Sector Profile

Agro & Food

Processing
 India Scenario
Quick Facts
Agriculture and Allied Sectors’ Snapshot
• With 20 agri-climatic regions, all 15 major climates in the world
exist in India. The country also possesses 46 of the 60 soil types in 15.2% 13%
Share in India's Share in India’s
the world. GDP exports
• India is the largest producer of spices, pulses, milk, tea, cashew
and jute
283.37 mill. 2nd rank
• The second largest producer of wheat, rice, fruits and vegetables, tonnes foodgrain in fruit production in
sugarcane, cotton and oilseeds. production the world
• Horticulture crops registered production of 313.9 million metric
tonnes (MMT) in 2018-19, with a CAGR of 5.5% over the last ten
years; 1st rank 20%
in livestock Share in total milk
• India is the largest producer of mango and banana. production in the
population
• It is 2nd largest producer of vegetables world

• India is also the largest producer, consumer and exporter of spices

and spice products. 12.59 MMT 2nd Rank
of fish In fish production in
production the world
Source: Economic Survey 2019-20; IBEF; National Fisheries Development Board; National Dairy Development Board
 Export of Agriculture Products
Key Agricultural and Allied Sector Exports from
AGRICULTURAL EXPORTS India in FY20* (USD billion)
FROM INDIA (USD BILLION) Marine Products
Agricultural Exports from India (USD billion) 1 Basmati Rice
45 0.6 Buffalo Meat
38.21 38.54
40 0.2 Spices
35 1.3 4.8
30 Non-Basmati Rice
25 22.69
Cotton
20 2.5
15 Oil Meals
10 Sugar
2.5
5 2.3
0
FY18 FY19 FY20 (Till November
2019)

• Total agricultural exports from India grew at a CAGR of 16.45 per cent over FY10-18 to reach USD 38.21 billion in
FY18.
• In FY19, agriculture exports were USD 38.54 billion.

Source: IBEF
Food Processing
Share of Products in Exports of Processed Food in
• The Indian food and grocery market are the world’s sixth USD millions
largest, with retail contributing 70 per cent of the sales.
Mango Pulp
151.85 205.84
93.97 Processed Vegetables
• The Indian food processing industry accounts for 32 per cent
of the country’s total food market and is ranked fifth in terms Cucumber & Gherkins
354.75
of production, consumption, export and expected growth.
583.33 Processed Fruits, Juices &
Nuts
Pulses
• It contributes around 8.80% and 8.39% of Gross Value Added 301.71 402.52
Groundnuts
(GVA) in Manufacturing and Agriculture respectively, 13% of
India’s exports and 6% of total industrial investment. 242.66 Jaggery & Confectionary
553.17
Cocoa Products
473.81
• India's exports of Processed Food was USD 4.45 billion in Cereal Preparations
2018-19. Exports of ready to eat items from India reached
USD 681.95 million in FY19 from USD 689.80 million in 193.26 230.14 Alcoholic Beverages
FY18.

Source: Minister of Food Processing Industries (MOFPI), FICCI Technopak, IBEF; Agricultural & Processed Food Products Export Development Authority, GoI
Incentives under Food Processing

• 100% FDI under the automatic route in food processing industries. Soft loan is extended of up to
95% of project cost

• 100% FDI is allowed through approval route for trading, including through e-commerce in
respect of food products manufactured and/or produced in India

• 100 % Tax Exemption for first 5 Years of Operation for New units in the business of processing,
preservation and packaging of fruits and vegetables

• Exemption of service tax for storage, handling and transportation of processed food

• Benefits to projects of cold storage and handling system for processed food

Source: Minister of Food Processing Industries (MOFPI), Technopak

Government of India – Initiatives under SAMPADA
Scheme
Integrated Cold Creation of
Chain and Value • Pradhan Mantri Kisan SAMPADA Yojana
Backward and (Scheme for Agro-Marine Processing and
Addition Forward Linkages
Infrastructure Development of Agro-Processing Clusters)
with an allocation of US $ 882 million for a
period 2016-20
Creation/Expansion
Mega Food Parks & • Implementation of Scheme by Ministry of
of Food Processing
Human Resources Food Processing Industries (MoFPI)
& Preservation
and Institutions
Capacities
• The scheme is expected to influence
investment of USD 4.618 billion for handling
of 334 lakh MT agro-produce valued at USD
Food Safety and Infrastructure for 15.31 billion crore, benefiting 20 lakh
Quality Assurance Agro-processing farmers and generating 5,30,500
Infrastructure clusters direct/indirect employment in the country
by the year 2019-20

Source: Ministry of Food Processing Industries (MOFPI), Schemes/pradhan-mantri-kisan-sampada-yojana

Other Initiatives by Government of India

NABARD announced an investment of USD 100 USD 306.29 million for computerisation of Primary

1 million venture capital fund for equity investments

in agriculture and rural-focused startups 4 Agricultural Credit Society (PACS) to ensure
cooperatives are benefitted through digital technology

Transport and Marketing Assistance (TMA) scheme to New AGRI-UDAAN programme to mentor start-ups

2 provide financial assistance for transport and

marketing of agriculture products in order to boost
agriculture exports
5 and to enable them to connect with potential investors
to boost innovation and entrepreneurship in
agriculture

The Agriculture Export Policy, 2018 aims to increase Pradhan Mantri Krishi Sinchai Yojana (PMKSY) with

3 India’s agricultural exports to USD 60 billion by 2022

and USD 100 billion in the next few years with a
stable trade policy regime.
6 an investment of USD 7.7 billion aimed at
development of irrigation sources for providing a
permanent solution from drought

Source: IBEF
Gujarat Scenario
Agriculture and Allied Sectors’ Snapshot Quick Facts

• >50% land under net cultivable area

31.05% 42.55%
• Major agricultural produce of Gujarat includes cotton, groundnut Share in India’s Share in India’s
(peanuts), dates, and sugar cane, milk and milk products. cotton production groundnut
production
Leading producer of cotton, tobacco and groundnuts in India
• Milk constitutes 22% of the Agricultural GDP of Gujarat 1st rank in 90%
• State constitutes 7.75% share of total milk production in India India’s castor Share in India’s
production Fennel production
with 17 Cooperative dairy milk unions & 25 private dairy plants
• Amul dairy in Gujarat is Asia’s biggest dairy
• As a part of ‘National Horticulture Mission’, the State aims to 1st rank in
India’s cumin 3rd Rank
double the horticulture production and income by the production In milk production
development of infrastructure and market facilities
• Gujarat State Horticulture Mission (GSHM), is implementing
“National Horticultural Mission (NHM)” in the in 21 potential 20% Share in 12.4%
India’s marine fish
districts of state and covers important crops infrastructure and production
Share of animal
husbandry in GSDP
marketing facilities
Source Socio-Economic Review of Gujarat 2019-20
Gujarat : Food Processing Clusters

The major production clusters of Home to more than 30,000 Infrastructure availability in the
Gujarat Companies in the Food Processing State
Sector

Source: Gujarat Agro Industries Corporation, GoG

Existing Infrastructure

Inland container depots (ICDs) Industrial Areas Storage and Fish Units Mega Food Parks
• Nine ICDs 119 Industrial Areas 710 Storage and Fish Two Mega food Parks
Units
 Three government ICDs -
Vadodara, Ankleshwar,
Gandhinagar
 Six private ICDs – Kandla
(1), Ahmedabad (2),
Vadodra (1), Surat(1) and
Valsad (1)
Gujarat’s export in Food Processing

Share of Value of Major Exported processed food • Over USD 5.14 billion worth of
products from Gujarat (2018-19) processed food was exported
1% Basmati Rice from Gujarat in 2018-19
1.5 1%
1% Non Basmati Rice
1.7 0.4 • The exports from Gujarat
3.0 Guargum increased by 15.2% from USD
5.8 Groundnuts
4.46 billion in 2017-18 to USD
5.14 billion in 2018-19
6.8 Processed Vegetables

Cereal Preparations • Gujarat’s share in the total

14.1
processed foods & dairy products
Miscellaneous Preparations
64.2 exported from India increased
Processed Fruits, Juices & Nuts from 22% in 2012-13 to 28.62%
Jaggery & Confectionary in 2018-19
Milled Products

Other Cereals

Source: Agricultural and Processed Food Products Export Development Authority (APEDA); KPMG Analysis
Gujarat’s share in India’s exports of Food Processing

Share in Volume (MMT) Share in Value (USD Billion)

18000 45% 14 46% 50%
38% 41% 40%
16000 40% 40% 45%
31% 37% 37% 34% 12 37%
14000 35% 40%
10 35%
12000 30%
8 30%
10000 25%
25%
8000 20% 6 20%
6000 15% 15%
4
4000 10% 10%
2000 5% 2
5%
0 0% 0 0%
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
Volume of India's exports Volume of Gujarat's exports Value of India's exports Value of Gujarat's exports
% share of Gujarat % share of Gujarat

• Gujarat host more than 30,000 companies in the food processing sector

• Gujarat has the highest share of exports of processed food in value and volume in India. The volume
and value of exports of processed food has consistently risen over the years.

Source: Agricultural and Processed Food Products Export Development Authority (APEDA)
 Industrial Policy 2020 – Propelling Gujarat’s Industries
15 Thrust Sectors have been identified which will be given incremental incentives as a part of policy

Electrical Industrial
Machinery & Machinery & Auto & Auto Ceramics Technical Textiles
Equipment Equipment Components

Agro & Food Pharmaceutical & Chemicals (in Industry 4.0

Gems & Jewelry designated areas)
Processing Medical Devices manufacturing

Green Energy Eco-friendly

Electric Vehicles (Solar & Wind compostable Waste Management 100% Export
& Components Equipment) material Projects Oriented Units

Capital Subsidy for Large Industries – incentive up to 12% of FCI for thrust sectors and up to 10% for general sectors
with no upper ceiling. Exemption of electricity duty for 5 years
Source: Industries & Mines Department, Government of Gujarat
 Industrial Policy 2020 – Incentives to Industries

Incentives to MSMEs Research & Innovation

• Capital Subsidy for manufacturing sector – • Financial Assistance up to INR 5 crore for setting up
Assistance up to 25% of of eligible loan amount up to R&D & product development centers by private
INR 35 Lakhs companies

• Interest Subsidy for manufacturing & service sector

– Assistance up to 7% of interest levied on term loan Relocation Incentives
up to INR 35 lakhs per annum
• Provision of Re-location subsidy on case to case basis
• Acquiring Foreign Patented Technologies – e.g. units willing to relocate from other countries and /
Assistance up to 65% of the cost of acquiring foreign or diversifying their supply chain through investment
patented technologies with a ceiling of INR 50 Lakhs. in Gujarat
Processed patents will also be included.
• Market Development Assistance - @75% of stall
Government Land for Long Term Lease
rent up to INR 2 Lakhs in India and @60% of stall rent
up to INR 5 Lakhs outside India
• Facilitation to industries in getting “Government
• Rent Assistance - 65% of rent up to INR 1 lakh per Land” on long term lease up to 50 years to industrial
annum for 3 years enterprises @6% of the market rate

Source: Industries & Mines Department, Government of Gujarat Industries Commissionerate - https://ic.gujarat.gov.in/
 Industrial Policy 2020 – Key Incentives for Industrial
Infrastructure
Development of Industrial Parks
• Industrial Parks - Assistance upto 25%
of eligible fixed capital investment (50%
in case of Vanbandhu Talukas) in
building and infrastructure upto INR 30
Crore. Stamp Duty reimbursements will
be given to developers (100% of Stamp
Duty) and individual units (50% of
stamp duty)
• Common Hostels / Dormitories –
Assistance of 50% upto INR 20 Crore.
Development of Common Industrial
Infrastructure
• Assistance upto 80% of project cost for
set up of Industrial Infrastructure such
as construction and up gradation of
roads, warehousing facilities, fire
stations, underground utilities , etc.
upto INR 25 crore
Source: Industries & Mines Department, Government of Gujarat
Common Environment
Infrastructure
• Assistance upto 40% of eligible fixed
capital investment in the project for
Common Effluent Treatment Plant,
Waste Management System,
upgradation of existing CETPs,
common spray dryer, common
multiple effect evaporator etc. upto
INR 50 Crore
• Assistance upto 25% of project cost for
set up/ relocation / retrofitting of
existing polluting industrial units into
Green Industrial Estates upto INR 25
crore
• Assistance upto 50% of fixed
installation cost to Common Boiler
Project by SPV constituted by
minimum 10 MSME upto INR 2 crore
Assistance for Sustainable
Manufacturing
• 50% of capital subsidy up to INR
75 Lakhs to industries practicing
at least 50% waste recovery
through Zero Liquid Discharge
as certified by GPCB
• Incentive to MSMEs @ 35% of cost
of P&M and to large industries @
10% of cost of P&M maximum up
to INR 35 lakhs for implementing
cleaner production measures
Skill and Training Support
• Fiscal incentive for skill
enhancement up to INR 15,000/-
per person per training to
institutes
Incentives offered under Agro Business Policy 2016-2021

25% of project cost subsidy 7.5% interest assistance

• For Agro and Food Processing Units

• For New/ expansion of Agro and
• For Agro and Food Processing
Food Processing Units
Infrastructural Projects - CA Cold
• For Cold Chain, Food Irradiation
Storages, Food Irradiation Processing
Processing Plants & Pack Houses Assistance of
Capital Investment Plants, Silos, Pack houses, Food Parks,
• For Creating Primary Processing
Back Ended etc.
Centers/ Collection centers in Rural Assistance Interest
Areas

1% additional interest subsidy

Available for MSME Units Assistance for Additional Back • For SC/ST, physically challenged or
Freight Subsidy Ended Interest women entrepreneurs,
• Air freight Subsidy 25% to 40%
• For Entrepreneurs below 35 age
• Sea-Freight Subsidy 25% to 40%

Source: Gujarat Agro Business Policy 2016-2021

 Specialized Agricultural Universities

Sardarkrushinagar
Junagadh Agricultural Navsari Agricultural Anand Agricultural Dantiwada Kamdhenu
University University University Agricultural Veterinary University
University

• Offers courses in • Has faculties of • Offers courses in • Offers courses in • Set up in 2009-10 for
agriculture, agricultural agriculture, agriculture engineering, agriculture, the development of
engineering and horticulture, horticulture, dairy horticulture, research, education,
technology and veterinary science, science, veterinary veterinary science and and extension in the
fisheries, veterinary fisheries, and forestry science, animal animal husbandry, field of Animal
science & animal husbandry, agribusiness home science and Husbandry, Dairy
• Has 29 research management nutrition, diary Development and
husbandry, fisheries
centers offering science and food Fisheries
• Offers MBA in Agri opportunities across • 7colleges, 17 research technology
Business Management. sector including soil centers, 6 extension • Specific research
science, agriculture education institute in 9 • Offers a course in Agri opportunities offered at
• PhD in Agriculture research, water districts Business Management College of Dairy Science,
Economics management research Amreli and Polytechnic
• Has 28 research in Animal Husbandry,
centers in agriculture Himmatnagar
and allied sciences
Gujarat has the following marketing facilities for the
Agricultural Value Chain

Agriculture
Produce Market
Committee
224 Agriculture Produce More than 30,000 food 20 Agro-export
(APMC) Market Committee (APMC) processing units zones with focus on
market yards and sub- employing over 1 Mango, Vegetables
Food Processing market yards Million people and sesame seeds
Units

Export Zones

Cold Storages 710 cold storage and 207 warehouses One Air cargo
fish processing units across 45 centers complex for food
with capacity of 2.03 and four irradiation exports
Warehouses Million Metric Tonne plants in the state

Cargo Complex

Source: Ministry of Food Processing Industries, Government of India; Agricultural; Processed Food Products Export Development Authority; ASSOCHAM
 Investment Opportunities in Food Processing:
Gujarat
Agricultural/Horticultural
Infrastructure Projects
Onion Cold Storage, Fresh Fruits-Pack house,
Vegetables-Pack house, Mechanized Grain
handling and storage at port, Food Parks,
Terminal Markets, Spices and Isabgul
Irradiation center
Export Oriented Processing
Peanut Butter, De-hulled Sesame seed &
Roasted Sesame oil, Roasted, salted & coated
nuts, Integrated Shrimp farming &
processing, Castor, Cotton.
Value added Processing Newer Technology Base Projects /
based on local resources Opportunities
Tomato, Potato Flakes & Powder,
Specialty grades- Guar Gum Spices Cryo grinding, Freeze Dried Fruit
powder, Refined Sugar, Egg processing Unit, Instant Vegetables in Retort
Powder, Baker’s Yeast, Fish oil Pouches, Potato Fabricated Chips
extraction
Innovative Opportunities Natural Resources Based Opportunities
Organic Milk & Milk Products, Ice
Natural food colors, Medicinal Herbs
Cream Balls, Castor Derivatives
extraction, Neem / Tobacco Oil base Bio
base Perfumery raw materials,
Pesticides, Food Processing Enzymes, and Fish
Banana Fiber extraction and
meal base bio-fertilizer
Textiles production
Presence of National & International Players

Source:
Details of Nodal Department / Agencies

Sr. No. Nodal Departments/ Agencies Sr. No Nodal Departments/ Agencies

1 Agriculture and Co-operation Department 11 Gujarat State Land Development Corporation

2 Department of Fisheries and Animal Limited

Husbandry 12 Gujarat Agro Industries Corporation Limited

3 Director of Agriculture 13 Gujarat State Warehousing Corporation

4 Director of Horticulture 14 Gujarat State Sheep & Wool Development

5 Director of Animal Husbandry Corporation Limited

6 Commissioner of Fisheries 15 Gujarat Fisheries Central Cooperative

Association Limited
7 Registrar of Co-operative Societies
16 Gauseva & Gaucher Vikas Board
8 Director of Sugar
17 Gujarat State Agriculture Marketing Board
9 Gujarat State Seed Corporation Limited
18 Gujarat livestock development board
10 Gujarat State Seeds Certification Agency
Success stories
Lijjat
A food industry started by seven Gujarati women
as a venture to create a sustainable livelihood.
Several trade fairs and exhibitions organized in
the state helped the organization in increasing its
membership and registering itself as society
under the Societies Registration Act 1860. The
growth of the Lijjat is often seen in the larger
canvas of women and their empowerment
Amul
Amul is an Indian dairy cooperative society based
at Anand in Gujarat started it journey as “Kaira
District Milk Union Limited”. With advent of white
revolution in 1970, the technological
developments at Amul spread to other parts of
India. It is the first modern dairy of India and is
the biggest dairy in Asia
Dhanvantri
Dhanvantari unit is involved in collecting,
processing and marketing of Minor Forest
products among its various activities
thereby using forest minor resources and
tribal employment generation.
McCain India
McCain not only process the potatoes for the
domestic demand but also exports potatoes from
Gujarat thereby enhancing the economic condition of
poor farmers. Support of government through its
globalization and business friendly mandates played a
major role in success of McCain and upliftment of
poor people.
Connect for more Information

Industries Commissionerate
Block No. 1, 2nd Floor, Udyog Bhavan,
Gandhinagar, Gujarat, India - 382 010
http://ic.gujarat.gov.in/
Phone: 079-23252683
E-mail: comind@gujarat.gov.in

Industrial Extension Bureau (iNDEXTb)

Block No. 18, 2nd floor, Udyog Bhavan,
Gandhinagar, Gujarat, India – 382 010
www.indextb.com
Phone: 079-2325 6009
E-mail: md.indextb@gmail.com