Orissa emerging as a key location for Food Processing

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

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

3. Orissa-Investments under implementation Investments under implementation is on a continuous rise • 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. “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

4. Orissa-first among equals Adjudged as ‘3rd best place to do business in India’ as per World Bank Study(2009) Orissa was ‘2nd 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 ‘2nd largest fresh investments in the country’ in FY11 till February, according to CMIE Orissa is ‘1st in terms of total envisaged investments in India’ as per states of states survey-2007 done by India today.

5. Favorable land utilization pattern of Orissa favors the growth of food processing industry High proportion of total cropped area (122 lakh hectares, 78%) in Orissa offers huge investment potential to the food processing and agro industry • Orissa possesses 10 agro-climatic zones and 8 major soil types • It is the country’s leading producer of rice, pulses, vegetables, oilseeds, cotton, groundnut, coconut, jute, spices, potato and fruits • The state contributes less than 2% to the country’s 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 Net area sown and forest area jointly account for more than 73% of total land in Orissa Source: Economic Survey of Orissa, 2010–11

6. Agriculture Composition of Orissa’s economy vis a vis India’s economy (2009-10) • Orissa’s economy in comparison with India’s economy is more agricultural, less industrial and less service oriented • The state’s agriculture sector offers employment and sustenance to more than 60% of total work-force Source: Economic Survey of Orissa, 2010–11 • 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 9,857 9,054 9,203 8,747 8,715 8,505 8,571 4,632 Source: Economic Survey of Orissa, 2010–11

7. Orissa reaps the benefits of higher cropping intensity Production of different crops in Orissa Source: Economic Survey of Orissa, 2010–11 • 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

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

9. Development of Mega Food Parks Scheme of GoI IDCO envisages to develop Food Parks under the Mega Food Park Scheme at Bhadrak (242 Acres) and Khurda (282 Acres) in Orissa

10. Food processing: key regions 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 Ganjam is a resource-rich district in terms of milk, egg, fishing, fruit and vegetables Other Fruit processing clusters Other egg producing districts Other fishing centers Other vegetable processing clusters

11. State level government initiatives to drive Orissa’s agriculture • 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 programmethat 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

12. 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:

13. Players in Food Processing Industry of Orissa Agriculture Animal husbandry Marine processing • 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 • M/s Suryo Foods & Industries Ltd. • M/S Bijaya Marine Products • Konark Aquatics & Exports (P) Ltd. • Sealand Fisheries (P) Ltd.

14. Orissa’s food processing industry as an emerging investment destination… Leading brands present in the State… ShimpoSeafoods

15. Outlook Government initiatives Investments Inherent Resources • High proportion of cropped area in total land utilization • 10 agro-climatic zones and 8 soil types • High cropping intensity • 4th largest vegetable producing state of India • 3% and 4% contributor to the country’s 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 Taiwan’s and Ghana’s Government for investment • Plans of foreign players to enter Orissa’s 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 Presence of large resources, upcoming investments and encouraging government initiatives to help Orissa achieve its full potential in the food processing sector

16. Orissa provides marketing assistance to farmers to ensure returns for their produce Orissa offers state farmers with agricultural marketing support to enable them get remunerative returns for their crop produce. Agricultural marketing initiatives include: Markets and complexes • ‘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.

17. Orissa has several agencies and committees to support farmers market their produce Orissa has a conducive marketing infrastructure in place to ensure good sales of farm produce, as well as provide an incentive for farmers’ efforts. Marketing federation and committees • ‘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. Other initiatives ‘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.

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