CONCERTED EFFORTS TO PROMOTE

FOOD PROCESSING IN ODISHA- ROLE OF APICOL

Presented By: DR. S.S.Dey,

MD, APICOL
 AGRO AND FOOD PROCESSING
SECTOR IN INDIA
 127 agro-climatic zones
 2nd largest arable land: 159.7 million hectares

 14 % contribution to GDP through manufacturing INDIAN FOOD

 Major producer of Fruits & vegetable (283 MT), PROCESSING MARKET
Milk (143.6 MT) and meat (3.04 MT)
 Agricultural export - 10% of the country’s exports 6th largest
 Indian food processing industry – 32% of the Valued at Food and
country’s total food market
US$ grocery
 Domestic Demand - 1.2 billion population market –
 Indian spend - 30% of income on food products
39.71 bn
US$ 482 bn
 Food expenditure - USD3.6 trillion (INR 248 (INR (INR 33200
trillion) by 2020
 Proximity to Food importing nations: Middle East, 2735 bn) bn) by 2020
Southeast Asia and SAARC countries
 Urbanisation and Increasing demand for ready to
2
eat and functional food
 ODISHA – FOOD GRAINS
PRODUCTION SCENARIO
ESTIMATES OF MARKETABLE SURPLUS OF RICE AND CEREALS

PER POPULATION ( Fig. In Lakh Nos./ Tonnes)

Item Total Production Marketable surplus for year

for year 2014-15 2013-14 (Unit in Lakh Tons)
(Unit in Lakh
Tons)

Food Grain 118.23

Production
Total Cereal 107.67 6.12
Production
Rice Production 98.44 18.92

Vegetables 94.02
Spices 6.68
Cashew 45.6
ODISHA – UNTAPPED POTENTIAL FOR FOOD
PROCESSING INDUSTRIES
 0.7% of the total produce is processed.
 35% to 40% of the produces goes waste
due to lack of storage and cold chain
facility.
 To limit the wastage it is necessary to
develop adequate post harvest
infrastructure/ transport facility and food
processing enterprises.
 Meeting the need of domestic and export
market
 Creation of off-farm employment
 DESTINATION ODISHA
POLICY INTERVENTIONS FOR FOOD
PROCESSING INDUSTRIES

• State Agriculture Policy (SAP) 2013

• Industrial Policy Resolution (IPR) 2015

• State Food Processing Policy (SFPP) 2016

• MSME Development Policy (MDP) 2016

 CONVERGENCE OF POLICY PROVISIONS UNDER SAP/IPR/OFPP/MSME
ITEM SAP OFPP/MSMEDP/IPR WHAT NEEDS TO BE DONE ?
40% of the fixed capital (excluding
the cost of land) subject to a limit of
Capital Rs.50.00 lakh (50% limited to General Area - @ 25% of capital
Subsidy upper cap may be
Investmen Rs.50.00 lakh for SC/ ST/Women/ investment in Plant & Machinery limiting
increased to Rs. 1.0 crore
t Subsidy: Graduate of Agriculture and allied to Rs.2 crore .
discipline) projects as identified
under SAP

More incentives may be provided to

SC/ ST /Women / KBK area - @ 33% of
entrepreneurs in Industrially
capital investment in Plant & Machinery
Backward Districts including KBK
limiting to Rs.3 crore .
districts -irrespective of category
State-of-the Art NABL accredited Food
Testing Laboratory - @ 50% of
investment in Plant & Machinery limiting
to Rs.4 crore.
Anchor Industry - @ 25% of investment
in Plant & Machinery limiting to Rs.5
crore.
Cold Chain & Primary Processing Centre
- @ 35% of capital investment in Plant &
Machinery limiting to Rs.5 crore.
Assistance for Reefer Vehicle - @ 35% of
the cost of standalone New Reefer
Vehicle(s)/ Mobile pre-cooling van (s)
limiting to Rs.25.00 lakh.
Facility is available to
Modernization of Meat Modernization of Meat Shops
Individuals/NGOs/Pvt. Ltd companies- in
Shops through Urban Local through Urban Local Bodies/PRI
all areas, but not for ULBs/PRI
Bodies – institutions may be allowed –
institiutions for Meat Processing units
General Area - @ 35% of More incentives may be provided to
the cost of Machinery / entrepreneurs in Industrially
Equipment and Technical Backward Districts including KBK
Civil Works limiting to districts - @ 60% irrespective of
Rs.5.00 lakh. category
Industrially Backward
Districts @ 50% of CI
Assistance for Promotional Activities: No specific fund provisions are there Organizing Seminar / Workshops – Organizing Seminar / Workshops –
CONTD. Support limiting to Rs.2.00 lakh per event. Support limiting to Rs.2.00 lakh per event.

Support to Exhibitions / Fairs – Quantum of Support to attending Exhibitions / Fairs –

assistance as per approval of Govt. Quantum of assistance as per approval of
Govt.

Domestic Study Tour n/ Exposure visit - @ Domestic Study Tour n/ Exposure visit - @
50% of expenditure for a maximum of 2 50% of expenditure for a maximum of 2
batches (10-25 persons per batch) per batches (10-25 persons per batch) per
annum limiting to Rs.2.00 lakh per batch. annum limiting to Rs.2.00 lakh per batch.

Conducting Studies / Surveys / Feasibility Conducting Studies / Surveys / Feasibility

report - @ 50% of the cost, limiting to Rs.4 report - @ 50% of the cost, limiting to Rs.4
lakh. lakh.

Assistance for setting up commodity based Assistance @ 20% of the project cost Government land may be earmarked in
Food Processing Park/AEZs (excluding cost of land) as approved by selected locations for setting up commodity
Competent Authority limiting to Rs.15 based Food Processing Parks/AEZs with the
crore to Special Purpose Vehicle (SPV) assistance as envisaged in OFPP'2016
promoting Mega Food Park / Sea Food
Park / State Food Park limiting to 75%
of project cost (excluding cost of land)
Quality certification mark Assistance up to 50 percent of the
cost for quality certification mark
subject to a ceiling of 5 lakhs for small
scale and tiny agro industrial units.

Trade Mark Assistance: 50% of expenditure incurred in obtaining Trade Similar Provisions to be
Mark subject to maximum of Rs.25,000/- to new made in SAP as per
Micro, Small & Medium Enterprises. IPR/MSME/OFPP
Exemption from payment of 100% exemption upto 100 acres and 50% for
premium, leviable under OLR Act, balance area
1960
Entry Tax exemption 1.100% on acquisition of plant & machinery for
setting up of industrial units

2. 100% of FCI on purchase of raw materials for

a period of five years

Stamp duty exemption 100% exemption

VAT exemption Removal of VAT levied on agricultural 100% of VAT paid for 7 years of FCI
processing projects.

Power: Electricity Duty exemption 100% Exemption from electricity duty for 5 years Similar Provisions to be
for contract demand up to 5 MW made as per
IPR/MSME/OFPP
Patents registration cost 100% of the registration cost up to maximum of
reimbursement Rs.10 Lakh
Quality certification (ISO) charges Renewal for consecutive 2 years i.e., for a
reimbursement period of 3 years at 100% to a total maximum of
Rs 3 Lakhs

Technical Know-how cost 100% of the expenditure with limit of Rs 1 lakh

reimbursement for indigenous technology and Rs. 5 lakh for
imported technology
Applying Time period for availing
incentives
Condonation of delay for availing
incentives by Empowered
Committee under Chairmanship of
Secretary to Govt.
Opening up facilities for outside
odisha investors
Covergence of activities of DNOs &
GM, DIC at District level
Within six months of trial
production/completion only for MSME/5 years for large industries IPR/MSME/OFPP
bank finance cases
No such provision
Only domicile of Odisha are
eligible to get incentives.
No such provision in policy
Within a period of 3 years for Similar Provisions to be made as per
for large industries from the
starting of fixed capital investment
provided it is acknowledged with
EIM/Production Certificate/IEM
Beyond stipulated period of 3 Similar Provisions to be made as per
years for MSME/ 5 years for IPR/MSME/OFPP. EC may be
large industries for large industries constituted for CAEs under the
in implementation of projects by Chairmanship of either
Secretary,Agriculture & FE or F &
EC under Chairmanship of either
ARD as the case may be
Secreatry, Industries or MSME as
the case may be
No such provision in policy Provisions to be made to outside
players. We may make incentive
provisions for Odisha people under
State Plan & outsiders under RKVY as
per recent concept note of GOI.
No such provision in policy Provisions to be made for
convergence of activities of DNOs as
per SAP & GM, DIC in establishment
of Agro & Food processing units at
distrct level. District Collector to
monitor activities.
 For projects-Cashew Fruit & Vegetable processing,
Current list processing and other cashew Food grain milling/processing, List needs
nut based industry, Oil Dairy products, Processing of
of extraction Mill,Cattle & Poultry / pultry, egg, meat & meat to be revisited
Fish Feed Plant, Coconut products, fish processing,
CAEs & Agro based products, Dairy farming Bread, oilseed meals, bakery & new projects
and milk processing,Squash, & confectionery etc., Fruit
& Food Jam, Jelly, pickle, etc of based RTS beverages, may be added
different fruits, Fruit Pulp, Produce of AH, Spices &
processing Vegetables & spices based condiments, Tissue culture in the SAP
industry, Dehydration and lab, green house, GH
enterprises canning of vegetables,Frozen nurseries & seed production,
fruits and vegetables, mushroom lab, floriculture,cold
Cultivation and processing of storage enterprises,
mushroom,Meat Refrigerated Transport
Processing,Food Products vehicles/contaners/manufactur
based on Soyabin, Maize ing food grade packaging
Processing,Honey Processing, materials for food processing
Processing of Fruits for industries, enterprises
commercial purpose,Pulse engaged in packaging,
Processing & Derivative canning & bottling of
Industries,,Fish/ Prawn processed foods, Enterprises
Processing,Bakery & manufacturing additives,
Confectionery, Groundnut prservatives, colours &
Processing, Ragi, Small Millets, fragrant, Biotechnology &
Coarse Cereal Processing , bioinformatics industries,
Integrated Rice Mill, commodity grading &
Technology Upgradation/ packaging industry, processing
Modernization/ Expansion of of plantation crops including
existing Agro Based and Food tea, coffee, medicinal &
Processing Industries. aromatic plants, coconut
based products etc., sugar
industry (excluding
molasses/alcohol)
 FOOD PROCESSING INDUSTRIES
PROMOTED BY APICOL
Sl. No. Item Nos. Subsidy in Rs.
1 Fruit & Vegetable Processing 3 5,968,335
2 Bakery & Confenctionary 1 290,400
3 Milk Processing 3 5,367,579
4 Cashew Processing 36 44,258,171
5 Maize Processing 1 755,146
6 Soya Processing 1 1,748,747
7 Cattle & Poultry Feed Processing 4 9,300,000
8 Mushroom Production & Processing 5 1,775,608
9 Spices Processing 2 595,452
10 Pickle, Jam, Jelly & Squash 1 538,846
11 Cashew Nut Processing 1 901,371

Total 58 71,499,655
 POTENTIAL AREAS FOR INVESTMENT IN
FOOD PROCESSING

Primary Tertiary Processing/ Value

Category Crop Secondary Processing
Processing Added Products

Parboiled Rice, Puffed Rice, Idli mix, Dosa mix, Rawa mix,
Parched Rice, bakery & confectionery
Paddy Starch materials, Chowmin,
Rice flour
Pasta
Bran, Husk Rice bran oil, Bio Fuel

Cleaning, Sorting & Corn Flour, Corn Flakes, Corn Maize germ oil, Corn starch &
Cereals & Millets Maize
Grading granules Syrup

Ragi biscuits,
Ragi bread, Biscuits,
Ragi Blended flour, Malt Namkeens,
Multi grain cereal, Malted
Beverages
Gram, Arhar, Biri, Dal, Besan
Cleaning, Sorting &
Pulses Extruded snacks, Snack Bars
Moong, Horse Grading
Gram flour, Broken dal
Gram

Dehulled nuts, Ground nut oil, Roasted peanut, Pea nut butter,
Ground Nut
Oil Cake for fodder purpose Snack bars

Sesamum Cleaning, Sorting & Sesame Oil, Oil cake for fodder Sesame based snacks &
Oilseeds purpose sweets
Grading
Castor Oil, Oil Cake for Fodder Oil for industrial use
Castor
Purpose because of high viscosity
Sunflower Sunflower Oil Fortified Sunflower Oil
Niger Niger oil cake & Oil Capsules for medicinal use
 CONTD.
Tertiary Processing/ Value
Category Crop Primary Processing Secondary Processing
Added Products
Spices mix, Spice blends,
Dehydrated & freeze dried
Chilli Chilli powder
spice, Spice oil & Oleoresin,
Capsaicin etc.
Polished fingers, Turmeric
Turmeric Cleaning, Sorting Curcumin
fingers
Spices Grading & Drying
Khattimeeethi chutney, pickles
Tamarind Dried Tamarind
etc
Garlic Garlic slices Dried Garlic, Garlic paste
Dried ginger, Ginger paste,
Ginger Ginger slices
ginger bread
Sugarcane Cutting & crushing Jaggery and Sugar Refined sugar
Slices, Flakes, Presreved & Fruit pulps & Juices, Jelly,
Banana, Mango
Flavoured Shakes, Squashes,
Papaya, Concentrate, Pulp Jams, Pickles & chutney,
Canned fruits & vegetables,
Guava, Pine apple
Fried chips,
Vegetable powder, Sauces,
Dehydrated vegetables & Fruits
Ketchups, Roasted & Salted
Citrus Fruits, Cashew
cashew, value added flavoured
cashew
Soft drinks, Green coconut
Tomato, Okra, Cleaning, Sorting,
Fried Vegetables drinks
Grading, Cutting &
Fruits & Onion, Brinjal, Beverage from cashew apple
Refrigerating,
Vegetables
Cabbage, Cauli flower, Broccoli Frying & Coconut oil, vinegar, flour,
Peas, Carrot Dehydration coconut milk, activated carbon,
Biscuit, candy, Chips
Baby Corn, Sweet Corn,
Jack fruit powder, candy, papad.
Coconut, Drum stick
Frozen vegetables & fruits Chips, Cut tender jackfruit,
Jackfruit,
Added with RTE/RTS products
Mushroom Mushroom products like
chowmin, noodles, papad, soup
 ODISHA – POTENTIAL AGRO AND FOOD
PROCESSING CLUSTERS-under OFPP

Sambalpur : major
producer of paddy & Dhenkanal : significant
pulses , vegetables - production of mangoes,
Chili and fruit crops maize, sunflowers,
including mango, vegetables, cashews &
Bargarh : significant banana and litchi mushrooms. GoO:
production of planning a Mango AEZ
sugarcane, vegetables, in this dist
groundnuts and paddy rict Balasore and Bhadrak :
major marine fish
producing districts

Angul : one of the

major rice producing
districts of Odisha. Khordha and Puri : emerging
Kalahandi and Bolangir :
GoO is planning a as a food processing hub. It
major producer of turmeric,
Mango AEZ in this possesses as Fish, Cashew, eggs,
ginger, potato, maize,
district poultry, milk, and vegetables
horticultural crops like mango,
jackfruit, and pineapple
Ganjam : major producer of Cashew,
Nabarangpur : major tamarind, paddy, groundnut,
producer of maize, Rayagada : resource sugarcane, oilseeds, ragi, mung, biri,
paddy, ragi, pulses, rich in terms of fish, meat, milk and vegetables.
cashews and wheat Cashew, tamarind,
eggs, fruits and
vegetables

Koraput : possesses fruit 15

producing clusters and is major
producer of ginger and kewda
 PROBLEM AREAS WHAT
IN AGRO & FOOD
PROCESSING NEEDS TO BE
FOR APICOL DONE ?
• Availability of land to establish Agro based food • To facilitate Agro based food industries by allowing use of
industries Government land including agriculture farms on long term
lease basis at concessional rates.
• Seasonal, inadequate and inconsistent supply of • Provision of relief from payment of minimum charges of
raw materials electricity, water & labour during closure period for Agro-
Food Processing industry as it is basically a seasonal industry-
Promotion of Contract farming by entrepreneurs through govt.
incentives
• Inadequate credit flow from Banks in Agro & • Financial Assistance to be made available by Commercial
food processing sector banks & other Private sector organizations as priority lending

• Assurance of quality – lack of food testing •
laboratory
• Creation of branding in food processing
• Lack of new and innovative project reports on •
food processing.
May be established by Government & private sector
agencies
• We may promote sale of food products at national &
international level through specific product branding like
KALINGA UTKARSH(e.g- BISWA BANGLA)
Financial incentives may be provided to the final year students
of B.Tech/M.Tech. (Ag.Engg.) of OUAT to prepare different
project/feasibility reports on food processing units relevant to
Odisha.
 PROBLEM AREAS
IN AGRO & FOOD PROCESSING
FOR APICOL
• Lack of Training and hand holding support
facilities under SAP for entrepreneurship
development in Food processing
• Linkage of agripreneurs to markets & market •
facilitation
• No specific official of APICOL at district level to •
coordinate as Nodal Officer
• Lack of skiiled manpower to promote vegetable •
& food processing
• Lack of coordination for investment promotion in •
Food processing at District & State level
• Improper utilization of available common •
infrastructure facilities of existing departments
• Less Involvement of FPOs/FPCs
• Lack of awareness among entrepreneurs for
establishment of mini, micro food processing
industries
WHAT
NEEDS TO BE
DONE ?
• Training and hand holding support may be imparted to
promising entrepreneurs at CAET, OUAT, NIFTEM, CFTRI, CIFT
and in model food processing units of Corporate
organizations, other Govt. & Non Govt. organizations, ICAR
institutes, OUAT, XIMB & XUB, UU, IIT, IIM, KIIT, SOA etc.
OSAM Board, BMC,CMC, RMC, SBPMC, BAMMC and other
ULBs/PR institutions may be moved for creating necessary
support. APICOL will prepare a master plan and facilitate
the activities.
A District Level Coordinator of DAO rank may be nominated
by Government for coordinating activities related to APICOL
Adequate manpower in Horticulture, Food Processing &
Marketing may be posted at APICOL
To create a special joint Investment promotion cell at IPICOL
& APICOL, Directorate of Industries & each District
Industries Centre with sharing of expert manpower
Strategy for optimal utilization of available common
infrastructure facilities for sorting, packing, grading,
transportation, storage & maintenance of cold chain facilities
created by various Government Agencies to be formulated
• Special assistance to FPOs/Farmer Producer Companies
under SFAC/State Government policies for Capacity
Building/Market linkages etc. like Rythu Bazar in AP.
• Massive awareness campaigns may be organised at district
and block level to popularise mini, micro food processing
industries in the State.
 OPPORTUNITIES IN PROCESSING OF
CEREAL/PULSE BASED COMMODITIES

MINI MODERN RICE MILL SOLVENT EXTRACTION PLANT FOR BRAN OIL
 OIL EXPELLERS

Baby oil expeller

Screw Press
Screw Press

Sectional View Filter Press

MINI DAL MILL
 VALUE ADDED PRODUCTS
FROM RICE & PULSE BROKENS
• High percentage of brokens is a
problem in summer rice due to
climate change (18-40%)
• Brokens fetch very low price
• Extrusion is a novel technology
to produce expanded blended
products under high temperature
short time regime
• The cost of the unit is Rs 2 Lakh,
capacity 25 kg/h, cost of
accessories Rs. 2 lakh and thus
earn about minimum of Rs.
50,000 per month
 ROTARY MAIZE COB SHELLER

Capacity: 65kg/hr

• Negligible drudgery
• Suitable for all varieties of maize.
• Zero damage to grains during shelling
• No cleaning of grains required.
• Most suitable for seed producing agencies.
• Seed shelling almost 100 percent
 EXTRUDED PRODUCTS WITH RICE,
MAIZE, MILK POWDER, BENGAL GRAM,
BANANA, PUMPKIN AND GUAVA PULP

Rice, Maize, B Gram, Milk

Rice, Maize, B Gram, Milk Rice, Maize, B Gram, Milk
Powder, Guava Pulp:
Powder, Banana Pulp: Powder, Pumpkin Pulp:
300,50,50,50,62 gm
225,125,50,25,75 gm 225,125,50,25,75 gm
DRIED PINE APPLE SLICES
CASHEW APPLE
CASHEW APPLE RTS
RTS PREPARATION FROM STONE APPLE
FROZEN PRODUCTS
JACKFRUIT PIECES PACKED DRIED
DRUMSTICK
TOMATO PROCESSING PLANT

Capacity: 0.5 T/h, Cost: 10.0 Lakh

 RTS SQUASH

JAM JELLY PICKLE

31
 DRIED GARLIC SLICE CHILLI PUREE

VEGETABLE CHICKEN NUGGETS GREEN CHILLI POWDER

INTEGRATED TURMERIC
PROCESSING UNIT
TAMARIND DESEEDER
 INFERENCES:-

 SINGLE WINDOW CLEARANCE FOR ALL CAEs UNDER THE CHAIRMANSHIP OF APC,
SECRETARY, AGRIL & FE, F & ARD, INDUSTRIES, MSME, REVENUE & DM, ENERGY FOR
PROJECTS UPTO 20 CRORES

 CREATION OF A SPV FOR PRIORITY FINANCING IN AGRIBUSINESS SECTOR

 HELP DESK FOR CAEs AT APICOL,/IPICOL.,
REVIVAL OF KSK AT EACH AGRICULTURE DISTRICT LEVEL
 DISTRICT & SUB SETOR WISE TARGET SETTING FOR ESTABLISHMENT OF CAEs
 BIMONTHLY REVIEW OF CAE ACHIEVEMENT OF DISTRICT COLLECTORS BY APC,
SECRETARY A & FE & F & ARD AND MONTHLY REVIEW OF DLOs BY DIRECTOR OF
CONCERNED DEPARTMENT THROUGH VIDEO CONFERENCE

 SIMPLIFICATION OF ONLINE APPLICATION PROCESS & TIME BOUND

APPROVAL/REJECTION BY DLSSC FOR ISSUE OF GO AHEAD