food processing in madhya pradesh

Exploring Opportunities and Harnessing the Potential of Food Processing sector in

Western Madhya Pradesh

► Madhya Pradesh - Snapshot► Western Madhya Pradesh - Snapshot► Robust Infrastructure Facilities ► Investment Opportunities ► Advantage► Government’s Proactiveness ► Key Players

Table of Contents

Success Story – Ratlam, Ujjain Division

Farmer's Name : Balmukund PatidarDesignation : Managing DirectorCompany Name : Maa Chamunda Krishak Producer Company LimitedNumber of Farmers : 1080 Farmers & 54 Farmers Interest Group from 8 villagesAddress : Village- Kushalgarh, Tehsil – Piploda,

District – Ratlam, MPContact Details : +91- 9893081684Email : [email protected]

Crop Details

Crop Name GarlicVariety G-2 (Ooty)Soil Type Light, BlackType of Irrigation DripMonth / Year of Crop Grown Oct. 2013Area under Crop (ha) with Micro Irrigation 4.00Yield of Main Crop (Quintal/ha) 140 Quintal / haPricing of Main Crop (Quintal/ha) ₹ 12500 /

QuintalGross Expenditure on Production (Rs.) ₹ 16.50 LakhGross Revenue (Rs.) ₹ 70.00 Lakh

Success Story – Agar, Ujjain Division

Farmer's Name : Gopal PatidarOccupation : Organic FarmingAddress : Village- Kushalgarh, Tehsil – Piploda,

District – Ratlam, MPContact Details : +91- 9893081684Email : [email protected]

Success Story – Ratlam, Ujjain

Ratlam Adivasi Kisan Producer Company

With the help of Farmers Producer Organization, farmers are supplying onion from farm gate to metro cities like Delhi based retail chain Safal, DMS and Horeca and have realized 20-30 % better price than local market. This also helped farmers to save their money which was spend on transportation, labour and time. Due to this, local vendors are also compelled to increase their prices for purchase of onion from villages. This has provided power to the farmers as they have now various options inorder to sale their produce. Around 16 trucks have been send through FPO’s in this region to major cities.

With highest growth in food grains in India, MP has received 'Krishi Karman' award for three consecutive years (FY 2012, FY 2013 & FY 2014)

Madhya Pradesh - Snapshot

Agriculture

► In 2013–14, agriculture sector in MP grew by 24.99%

► In the year 2013-14, income from GDP rose to INR 69249.89 crore

► Total area under production in the state is 237.28 lakh hectares and the total agricultural produce is 375.09 lakh million tones

► With 5 crop zones, 11 agro-climatic zones and 4 soil types the state is favorable for agri- production

► The state has a robust support system of 4500 primary agriculture co-operative societies and 240 agriculture Mandi’s


Horticulture

► Horticulture is one of the sunrise sectors in Madhya Pradesh growing with an increasing area under crops such as fruits, vegetables and spices in the recent past

► The area of production under fruits, vegetables, species, flower 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 from 2008–09 to 2013–14


Livestock

► MP is the 6th largest producer of milk in India producing 8838 thousand tonnes with a growth rate 8.6% over the year.

► The state produces 8712.1 lakh eggs and 42.9 thousand tonnes of meat with a growth rate of 4% and 11.2% respectively.

► Over the last few years, consumption of Milk and milk products 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 last decade.


Food Processing

► 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 of 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.


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

MP’s rank in India in term of produce

Rank 1 Gram, guava, gooseberry, garlic, marigold, aromatic, soya bean, total pulses and total oilseeds

Rank 2 Onion, peas, mandarin (mandarin, kinnow, orange), coriander and total citrus

Rank 3 Aonla, Jowar, tur, Lentil , muskmelon, bottle gourd, pumpkin, tomato, custard apple, sweet orange (Malta, Mosambi) , rose, wheat, rapeseed & mustard, total food grains, others vegetables, other flowers and other fruits

Rank 4 Cauliflower, potato, ber, papaya, chilies, total spices and total flowers

Rank 5 Lime/lemon, and fish, bitter gourd, pointed gourd, sweet potato, jackfruit, pomegranate, tube rose and total vegetables, other fruits,

Rank 6 Milk, coarse cereals, Bajara, groundnut and cotton, brinjal and total fruits

Rank 7 Papaya, cabbage, cucumber, watermelon, banana and grapes

Rank 8 Maize, ladyfinger, apple, bael and passion fruit

Rank 10 Carrot and peach

Western Madhya Pradesh - Snapshot

4

23

1

Delhi

Mumbai

Garlic

Coriander

Chilli

Orange

Aonla

Banana

Mango

Flowers

Pea

Tomato

Onion

Gram

Wheat

Rice

Papaya

DMIC Investment Nodes

Pithampur – Dhar - Mhow Ratlam- Nagda

Investment Regions

1

2

Industrial Area Shajapur- Dewas Neemuch - Nayagaon

3

4

The Delhi-Mumbai Industrial Corridor (DMIC) is a mega infra-structure project of USD 90 billion (INR 5,400 billion) with the financial & technical aids from Japan. Four investment nodes have been identified in Madhya Pradesh under DMIC project

Horticulture hub Area in AcresProposed

Burhanpur 52.52Shajapur 100

Ujjain 29.5 – 44.5

Mandsaur 69 Acre & 237 Acres (2 locations)

Western Madhya Pradesh - Snapshot

Horticulture is a rising sector in Madhya Pradesh. In Ujjain Division, area under horticultural crops are 440887.66 hectare which is 30% of total area in MP

S.No Crop Area in Hectare

1 Fruits 58910.81

2 Vegetables 129492.25

3 Spices 164514.45

4 Medicinal Plants 54375

5 Flowers 6595.15

Total 440887.66

14%

31%

40%

13%2%

Area in Ha – Ujjain Division

Fruits Vegetables Spices Medicinal Plants Flowers

Areas of Focus

Specific Opportunity Location

Area in

acres

Estimated Project Value

in Lakhs₹Proposed Activity

Processing Capacity

Enhancement

Integrated fruits and vegetable processing facility

RatlamMandsaur

UjjainShajapur

~ 7 3000

►Processing of Tomato, Garlic, Local Potato, Onion, Orange, Wheat, Grapes, Pomegranate, Soyabean

Vegetable dehydration facility

Neemuch ~ 6 1960 ►Processing of Garlic,

Onion, Tomato, Isabgol

Modern slaughterhouses

Indore and Bhopal

~ 2 per

facility430

►Processing of Goat, Sheep, Buffalo

Investment Opportunity

Areas of Focus Specific Opportunity Location Area in

acresEstimated

Project Value in Lakhs₹

Proposed Activity

Marketing Infrastructure Development

Development/ up-gradation of marketing facilities of the APMC’s

Shujalpur 19 968►Marketing Infrastructure

Development

Farmer Linkages and Empowerment

Strengthening of FPOs by facilitating the formation, market linkages and capacity building

Ujjain, Ratlam,

Neemuch,

Shajapur, Mandsaur

- 100

► Institutional Linkages►Value addition►Technology upgradation►Branding & Marketing►E commerce

Human Resource Development

Food Technology institute Indore 50 4756

►Human Resource Development

►Employment generation►Entrepreneur

Development

Investment Opportunity

Well connected to key cities & consumer markets

► DMIC & Other 18 National Highways of 5,000 km cross MP

► State Highways of 10000 km► 20000 Km of Major District

Roads

Road connectivity

► 1-2 Hour away from major Indian Cities

► Direct flights to Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad & Pune

Air connectivity

Madhya Pradesh know as the heart of India is located at the centre of the country. The infrastructure network of state plays an important role for the production and exchange of goods and services in the country.

► 425 trains pass through Madhya Pradesh daily

Rail connectivity

► One of the 5 Inland Container Depots at Ratlam with Malanpur, Mandideep, Pithampur, Pawarkheda

► These provide convenient access to major ports such as Kandla Port and Jawarhalal Nehru Port

Connectivity to ports

Advantage

Government Proactiveness - Policy

Agribusiness & Food Processing Policy 2012

► To minimize loss► To add value at the Farm Gate► To give the benefit of Policy for the farm level activity

► Land allotment at a concessional rate of 25% for MSME units. Stamp Duty and registration charges exemption of ₹1 per ₹ 1,000

► Reimbursement at the rate of 15% to a maximum of ₹ 5 crore for the expenditure incurred on establishment of food park /mega food park/ horticulture hub

► 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 ₹ 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

Government Proactiveness - PolicyOther features of the Policy

►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

Government ProactivenessPromoting Farmers Producer Organization

► Collectivization of farmers, especially small and marginal farmers, into Farmers Producer Organizations to address the challenges of agriculture and allied sectors.

► The registered farmers at the village level grouped into Farmers Interest Groups (FIGs) which comprises of 15 – 20 members.

► All FIGs in the district level to be federated into Farmers’ Producer Organization (FPO) registered as company following provisions of Companies Act, 1956.

► FPO will work towards providing services such as procurement services (in bulk volume), marketing services, technical assistance, value addition and establishment of infrastructure.

► Government as facilitator is providing assistance to the FPOs for enhancing production through ensuring timely supply of quality planting material.

► FPO member farmers are trained on quality, marketing and management aspects.

MD & Board of Directors

FIG Leaders

Farmers Interest Group (FIG)

Registered Farmers

Service Providers

FPO Working Model – Through Service Provider

Farmers Service Provider

Service Request► Marketing► Input Supply► Training

Service Provider placed the order to FPO

FPO OfficeRequest FulfilledRequest Fulfilled

Commission Paid Monthly Fees Paid

Bulk Buyer

Input Supplier

Government

Institutions

Local Educated Youth

Farmers Service Provider FPO Buyer Input Supplier Government Institutions

Home ServiceCapacity Build

Earning at home place

Management Customized Service

Huge Farmer Base

Programme Implementation

Easy access to farmers

Benefits

Profit sharing in form of Bonus

Overall Value Chain Development with Profit Maximization of farmers, Ease of doing business for Buyers and Input Suppliers, Easy monitoring and effective programme implementation for Government and strong customer base for Banks along with Rural Employment

www.malwafresh.comTowards sustainable and profitable farming

Services► Online Registration

► Stakeholders Profile

► Socio-economic Profile

► Crop Profile

► FPO Profile

► Key Performance Indicators

► Record Farmers Training

► Data Storage with Analysis

► Package of Practices

► Integrated Administrative

Operations

► Online Ordering & Marketing

Services

www.malwafresh.com - Features

Registration of Stakeholders

Customised form to register Stakeholders like Farmers, Market Aggregators, Input Suppliers, Production & marketing, etc.

Farmers

Crop

Weather

Service Provider Government

Institutions

Input Supplier

Processors

Retailer/ Wholesaler

Placing an Order / Request - Buyer

www. malwafresh.com

Placing an order in advance with details on Crop, Quality,

etc

Bulk Buyer

Service ProviderFPO Office

Bank

WarehousePacking & Branding

Farming

Package of Practice

Processing Unit in Ujjain DivisionS.N District No. of Companies Major Activity Undertaken

1 Ujjain 4► Processing of Aonla into Murabba, Tamarind into Pulp

► Seed production of Potato & Pomegranate

2 Dewas 1 ► Processing of Aonla juice

3 Shajapur 1 ► Processing of Chilies, Turmeric & Coriander into powder

4 Ratlam 4► Processing of Mango into pickle, Grape wine, Aonla into

Murabba, Spices like Chilies, Turmeric & Coriander into powder

5 Neemuch 21► Processing of Spices like Chilies, Turmeric & Coriander

into powder, Potato Chips, Aonla flakes, Aswagandha Powder, Isabgol powder

Key Players in MP

The Growing Market…..

Dr Ravindra PastorCommissionerUjjain Division, UjjainGovernment of Madhya [email protected]

>

For any query please write us at: [email protected]

Contact – Vikash Pandey (08821078627)

mailto:[email protected]

Thank You

food processing in madhya pradesh

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