1

2

Production scenario 3

Overview of marketing channels 7

Investment opportunities in rice value chain 10

Doing business in Odisha 17

Co

nte

nt

3

Production scenario

4

Odisha is among top 5 States in area and productionof rice

• DuringFY2012-13,Odishacontributedtoabout9%ofacerageand7.4%ofproductionofriceinIndia

UttarPradesh

WestBengal

Punjab

AndhraPradesh

Odisha

Bihar

Chhattisgarh

TamilNadu

Assam

Haryana

Karnataka

Jharkhand

Maharashtra

India

5.95

5.43

2.82

4.10

4.02

3.32

3.77

1.90

2.54

1.24

1.42

1.47

1.54

42.75

13.46

13.24

11.29

10.49

9.50

6.77

6.25

5.08

4.77

3.80

3.49

3.48

3.06

105.23

2.26

2.44

3.98

2.56

2.36

2.04

1.66

2.87

1.88

3.06

2.46

2.37

1.99

2.46

13.51%

12.35%

6.40%

9.31%

9.10%

7.55%

8.58%

4.33%

5.77%

2.81%

3.22%

3.34%

3.51%

13.22%

13.00%

11.09%

10.30%

7.43%

6.65%

6.14%

6.14%

4.68%

3.73%

3.42%

3.42%

3.00%

StateArea in million ha

Production (in million tonnes/ha)

Percent contribution to National acreage

Percentage contribution to National production

Yield in tonnes/ha

Source- Indiastat, Department of Agriculture and Cooperation, Directorate of Agriculture and Food Production, Odisha

5

Rice production in Odisha has steadily increased overthe last decade

• DuringthepastdecadeproductivityhasincreasedataCAGRof2.41%.

• Thereiswidescopeforincreaseinproductionbyincreasingproductivity

• AreaunderHYVpaddyisincreasedfrom2.63millionhain2001-02to3.47millionhain2012-13whichisaround86%ofthetotalcultivatedareauderrice.Swarna,SwarnaSub-1andShankararethewidelycultivatedpaddyvarietiesinOdisha

15 districts contribute to more than 70% of rice produced in Odisha

• PaddyiswidelycultivatedinmostdistrictsofOdisha

• Eight districts contribute to 50% of rice production

• Outofthetotalareaunderpaddycultivation51.07%ofareaisunderirrigation.

Source- Directorate of Agriculture and Food production, Odisha

Bargarh

Balangir

Kalahandi

Mayurbhanj

Nabarangpur

Subarnapur

Sundargarh

Sambalpur

Total

Major rice producing

districts

Totalproduction (in lakh

tones

7.4

6.5

6.2

4.2

4.2

4.2

4.1

3.2

40.1

% oftotal production

9.7%

8.6%

8.2%

5.6%

5.5%

5.5%

5.4%

4.2%

52.7 %

Areainmillionha Productioninmilliontonnes Yieldintonnesperha

6

More than 90% of rice is produced in Kharif season

Districts % of rabi rice production

Bargarh

Balasore

Subarnapur

Puri

Kalahandi

Total

31.96%

11.42%

10.64%

10.54%

10.05%

74.61%Majordistrictsproducingrabirice

Season

Kharif

Rabi

Percent of total area

Percent of total production

Month of planting

Month of maturity Varieties cultivated

Autumn(Uplandrice)

Winter(mediumandlowland)

Summerrice(irrigated)

June

July

Jan-Feb

September

Oct-Nov

May-June

Kalakeri,Kulia,Dular,Heera,Annada,Shatabdi,KalingaIII,Parijat,Pathara,Sidhanta

HybridslikeAjay,Rajalaxmi,KRH-2,PHB-71,PA6201,PA6444,PA6129andSahyadri

Swarna,SwarnaSub-1,Shankar,Bhoi,Sarathi,Daya,Lalat,Konark,Naveen,Surendra,Padmini,Jagannath,Mahsuri,Savitri,Dharitri,Gayatri,Pooja,Mahanadi,JagabandhuandUpahar

13.9

79.3

6.8

10.3

80.6

9.1

Thetablebelowshowstheseasonwisedataofarea,productionandvarietiescultivated

Majordistrictsproducingrabirice

• Only8-10%ofthetotalriceisproducedinRabiseason

• Fivedistrictscontributemorethan70%oftheRabiproduction

Source- Directorate of Agriculture and Food production, Odisha

7

Overview of marketing channels

8

A snapshot of Rice value chain in Odisha

Farmerssellgraintolocalcollectors/co-operativesortraders.

Wholesalersworkthroughlicensedtradersorcommissionagents

Mandiwholesalersandtheircommissionagentssellgraintomillersandretailers

Around95%ricemillsinstatecustommillforgovernmentprocurement

Ricemillingiscarriedoutinsmallandmediumsizericemillswhicharehullermillswhererecoveryis58%only

Govt.distributionagenciesprocurecustommilledricefrommillersRetailerspurchasethroughtradersfromthemandiwholesalersinlargertowns&citiesandsellittolocalvillagers.

Governmentprocuredriceisdistributedthroughfairpriceshops.

Better-qualityricesoldinretailshopsisimportedfromotherstatesinIndia.

9

Role of various government agencies in procurement and distriution of rice

SmallandmarginalfarmerssellstonearestPACS/WSHG/PP

LargefarmersselltopaddypurchasecentresofRMCsortemporarypurchaseyardssetupbyRMCsatmillgates

StategovernmentagencieslikeOSCSC,NAFED,MARKFEDandTDCCprocurepaddydirectlyfromfarmersorthroughPACS/WSHG/PPCs.

PACS-PrimaryAgricultureCooperativeSociety

WSHG-WomenSelfHelpGroup

PP-PaniPanchayats

RMC-RegulatedMarketCommittee

PPCs-PaddyPurchaseCentres

OSCSC-OdishaCivilSuppliesCorporationLtd.

MARKFED-OdishaStateCooperativeMarketingFederationLimited

NAFED-NationalAgriculturalCooperativeMarketingFederationofIndia

TDCC-TribalDevelopmentCooperativeCorporationofOdishaLtd.

Paddyprocuredbystategovernmentagenciesisallocatedtomillsformilling

OSCSCdeliverssurplusricetoFCIandtheremainingisdistributedthroughFairpriceshopsunderPDS

DistrictadministrationallocatesmillstothePPC/PACS/WSHG/RMCsbasedontheoverallprocurementtargetforthedistrict

OSCSCobtainstheCMRfrommillers.ItmightalsoenterintoagreementwithNAFED,MARKFEDandTDCCtoobtainCMRfrommillers

Source- Directorate of Agriculture Corporation GoI, FS & CW Department, GoO, OSCSC, Global Agri “Odisha Agribiz sector scan”; Interaction with local millers

10

Investment opportunities in rice value chain

11

Government of Odisha is keen to promote private sector investments across the rice value chain

• GoIlaunchedBGREI*in2010-11withthefocusonriceandwheatforimprovingtheagronomy-withadoptionofclusterapproachforenhancedproductivity

• GoOisprovidinginputsubsidiesforincreasingseedreplacementrateandtrainingfarmerstouseSRImethodofricecultivationforbetteroutput

ProductionPost harvest handling, Logistics and warehousing

Processing and value addition

• InstitutionalstorageprovidersinthestatevizOdishaStateWarehousingCorporation,CWC,FCIandRegulatedMarketCommitteeplantoaddstoragecapacityof2.1lakhMT

• OdishagovernmenthassignedanMoUwithNABARD’sconsultancyservices,NABCONS,forconstructing544ruralgodowns

• AgroProcessingsectorisidentifiedasoneoftheprioritysectorsinIndustrialPolicyResolution2015andhenceiseligibleforvarioustaxincentivesandcapitalsubsidy

• IncentivesarealsoavailableforriceprocessingunderOdishaFoodProcessingPolicy,2013andalsoasCapitalincentivesubsidyforCAEunderAPICOL*

Government support across the value chain

*BGREI-BringingGreenRevolutiontoEasternIndia

*APICOL-AgriculturalPromotion&InvestmentCorporationofOdishaLtd.

Source: Annual activity report of Agriculture Department, GoO

12

Upgradationoftraditionalricemills

Recoveryoffinericeimprovesdrasticallyinamodernricemill

Investmentinpowerco-generationunits

Solventproductionunitsforricebran

warehousingunitsforstorageofrice

StateGovernmenthasidentified4priorityareastofacilitate private investment

And is keen on increasing investment in modern rice mills

Fine Rice 54%

Paddy Husk 27%

Rice bran 4%

Other germ waste 15%

Traditional Rice Mill

Forbetterconversionratiothereisaneedforupgradationoftraditionalricemillstomodernmills

Fine Rice 68%

Paddy Husk 23%

Rice bran 5%

Other germ waste 4%

Modern Rice Mills Output of traditional rice mills Output of modern rice mills

Source: NABARD knowledge bank (https://www.nabard.org/english/ricemill2.aspx)

13

GoI and GoO provide incentives for investing in modern rice processing technology

Central Government (under Ministry of Food Processing Industries)

Incentive-Capitalsubsidyupto25%ofthecostofplant&machineryandtechnicalcivilworkssubjecttoamaximumofRs.50lakhsingeneralareas

Condition-OnlynewPlant&Machineryshallbeeligible

Incentives under Odisha Food Processing Policy, 2013

• GovernmentearmarkedlandwillbeallottedtoenterprisesatprevailingratesasprovidedbyGoOandIDCO

• CapitalInvestmentsubsidytoenterprises@25%oftheprojectcostsubjecttoalimitofRs.2crores(33%MaxuptoRs.3croreforunitspromotedbywomen,SC&STentrepreneursandunitspromotedinKBK(KalahandiBalangirKoraput)areas

• 5%perannumbackendedinterestsubsidyonworkingcapitalloanforfirst5yearsfromcommencementofoperationsoftheunitssubjecttoalimitofRs.5lakhperyearfor5years

• ElectricityDutyexemptionforamaximum10yrs.fromdateofcommercialproduction

• Reimbursementupto50%ofcostofqualitycertificationsubjecttoceilingofRs.2lakh

• ExemptiononentrytaxonplantandmachineryandbalancingequipmentprocuredbyMSMEs

Source: MoFPI, MSME Department, GoO

14

Government of Odisha provides a number of incentives to facilitate private investment in Rice Sector

State Government (under Agricultural Promotion & Investment Corporation of Odisha Limited)

Incentive-UnderCapitalInvestmentSubsidyforCommercialAgriEnterprises(CAE),APICOLprovidessubsidyupto40%ofthefixedcapitalexcludingthecostofland)subjecttoalimitofINR50.00lakh(50%limitedtoINR50.00lakhforSC/ST/Women/GraduateofAgricultureandallieddiscipline)

Condition- IntegratedRiceMillhavingminimuminvestmentof1Croreinmachineries.TherelevantmachinerywillbeapprovedbytheSLTC.

Source: MoFPI and APICOL website

Industrial Policy Resolution (IPR), 2015AgroProcessingsectorisidentifiedasoneoftheprioritysectorsinIPR2015

FCI- Fixed Capital Incentive

Exemptionfrompaymentofpremium,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/banksuptoRs1crore

100%Exemptionfromelectricitydutyfor5yearsforcontractdemandupto5MW

100%oftheregistrationcostuptomaximumofRs.10Lakh

Renewalforconsecutive2yearsi.e.,foraperiodof3yearsat100%toatotalmaxi-mumofRs3Lakhs

100%oftheexpenditurewithlimitofRs1lakhforindigenoustechnologyandRs.5lakhforimportedtechnology

15

And Odisha supports this positive business environment with excellent infrastructure

Excellent road and rail network• 15nationalhighways

• RoadDensityof161Kmper100squarekmarea

• RailwaynetworkoftheSouthEasternRailwaysandtheEastCoastRailways

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  

Well connected ports• 2major,2minorports

and4otherportsareinconstructionphase

• Portconnectedtobroad-gaugeandbyNationalHighway-5A

Efficientmeasurestomeetindustrial 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

16

Doing Business in Odisha

17

Easier and faster approval process…

OdishaIndustriesFacilitationAct(OIFA)2004allowsallclearancesrequiredtostartandoperateanindustrythroughasinglepointwithinasettimeperiod

SWCA: Single Window Clearance Authority

Source: www.investodisha.org

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

18

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

19

20Developed under Odisha Inclusive Growth Partnership (OIGP)

Come. Invest. Grow.

Industries DepartmentGovernmentofOdishaBhubaneswar-751001,Odisha,IndiaTel:+91-674-2536640/2390253,Fax:+91-674-2536819/2394051Email:indsec@ori.nic.in,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:info@investodisha.org,indsec.or@nic.in,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:cmd@idco.in,Website:www.idco.in

OdishaInvestmentandExportPromotionOffice(OIEPO)OfficeoftheChiefResidentCommissioner,Govt.ofOdishaOdishaNiwas,4–BordoloiMarg,Chanakyapuri,NewDelhi-110021,Tel:+91-11-23014250,Fax:+91-11-23010839Email:oiepo.teamorissa@gmail.com,rc.odisha@gmail.comWebsite:www.oiepo.teamorissa.org

Directorate of IndustriesKillaMaidan,Cuttack-753001,Odisha,IndiaTel:+91-671-2301892,Fax:+91-671-2307331Email:diorissa@nic.in,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:apicol96@yahoo.com/info@apicol.co.in,Website:www.apicol.co.in