Agro Food Processing

• The state ranks 2nd by population and 3rd by geographical area.
• As per 2011 census, Maharashtra had a population of 112 crs having a literacy rate of 82.3% and a sex ratio of 929 (Females over per thousand males).
• It is one of the highly urbanized states of India having density of population as 365 (per sq. km).
• Maharashtra is India’s largest state economy contributing ~15% to India’s GDP.
• State is an Industrial Power House, contributing ~15.5% of India’s manufacturing, and ~15.7% of exports from the country.
• Maharashtra’s logistics & infrastructure profile includes:
  • 720 kms long coastline covered by 2 major (JNPT & MBPT) and 48 non-major ports
  • National Highways (18,366 kms) and state highways (30,465 kms); ~99.2% of villages are connected in the state
  • Railway length of ~11,631 kms capturing 9% of country’s railway network
  • 4 international and 8 domestic airports are operational along with 2 upcoming airports at Navi Mumbai and Pune (Purandar)
  • State ranks 2nd in terms of electricity generation installed capacity
  • 2.23 MMTPA of warehousing capacity along with 1.03 MMTPA of cold storage capacity
• The state boasts 292 industrial areas, 99 co-operative industrial estates, along with dedicated sectoral parks spread over 2.5 lakh acres land. In addition, state also has dedicated wine parks, silver parks, 9 SEZs, floriculture parks, food parks, textile parks and 27 IT parks.

Major Sectors in India’s Food Processing Industry include processed fruits and vegetables, bakery and confectionery, marine products, meat and poultry, beverages, and dairy.

India

• India’s Food Processing Sector contributes 8.45% to the GVA of agriculture for the year 2022-23.
• India’s Food & Allied Sector is projected to reach an output of $535 billion by 2025-26.
• Employment in the Registered Food Processing Sector supports 2.03 million workers, representing 12.22% of employment.
• India’s PMKSY Projects have established 41 Mega Food Parks as of June 30, 2024.
• Agro-Processing Clusters in India under PMKSY total 76 as of June 30, 2024.
• India’s Top Agricultural Exports include fruits and vegetables, meat, dairy and poultry products, and spices. The share of processed food in India’s agri-exports grew from 13.7% in 2014-15 to 25.6% in 2022-23.

Maharashtra

• Maharashtra’s Contribution to India’s Food Processing Industry accounts for approximately 13%.
• Maharashtra’s Gross Value Added in agriculture and related industries is 12.10%.
• Maharashtra has 2,728 registered food processing units (FPUs) contributing to the industry.
• Maharashtra’s Share in Agri and Food Product Exports for 2022-23 is 17.64% of India’s total.
• Maharashtra’s Employment in the Food Processing Industry accounts for around 13% of India’s workforce in the sector.
• Maharashtra hosts 12 food processing clusters, supporting regional industrial growth.

Vision:- Maharashtra state to develop as food processing hub in the country through rapid and sustainable growth of Food Processing Sector.

Mission:- To promote higher investment in food processing sector and thereby, accelerate the process of doubling farmers’ income by increasing his share in value addition.

Objectives:-

• a. To ensure that Maharashtra state continues to be the most preferred investment destination in food-processing sector in India
• b. To achieve double digit growth rate of food processing industry sector every year.
• c. To increase the farmers income by the participation of Food Industry sector in the next five years.
• d. Employment generation for about 5 lakh skilled and semi-skilled manpower.
• e. By reducing wastages and increasing value addition, ensure better prices for farmers while ensuring availability of affordable and quality produce to consumers.
• f. To address the challenges of malnourishment and malnutrition by ensuring availability of nutritionally balanced foods.
• g. To make food processing more competitive and future ready through creation of adequate infrastructure facilities along the supply chain, use of modern technology and innovation, promoting traceability, food safety, encouraging optimum capacity utilization of assets and resources.
• h. To trigger process of balanced regional development by promoting processing of locally produced food crops.

Capital Subsidy

• Food Processing Scheme – Chief Minister’s Food Processing Scheme – Capital subsidy of 30% of the cost of project comp. of technical civil work & plant & machinery etc.is with ceiling Rs. 50. lakh.
• Foreign Direct Investment: 100% FDI (except for alcohol, beer, & sectors reserved for small scale industries) & repatriation of capital and profits permitted.
• Export Oriented: 100% export-oriented units allowed to sell up to 50% of their produce in the domestic market & export earnings are exempted from corporate taxes.
• Investment linked Tax Incentive: Investment-linked tax incentive of 100% deduction of capital expenditure for setting up & operating cold chain facilities for setting up and operating warehousing facilities

Capital Investment Fund

• Central Government -Top priority for development of food processing industry & Dedicated Capital Investment Fund of Rs. 2000 crore with NABARD.
• Low-cost capital made available by NABARD for setting individual FPU;s in notified Food Parks.

Other Incentives

New LSI and expansion thereof will be eligible for following incentives in all categories of areas:

• 75% of cost of water audit limited to ₹ 1 lakhs.
• 75% of cost of energy audit limited to ₹ 2 lakhs .
• 50% of cost of Capital Equipment under the measure to conserve / recycle water limited to ₹ 5 lakhs.
• 50% of cost of Capital Equipment for improving energy efficiency limited to ₹ 5 lakhs

• Eligible large units are entitled to 100% Stamp Duty Exemption for land requisition (including lease rights and sales certificates).
• MSMEs are allowed to utilize vacant areas in Maharashtra Industrial Development Corporation (MIDC) regions due to the high cost of land.
• Land Reservation for MSMEs: In new industrial areas developed by MIDC, 10% of the area is reserved for micro and small-scale industries.

Department of Agriculture