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Orissa emerging as a key location for Food Processing Industrial Promotion & Investment Corporation of Orissa Limited (IPICOL)

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Presentation on theme: "Orissa emerging as a key location for Food Processing Industrial Promotion & Investment Corporation of Orissa Limited (IPICOL)"— Presentation transcript:

1 Orissa emerging as a key location for Food Processing Industrial Promotion & Investment Corporation of Orissa Limited (IPICOL)

2 Page 2 Industrial Promotion & Investment Corporation of Orissa Limited Orissa Overview In 2008-09, the service sector accounted for 55% of the gross state Domestic product for Orissa, followed By industry (25%) and agriculture (20%) In 2008-09, Orissas NSDP grew by 12% approx. as compared to 15% of all the states combined in India Source: Economic Survey of India 2010-11 Source: Economic Survey of Orissa 2009-10 Orissa GSDP growth on par with the GDP growth in India

3 Page 3 Industrial Promotion & Investment Corporation of Orissa Limited Outstanding investments grew at a healthy rate of 25% in the last 4 years. Orissa is the second highest state in FY11(till Feb) to accumulate investments worth INR1.83 trillion in the state. 292 projects mostly in the field of steel, power and mining are under implementation till December 2010 The FDI from the state is on a rise with 65% of the FDI coming from the last three years. Investments under implementation is on a continuous rise Orissa has now achieved the Indian national average in terms of the time spent by management in dealing with regulations and government authorities --United Nations Industrial Development Organization survey Orissa-Investments under implementation

4 Page 4 Industrial Promotion & Investment Corporation of Orissa Limited Adjudged as 3 rd best place to do business in India as per World Bank Study(2009) Orissa was 2 nd highest domestic investment destinations of 2009 as perr per ASSOCHAM Investment Meter (AIM) Study on Corporate Investments. Adjudged as best place to trade across border as per World Bank Study(2009) Orissa mopped up 2 nd largest fresh investments in the country in FY11 till February, according to CMIE Orissa is 1 st in terms of total envisaged investments in India as per states of states survey-2007 done by India today. Orissa-first among equals

5 Page 5 Industrial Promotion & Investment Corporation of Orissa Limited Favorable land utilization pattern of Orissa favors the growth of food processing industry Orissa possesses 10 agro-climatic zones and 8 major soil types It is the countrys leading producer of rice, pulses, vegetables, oilseeds, cotton, groundnut, coconut, jute, spices, potato and fruits The state contributes less than 2% to the countrys milk production and 3% of its egg production It has 4 fishing harbors and 60 fish landing centers The area sown more than once (ASMO) has been on a rise in the state Source: Economic Survey of Orissa, 2010–11 High proportion of total cropped area (122 lakh hectares, 78%) in Orissa offers huge investment potential to the food processing and agro industry Net area sown and forest area jointly account for more than 73% of total land in Orissa

6 Page 6 Industrial Promotion & Investment Corporation of Orissa Limited Composition of Orissas economy vis a vis Indias economy (2009-10) Orissas economy in comparison with Indias economy is more agricultural, less industrial and less service oriented The states agriculture sector offers employment and sustenance to more than 60% of total work-force Food grains (cereals and pulses) production, with a share of more than 85%, continues to dominate in the total agricultural production Food grain production has been witnessing a secular increasing trend in production since 2002-03, reaching 7,551 thousand metric tonnes in 2009- 10 4,632 8,571 8,505 9,0549,203 9,857 8,715 8,747 Source: Economic Survey of Orissa, 2010–11 Agriculture

7 Page 7 Industrial Promotion & Investment Corporation of Orissa Limited (in 000 MT)2005-062006-072007-082008-092009-10 Cereals Rice6,8596,8257,5416,8136,917 Maize102103147135175 Ragi4043474137 Others22 262324 Total Cereals7,0236,9937,7617,0127,153 Pulses Gram2324262534 Tur98106113119112 Other216221245237252 Total Pulses337351384381398 Total Food grains 7,3607,3448,1457,3937,551 Paddy accounts for nearly 79% of the total crop production. Cropping intensity for Orissa has grown over the years from 157% in 2005-06 to 163% in 2009-10 Source: Economic Survey of Orissa, 2010–11 Production of different crops in Orissa Orissa reaps the benefits of higher cropping intensity

8 Page 8 Industrial Promotion & Investment Corporation of Orissa Limited Increasing total area under irrigation, enhanced usage of fertilizers and pesticides coupled with better financing augurs well for food processing industry in Orissa Source: Economic Survey of Orissa, 2010–11 CAGR: 23.7% CAGR: 7% Increasing facilitation for agriculture in Orissa

9 Page 9 Industrial Promotion & Investment Corporation of Orissa Limited IDCO envisages to develop Food Parks under the Mega Food Park Scheme at Bhadrak (242 Acres) and Khurda (282 Acres) in Orissa Development of Mega Food Parks Scheme of GoI

10 Page 10 Industrial Promotion & Investment Corporation of Orissa Limited The Khurda region (comprising Khurda, Cuttack and Puri districts) is emerging as a food-processing hub as it possesses multiple resources such as egg, milk and vegetables Other Fruit processing clusters Other vegetable processing clusters Other fishing centers Other egg producing districts Ganjam is a resource-rich district in terms of milk, egg, fishing, fruit and vegetables Food processing: key regions

11 Page 11 Industrial Promotion & Investment Corporation of Orissa Limited Agriculture Policy, 2008: State Government brought out a New Agricultural Policy to enhance productivity of major crops and for shifting the emphasis from subsistence agriculture to profitable commercial agriculture Agricultural Promotion and Investment Corporation Ltd (APICOL) was setup in 1995-96 for promoting commercial agri-enterprises, agro-based and food processing industries in the state Intensive Cotton Development Programme (ICDP) for promotion of cultivation through the means of organizing 7 training extension programmes, 133 farmers field schools, 50 awareness camps and 22 Front line demonstration Government has Farm mechanization programme that aims at promoting easy availability of the appropriate farm machines Orissa Agro Industries Corporation (OAIC) for marketing various agricultural inputs and farm machineries through network at district and sub-district levels Orissa Integrated Irrigated Agriculture & Water Management Investment Project (OIIAWMIP) for the optimal use of irrigation potential in the state Watershed mission to undertake soil and water conservation measures in areas with inadequate irrigation facilities State level government initiatives to drive Orissas agriculture

12 Page 12 Industrial Promotion & Investment Corporation of Orissa Limited Agro & Food Processing Sector: IPR 2007 Incentives Agro Processing sector is identified as one of the thrust sector in IPR 2007 with minimum capital investment of Rs. 25 crore & the direct employment generation for 100. The Fiscal Incentives for Agro processing are as follows: Sl. No.IncentiveThrust Sector 1Stamp duty exemption100% 2VAT exemptionNM 3Entry Tax exemption 1.100% on P&M 2. RM- 5 yrs or 100% FCI (CtoC-cabinet) 4CST2% for 10 yrs or 100% FCI 5Interest subsidy 5% on term loan for 5 yrs with limit of Rs 1 crore 6Power: Electricity Duty exemption 100% Exemption for 5 years for contract demand upto 5 MW 7Patents registration cost reimbursementsame as (3) 8 Quality certification (ISO) charges reimbursementsame as (3) 9Technical Know-how cost reimbursement 50% of the expenditure with limit of Rs 1 lakh–D Rs 5 lakh- M 10Investment SubsidyNM

13 Page 13 Industrial Promotion & Investment Corporation of Orissa Limited AgricultureAnimal husbandryMarine processing M/s Suryo Foods & Industries Ltd. M/S Bijaya Marine Products Konark Aquatics & Exports (P) Ltd. Sealand Fisheries (P) Ltd. Bhubaneswar Hatcheries Pvt Ltd. Kalinga Hatchery Pvt. Ltd Health Food Product (P) Ltd. Agarwal Spices & Food Processors (P) Ltd. Maa Durga Rice Processing and Exports Pvt Ltd Aanjaneya rice mill Players in Food Processing Industry of Orissa

14 Page 14 Industrial Promotion & Investment Corporation of Orissa Limited Orissas food processing industry as an emerging investment destination… Anmol Company will set up a Biscuit production food processing plant of 58,000 million ton production capacity at Khurdha with an investment of INR810 million NSL group has evinced interest for setting up a seed processing plant at Bonda in Baragarh district at an investment of INR400 million Agriculture Promotion and Investment Corporation of Orissa Limited (APICOL) has announced its plans to setup export- oriented integrated pack house of fruits and vegetables with collection centre at a cost of INR56.3 million in Bolangir district Shimpo Seafoods has announced that it is setting up a fish processing and canning unit with a capacity of 1,000 tpa in Bhubaneswar costing INR100 million (to be completed by Feb 2011) Shimpo Seafoods Leading brands present in the State…

15 Page 15 Industrial Promotion & Investment Corporation of Orissa Limited High proportion of cropped area in total land utilization 10 agro-climatic zones and 8 soil types High cropping intensity 4 th largest vegetable producing state of India 3% and 4% contributor to the countrys floricultural and spices production respectively Long coastline Setting up of food parks in the Khurda region Increasing interest of both large national and foreign corporate, and several MSMEs for investment Britannia, Nestle, and Parle Agro - Approved NSL Group, Indo Nissin, PRAN Group - In process Evincing of interest by the Taiwans and Ghanas Government for investment Plans of foreign players to enter Orissas food processing industry Futuristic 2008 Agriculture policy: subsistence to profitable commercial agriculture Watershed mission and irrigation projects Livestock breeding farms, poultry hatcheries and fodder farms Fishery development policy, state reservoir fishery policy, Welfare schemes for fisherman, fishfed for marine industry Inherent Resources Government initiativesInvestments Presence of large resources, upcoming investments and encouraging government initiatives to help Orissa achieve its full potential in the food processing sector Outlook

16 Page 16 Industrial Promotion & Investment Corporation of Orissa Limited Krushak Bazaar - Established a Krushak Bazaar with an aim to train farmers, create primary rural markets, and launch awareness campaigns. Terminal Market Complexes (TMCs) - Orissa government announced plans to set-up three Terminal Market Complexes in the State (one each near Cuttack, Sambalpur & Berhampur under the PPP mode) in order to provide a fair share of consumer price to the producer as well as ensure high quality and hygiene of the produce. The TMC would operate on a Hub-and-Spoke Format wherein the Terminal Market (the Hub) would be linked to a number of Collection Centres (the spokes). The TMCs would enable farmers get proper prices for their surplus paddy sold at market yards. TMCs would also offer sufficient facilities for cleaning and drying, grading, weighing and bagging, at all those market yards / sub-market yards/ temporary procurement centres engaged in paddy procurement. Market yards - Under Revised Long Term Action Plan (RLTAP) scheme for Koraput, Bolangir and Kalahandi (KBK) districts, market yards have been established to facilitate the selling and procurement of crop products, and ensure farmers can get a reasonable price for their produce. Minimum Support Price (MSP) mechanism is implemented effectively across the state so as to ensure remunerative prices for the farm produce. Agri-export Zones (AEZs) - to be established in PPP mode form agricultural and horticultural produce having export potential. Markets and complexes Orissa offers state farmers with agricultural marketing support to enable them get remunerative returns for their crop produce. Agricultural marketing initiatives include: Orissa provides marketing assistance to farmers to ensure returns for their produce

17 Page 17 Industrial Promotion & Investment Corporation of Orissa Limited Orissa has a conducive marketing infrastructure in place to ensure good sales of farm produce, as well as provide an incentive for farmers efforts. Orissa State Marketing Federation (OSMF) - Has the OSMF which functions as the apex organization with 51 regional cooperative marketing societies (RMCs) that undertake several marketing initiatives. Orissa also amended the RMC Act in order to involve the private sector (through contract farming, etc.) in promoting agricultural marketing. Regulated Market Committees - Has committees in place to facilitate backward and forward market integration of agricultural produce. Regulated Market Committees work as facilitators between the farmers and procuring agencies. They provide both parties with facilities such as market yard, weigh bridge, meeting of farmer & agencies, cold storage of perishables. Rural Producers Organizations - to be formed for specific commodities to enable them to have appropriate market linkages through Federations. Marketing federation and committees Other agencies - Orissa has several other organizations such as Orissa State Tribal Development Co-operative Corporation (TDCC), the Orissa State Oilseeds Growers Federation, 213 Large-sized Agricultural Multi-purpose Societies (LAMPS) to cater to needs to different stakeholders in agricultural marketing. Other initiatives Orissa has several agencies and committees to support farmers market their produce

18 Thank You Industrial Promotion & Investment Corporation of Orissa Limited (IPICOL) IPICOL House, Janpath Bhubaneswar-751022 Orissa (India) Phone No: +91-0674-2542601/02/03 Fax: +91-0674-2543766 E-mail:

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