FOOD PROCESSING
Uttar Pradesh
Sowing the seeds of growth
Uttar Pradesh:
Sowing the Seeds of Growth
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Vast source of raw material - Uttar Pradesh dominates Indias agricultural production, accounting for about 20%
of food grain, 34% of wheat, 19% of fruits and 30% of vegetables produced in the country
U.P. has the largest livestock population in the country and tops in milk production
State is the largest producer of sugarcane, accounting for 35% of total production and ranks second in the
production of sugar
Four Agri Export Zones (AEZ ) for Potatoes, Mangoes, Vegetables and Basmati rice
2101 agriculture marketing hubs being set up at a cost of INR 354 crore for grain storage ,farmer service
centers, banks and primary processing units
With a population of 200 million, U.P. offers the largest market for consumption of food products
Huge opportunity exists in the sector as currently only 2% of total produce of fruits and vegetables is
commercially processed
Relatively low cost skilled workforce
Attractive investment opportunities driven by favourable policy environment Mega Food Park at Jagdishpur
envisioned under the new Industrial Policy
43195
26950
16016 15742 15357
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
UP Punjab MP WB Haryana
Food Grains Production (000
FY 2009-10
Tonnes) Cropped Area (000 Hectares)
25540
22771 22108
20657
13830
0
5000
10000
15000
20000
25000
30000
UP Rajasthan Maharashtra MP AP
Source: India-Stat Handbook 2012
Contribution of Uttar Pradesh in Key Agricultural Products (2010-11)
All figures in Million tonnes except Livestock , which is in Million nos. Source: Dept. of Food Processing, GoUP
S. No Item India U.P. Share of UP in Indias total
output (%)
1 Potato 39.66 13.58 34.24
2 Livestock (excluding Cow) 529.69 60.27 11.38 1st
3 Milk Production 121.85 21.03 17.26
4 Vegetables 146.55 43.30 29.55 2nd
5 Fruits 74.87 14.53 19.41 6th
6 Maize 16.72 1.04 6.22
7 Oil Seeds 31.10 0.91 2.93 7th
U.P.s Rank
Contribution of Uttar Pradesh in Key Agricultural Products (2011-12)
All figures are in lac tonnes Source: Directorate of Agriculture, GoUP
S. No Item India U.P. Share of UP in
Indias total output (%)
1 Food Grains 2574 517 20
2 Wheat 939 317 34
3 Rice 1043 140 13
4 Pulses 172 24 14
5 Sugar Cane 3577 1255 35
Food Processing Policy 2012- Attractive Financial Incentives
Exemption from Stamp Duty
100% exemption on purchase, lease or acquisition of land by new food processing industrial units anywhere in the state
Exemption from Mandi Fees
100% exemption from Mandi fee for 10 years to all new export oriented units using perishables with an investment of INR 5 crore and
above in plant & machinery and spare parts and for 15 years to such units with an investment of INR 10 crore and above
Interest subsidy
New food processing units will get reimbursement at 7 percentage points of interest rate on the loan taken for plant, machinery and
spare parts maximum up to INR 50 lac in a year for a maximum of 5 years.
Capital Investment Subsidy
25 % subsidy subject to a maximum ceiling of INR 50 lac on the cost of plant, machinery and technical civil works for setting up,
expansion and modernization/ up-gradation of the food processing industrial unit under the National Food Processing Mission.
50 % subsidy subject to a maximum of INR 10 crore on the cost of plant, machinery and technical civil works for setting up of
integrated cold chain and processing infrastructure for non-horticultural produce under the National Food Processing Mission.
Assistance for Global competitiveness, quality & standardization
To facilitate internationally accepted quality or environmental certification, viz. ISO 14001, ISO 22000, HACCP, Sanitary-
Phytosanitary certification, one time grant of 25% of fees and testing charges, maximum up to INR 50,000 will be available to new
units investing minimum INR 25 lac on plant, machinery and spare parts.
Assistance for Market Development
Available to new units with minimum investment of INR 25 lac on plant, machinery and spare parts.
50% reimbursement, maximum up to INR 50,000 per beneficiary for expenses made on sending the sample of a processed food
product of U.P. for test marketing in non SAARC countries. This assistance will be available only for one sample and to one country.
20% reimbursement of F.O.B. value maximum up to INR 2 lac per beneficiary per year for 3 years on export of processed products by
Air/Sea to non SAARC countries.
Other Facilities
Implementation of Warehouse receipt system for availing the loan facility on the issued receipts by the accredited Warehouse under
Warehouse Act.
Provision of reimbursement of 50 per cent of EPF contribution for their workers for a period of 3 years by new units after 3 years from
the date of establishment of the units, if the new units give employment to 100 or more unskilled workers.
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Uttar Pradesh:
Sowing the Seeds of Growth
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Vast source of raw material - Uttar Pradesh dominates Indias agricultural production, accounting for about 20%
of food grain, 34% of wheat, 19% of fruits and 30% of vegetables produced in the country
U.P. has the largest livestock population in the country and tops in milk production
State is the largest producer of sugarcane, accounting for 35% of total production and ranks second in the
production of sugar
Four Agri Export Zones (AEZ ) for Potatoes, Mangoes, Vegetables and Basmati rice
2101 agriculture marketing hubs being set up at a cost of INR 354 crore for grain storage ,farmer service
centers, banks and primary processing units
With a population of 200 million, U.P. offers the largest market for consumption of food products
Huge opportunity exists in the sector as currently only 2% of total produce of fruits and vegetables is
commercially processed
Relatively low cost skilled workforce
Attractive investment opportunities driven by favourable policy environment Mega Food Park at Jagdishpur
envisioned under the new Industrial Policy
43195
26950
16016 15742 15357
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
UP Punjab MP WB Haryana
Food Grains Production (000
FY 2009-10
Tonnes) Cropped Area (000 Hectares)
25540
22771 22108
20657
13830
0
5000
10000
15000
20000
25000
30000
UP Rajasthan Maharashtra MP AP
Source: India-Stat Handbook 2012
Contribution of Uttar Pradesh in Key Agricultural Products (2010-11)
All figures in Million tonnes except Livestock , which is in Million nos. Source: Dept. of Food Processing, GoUP
S. No Item India U.P. Share of UP in Indias total
output (%)
1 Potato 39.66 13.58 34.24
2 Livestock (excluding Cow) 529.69 60.27 11.38 1st
3 Milk Production 121.85 21.03 17.26
4 Vegetables 146.55 43.30 29.55 2nd
5 Fruits 74.87 14.53 19.41 6th
6 Maize 16.72 1.04 6.22
7 Oil Seeds 31.10 0.91 2.93 7th
U.P.s Rank
Contribution of Uttar Pradesh in Key Agricultural Products (2011-12)
All figures are in lac tonnes Source: Directorate of Agriculture, GoUP
S. No Item India U.P. Share of UP in
Indias total output (%)
1 Food Grains 2574 517 20
2 Wheat 939 317 34
3 Rice 1043 140 13
4 Pulses 172 24 14
5 Sugar Cane 3577 1255 35
Food Processing Policy 2012- Attractive Financial Incentives
Exemption from Stamp Duty
100% exemption on purchase, lease or acquisition of land by new food processing industrial units anywhere in the state
Exemption from Mandi Fees
100% exemption from Mandi fee for 10 years to all new export oriented units using perishables with an investment of INR 5 crore and
above in plant & machinery and spare parts and for 15 years to such units with an investment of INR 10 crore and above
Interest subsidy
New food processing units will get reimbursement at 7 percentage points of interest rate on the loan taken for plant, machinery and
spare parts maximum up to INR 50 lac in a year for a maximum of 5 years.
Capital Investment Subsidy
25 % subsidy subject to a maximum ceiling of INR 50 lac on the cost of plant, machinery and technical civil works for setting up,
expansion and modernization/ up-gradation of the food processing industrial unit under the National Food Processing Mission.
50 % subsidy subject to a maximum of INR 10 crore on the cost of plant, machinery and technical civil works for setting up of
integrated cold chain and processing infrastructure for non-horticultural produce under the National Food Processing Mission.
Assistance for Global competitiveness, quality & standardization
To facilitate internationally accepted quality or environmental certification, viz. ISO 14001, ISO 22000, HACCP, Sanitary-
Phytosanitary certification, one time grant of 25% of fees and testing charges, maximum up to INR 50,000 will be available to new
units investing minimum INR 25 lac on plant, machinery and spare parts.
Assistance for Market Development
Available to new units with minimum investment of INR 25 lac on plant, machinery and spare parts.
50% reimbursement, maximum up to INR 50,000 per beneficiary for expenses made on sending the sample of a processed food
product of U.P. for test marketing in non SAARC countries. This assistance will be available only for one sample and to one country.
20% reimbursement of F.O.B. value maximum up to INR 2 lac per beneficiary per year for 3 years on export of processed products by
Air/Sea to non SAARC countries.
Other Facilities
Implementation of Warehouse receipt system for availing the loan facility on the issued receipts by the accredited Warehouse under
Warehouse Act.
Provision of reimbursement of 50 per cent of EPF contribution for their workers for a period of 3 years by new units after 3 years from
the date of establishment of the units, if the new units give employment to 100 or more unskilled workers.
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Key Investment Opportunities
Segment Key Strengths of Uttar Pradesh
Fruits & Vegetables
(34%) production
Fruit belts declared for mango, guava and aonla
Major vegetables cultivated in the state are peas, potato, cabbage, tomato, okra
& other leafy vegetables
Major fruits grown in U.P. are mango (ranks 1st ), aonla (ranks 1st), guava
(ranks 4th), banana & litchi
Major spices grown in the state are chillies, garlic, ginger & turmeric
Meat Processing Largest exporter of processed frozen meat
Contributes more than 60% of Indias meat exports annually
Buffalo meat is the main source of meat production and export; other sources
of meat include sheep and goat
15 modern integrated abattoirs in the state and 35 meat processing units
Dairy Processing Largest milk producing State in the country
Contributes approximately 1/5th of the total milk production of the country
Buffalo milk contributes 70% to the total milk production in the State
Only 5% of the fluid milk is processed and marketed in the organised sector
pointing to a huge opportunity
Per capita per day availability of milk in U.P. is 303 grams while the national
average is 245 grams
Fisheries Sector Third largest producer of inland fishes in India
Total estimated fresh water fish production of U.P. for the year 2010-11 is 4.30
lac metric tons against national production of 50 lac metric tons
Poultry Processing 1139.22 million eggs produced annually in the state
Huge opportunity exists as 365 crore eggs and 900 lac poultry chicks ,are
procured annually from other states
New scheme for enhancing poultry production on the anvil, which includes
interest subsidy and concessions related to VAT, mandi tax and stamp duty
Grain Processing Sector Largest food grain producing state & largest producer of wheat
Major food grains produced in the state include rice, wheat, maize,bajra, gram,
pea and lentils
Second largest producer of rice, accounts for about 13% of the national
production
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Ranks sixth in fruits (19%), second in vegetables (30%) and first in potato
Specialized Industrial infrastructure on
offer to investors
Industrial Park Product Location Facilities
Agro Parks Agro & food
processing
Integrated Dairy
Park
Dairy
Multi-chamber and atmosphere controlled Cold
Storages with Sorting, Grading and Cleaning
facility and Quality Control Labs
4.5 lac litre per day capacity of Dairy Plant
Barabanki,
Gorakhpur
Saharanpur
Varanasi
Lucknow
Success Stories
*Indicative
Key Investment Opportunities
Segment Key Strengths of Uttar Pradesh
Fruits & Vegetables
(34%) production
Fruit belts declared for mango, guava and aonla
Major vegetables cultivated in the state are peas, potato, cabbage, tomato, okra
& other leafy vegetables
Major fruits grown in U.P. are mango (ranks 1st ), aonla (ranks 1st), guava
(ranks 4th), banana & litchi
Major spices grown in the state are chillies, garlic, ginger & turmeric
Meat Processing Largest exporter of processed frozen meat
Contributes more than 60% of Indias meat exports annually
Buffalo meat is the main source of meat production and export; other sources
of meat include sheep and goat
15 modern integrated abattoirs in the state and 35 meat processing units
Dairy Processing Largest milk producing State in the country
Contributes approximately 1/5th of the total milk production of the country
Buffalo milk contributes 70% to the total milk production in the State
Only 5% of the fluid milk is processed and marketed in the organised sector
pointing to a huge opportunity
Per capita per day availability of milk in U.P. is 303 grams while the national
average is 245 grams
Fisheries Sector Third largest producer of inland fishes in India
Total estimated fresh water fish production of U.P. for the year 2010-11 is 4.30
lac metric tons against national production of 50 lac metric tons
Poultry Processing 1139.22 million eggs produced annually in the state
Huge opportunity exists as 365 crore eggs and 900 lac poultry chicks ,are
procured annually from other states
New scheme for enhancing poultry production on the anvil, which includes
interest subsidy and concessions related to VAT, mandi tax and stamp duty
Grain Processing Sector Largest food grain producing state & largest producer of wheat
Major food grains produced in the state include rice, wheat, maize,bajra, gram,
pea and lentils
Second largest producer of rice, accounts for about 13% of the national
production
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Ranks sixth in fruits (19%), second in vegetables (30%) and first in potato
Specialized Industrial infrastructure on
offer to investors
Industrial Park Product Location Facilities
Agro Parks Agro & food
processing
Integrated Dairy
Park
Dairy
Multi-chamber and atmosphere controlled Cold
Storages with Sorting, Grading and Cleaning
facility and Quality Control Labs
4.5 lac litre per day capacity of Dairy Plant
Barabanki,
Gorakhpur
Saharanpur
Varanasi
Lucknow
Success Stories
*Indicative
Potential projects for investment
Feature
Availability of
Raw Material
Demand
Potato Chips are generally
manufactured from specialized
varieties of potato, however flakes
may be manufactured from any
regular variety of potato, which is
produced abundantly in U.P.
Huge availability of potato in
the State. Ranks 1st in
production ,with 34% share
of the countrys potato
output.
A huge market exists for
these products.
A plant has already been
established near Hapur for
potato flakes manufacturing.
State Government is planning to
incentivize this sector keeping in
view the huge potential
Vodka
Huge availability of potato in
the State. Ranks 1st in
production ,with 34% share
of the countrys potato
output.
A major distillery is in the
process of establishing a
plant near Rampur
Pulping and canning of Mango is a
major industry in the state
Mango and guava is
produced in large quantities
and varieties in the state.
State ranks 1st in the
production of mango and 4th
in the production of guava in
the country.
Institutional buyers like
Hotels, Restaurants have
significant demand for fruit
pulp.
Huge export markets for
fruit pulp include UAE,UK
,Saudi Arabia etc.
*Indicative
Projects
Potato Flakes
Manufacturing
(potato based)
Mango/Guava
Litchi Pulp
About
Udyog Bandhu
Udyog Bandhu' is an IS/ISO 9001:2008 certified agency of Government of
Uttar Pradesh to facilitate industrial and infrastructure investment in the
State.
It works as a bridge between the entrepreneurs and government by
providing advisory services to entrepreneurs desirous of investing in Uttar
Pradesh. 'Udyog Bandhu' is a proactive contributor in policy formulation for
creating congenial business environment leading to industrial growth. It
helps different industry related departments to simplify and deregulate their
processes of clearance.
To ensure effective and timely resolution of issues of entrepreneurs, 'Udyog
Bandhu' organises Tripartite Meetings involving entrepreneurs and
government departments concerned. It works at three tiers of district,
division and State to redress the grievances of industries.
State level Udyog Bandhu is headed by Hon'ble Chief Minister and an
Empowered Committee has been constituted under the Chairmanship of
Chief Secretary to decide on policy matters and coordination of
interdepartmental issues for facilitating the investment in the State.
'Udyog Bandhu' has implemented 'Nivesh Mitra' - a web-based seamless
interface to facilitate investment in Uttar Pradesh. 'Nivesh Mitra' is an online
single window clearance facility available 24x7 to investors willing to apply
for setting up industry or enterprise in the State.
Application through 'Nivesh Mitra' is mandatory for establishing all kinds of
enterprises except for micro enterprises. Facility of online payment of
relevant fee is also available through this web portal. 'Nivesh Mitra' is
currently providing services of 12 departments concerned with industries, it
works as a single point mechanism for timely issuance of approvals and
clearances required for setting up enterprise anywhere in the State.
Potential projects for investment
Feature
Availability of
Raw Material
Demand
Potato Chips are generally
manufactured from specialized
varieties of potato, however flakes
may be manufactured from any
regular variety of potato, which is
produced abundantly in U.P.
Huge availability of potato in
the State. Ranks 1st in
production ,with 34% share
of the countrys potato
output.
A huge market exists for
these products.
A plant has already been
established near Hapur for
potato flakes manufacturing.
State Government is planning to
incentivize this sector keeping in
view the huge potential
Vodka
Huge availability of potato in
the State. Ranks 1st in
production ,with 34% share
of the countrys potato
output.
A major distillery is in the
process of establishing a
plant near Rampur
Pulping and canning of Mango is a
major industry in the state
Mango and guava is
produced in large quantities
and varieties in the state.
State ranks 1st in the
production of mango and 4th
in the production of guava in
the country.
Institutional buyers like
Hotels, Restaurants have
significant demand for fruit
pulp.
Huge export markets for
fruit pulp include UAE,UK
,Saudi Arabia etc.
*Indicative
Projects
Potato Flakes
Manufacturing
(potato based)
Mango/Guava
Litchi Pulp
About
Udyog Bandhu
Udyog Bandhu' is an IS/ISO 9001:2008 certified agency of Government of
Uttar Pradesh to facilitate industrial and infrastructure investment in the
State.
It works as a bridge between the entrepreneurs and government by
providing advisory services to entrepreneurs desirous of investing in Uttar
Pradesh. 'Udyog Bandhu' is a proactive contributor in policy formulation for
creating congenial business environment leading to industrial growth. It
helps different industry related departments to simplify and deregulate their
processes of clearance.
To ensure effective and timely resolution of issues of entrepreneurs, 'Udyog
Bandhu' organises Tripartite Meetings involving entrepreneurs and
government departments concerned. It works at three tiers of district,
division and State to redress the grievances of industries.
State level Udyog Bandhu is headed by Hon'ble Chief Minister and an
Empowered Committee has been constituted under the Chairmanship of
Chief Secretary to decide on policy matters and coordination of
interdepartmental issues for facilitating the investment in the State.
'Udyog Bandhu' has implemented 'Nivesh Mitra' - a web-based seamless
interface to facilitate investment in Uttar Pradesh. 'Nivesh Mitra' is an online
single window clearance facility available 24x7 to investors willing to apply
for setting up industry or enterprise in the State.
Application through 'Nivesh Mitra' is mandatory for establishing all kinds of
enterprises except for micro enterprises. Facility of online payment of
relevant fee is also available through this web portal. 'Nivesh Mitra' is
currently providing services of 12 departments concerned with industries, it
works as a single point mechanism for timely issuance of approvals and
clearances required for setting up enterprise anywhere in the State.
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Udyog Bandhu
Executive Director, Udyog Bandhu,12 C Mall
Avenue, Lucknow-226001Government of Uttar Pradesh
Phone :91-522-2238283
Fax:91-522-2238255
Email: [email protected]
Website: www.udyogbandhu.com
Department of Food Processing, Uttar Pradesh
Director
2-Sapru Marg, Lucknow(Uttar Pradesh)
Tel. 0522-4044414,4003054, 2623277 Fax 0522-2621382
web: www.horticulture.up.nic.in
email : [email protected] , [email protected]
Udyog Bandhu
An ISO 9001-2008
Certified Organisation
Knowledge Partner
