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Sector Agriculture/Food Processing

Project Title Ready to Serve Fruit Beverages Manufacturing Unit

Project Description The Agricultural sector contributes approximately 15.7% of India's GDP. India is the world's largest producer across a range of commodities due to its favourable agro-climatic conditions and rich natural resource base.

The Food Processing sector is a highly fragmented industry and widely comprises of the following sub-segments:        Fruits and Vegetables, Milk and Milk products, Beer and Alcoholic beverages, Meat and Poultry, Marine products, Grain processing, Packaged or Convenience food and Packaged drinks.

It accounts for more than 70% of the sector’s output in terms of volume and 50% in terms of value. Though the organized sector seems comparatively small, it is growing at a much faster pace. India is the largest producer of fruits like mango and banana in the world and ranks 2 availability of fruits. The beverages segment, in India, is projected to grow @ 27%. nd

in the overall

The project proposes to set up a manufacturing unit for ready to serve fruit beverages in the State of Madhya Pradesh. Major horticulture crops in MP include fruits like Mango, Guava, Orange, Papaya and Banana. Due to the agriculturally rich land as well as various policy initiatives of the State Government, MP is an ideal location for such a plant. Project’s Value Proposition India is one of the world’s major food producers but accounts for less than 1.5 % of international food trade. This indicates vast scope for both investors and exporters. In order to further boost the growth of the Food Processing industry, the Government of India has formulated a Vision-2015 action plan under which specific targets have been set. This includes:     Trebling the size of the food processing industry from around US$ 70 billion to about US$ 210 billion Raising the level of processing of perishables from 6% to 20% Increasing value addition from 20% to 35% Enhancing India’s share in global food trade from 1.5% to 3%

India annually produces 105 million tonnes of milk (highest in the world), 150 million tonnes of fruits & nd vegetables (2 largest). While its agricultural production base is strong, at the same time wastage of agricultural produce is massive and the processing levels are very low - around 2.2% for fruits & vegetables compared to countries like USA (65 %), Philippines (78%) and China (23%). The share of India’s export of processed food in global trade is only 1.5% at present.

Even, within the country, the share of fruits and vegetables processed is much less when compared to other agricultural products such as milk (35%) and marine products (26%). More importantly the lack of processing and storage of fruits and vegetables results in huge wastages estimated at about 35%, the value of which is approximately Rs.50,000 crores annually. Increase in processing capacities for ready to serve fruit beverages will provide an opportunity to reach the domestic as well as export market. It will also help reduce wastages. Fruits production in Madhya Pradesh in 2007-08 is furnished in table below: Fruits Production in Madhya Pradesh in 2007-08 Fruit Mango Orange Lemon Mausambi Banana (Harvested) Grapes Guavava Papaya (Harvested) Other Fruits Total Production (‘000 tons) 58 280 14 3 470 4 47 17 31 1290

Source: Department of Horticulture & Food Processing, Madhya Pradesh MP State Horticulture Mission is looking into the development of clusters for cultivation of fruits like Mango, Orange, Aonla, Guava, Pomegranate, Ber, Custard Apple and Banana

MP’s value proposition Madhya Pradesh is ideally suited to house this project on account of the following reasons: Natural resources and abundant raw materials         Presence of 11 out of 18 Agro Climatic zones of India, 5 crop zones, and 4 soil types will suit production of almost any crop Established diversified crops - Field Crops, Fruits, Spices,...
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