Agribusiness and

Food Processing

Nurturing the Future

of Madhya Pradesh

Madhya Pradesh Trade and Investment Facilitation Corporation Limited (MPTRIFAC)

AVN Towers,192, Zone -1, M.P Nagar, Bhopal 462011
Tel.: (+91) 755 4270246.Fax: (+91) 755 2559973. E-mail: facilitation@mptrifac.org
Website: www.investmp.com National Partner Knowledge Partner
Content



From Farm to Fork
Agriculture
Horticulture
Availability of Skilled
Manpower
Governments Proactiveness
Livestock Major Investors
Food Processing Investment Opportunities
Madhya Pradesh in India
Robust Infrastructure Facilities
FROM FARM TO FORK

Our Edge

Food Processing

Horticulture

Dairy and Livestock

Agriculture
FROM FARM TO FORK

Agriculture:
Prime avenue for Investments
Facts and Figures
The agriculture and allied activities grew by 20% in 2011-12, 20.16% in 2012-13, and at a staggering growth rate of
25% in 2013-14
The state of Madhya Pradesh stands first in pulses and oil seeds production, and stands second in food grains
production in the country
At present, the total area under production in the state is 237.28 lakh hectares and the total agricultural produce
is 375.09 lakh million tonnes
With 5 crop zones, 11 agro-climatic zones and 4 soil types the state is favourable for agri-production
The state has a robust support system of 4,500 primary agriculture co-operative societies and 240 agriculture
mandis
Source: Central Statistical Organisation and Department of Farmer Welfare and Agriculture Development

Future Granary of India

Madhya Pradesh is the fastest growing state in India. With potential to increase productivity, and scope to enhance
the total cultivable land and area under third crop, the state will be the future granary of the country
There is a huge potential to increase total production of mustard, sugarcane, cotton etc
Basmati Rice produced in the state caters to approximately 50% of all Basmati exports to USA and Canada. The
Sharbati wheat of the state is a premium brand for wheat flour not only in India, but also abroad
The state produces 40% of all organic food cultivated in the country. Organic farming is promoted in 16 districts
of the state
Except soybean, the processing capacity of all agricultural produces has huge growth potential in the state
The first state-of-the-art logistics and agri-business hub on PPP model has been established in Pawarkheda (District
Hoshangabad). There is a substantial scope for more such hubs

Potential Areas for Investment

Agriculture implements and farm machinery: With accelerated growth in farm mechanisation and
due to keeping agriculture implements free from commercial taxes
Logistics hub & warehousing
Processing of wheat, paddy, pulses, oilseeds, maize
Sugar industry
Cotton yarn industry
Solvent plant, starch plants and animal feed units
Export houses for premium wheat, paddy and organic foods
Soya food products industry
FROM FARM TO FORK

Horticulture-
A Sunrise Sector
Horticulture is one of the sunrise sectors in Madhya Pradesh, which is growing with an
increasing area under crops such as fruits, vegetables and spices in the recent past
The area of production (within horticultural crops area) under fruits, vegetables, spices, flowers
and medicinal plants are 22%, 64%, 6%, 2% and 6% respectively.
The production of horticultural crops grew at a CAGR of 39% during the period 200809 to
2013-14

Source: Department of Horticulture & Food Processing

Livestock
Madhya Pradesh is the 6th largest producer of milk in India and producing 88,38,000 tonnes of milk
with a growth rate 8.6% over last year
The state produces 8712.1 lakh eggs and 42,900 tonnes of meat with a growth rate of 4% and 11.2%
respectively
The state is the 5th largest producer of fish in India with a production of 75,400 tonnes
Over the last few years the consumption of livestock products has witnessed an increase in the state
Milk and milk products consumption has increased by around 34.4%, eggs by around 60.9%, poultry meat
by around 153.3%, and meat other than poultry by around 50.3% over the last decade

Source: Ministry of Agriculture and Department of Animal Husbandry, Dairying and Fisheries, National Dairy Development Board

Food Processing
The agro-processing sector is one of the very rapidly growing sector in the
state exhibiting several distinguishing features
The sector is one of the highest growing sectors in terms of gross capital
formation as well as gross value addition
This sector forms an average of 32% share of the total industrial output value in
Madhya Pradesh
There are about 22 leading processing units in the state. In addition to this, there
are over 500 units in the SME sector 250-300 potato processing units in Indore and
adjoining districts, and 125-150 flower processing units (Gulkhand, Rose water) located
in Ujjain. There is potential for increase in the number of processing units, especially for
Aonla, Garlic and Coriander with linkage to the proposed Food Parks
Source: Government of India, Annual Survey of Industries, Data Tables, Department of Horticulture and Food Processing
 FROM FARM TO FORK

Madhya Pradesh
in India

The Madhya Pradesh rank in India in terms of produces With highest growth rate in food grains in India, MP has received Krishi Karman award
Rank 1 Gram, guava, gooseberry, garlic, marigold, aromatic, soyabean, pulses and oilseeds for two consecutive years (2011-12 and 2012-13)
Rank 2 Onion, peas, mandarin (mandarin, kinnow, orange), coriander and citrus
Aonla, jowar, tur, lintil, muskmelon, bottle gourd, pumpkin, tomato, custard apple, sweet Chhindwara is home to Indias first Spices Park set up by the Spices Board of India
Rank 3 orange (malta, mosambi), rose, wheat, rapeseed & mustard, total food grains, vegetables,
flowers and fruits
Rank 4 Cauliflower, potato, ber, papaya, chilies, spices and flowers
Other fruits, lime/lemon, and fish, bitter gourd, pointed gourd, sweet potato, jackfruit,
Rank 5
pomegranate, tube rose and vegetables
Rank 6 Milk, coarse cereals, bajara, groundnut and cotton, brinjal and fruits
Rank 7 Papaya, cabbage, cucumber, watermelon, banana and grapes
Rank 8 Maize, ladyfinger, apple, bael and passion fruit
Rank 10 Carrot and Peach

Source: National Horticulture Board, Horticulture; Ministry of Agriculture and Department of Animal Husbandry, Dairying
and Fisheries, National Dairy Development Board
 Garlic

Coriander

Competitive edge Chilli

Orange

Aonla

Banana

Robust Infrastructure Facilities Mango

Flowers

Pea

Tomato
Bhind
Soil Upcoming Horticulture Hub Morena Onion
The soil of MP has medium level content of nitrogen and phosphorous and is rich in potassium
Gram
Food Parks Gwalior
Wheat
Sheopur Datia
Water Spice Parks
Rice
Presently, the average surface water availability is 81.50 lakh hectare-meter contributed by ten major river basins viz. Shivpuri
Chambal, Betwa, Sindh and Ken basins in North Zone and Tons river basins in the East; Benganga basin in the South and Papaya
Narmada, Mahi and Tapti basins in Centre and West. In addition, 34.50 lakh hectare- metre ground water is available in
the state. The total availability of water in the state, thus, amounts up to 116 lakh h-m, which can optimally irrigate 113 Tikamgarh
lakh hectares of land Rewa
Ashok Chhatarpur
Neemch Guna
The state has 2.87 lakh Ha of total inland water bodies, 17,088 km of rivers and canals, and 60,000 Ha of tanks and Nagar Satna Singrauli
ponds. Thus, with such abundant natural resources, the state has immense potential to develop its fisheries sector Panna
Sidhi
Mandsaur
Rajgarh Vidisha Sagar Damoh
Cold storages Shajapura Katni
The total capacity of multi-purpose cold storage facilities was over 7 lakh tonnes before launching the National Bhopal
Ratlam Umaria Shahdol
Horticulture Mission scheme. Over 50% of this capacity is utilized by potatoes alone. Additional storage capacity Ujjain
(183609 MT) of cold storage has been created after launching National Horticulture Mission scheme. Thus, at present, Raisen Jabalpur
144 cold storages are available in the State with a storage capacity of 8.045 lakh MT
Jhabua Narsimhapur Anuppur
Indore Sehore
Dindori
Dewas Mandla
Hoshangabad
Milk Chilling Plants Alirajpur
Dhar Seoni
Only 35% of the total capacity of milk chilling plants in Madhya Pradesh is used Harda
Chhindwara
Khargone Khandwa Balaghat
Betul
Barwani
Livestock healthcare
During the 11th Five Year Plan, 114 new veterinary dispensaries have been established in the state to expand animal Burhanpur
health coverage*. Another 112 veterinary dispensaries have been upgraded into veterinary hospitals
WILINESS TO WORK
WITH THE RIGHT SET OF SKILLS

Availability of Skilled Manpower

Of 42% worker participation in the state, 72% of

the total workers are dependent on agriculture

and allied activities - which is higher than the

national average of 58%

The three major state universities are:

Jawaharlal Nehru Krishi Vishwavidyalaya (JNKVV)

Rajmata Vijayaraje Scindia Agriculture University

(RVSAU)

NanajiDeshmukh Veterinary
ScienceUniversity,Jabalpur

Source: National Skill Development Corporation

Governments proactiveness

Agribusiness
Agro & Food Processing Policy 2012
To minimize loss

and
To add value at the Farm Gate
To give the benefit of Policy for the farm level activity

Food
Land allotment at a concessional rate of 25% for MSME units. Stamp Duty and
registration charges exemption of INR1 per INR1,000
Reimbursement at the rate of 15% to a maximum of INR 5 crore for the
expenditure incurred on establishment of food park/mega food park/horticulture
hub

Processing
Fruits, vegetables, flowers and other notified agriculture produce purchased
in any market area of the state for processing/ production, is exempt from
payment of mandi fee
Subsidized power rates at INR 1.50 per unit subject to a ceiling of 25%
of the electric units consumed to Cold Storage, Cold Chamber, Ripening
Chamber and Individual Quick Freezing Enterprise for 5 years

Other Incentives provided

Concessional rates of mandi fee for Banana and Orange produced in the State
Establishment of value adding centers for sorting, packaging, storage and preservation,
processing and transportation
Foods and vegetables used for processing by a unit in Madhya Pradesh exempted
from Mandi Fees
Agri export zones for Potatoes, onion and garlic (8 districts) and Seed spices
coriander and fenugreek (7 districts)
APMC act amended to exempt trading of fruits and vegetables (as per the
mentioned list) outside the market yard from trading license and Mandi
Fees
Governments proactiveness

Horticulture Horticulture Hub Establishment Policy 2012

The objectives of the policy include making horticulture crops
profitable, increase in production and encouraging post-
harvesting management including storage, grading, packing,
quality improvement and arrangements for marketing.

Includes making horticulture crops profitable, increase in production and

encouraging post-harvesting management including storage, grading, packing,
quality improvement and arrangements for marketing.
One or more centralised facilities will be made available for production of
high-quality plantation material, grading, sorting, packing etc. for products to
be grown in clusters of horticulture hub. Generally, more than one cluster
(village groups) will be linked with a hub
Hub will be established after preparing its detailed project report and
getting the same endorsed by an empowered committee headed by
the Chief Secretary. The hub will be run under PPP mode.
A provision of INR 25 crore has been made during year 2012-13

Livestock
for establishment of horticulture hubs

Livestock Development Policy 2010:

The vision of the policy is to make the State self-reliant in live stock and live
stock products, distributing the benefits equitably to all segments of the society
cutting across caste, creed and class to promote sustainable livelihoods for
livestock producers and thereby help in poverty reduction.
To improve the rearing of hybrid and improved breeds of indigenous calves the state government has
launched a special Livestock Breeding Programme.
The Intensive Dairy Development Project has been introduced in the state to link dairy farmers
with milk collection centres and improving the marketing of milk at the district and sub-district
level.
To enhance the production of meat and milk in the state, goat units are also being distributed
to beneficiaries through a bankable scheme.

Policy provides support in the following areas:

Livestock Extension Monitoring
Livestock Fodder Regulations and Dairy Poultry
breed and capacity Marketing and
health Development Standardization Development Development
improvement building Evaluation
Governments proactiveness

Fisheries Scheme for Development of Fisheries

To improve the rearing of hybrid and improved breeds of indigenous calves the state
government has launched a special Livestock Breeding Programme.
The fishermen credit card has been developed on the lines of the Kisan Credit Card
and has benefitted over 6000 fishermen.
Bank loans have also been made available for fish production in ponds under a
scheme launched by the Fish Farmers Development Agency.
Assistance has been given, that provides fishermen with basic amenities such
as fishing boats, nets and insulated boxes that have been made available to
fishermen and their societies.
A provision of INR 5 Crore has been made for 2012-13 for the development
of rearing areas in the submergence areas of irrigation reservoirs36.
Though the development of peripheral rearing areas is a costly affair and
would cost approximately INR 8 Lakh per Ha, the scheme focuses on
the larger goal of increasing fish productivity of the irrigation reservoirs
through fish seed rearing and stocking in reservoirs.

Major investments
Across the Value-chain

Investment Opportunities
From Enterprise to Entrepreneurship The key projects across the value chain which the state is developing are:
Areas of Specific Opportunity Location Area in Estimated Proposed
Primary Inputs Focus acres Project Value products for
Research & in INR Lakhs processing
Development
Farm Land Seed Fertilizer Fodder Equiptment Process-ing Pulses processing cluster Sagar ~ 20 820 Gram, Pigeon Pea,
Capacity Lentil, Black Gram,
Enhancement Green Gram etc.
Production & Processing Wheat processing cluster Sehore ~ 25 845 Packed & Branded
Wheat, Atta, Maida,
Agriluture Horticulture Dairy Production Livestock Fishery Rawa, Suji and
Production Production
Value-Added Other processed
Food Processing Food Packaging products
Processing
Paddy processing cluster Satna ~ 40 900 Rice, Bran, Poha,
Churi, Husk etc.
Transportation and Infrastructure Integrated fruits and vegetable Ratlam ~7 3,000 Tomato, Cabbage,
Machinery & Horticulture processing facility on PPP basis Local Potato, Onion,
Food parks Spice parks Green house Bottle Gourd,
Equipment hubs
Retail & Cauliflower, Okra,
Modern abitar Cold storage Milk chilling E-Marketing Distribution
Exports Water Melon, Brinjal,
Pea
Vegetable dehydration facility on Neemuch ~6 1,960 Garlic, Onion, Tomato,
PPP basis Cabbage
Modern slaughterhouses on PPP Indore and ~ 2 per facility 430 Goat, Sheep, Buffalo
model Bhopal

The key projects across the value chain, which the state is developing are:
Areas of Focus Specific Opportunity Location Area in acres Estimated Project

Contact
Value in INR Lakhs
Marketing Infrastructure Development/ up-gradation of Shujalpur 19 968
Development marketing facilities of the APMCs
Farmer Linkages and Formation of commercial poultry - - 415
Empowerment development societies / co- Principal Secretary
operatives
Agriculture Welfare and Agriculture Development
Strengthening of FPOs by facilitating - - 5 Government of Madhya Pradesh
the formation, market linkages and psagriculture@mp.gov.in
capacity building
Human Resource Food Technology institute Indore 50 4,756
Development
Investment Opportunities

Food processing
Food processing opportunity in the state

Produce Processed Food and Other Opportunities Horticulture Area in

Area in Acres Food Park Produce Processed Food and Other Opportunities
hub hectares
Maize Dairy feed, Cornflakes, Starch, Oil
Wheat Packed Atta, Maida, Porridge (Dalia), Suji, Pasta Proposed Under Implementation Opportunity
Cereals and Pulses
Soyabean Soya Milk, Soya Protein, Extruded foods, Soya flour
Nimrani 27.12 Maize Dairy feed, Cornflakes, Starch, Oil
Rice Rice Bran, Puffed Rice, Fliaked Rice, Bran Oil
Wheat Packed Atta, Maida, Porridge (Dalia),
Potato Flour, Chips Suji, Pasta
Cereals and
Onion Dehydrated Flakes Burhanpur 52.52 Soyabean Soya Milk, Soya Protein, Extruded
Vegetables Pulses
Green Peas Dehydrated Peas, Frozen Peas Jaggakhedi 20.46 foods, Soya flour
Tomato Puree, Ketchup, Sauces, Concentrate Rice Rice Bran, Puffed Rice, Fliaked Rice, Bran
Oil
Spices Chill, Ginger, Garlic, Coriander Powder, Oleoresin, Paste
Potato Flour, Chips
Fruits Mango, Orange Juice, Pickles, Jam, Squash
Onion Dehydrated Flakes
Shajapur 100 Maneri 30.354 Vegetables
Dairy Processed Milk,Yogurt / Curd, Butter, Cheese, Ice-cream, Chocolate, Cottage Cheese / Paneer Green Peas Dehydrated Peas, Frozen Peas
Tomato Puree, Ketchup, Sauces, Concentrate
Meat Meat and Meat products, Modernization of abattoirs
Chill, Ginger, Garlic, Coriander Powder,
Fisheries Fish wafers, Sausages, Soup, Cutlets, Fish feed, Fish balls Borgaon 21.466 Spices
Ujjain 29.5 44.5 Oleoresin, Paste
Malanpur 62 Fruits Mango, Orange Juice, Pickles, Jam, Squash
Meat and Meat products, Modernization of
69 Acre & 237 Babai 18 Meat
abattoirs
Mandsaur Acres
(2 locations) Fish wafers, Sausages, Soup, Cutlets, Fish feed,
Pipariya 32 Fisheries
Fish balls
Investment Opportunities

Competitive edge
Food Parks

Food Park Nimrani Jaggakhedi Maneri Borgaon Malanpur Babai Pipariya Food Park Nimrani Jaggakhedi Maneri Borgaon Malanpur Babai Pipariya
Details Details
Location Nimrani, Jaggakhedi, Industrial Industrial On Gwalior State Pipariya, Total no. 169 99 76 31 70 37 51
District District Area Maneri, Area - Bhind Highway District of plots
Khargone Mandsaur Tah- Niwas, Borgaon, Tah- Etawah No-22 Hoshangabad developed
Dist. Mandla Sausar NH-92 (Khatagaon
Allotted plots 21 3 4 6 10 - -
Dist. to Shahpura)
Chhindwara Babai No. of units 4 - - 1 2 - -
District set up
Hoshangabad
No. of vacant - - 72 25 60 - -
Nearest Indore Indore Jabalpur Nagpur Gwalior Bhopal Bhopal plots
airport (Dumana) 55km
Basic available Internal Internal Internal Internal Internal Internal Internal
35 km
infrastructure Roads Roads Roads Roads Roads Roads Roads
Nearest Indore Indore Jabalpur A - Nagpur Gwalior Itarasi, Itarasi, Power Power Under Power Power Power Power
major railway 35 km 55km, 20 km Hoshangabad Hoshangabad Cold Storage Cold Storage Construction Cold Storage Cold Storage Cold Storage Cold Storage
station B - Pandurna Common Common Power Common Warehousing Common Common
40km effluent effluent Cold Storage effluent Water effluent effluent
treatment treatment Common treatment Surface treatment treatment
Nearest Indore Indore Jabalpur Nagpur Gwalior Bhopal Bhopal
plant plant effluent plants Trans- plant plant
major cities 35 km 55 km 20 km
Warehousing Warehousing treatment Warehousing portation Warehousing Warehousing
Total area in 27.12 20.46 30.354 21.466 62 18 32 plants Water
hectares Warehousing Surface
Water Trans-
Available 20.59 26.60 20.53 13.417 13.44 16.49 acres -
Surface Trans- portation
area for
portation
allotment in
hectares