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
Livestock
Food Processing
Madhya Pradesh in India
Robust Infrastructure Facilities

Availability of Skilled
Manpower
Governments Proactiveness
Major Investors
Investment Opportunities

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

HorticultureA 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

Rank 1

Gram, guava, gooseberry, garlic, marigold, aromatic, soyabean, pulses and oilseeds

Rank 2

Onion, peas, mandarin (mandarin, kinnow, orange), coriander and citrus

Rank 3

Aonla, jowar, tur, lintil, muskmelon, bottle gourd, pumpkin, tomato, custard apple, sweet
orange (malta, mosambi), rose, wheat, rapeseed & mustard, total food grains, vegetables,
flowers and fruits

Rank 4

Cauliflower, potato, ber, papaya, chilies, spices and flowers

Rank 5

Other fruits, lime/lemon, and fish, bitter gourd, pointed gourd, sweet potato, jackfruit,
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

With highest growth rate in food grains in India, MP has received Krishi Karman award
for two consecutive years (2011-12 and 2012-13)
Chhindwara is home to Indias first Spices Park set up by the Spices Board of India

Garlic
Coriander

Competitive edge

Chilli
Orange
Aonla
Banana

Robust Infrastructure Facilities

Mango
Flowers
Pea

Soil

The soil of MP has medium level content of nitrogen and phosphorous and is rich in potassium

Only 35% of the total capacity of milk chilling plants in Madhya Pradesh is used

During the 11th Five Year Plan, 114 new veterinary dispensaries have been established in the state to expand animal
health coverage*. Another 112 veterinary dispensaries have been upgraded into veterinary hospitals

Papaya
Rewa

Chhatarpur

Ashok
Nagar

Guna

Neemch

Panna

Ratlam

Jhabua
Alirajpur

Shajapura

Sagar

Damoh

Jabalpur

Raisen

Dhar
Khandwa

Burhanpur

Umaria Shahdol
Anuppur

Mandla

Hoshangabad
Harda

Chhindwara
Betul

Singrauli
Sidhi

Narsimhapur

Sehore
Dewas

Satna

Katni

Bhopal

Ujjain

Indore

Barwani

Vidisha

Rajgarh

Khargone

Livestock healthcare

Rice

Tikamgarh

Cold storages

Milk Chilling Plants

Wheat

Shivpuri

Mandsaur

The total capacity of multi-purpose cold storage facilities was over 7 lakh tonnes before launching the National
Horticulture Mission scheme. Over 50% of this capacity is utilized by potatoes alone. Additional storage capacity
(183609 MT) of cold storage has been created after launching National Horticulture Mission scheme. Thus, at present,
144 cold storages are available in the State with a storage capacity of 8.045 lakh MT

Gram

Datia

Sheopur

Spice Parks

Presently, the average surface water availability is 81.50 lakh hectare-meter contributed by ten major river basins viz.
Chambal, Betwa, Sindh and Ken basins in North Zone and Tons river basins in the East; Benganga basin in the South and
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
lakh hectares of land
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
ponds. Thus, with such abundant natural resources, the state has immense potential to develop its fisheries sector

Onion

Gwalior

Food Parks

Water

Bhind

Morena

Upcoming Horticulture Hub

Tomato

Seoni
Balaghat

Dindori

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
and
Food
Processing

Agro & 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 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
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 postharvesting 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
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
Livestock
Fodder
Regulations and
breed
and capacity Marketing
health
Development Standardization
improvement building

Monitoring
Dairy
Poultry
and
Development Development
Evaluation

Livestock

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
Research &
Development

The key projects across the value chain which the state is developing are:

Primary Inputs
Farm Land

Seed

Fertilizer

Fodder

Equiptment

Production & Processing

Agriluture
Production

Horticulture
Production

Dairy Production

Food Processing Food Packaging

Livestock

Areas of
Focus

Specific Opportunity

Location

Area in
acres

Estimated
Project Value
in INR Lakhs

Proposed
products for
processing

Process-ing
Capacity
Enhancement

Pulses processing cluster

Sagar

~ 20

820

Gram, Pigeon Pea,

Lentil, Black Gram,
Green Gram etc.

Wheat processing cluster

Sehore

~ 25

845

Packed & Branded

Wheat, Atta, Maida,
Rawa, Suji and
Other processed
products

Paddy processing cluster

Satna

~ 40

900

Rice, Bran, Poha,

Churi, Husk etc.

Integrated fruits and vegetable

processing facility on PPP basis

Ratlam

~7

3,000

Tomato, Cabbage,
Local Potato, Onion,
Bottle Gourd,
Cauliflower, Okra,
Water Melon, Brinjal,
Pea

Vegetable dehydration facility on

PPP basis

Neemuch

~6

1,960

Garlic, Onion, Tomato,

Cabbage

Modern slaughterhouses on PPP

model

Indore and
Bhopal

~ 2 per facility

430

Goat, Sheep, Buffalo

Fishery

Value-Added
Processing

Transportation and Infrastructure

Machinery &
Equipment

Food parks

Spice parks

Horticulture
hubs

Green house

Modern abitar

Cold storage

Milk chilling

E-Marketing

Distribution

Retail &
Exports

The key projects across the value chain, which the state is developing are:
Areas of Focus

Specific Opportunity

Location

Area in acres

Estimated Project
Value in INR Lakhs

Marketing Infrastructure
Development

Development/ up-gradation of
marketing facilities of the APMCs

Shujalpur

19

968

Farmer Linkages and

Empowerment

Formation of commercial poultry

development societies / cooperatives

415

Strengthening of FPOs by facilitating

the formation, market linkages and
capacity building

Food Technology institute

Indore

50

4,756

Human Resource
Development

Contact
Principal Secretary
Agriculture Welfare and Agriculture Development
Government of Madhya Pradesh
psagriculture@mp.gov.in

Investment Opportunities

Food processing
Food processing opportunity in the state
Produce

Processed Food and Other Opportunities

Cereals and Pulses

Maize Dairy feed, Cornflakes, Starch, Oil

Wheat Packed Atta, Maida, Porridge (Dalia), Suji, Pasta
Soyabean Soya Milk, Soya Protein, Extruded foods, Soya flour
Rice Rice Bran, Puffed Rice, Fliaked Rice, Bran Oil

Vegetables

Potato Flour, Chips

Onion Dehydrated Flakes
Green Peas Dehydrated Peas, Frozen Peas
Tomato Puree, Ketchup, Sauces, Concentrate

Spices

Chill, Ginger, Garlic, Coriander Powder, Oleoresin, Paste

Fruits

Mango, Orange Juice, Pickles, Jam, Squash

Dairy

Processed Milk,Yogurt / Curd, Butter, Cheese, Ice-cream, Chocolate, Cottage Cheese / Paneer

Meat

Meat and Meat products, Modernization of abattoirs

Fisheries

Fish wafers, Sausages, Soup, Cutlets, Fish feed, Fish balls

Horticulture
hub

Area in Acres

Proposed

Food Park

Shajapur

100

Ujjain

29.5 44.5

69 Acre & 237

Acres
(2 locations)

20.46

Processed Food and Other Opportunities

Opportunity

Cereals and
Pulses

Maize Dairy feed, Cornflakes, Starch, Oil

Wheat Packed Atta, Maida, Porridge (Dalia),
Suji, Pasta
Soyabean Soya Milk, Soya Protein, Extruded
foods, Soya flour
Rice Rice Bran, Puffed Rice, Fliaked Rice, Bran
Oil
Potato Flour, Chips
Onion Dehydrated Flakes
Green Peas Dehydrated Peas, Frozen Peas
Tomato Puree, Ketchup, Sauces, Concentrate

27.12

52.52
Jaggakhedi

Mandsaur

Produce

Under Implementation
Nimrani

Burhanpur

Area in
hectares

Maneri

30.354

Vegetables

Borgaon

21.466

Spices

Chill, Ginger, Garlic, Coriander Powder,

Oleoresin, Paste

Malanpur

62

Fruits

Mango, Orange Juice, Pickles, Jam, Squash

Babai

18

Meat

Meat and Meat products, Modernization of

abattoirs

Pipariya

32

Fisheries

Fish wafers, Sausages, Soup, Cutlets, Fish feed,

Fish balls

Investment Opportunities

Competitive edge
Food Parks
Food Park
Details

Nimrani

Jaggakhedi

Maneri

Borgaon

Malanpur

Babai

Pipariya

Food Park
Details

Nimrani

Jaggakhedi

Maneri

Borgaon

Malanpur

Babai

Pipariya

Location

Nimrani,
District
Khargone

Jaggakhedi,
District
Mandsaur

Industrial
Area Maneri,
Tah- Niwas,
Dist. Mandla

Industrial
Area
Borgaon, TahSausar
Dist.
Chhindwara

On Gwalior
- Bhind
Etawah
NH-92

State
Highway
No-22
(Khatagaon
to Shahpura)
Babai
District
Hoshangabad

Pipariya,
District
Hoshangabad

Total no.
of plots
developed

169

99

76

31

70

37

51

Allotted plots

21

10

No. of units
set up

Jabalpur
(Dumana)
35 km

Nagpur
55km

Gwalior

Bhopal

Bhopal

No. of vacant
plots

72

25

60

Basic available
infrastructure

Internal
Roads
Power
Cold Storage
Common
effluent
treatment
plant
Warehousing

Internal
Roads
Power
Cold Storage
Common
effluent
treatment
plant
Warehousing

Internal
Roads
Under
Construction
Power
Cold Storage
Common
effluent
treatment
plants
Warehousing
Water
Surface Transportation

Internal
Roads
Power
Cold Storage
Common
effluent
treatment
plants
Warehousing
Water
Surface
Transportation

Internal
Roads
Power
Cold Storage
Warehousing
Water
Surface
Transportation

Internal
Roads
Power
Cold Storage
Common
effluent
treatment
plant
Warehousing

Internal
Roads
Power
Cold Storage
Common
effluent
treatment
plant
Warehousing

Nearest
airport

Indore

Indore

Nearest
major railway
station

Indore

Indore

Jabalpur
35 km

A - Nagpur
55km,
B - Pandurna
40km

Gwalior
20 km

Itarasi,
Hoshangabad

Itarasi,
Hoshangabad

Nearest
major cities

Indore

Indore

Jabalpur
35 km

Nagpur
55 km

Gwalior
20 km

Bhopal

Bhopal

Total area in
hectares

27.12

20.46

30.354

21.466

62

18

32

Available
area for
allotment in
hectares

20.59

26.60

20.53

13.417

13.44

16.49 acres