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Investing in Maize Processing.Pdf 1 Production & consumption scenario of maize in Odisha 4 Odisha as an investment destination for maize processing 10 Doing Business in Odisha 19 Content 2 Production & consumption scenario of m aize in Odisha 3 4 Odisha is a corn surplus state Area and Production scenario of major corn clusters of Odisha (2013-14 data) Districts Area in Lakh Ha Production in Lakh Tones % of total production Nabarangpur 0.69 1.92 28.5% Kalahandi 0.19 0.75 11.0% Koraput 0.30 0.70 10.5% Rayagada 0.16 0.62 9.0% Kendujhar 0.27 0.47 7.0% Kandhamal 0.17 0.29 4.5% Mayurbhanj 0.15 0.24 3.5% Odisha Total 1.93 7.79 73.8% • Seven districts contribute to around 74% of the total production • Nabarangpur district alone contributes to around 30% share in total production • Adoption of high yielding variety seeds contributes to 89% of total a rea and 93.3% of the total production • Almost 92% of the total maize is produced in Kharif season Maize growing districts Source: Directorate of Agriculture and Food Production, Odisha 5 Area and production has been increasing over the last decade 2.78 2.58 2.41 2.29 2.32 2.24 2.19 1.60 1.50 1.32 1.85 2.44 1.87 2.8 1.99 3.19 2.15 4.82 2.24 5.14 2.28 4.99 2.52 6.49 2.62 6.8 2.81 6.76 2.8 7.79 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Area (in lakh ha) Production (in lakh tones) Productivity (in Tones/ha Average maize yield increased from 1.32 tons/ha in 2004-05 to 2.78 tons/ha in 2013-14 6 Source: Directorate of Agriculture and food production, Odisha Agro-climate of Odisha is suitable for corn production Suitable agro climatic conditions, availability of high yielding varieties and increasing price realisation at farm level has a potential of shifting cultivation from other crops towards corn Agro-climatic factor Requirement Odisha Fertile well drained alluvial or red loams free from coarse Soil type materials and rich in nitrogen. Soil pH 7 to 8.5 Rainfall Annual rainfall of 50-75 cm Temperature 21°C to 30°C. Photoperiod 11.5 to 12.5 hour per day A number of seed varieties are used by Odisha farmers - based on maturity period Type Extra Early maturity Early maturity Medium maturity Late maturity HM 9, Malviya hybrid Pro 311, Bio 9681, Hybrid Vivek 27 Parkash, HIM makka 2, DK 701, Seed Tech 2324 , 129, X 3342 DMH 115, Pro 345 PAC 705 Composite D 994 - - - Agriculture Department, Odisha is promoting and distributing the following certified hybrid seeds under various programs- • PEHM-5, Deccan-103, Shakti, HQPM-1 and Navjyot Source: FICCI report- Empowering India-Redesigning G2B relations, Directorate of Agriculture and food production, Odisha 7 Given the production surpluses, the state caters to neighboring states as well • Surplus corn is transported from Odisha to Chhattisgarh West Bengal, Andhra Pradesh and Karnataka for value addition and processing • Chhattisgarh and Andhra Pradesh have major share in import from Odisha High potential for leveraging value addition opportunities • About 10 units are involved in flake manufacturing and oil production • Annual processing capacity of animal feed is about 2.6 lakh tonnes • There is high potential for establishing units producing industrial or consumer products such as starchs, sweeteners, ethanol etc Source: Interaction with Nabarangpur Mandi S ecretary, IFC’s Maize Value chain Report 8 Value added products are imported from other states Processing& Production Post harvesting Agri Marketing Agri Logistics Consumption Value addition Around 7 lakh 50% of the cobs are Village level Almost 75% Only about 25% Consumer tonnes maize is shelled at village aggregators at -80% of of corn is utilised buys value produced every level and sold to farm gate sell production is for processing added products year in Odisha aggregators at farm to wholesalers exported to within the processed gate who forward neighboring state indicating outside the state sell to traders states (West the untapped and processors Bengal, domestic Chhattishgarh potential for Only 48% and Andhra setting up of surplus traded Pradesh) for processing units through RMCs processing 9 10 Odisha as an investment destination for maize processing 11 In addition to the production surplus, the state is well located to source off-season (rabi) raw material from surrounding production centres Production % of States (in Lakh MT Prod. • Major production clusters of AP and Chhattisgarh are Andhra Pradesh 44.8 20.9% situated within 500 Km Bihar 15.41 7.2% radius. Odisha 6.76 3.1% • These States contributes to 25% of India’s total corn West Bengal 4.20 2.0% production Jharkhand 4.08 1.9% • 92% production of maize Chhattisgarh 1.75 0.8% in Odisha is in Kharif India Total 214.9 season. 70% of maize in neighbouring state is produced in rabi season, thus ensuring year round supply The state is well connected to these centres through road and rail Neighboring Maize prod. Distance from Jeypore Distance from Khurda district State Centers (Nabrangpur dist) Kms in in Kms Karimnagar 533 1000 Telangana Warangal 457 930 Kharif & Maize AP Nizamabad 670 1120 Vijayawada 463 755 ChhaCsgarh Ambikapur 660 575 West Singhbhum 765 400 Jharkhand Palamu 828 734 Rabi Begusarai 1056 856 Maize Bihar Bhagalpur 1140 776 Purnea 1232 915 WB Dinajoor 1251 861 Nabarangpur (major maize production center of Odisha) is around 270 Km from Raipur (CG) and 300 Km 12 fromVisakhapatnum (AP) via road Government of Odisha is keen on promoting private sector investments across the Maize value chain Government support across the value chain Post harvest Processing and Production handling, Logistics value addition and warehousing • DA&FP* Odisha is • Two dedicated maize • Agro Processing Sector incentivizing Hybrid mandis with all facilities is identified as one Maize Cultivation by established in major of the priority sector providing incentives up to maize producing areas in Industrial Policy 50% of cost of the inputs Umarkote and Raigarh Resolution 2015 and to hybrid maize growers hence is eligible for • Additional warehousing various tax incentives and • Centrally Sponsored capacity will be added capital subsidy* Scheme ISOPOM (Maize) by OSWC and RMC to is implemented to bring storage capacity to • Incentives are also provide training on better ~ 15000 MT available under Odisha production technologies to Food Processing Policy, farmers 2013 DA&FP*- Department of Agriculture and Food Production, Odisha ISOPOM- Integrated Scheme for Oilseeds, Pulses, Oil Palm and Maize 5 priority areas to facilitate private investment Animal feed Value added Corn based Corn oil units Rural processing unit products like- starch producing warehousing corn flakes, units units popcorn, corn sweeteners etc. Source: Annual activity report of Agriculture Department, GoO 13 Government of Odisha provides a number of incentives for investment in Maize Industrial Policy Resolution (IPR), 2015 Agro Processing sector is identified as one of the priority sectors in IPR 2015 Incentive Provision Exemption from payment of land premium, 100% exemption upto 100 acres and 50% for balance area leviable under OLR Act, 1960 1.100% on acquisition of plant & machinery for setting up of industrial units Entry Tax exemption 2. 100% of FCI on purchase of raw materials for a period of five years Stamp duty exemption 100% exemption VAT exemption 100% of VAT paid for 7 years of FCI Interest subsidy 5% per annum on term loan for 5 years availed from PFI’s/ banks up to INR 1 crore Power: Electricity Duty exemption 100% Exemption from electricity duty for 5 years for contract demand up to 5 MW Patents registration cost reimbursement 100% of the registration cost up to maximum of INR10 Lakh Renewal for consecutive 2 years i.e., for a period of 3 years at 100% to a total maxi- Quality certification (ISO) charges reimbursement mum of INR 3 Lakhs Technical Know-how cost reimbursement 100% of the expenditure with limit of INR 1 lakh for indigenous technology and INR 5 lakh for imported technology FCI- Fixed Capital Incentive • Government earmarked land will be allotted to enterprises at prevailing rates as provided by GoO and IDCO • Capital Investment subsidy to enterprises @ 25% of the project cost subject to a limit of INR 2 crores (33% Max upto INR 3 crore for units promoted by women, SC & ST entrepreneurs and units promoted in KBK (Kalahandi, Balangir, Koraput) areas • 5% per annum back ended interest subsidy on working capital loan for first 5 years from commencement of operations of the units subject to a limit of INR 5 lakh per year for 5 years • Electricity Duty exemption for a maximum 10 yrs. from date of commercial production • Reimbursement up to 50% of cost of quality certification subject to ceiling of INR 2 lakh Other incentives The Department of Agriculture (DoA) has set up dedicated centers for maize procurement at Umerkot and Raighar under the Nabarangpur Regulated Market Committe. These centers are meant to serve farmers and private players with accurate price and market information and facilitate fair transactions Reimbursement of VAT on Maize used for poultry feed Odisha State Warehousing C orporation is supporting entrepreneurs to set up warehouses of 2,500 MT or less under Odisha PEG scheme through PPP model 14 Source: IPICOL Website, MSME Department, Govt. of Odisha, APICOL And Odisha supports this positive business environment with excellent infrastructure Excellent road and rail network Robust power infrastructure • 15 national highways • Power surplus state • Road Density of 161 Km per 100 • 7296.3 MW of installed capacity square km area • 29 power companies have signed MoU • Railway network of the South Eastern to set up thermal power plants with an Railways and the East Coast Railways installed capacity of 37,000 MW Excellent road Robust power and rail network infrastructure Well connected ports Availability of trained • 2 major, 2 minor ports Availability human resources and 4 other ports are in Well of • Technical education is construction phase Advantage connected trained imparted through quality • Port connected to broad- ports Odisha educational institutes and gauge and by National human colleges Highway-5A resources • State govt.
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