Table of contents

State Introduction 1

Why Chhattisgarh 1

Raw Material Base 2

Production Clusters 4

Agricultural Marketing 6

Processing Clusters 7

Infrastructure 9

State Government Initiatives 12

Snapshot of Investable Projects 14

References 15

Investment Environment & Opportunities in Food Processing- Chhattisgarh 1

State Introduction

The Gateway to Central India, Chhattisgarh borders Madhya Pradesh in North-West, Maharashtra in South-West, Telangana in South, Odisha in East, Jharkhand in North-East and Uttar Pradesh in North.

Chhattisgarh- key highlights

State capital Raipur

Geographical area1 1,35,192 sq. kms

Population (Census 2011)2

25.54 mn

Gross state domestic product (GSDP)3

USD 43.25 bn (2016-17) CAGR 14.28% (2014-15)

Per capita income4 USD 1368

(2014-15, at current prices)

FDI inflows5 USD 1,390 mn (includes MP)

(April 2000 to June 2017)

Total road length (kms)6 79,250

Rail length (route kms)7 1195.81

Airports9 Domestic – Raipur

Why Chhattisgarh

Raipur Chhattisgarh

Strategically located in Central East India with direct access to 7 states with potential market of a about 500 million in population across 237 sq. km - Naya Raipur, India’s first green field smart city in the state

Abundant natural resources with availability of robust infrastructure (2 Mega food parks, 61 industrial areas, 2 special economic zones); 24 x 7 x 365 quality power at competitive power tariff

Well-developed social infrastructure with leading hospitals (Apollo, Fortis); schools (Delhi Public School), hotels (Taj, Hyatt) shopping malls (with PVR, INOX) and aspirational showrooms (Jaguar, Audi, BMW)

1

2

3

Investment Environment & Opportunities in Food Processing- Chhattisgarh 2

Raw material base (1/2)

Chhattisgarh has favourable agro-climatic conditions with three agro-climatic zones favoringcultivation of a multitude of crops, vegetables and fruits round the year12.

Paddy, Grams and Coarse cereals are the major crops produced in Chhattisgarh13. The state is also a major producer of fruits (such as Banana, Mango, Papaya etc.); and vegetables (such as Tomato, Brinjal, Potato, Peas Green, Cabbage etc.). Major spices produced are Garlic, Turmeric, Ginger, Red chillies etc.

Chhattisgarh also has a large livestock population contributing towards the production of Milk, Eggs, Fish and Meat.

State GSDP grew at 14.28% GSDP (2014-15) at current prices.

SNAPSHOT OF LAND UNDER CULTIVATION12

Arable land 4946

Net sown area 4,686

Total area sown 5,698

(2013-14, ‘000 hectare)

Agriculture and allied services play a very important role in the development of state10. About 80% of the population is rural and depends upon agriculture and allied activities for livelihood. 44% of the state area is under forest cover with abundance of processable agri produce.

Bastar Plateau Zone

District:

Bastar , Bijapur , Dantewada , Narayanpur

Chhattisgarh Plain Zone

Districts:

Raipur, Rajgarh, Korba, Kanker, Rajnandgaon,

Bilaspur, Dhamatari, Durg, Jajngir-Champa, Baloda

Bazar, Mahasamund North Hill Zone

District:

Jashpur, Balrampur, Korea, Surajpur, Surguja

Investment Environment & Opportunities in Food Processing- Chhattisgarh 3

CROPS

(‘000 tonnes)

FRUITS

(‘000 tonnes)

VEGETABLES

(‘000 tonnes)

LIVESTOCK & FISHERIES

Raw material base (2/2)

Key production highlights (2015-16)13 of the state include:

Among the top 5 states in production of Litchi and top 10 states in production of Guava

Rank 1 in production of Bitter gourd; Rank 3 in production of Pointed gourd; among the top 5

states in production of Pumpkin and Bottle gourd.

Among the top 10 states in fish seed production and inland fish production 317 Th. tonnes.

There are 627 dairy cooperatives in the state and the milk production is expected to reach 3.7

million tonnes by 2020

150 crore eggs are produced in 2015-16 & it will reach to 160 crore during 2016-2017.

14The key production statistics for the state (year 2015-16) are presented as below15:

Tomato 908.9

Brinjal 642.34

Potato 644.8

Rice 6,094.1

Gram 219

Coarse Cereals 215.5

Milk 1,277

(‘000 tonne)

Eggs 1.5 bn

Fish In-land : 317 (‘000 tonnes)

Meat 41

(‘000 tonnes)

Banana 587.42

Mango 420.6

Papaya 341.93

Investment Environment & Opportunities in Food Processing- Chhattisgarh 4

Production clusters

The major production clusters of Chhattisgarh16 are as given below:

Rajnandgaon, Janjgir-Champa, Dhamtari

Paddy

Korba, Kondagaon, Surguja

Radish

Durg, Kondagaon, Raipur

Brinjal

Durg, Kondagaon, Korba

Cabbage

Bilaspur, Surguja, Balrampur

Potato

Surajpur, Surguja, Jashpur

Garlic

Raigarh, Durg, Raipur

Banana

Surajpur, Surguja, Jashpur

Mango

Korba, Bilaspur, Kanker, Mahasamund

Guava

Bilaspur, Durg, Raipur, Bemetara

Papaya

Rajnandgaon, Surguja, Baloda Bazar

Peas

Durg, Bilaspur, Jashpur

Tomato

Rajnandgaon, Raipur, Durg

Eggs and meat

Durg, Raipur, Rajnandgaon, Bilaspur, Janjgir

Milk

Investment Environment & Opportunities in Food Processing- Chhattisgarh 5

Investment Environment & Opportunities in Food Processing- Chhattisgarh 6

Agriculture marketing

17A well developed market plays an integral role in well planned marketing of agriculture production. The main objective of market committees is to protect farmers from exploration, yield a fair price to make them on time and providing facilities for marketing. As per the Annual Survey of Industries- 2014-15, there are 1,141 registered food processing units in the state18.

Agricultural markets in

Chhattisgarh17

69 Agricultural

markets

14 Mandis in eNAM

10 Farmer Producer

Organisations17

116 Sub-agricultural

markets

Key market highlights

Fruit market- established in Durg, Rajnandgaon, Raigarh, Tulsi (Raipur), Bilaspur & Pakhanjur

Model market –established in Dhamtari, Kurud, Rajnandgaon, Kabirdham & Mungeli

Farmer shopping mall- established for the benefits of farmers and market workers in Rajnandgaon

where fertilizers and agriculture produces are sold

Fig. 1 Facilities by Chhattisgarh State Agriculture Marketing Board

Investment Environment & Opportunities in Food Processing- Chhattisgarh 7

Processing clusters

Some of the major processing clusters in the state include:

Raipur, Dhamtari, Durg, Mahasamund

Dhamtari, Raipur, Bilaspur, Rajnandgaon

Rice mills

Gariyaband, Rajnandgaon, Raipur

Flour milling

Rajnandgaon, Balod, Balodabazar

Poha

Durg, Raipur, Bilaspur, Dhamtari, Mahasamund

Dairy

Durg, Raipur, Dhamtari, Rajnadgaon

Fruits and vegetables

Ready to eat

Investment Environment & Opportunities in Food Processing- Chhattisgarh 8

Investment Environment & Opportunities in Food Processing- Chhattisgarh 9

Infrastructure

The status of key physical and agricultural infrastructure in Chhattisgarh is as follows:

Parameter Status

Inland container depots*19 1

Existing Industrial Areas/ SEZs

4 industrial parks20 3 agri climatic zones21 2 Mega food parks23

Installed power 24

Thermal – 15802.54 MW Hydro – 120 MW Renewables – 439.69 MW Nuclear – 47.52

Utilities

Electricity cost 25

Up to 25 HP: INR. 120/HP/month (FC); 5.00 ( EC) Bastar avem Dakshin Kshetra, Adivasi Vikas Pradhikaran, and Sarguja avem Uttar Kshetra Adivasi Vikas Pradhikaran: INR. 100/HP/month ( FC) ; 4.00 (EC)

Above 25 HP up to 100 HP: INR. 150/HP/month ( FC); 5.70 ( EC) Demand based Tariff- for Contract Demand of 15 kW to 75kW Demand charges- Rs.220/kW/month on billing demand; 5.90 ( EC)

Water rates26

Water rate in Industrial areas of CSIDC:INR 16-24 per 1000 litre Water rates of water resources department-

a) Water storage structure created by Department : 10.50 per cum b) Water storage structure created by advance water : 5.50 per cum c) 2 km from canal system : 12.25 per cum d) From natural / created own sources : 3.51 per cum

A number of industrial areas and food parks are available in the state for investors keen on setting up food processing units in the state. The key food park in the state includes27:

S. No.

Food Park Location Area

(in acres)

Allotted area

(in acres)

Area to be allotted

(in acres)

1 Mega Food Park Dhamtari 170.1 110.8 59.3

2 Indus Mega Food Park Balodabzaar 64.2 32.6 31.6

Investment Environment & Opportunities in Food Processing- Chhattisgarh 10

In addition to the above, land is also available at various industrial parks/ growth centres across the state. Few major industrial/ growth centres in the state are28:

S. No.

Industrial Park/Growth Centre Location Owner/

Developer Type

Total Area (acres)

1 Metal Park Rawabhata CSIDC Metal manufacturing 216.3

2 Apparel Park Raipur CSIDC Readymade garments 3.3

3 Engineering park Bhillai CSIDC Engineering tools 296.5

4 Aluminium park Korba CSIDC Aluminium goods 345.9

5 IIDC Harinchhapara CSIDC Development centre 51.8

6 IIDC Birkoni CSIDC Development centre 212.5

7 IIDC Nayanpur-Girwarganj

CSIDC Development centre 126

(** There are 6 more IIDC which are being developed

Source: http://csidc.in/indmap1.htm)

Investment Environment & Opportunities in Food Processing- Chhattisgarh 11

Investment Environment & Opportunities in Food Processing- Chhattisgarh 12

State government initiatives (1/2)

The state government has implemented various reforms to create pro-investor envoirnemnt - friendly investment envoirnment for investors keen on setting up business in the state30. Some of the key highlights of the initiatives undertaken include:

Single Window System- Dedicated web portal for investors to submit investment proposals and compliances and track clearance status

Udyam Akanksha: It focusses on MSME for online registering and availing incentives under industrial policy 2014-19.

Online approval: Online application approval system across all departments & also for stamp duty exemption, priority sector certificate, production certificate etc. Single sign-on ID is available.

Self-certification: Reliance on self-certification and no fee will be charged for registrations

Electricity connection: Online electricity connection, only two documents required

Investment Environment & Opportunities in Food Processing- Chhattisgarh 13

State government initiatives (2/2)

Chhattisgarh has been ranked consistently fourth among 36 States and Union Territories in thecountry, as part of comprehensive assessment undertaken in India for Ease of Doing Business ranking.Key incentives available for the food processing industry under Industrial policy 2014-2019 of thestate are summarized in the table below:

Key incentives Industrial Policy (2014-2019)31

Interest Subsidy Micro & small industry in developing areas: 40% of total

interest paid up to 5 years, max limit INR 10 L/year

Fixed Capital Investment Subsidy Micro & small industry in developing areas: 30% with max

limit up to INR 30 L

Electricity incentives: Electricity Duty Exemption

Micro & small industry in developing areas: Full exemption up to 5 years from the date of commencement of

Stamp Duty MSME/large (including SC/ST) & all mega/ultra-mega

(including core sector industries) will be get 100% exemption

Exemption on land premium on land allotted in industrial areas/parks

MSME in developing areas: 50% exemption land premium

Quality Certification Subsidy MSME: 50% of amount spent, max INR 1 L for obtaining ISO-

9000, ISO-14000, ISO – 22000 etc. per certification

Chhattisgarh Mission on Food Processing 2016

Key features:

Grant in aid for technology up-gradation & modernization of FPI Capital subsidy and interest subvention for cold chain & value addition infrastructure Grant in aid for setting up a primary processing collection center Grant in aid for the purchase of new refer vehicle

Investment Environment & Opportunities in Food Processing- Chhattisgarh 14

Snapshot of potential investable projects

Chhattisgarh offers tremendous opportunities for investment across the entire value chain in the food processing sector. An indicative list of potential projects for investment is presented in the table below:

Project name Processable products Value proposition

Starch processing Dextrose, sorbitol, glucose (corn starch based sweeteners)

Estimated starch production in India is 3,75,000 tonnes of which 50% is utilized as raw material by FP industry

Frozen Fruits & vegetables

Frozen fruits, blanched & frozen vegetables

EU is the largest market for frozen fruits and vegetables in the world, representing nearly 50% of total world imports

Fruits & vegetable collection centre and master distribution centre

Collection/distribution of fruits like mango, papaya, banana & vegetables like potato, tomato, cauliflower

India ranks 2nd in fruits and vegetables production after China offering availability of abundant raw materials

Public testing laboratory

Lab tested and certified food & drug

Currently, there are 140 food & testing labs as per standards under FSSAI with a huge unmet demand for professional and high quality accredited labs

Fruits & vegetable processing

Jams, jellies, candies, squash, paste

India ranks 2nd in fruits and vegetables production after China offering availability of abundant raw materials

Chicken processing unit

Canned chicken, chicken based sausages, sauces, chicken nuggets etc.

Chicken consumption in India is highest in Andhra Pradesh, TN, Kerala, Goa, Karnataka, Punjab, Maharashtra & WB

Milk processing Packed pasteurized milk, butter, curd, cheese etc.

Indian dairy industry is expected to

double to USD 140 bn by 2020

Minor millets processing

Millet based vermicelli, pasta, noodles etc.

India leads the world in millet production followed by the African counties of Nigeria and Niger

Investment Environment & Opportunities in Food Processing- Chhattisgarh 15

References

1. http://descg.gov.in/Pub.aspx http://descg.gov.in/pdf/publications/latest/EconomicSurvey2014-15_E.pdf

2. http://www.mospi.gov.in/statistical-year-book-india/2017/171 3. http://www.mospi.gov.in/statistical-year-book-india/2017/171 4. http://mospi.nic.in/sites/default/files/press_releases_statements/State_wise_SDP-

28october2016.xls 5. http://pib.nic.in/newsite/PrintRelease.aspx?relid=123563 ((% change in Per Capita Income

over previous year: 10.07%)) 6. http://dipp.nic.in/sites/default/files/FDI_FactSheet_June2017_2_0.pdf 7. http://www.mospi.gov.in/statistical-year-book-india/2017/190 ; excludes length of project

roads 8. http://pib.nic.in/newsite/PrintRelease.aspx?relid=155019 9. http://www.aai.aero/allAirports/airports.jsp 10. http://mospi.nic.in/sites/default/files/press_releases_statements/State_wise_SDP-

28october2016.xls http://descg.gov.in/EconomicSurvey.aspx http://descg.gov.in/pdf/publications/latest/EconomicSurvey2014-15_E.pdf

11. http://www.mospi.gov.in/sites/default/files/statistical_year_book_india_2015/Table-8.1_0.xlsx

12. http://agropedia.iitk.ac.in/content/agro-climatic-zone-chattisgarh 13. http://agricoop.nic.in/sites/default/files/2014-15%28Final%29_0.xlsx

http://descg.gov.in/pdf/publications/latest/EconomicSurvey2016-17.pdf http://descg.gov.in http://cghorticulture.gov.in/

14. http://descg.gov.in/EconomicSurvey.aspx http://descg.gov.in/pdf/publications/latest/EconomicSurvey2014-15_E.pdf

15. http://mospi.nic.in/sites/default/files/statistical_year_book_india_2015/Table-8.3%20.xlsx http://agricoop.nic.in/sites/default/files/2015-16%20%28Final%20Est.%29_0.xlsx http://eands.dacnet.nic.in/PDF/Glance-2016.pdf

16. http://geo-sampada.nic.in/ 17. http://descg.gov.in/pdf/publications/latest/EconomicSurvey2014-15_E.pdf

http://sfacindia.com/UploadFile/Statistics/State%20wise%20summary%20of%20registered%20and%20the%20process%20of%20registration%20FPOs%20promoted%20by%20SFAC%20(as%20on%2031st%20March%202017).pdf http://sfacindia.com/UploadFile/Statistics/State%20wise%20summary%20of%20registered%20and%20the%20process%20of%20registration%20FPOs%20promoted%20by%20SFAC%20(as%20on%2031st%20March%202017).pdf

18. http://www.mofpi.nic.in/sites/default/files/asi_state_wise_2014-15.pdf 19. http://commerce.nic.in/trade/ICD_list.pdf 20. http://csidc.in/indmap1.htm 21. http://agropedia.iitk.ac.in/content/agro-climatic-zone-chattisgarh 22. http://csidc.in/indmap1.htm 23. http://geo-sampada.nic.in/ 24. http://www.cea.nic.in/reports/monthly/installedcapacity/2017/installed_capacity-01.pdf 25. http://www.cspdcl.co.in/cseb/(S(l222vuyyhxffskjdtvbxytbz))/frmElectricityTariff.aspx 26. www.cgwrd.in 27. http://geo-sampada.nic.in/ 28. http://csidc.in/indmap1.htm

Investment Environment & Opportunities in Food Processing-Assam 17

29. https://easeofdoingbusinessinassam.in/notices/Land%20Bank.pdf

http://eodb.dipp.gov.in/Assam%20Single%20Window.pdf

https://easeofdoingbusinessinassam.in/EODB%20Act.pdf

30. http://www.oifc.in/Uploads/MediaTypes/Documents/Industrial_and_Investment_Policy_of

_Assam_2014.pdf

31. http://amtron.in/docPDF/1468313406.pdf

Investment Environment & Opportunities in Food Processing-Assam 17

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TRANSFORMING THE FOOD ECONOMY3-5 November, 2017 | Vigyan Bhawan, New Delhi, India

About World Food India

A global event to facilitate partnerships between Indian and international

businesses and investors, World Food India (WFI) is a gateway to the Indian

food economy and an opportunity to showcase, connect, and collaborate.

Write to us at:

Ministry of Food Processing Industries,Government of IndiaPanchsheel Bhawan, New Delhi, India.

Telephone Number: +91 11 -26492216/ 26492174/ 26493227/ 26490933

Find us at: http://mofpi.nic.in/https://www.worldfoodindia.in/

91

Chhattisgarh State Industrial Development Corporation, Government of Chhattisgarh 1st Floor, Udyog Bhawan, Ring Road No.-1, Telibandha, Raipur-492006

Telephone Number: +91-771-2583793, 6002071-73

Find us at: csidc.cg@nic.in , csidc_raipur@yahoo.com