odisha,IndiaTel:+91-674-2536640/2390253,Fax:+91-674-2536819/2394051Email:[email protected],Website:http;//orissa.gov.in/industries/index.htm
Industrial Promotion & Investment Corporation of Odisha Limited (IPICOL)(TheSecretariatofTeamOdisha)(AnISO9001:2008CertifiedInvestmentPromotionAgency)IPICOLHouse,Janpath,Bhubaneswar-751022,Odisha,IndiaTel:+91-0674-2542601/03,2542607-08,Fax:+91-0674-2543766E-mail:[email protected],[email protected],Website:www.investodisha.org
Odisha Industrial Infrastructure Development Corporation (IDCO)(Govt.ofOdishaundertaking)IDCOTower,Janpath,Bhubaneswar–751022,Odisha,IndiaTel:+91-674-2540820/2542784,Fax:+91-674-2542956Email:[email protected],Website:www.idco.in
Odisha Investment and Export Promotion Office (OIEPO)OfficeoftheChiefResidentCommissioner,Govt.ofOdishaOdishaNiwas,4–BordoloiMarg,Chanakyapuri,NewDelhi-110021,Tel:+91-11-23014250,Fax:+91-11-23010839Email:[email protected],[email protected]:www.oiepo.teamorissa.org
Directorate of IndustriesKillaMaidan,Cuttack-753001,Odisha,IndiaTel:+91-671-2301892,Fax:+91-671-2307331Email:[email protected],Website:http://ws.ori.nic.in/diorissa
The Agricultural Promotion & Investment Corporation of Odisha Limited (APICOL)(AwhollyownedcorporationoftheGovernmentofOdisha)DepartmentofAgriculture326,Baramunda,Bhubaneswar–751003,Odisha(India),Tel:0674-2354125,Fax-0674-2354006Email:[email protected]/[email protected],Website:www.apicol.co.in