Table of contents - Food...

Table of contents

State Introduction 1

Why Madhya Pradesh 1

Raw Material Base 2

Production Clusters 4

Agricultural Marketing 6

Processing Clusters 7

Infrastructure 9

State Government Initiatives 12

Snapshot of Investable Projects 14

References 15

1

Investment Environment & opportunities in Madhya Pradesh

State Introduction

1Madhya Pradesh, nicknamed the ‘heart of India’ due to its geographical location, is the 2nd largest state in India, by area. Landlocked in the central part of India, the state is bordered by Rajasthan in the northwest, UP in the north, Chhattisgarh in the east, Maharashtra in the south, and Gujarat in the west. Rich in mineral resources, the state has the largest reserves of diamond and copper in India.

Madhya Pradesh- Key Highlights

State capital Bhopal

Geographical area2 3,08,252 sq. kms

Population (Census 2011)3

72.6 mn

Gross state domestic product (GSDP)4

USD 95.47 bn (2016-17) CAGR 16.62% (2015-16)

Per capita income5 USD 1,082 (2016-17, at current prices)

FDI inflows6 USD 1,372 mn (April 2000 to June 2017)

Total road length (kms)7 2,53,841

Rail length (route kms)8 5,000

Airports9

Domestic – Bhopal, Indore, Gwalior, Jabalpur, Khajuraho, Panna, Satna, Bilaspur & Khandwa

Why Madhya Pradesh

Bhopal

MP

The state is endowed with favorable agro-climatic conditions facilitating agricultural activities- largest producer of Pulses; 2nd largest producer of Wheat, Maize and Small millets; 3rd largest producer of vegetables.10

Centrally located and well connected; North South East West corridor passes through MP.

Robust infrastructure- 2 Mega food parks, 6 Food Parks, 5 Agri export zones, 45 Industrial areas, 6 Inland container depots, 226 Large scale industries, 206 Medium scale industries; home to the single largest solar voltaic unit in India.

Presence of leading food processors including Pepsico, Coca-Cola, ITC, Dabur, Cadbury, Parle Agro, Haldirams, Hershey’s, Adani Wilmar, Unilever etc.

1

2

3

4

2

Investment Environment & opportunities in Food Processing- Madhya Pradesh

Raw material base (1/2)

Madhya Pradesh has 11 agro-climatic zones, 5 crop zones and a various land types, soil types and water resources distributed across 51 districts of the state.12.

11Madhya Pradesh, known for its abundant natural resources including forest, minerals, rivers and

valleys, is endowed with a rich forest cover constituting 30.7% of the total geographical area of

the state.

SNAPSHOT OF LAND UNDER CULTIVATION12

Arable land 17,267

Net sown area 15,422

Total area sown 24,047

(2013-14, ‘000 hectare)

Bundelkhand Zone

District: Chattarpur, Datia & Tikamgarh

Central Narmada

Districts: Hoshangabad & Narsinghpur

Grid Zone

District: Ashoknagar, Bhind, Guna, Gwalior, Morena,

Sheopur & Shivpuri

Jhabua Hills

Districts: Dhar & Jhabua

Kymore Plateau & Satpura Hills

Districts: Balaghat, Dindori, Jabalpur, Katni, Mandla, Panna, Reva, Satna etc.

Rewa

Malawa Plateau

Districts: Dewas, Indore, Mandsaur, Nimach, Rajgarh,

Ratlam, Shajapur & Ujjain

Nimar Valley

District: Barwani, Burhanpur, Harda, Khandwa

& Khargone

Satpura Plateau

Districts: Betul & Chhindwara

Vindhya Plateau

District: Bhopal, Damoh, Raiser, Sagar, Sehore &

Vidisha

Northern Hill Region of Chhattisgarh

Districts: Shahdol, Mandla & Sidhi Partialy

Chhattisgarh Plains

District: Balaghat

3


CROPS

(‘000 tonnes)

FRUITS

(‘000 tonnes)

VEGETABLES

(‘000 tonnes)

LIVESTOCK & FISHERIES

Raw material base (2/2)

13Wheat, Paddy (Rice) and Coarse-cereals are the major crops produced in Madhya Pradesh. The stateis also a major producer of fruits (such as Banana, Citrus fruits [Lime and Lemon, Orange], Guava etc.)and vegetables (such as Potato, Onion, Tomato etc.). Major spices produced are Ginger, Chillies,Turmeric, Garlic, Coriander etc. Madhya Pradesh also has a large livestock population contributing tothe production of Milk, Eggs, Fish and Meat.

Key production highlights (2015-16)14 of the state include:

1st in production of Pulses, Oilseeds, Soyabean, Guava, Tomato and overall aromatic &

medicinal horticulture

2nd in production of overall Food Grains, Wheat, Maize, Gooseberry (Aonla), Chillies,

Sesamum, Onion & Peas

3rd in production of overall Vegetables, Cauliflower, Cucumber, Capsicum, Barley and Coarse

cereals

Among the top 5 states in production of milk

15The key production statistics of the state for the year 2015-16 are presented as below:

Potato 3,161.0

Onion 2,848.0

Tomato 2,285.9

Milk 12,148

(‘000 tonnes)

Eggs 1.44 bn

Fish In-land : 15.38 (‘000 tonnes)

Meat 70

(‘000 tonnes)

Wheat 17,688.6

Paddy 3,578.8

Soyabean 4,907.8

Banana 1,758.0

Guava 990.0

Citrus 1,332.0

4


Production clusters

The major production clusters of Madhya Pradesh16 are as given below:

Hoshangabad, Raisen, Sehore, Harda, Vidisha

Wheat

Chhindwara, Dhar, Jhabua

Maize

Hoshangabad, Raisen, Vidisha

Rice

Chhatarpur, Vidisha, Sidhi, Umaria

Millets

Dewas, Indore, Shajapur, Ujjain

Potato

Khargone, Khandwa ,Indore, Sagar, Shajapur

Onion

Shivpuri, Chhindwara, Jhabua

Tomato

Sagar, Raisen, Chhindwara

Brinjal

Dhar, Burhanpur, Khargone

Banana

Khargone, Indore, Vidisha, Katni

Guava

Ujjain, Vidisha, Chhindwara

Citrus Fruits

Dhar, Shivpuri, Satna

Papaya

Jabalpur, Bhopal, Indore Morena, Shivpuri, Ujjain, Indore

Milk

Eggs and Meat

Investment Environment & Opportunities in Food Processing-Assam 5

6


Agriculture marketing

According to the recommendations of the National Agriculture Commission, The M.P. State Agricultural Marketing Board i.e. MPSAMB (also known as Mandi Board) came into existence with effect from 1973 under the provisions of MP Krishi Upaj Mandi Adhiniyam. As per the Annual Survey of Industries 2014-15, there are 816 registered food processing units in the state.17

Agricultural markets in

Madhya Pradesh

246 principal markets

521 regulated markets

117

Farmer Producer

Organizations

275 sub-market yards

Glossary

Principal market – main wholesale markets having elaborate infrastructure also known as Krishi Upaj Mandi

Sub-Market Yards – sub-mandis having lower level of infrastructure, controlled by respective Krishi Upaj

Mandi of the area

Primary wholesale markets- periodically held markets wherein produce comes from neighboring villages

Secondary wholesale markets/ mandis- situated generally at district headquarters wherein small

merchants purchase from primary wholesale market and sell in these markets. Some cultivators directly sell

their produce in these markets

Rural markets- periodical markets (haats, painths) and fairs held in rural and interior areas

7


Processing clusters

18Some of the major processing clusters in the state include:

Indore, Ujjain, Bhopal

Dairy

Indore, Ujjain, Bhopal, Gwalior

Fruits and vegetables

Indore, Bhind, Bhopal, Hoshangabad

Flour milling

Bhopal, Balaghat, Katni, Raisen, Ujjain, Gwalior

Rice milling

Indore, Katni, Narsimhapur, Sagar

Pulse processing

Indore, Ujjain, Neemuch, Ratlam

Spices processing

Indore, Jabalpur, Ratlam, Ujjain

Ready to eat

Mandsaur, Neemuch; Rang mahal, Ratlam; Block Bhabra, Jhabua; Kalyanpura, Jhabua; Balod, Dhar; Ujjain; Indore;

Bhopal

Cane and bamboo

9


Infrastructure

The status of key physical and agricultural infrastructure in Madhya Pradesh is as follows:

Parameter Status

Existing Industrial Areas/ SEZs

45 industrial areas under DTICs19 6 Inland Container Depots20 5 agri export zone22 2 Mega food parks + 6 Food Parks23 226 LSI & 206 MSI24

Installed power 24

Thermal – 12216.23 MW Hydro – 3223.66 MW RES – 3311.54 MW Nuclear – 273.24 MW

Utilities

Electricity cost 26

Sanctioned load based tariff only for connected load up to 10 KW

Energy Charge (paisa/unit) Urban/ Rural areas: 575 Monthly Fixed Charge (INR.), Urban areas: 110 per KW Monthly Fixed Charge (INR.), Rural areas: 80 per KW

Water rates27

INR 5.50/- @per cubic meter (source of water-govt. tube well, waterfall, canal)

INR 1.55/- @per cubic meter (source of water-natural resource, lake, self-developed dam

A number of industrial areas and food parks are available in the state for investors who are keen on setting up food processing units in the state. Major food parks in the state include: 28

S. No.

Food Park Location Area (in acres)

Allotted area (in acres)

Area to be allotted (in acres)/ leasable area

1 Indus Mega Food Park Khargone 132.89 82.02 50.87

2 Avantee Mega Food Park Pvt. Ltd. (proposed)

Dewas 51.24 - 51.24

4 *Food park Nimrani 67.01 16.14 50.87

5 *Food Park Jaggakhedi 65.73 15.18 50.55

6 *Food Park Maneri 74.99 24.26 50.73

7 *Food Park Borgaon 53.02 19.89 33.13

8 #Food Park Malanpur 153.20 119.99 33.21

* under AKVN; # under IIDC, Gwalior

10


In addition to the above, land is also available at various industrial parks/ growth centres across the state.

Few major industrial/ growth centres in the state are29:

S. No.

Industrial Park/Growth Centre

Location Owner/

Developer Type

Total Area (acres)

Area available (acres)

1 Industrial Growth Center Raisen AKVN Multi-product 2723.29 2056.67

2 Industrial Growth Center Rajgarh AKVN Multi-product 563.4 473.35

3 Special Education Zone & Industrial Area

Bhopal AKVN Educational Zone

361.61 173.71

4 Industrial Area Bhopal AKVN Multi-product 316.34 137.36

5 Industrial Area Vidisha AKVN Multi-product 207.56 120.51

6 Industrial Area Hoshangabad AKVN Multi-product 529.25 267.14

7 Plastic Park Raisen AKVN Plastic goods 121.89 81.71

In addition, Madhya Pradesh also has 4 cold chain projects approved by MoFPI30.

S. No. Cold Chain Project Location Type

1 Om Agro Products Jabalpur Fruits and Vegetables

2 Bhanu Farms Ltd. Jabalpur Fruits and Vegetables

3 Brij Dairy Betul Dairy

4 Shree Uttam Food Products (India) Pvt. Ltd. Jhabua Fruits and Vegetables

Note: 6 more cold chain projects are under development

12


State government initiatives (1/2)

31MP is among the top five states in ease of doing business in India; state government has undertaken a number of reforms to offer an enabling and investor- friendly business climate for investors who are keen on setting up business:

Single Window System- Dedicated web portal for investors to submit investment proposals and track clearance status

Auto-renewal of ‘Consent to Operate’ on self-certification for green & orange category industries

Single ID for all states

Online property and CST registration

Issuance of digitally signed court orders in commercial courts

13


State government initiatives (2/2)

The role of agriculture and allied sector including animal husbandry and fisheries is very significant in MP due to its agrarian nature of state economy. Key incentives available for the food processing industry under Industrial & Investment policy of the state are summarized in the table below:

Key incentives Special Financial Assistance to Food Processing Industries32

Electricity Incentives INR 1/unit concession to all MSME FP units and Cold Storage units for 5 years

Reimbursement on Obtaining Quality Certification

MSME: 50% of the fee subject to an upper limit of INR 5 lakh

Stamp Duty Exemption

Large scale: The stamp duty paid by the promoter for the special purpose vehicles in the transferred land for establishment of mega food park will be reimbursed

Reimbursement for Promotion of R&D

MSME: INR 5 lakh per patent reimbursement. In case of transfer of technology from govt. research institution, 50% cost reimbursement subject to a ceiling of INR 5.00 lakh

Reimbursement on Transportation

MSME: 30% expenditure incurred on transportation of processed goods to ICD /port subject to a ceiling of INR10 lakh pa for 5 years, from the date of first production.; not applicable to flour, rice and soy oil mills

Capital Subsidy

MSME: Investments on plant and machinery for cold chain for non-horticultural produce such as milk, value addition and preservation infra shall be provided 50% subsidy subject to a ceiling to INR 100 mn

Exemption of Mandi Fee

All food processing units shall be given exemption from mandi fee for a period of 5 years subject to ceiling of 50% investment in plant and machinery

Infrastructure Concessions MSME: 50% assistance subject to max of INR 10 mn each for developing road, power and water infrastructure

Policy link: http://www.investmp.com/agribusiness-food-processing

http://www.investmp.com/agribusiness-food-processing

14


Snapshot of potential investable projects

Madhya Pradesh offers tremendous opportunities for investment across the entire value chain in the food processing sector. An indicative list of potential projects for investment is presented in the table below:

Project name Processable products Value proposition

Fruits & vegetables processing Frozen fruits, blanched & frozen vegetables

India is world’s second largest producer of fruits and vegetables

Wheat processing Flour, biscuits, noodles World wheat trade in 2016/17 is set to increase to 155 mn tonnes

Commercial poultry development

Canned chicken, chicken based sauces, sausages, hotdogs etc.

India is 3rd largest egg producer after China and USA and the 4th largest chicken producer after China, Brazil and USA

Pulse processing Whole dal free from stones and foreign materials

India is the largest producer, consumer and importer of pulses in the world.

Vegetable dehydration Sliced/ pulverized and dehydrated vegetables

India is a prominent exporter of dried and preserved vegetables to the world.

Starch processing

Dextrose, sorbitol, glucose (corn starch based sweeteners)

The global corn starch market was valued at USD 22.1 bn in 2016 which is expected to grow at a CAGR of 4.8% (2016-2024)

Milk processing Chilled milk, cream, ghee, curd, cheese etc.

The size of Indian dairy industry is expected to double to $140 billion by 2020


References

1. http://planassam.info/admin/files/economic_survey_assam__2016-17.pdf

2. http://www.mospi.gov.in/statistical-year-book-india/2017/171

3. http://www.mospi.gov.in/statistical-year-book-india/2017/171

4. http://mospi.nic.in/sites/default/files/press_releases_statements/State_wise_SDP-

28october2016.xls

5. http://pib.nic.in/newsite/PrintRelease.aspx?relid=123563

6. http://dipp.nic.in/sites/default/files/FDI_FactSheet_June2017_2_0.pdf

7. http://www.mospi.gov.in/statistical-year-book-india/2017/190 ; 8. http://pib.nic.in/newsite/PrintRelease.aspx?relid=155019

9. http://ipa.nic.in/index1.cshtml?lsid=35;

http://www.mdoner.gov.in/content/inland-waterways-ner

10. http://www.aai.aero/allAirports/airports.jsp


12. http://www.mospi.gov.in/sites/default/files/statistical_year_book_india_2015/Table-

8.1_0.xlsx

13. http://agropedia.iitk.ac.in/content/agro-climatic-zone-assam



16. http://mospi.nic.in/sites/default/files/statistical_year_book_india_2015/Table-8.3%20.xlsx

http://agricoop.nic.in/sites/default/files/2015-16%20%28Final%20Est.%29_0.xlsx http://eands.dacnet.nic.in/PDF/Glance-2016.pdf

17. http://geo-sampada.nic.in/


http://asamb.in/

http://www.mofpi.nic.in/sites/default/files/asi_state_wise_2014-15.pdf

19. http://www.clusterobservatory.in/clustermap/editview1.php?type=&sector=&product=&sta

te=2&district=District

20. http://commerce.nic.in/trade/ICD_list.pdf

21. http://aidcltd.assam.gov.in/portlet-innerpage/industrial-parks

22. http://agropedia.iitk.ac.in/content/agro-climatic-zone-assam

23. http://sezindia.gov.in/writereaddata/pdf/ListofoperationalSEZs.pdf http://apeda.gov.in/apedawebsite/trade_promotion/Agri_Export_Zone.htm

24. http://www.cea.nic.in/reports/monthly/installedcapacity/2017/installed_capacity-01.pdf

25. http://www.apdcl.gov.in/irj/go/km/docs/internet/ASSAM/webpage/PDF/Know_Your_Tariff

_10042017.pdf

26. GMC, Assam Urban Water Supply and Sewerage Board, Guwahati Jal Board

27. http://geo-sampada.nic.in/

28. http://www.nefoodpark.com/#

29. http://aidcltd.assam.gov.in/portlet-innerpage/industrial-parks

http://aidcltd.assam.gov.in/portlet-innerpage/industrial-areas

http://www.aiidcassam.in/industrial%20area.htm

30. http://mofpi.nic.in/sites/default/files/consolidated_state_wise_status_with_components_o

f_cold_chain_projects_10.08.2016-hindi.pdf

http://pib.nic.in/newsite/PrintRelease.aspx?relid=168990

31. https://easeofdoingbusinessinassam.in/notices/Land%20Bank.pdf

http://planassam.info/admin/files/economic_survey_assam__2016-17.pdf

http://www.mospi.gov.in/statistical-year-book-india/2017/171


http://mospi.nic.in/sites/default/files/press_releases_statements/State_wise_SDP-28october2016.xls

http://mospi.nic.in/sites/default/files/press_releases_statements/State_wise_SDP-28october2016.xls


http://dipp.nic.in/sites/default/files/FDI_FactSheet_June2017_2_0.pdf



http://www.mdoner.gov.in/content/inland-waterways-ner

http://www.aai.aero/allAirports/airports.jsp


http://www.mospi.gov.in/sites/default/files/statistical_year_book_india_2015/Table-8.1_0.xlsx

http://www.mospi.gov.in/sites/default/files/statistical_year_book_india_2015/Table-8.1_0.xlsx

http://agropedia.iitk.ac.in/content/agro-climatic-zone-assam


http://mospi.nic.in/sites/default/files/statistical_year_book_india_2015/Table-8.3%20.xlsx

http://agricoop.nic.in/sites/default/files/2015-16%20%28Final%20Est.%29_0.xlsx

http://eands.dacnet.nic.in/PDF/Glance-2016.pdf

http://geo-sampada.nic.in/


http://asamb.in/

http://www.clusterobservatory.in/clustermap/editview1.php?type=&sector=&product=&state=2&district=District

http://www.clusterobservatory.in/clustermap/editview1.php?type=&sector=&product=&state=2&district=District

http://aidcltd.assam.gov.in/portlet-innerpage/industrial-parks

http://agropedia.iitk.ac.in/content/agro-climatic-zone-assam

http://sezindia.gov.in/writereaddata/pdf/ListofoperationalSEZs.pdf

http://www.cea.nic.in/reports/monthly/installedcapacity/2017/installed_capacity-01.pdf

http://www.apdcl.gov.in/irj/go/km/docs/internet/ASSAM/webpage/PDF/Know_Your_Tariff_10042017.pdf

http://www.apdcl.gov.in/irj/go/km/docs/internet/ASSAM/webpage/PDF/Know_Your_Tariff_10042017.pdf

http://geo-sampada.nic.in/

http://www.nefoodpark.com/

http://aidcltd.assam.gov.in/portlet-innerpage/industrial-parks

http://aidcltd.assam.gov.in/portlet-innerpage/industrial-areas

http://www.aiidcassam.in/industrial%20area.htm

http://mofpi.nic.in/sites/default/files/consolidated_state_wise_status_with_components_of_cold_chain_projects_10.08.2016-hindi.pdf

http://mofpi.nic.in/sites/default/files/consolidated_state_wise_status_with_components_of_cold_chain_projects_10.08.2016-hindi.pdf

https://easeofdoingbusinessinassam.in/notices/Land%20Bank.pdf


31. https://easeofdoingbusinessinassam.in/notices/Land%20Bank.pdf

http://eodb.dipp.gov.in/Assam%20Single%20Window.pdf

https://easeofdoingbusinessinassam.in/EODB%20Act.pdf

32. http://www.oifc.in/Uploads/MediaTypes/Documents/Industrial_and_Investment_Policy_of

_Assam_2014.pdf

33. http://amtron.in/docPDF/1468313406.pdf

34. http://www.assamtribune.com/scripts/detailsnew.asp?id=aug1817/city058

https://easeofdoingbusinessinassam.in/notices/Land%20Bank.pdf

http://eodb.dipp.gov.in/Assam%20Single%20Window.pdf

http://www.oifc.in/Uploads/MediaTypes/Documents/Industrial_and_Investment_Policy_of_Assam_2014.pdf

http://www.oifc.in/Uploads/MediaTypes/Documents/Industrial_and_Investment_Policy_of_Assam_2014.pdf

http://amtron.in/docPDF/1468313406.pdf

http://www.assamtribune.com/scripts/detailsnew.asp?id=aug1817/city058


Disclaimer

Without limiting the rights under the copyright reserved, this publication or any part of it may not be

translated, reproduced, stored, transmitted in any form (electronic, mechanical, photocopying, audio

recording or otherwise) or circulated in any binding or cover other than the cover in which it is

currently published, without the prior written permission of MoFPI, EY and CII.

All information, ideas, views, opinions, estimates, advice, suggestions, recommendations (hereinafter

‘content ) in this publication should not be understood as professional advice in any manner or

interpreted as policies, objectives, opinions or suggestions of EY and CII. Readers are advised to use

their discretion and seek professional advice before taking any action or decision, based on the

contents of this publication. The content in this publication has been obtained or derived from sources

believed by EY and CII to be reliable but MoFPI, EY and CII do not represent this information to be

accurate or complete. MoFPI, EY and CII do not assume any responsibility and disclaim any liability for

any loss, damages, caused due to any reason whatsoever, towards any person (natural or legal) who

uses this publication.

This publication cannot be sold for consideration, within or outside India, without express written

permission of MoFPI, EY and CII. Violation of this condition of sale will lead to criminal and civil

prosecution.

Ministry of Food Processing Industries (MoFPI), Confederation of Indian Industry (CII) and Ernst & Young (EY) © 2017

TRANSFORMING THE FOOD ECONOMY3-5 November, 2017 | Vigyan Bhawan, New Delhi, India

About World Food India

A global event to facilitate partnerships between Indian and international

businesses and investors, World Food India (WFI) is a gateway to the Indian

food economy and an opportunity to showcase, connect, and collaborate.

Write to us at:

Ministry of Food Processing Industries,Government of IndiaPanchsheel Bhawan, New Delhi, India.

Telephone Number: +91 11 -26492216/ 26492174/ 26493227/ 26490933

Find us at: http://mofpi.nic.in/https://www.worldfoodindia.in/

91

Madhya Pradesh State Agro Industries Development,

Government of Madhya Pradesh Panchanan, 3rd Floor, Malviya Nagar, Bhopal, Madhya Pradesh-462003

Telephone Number: 0755 255 1967

Find us at: mpagro.org/, [email protected], [email protected]

Commissioner, Horticulture and Farm Forestry,

Government of Madhya Pradesh Vidhyachal Bhavan, 4th floor, Bhopal, Madhya Pradesh

Telephone Number: 0755 257 8491

Find us at: [email protected]

Table of contents - Food...

Documents

Transcript of Table of contents - Food...