Food Processing Industry contributes 1.5 %of the national GDP
• FPI export growth was 14.1 % during 2013-14
• GoI has approved 50 food parks and planning to set up 30 such parks across country
• GoI has also established 6 fully equipped agri-export zones (AEZs) to boost agriculture and food processing exports.
Maharashtra Status of Maharashtra’s Food Processing Industry - Maharashtra
• Maharashtra has 16,512 small and medium and 322 large scale food processing units. Share of food processing industry in the total share of the industrial sector is 11.1%.
• The food processing sector in the State has attracted $17.31 Billion (Rs. 1,039 crore) Foreign Direct Investment through 173 projects between August 1991 to March 2012.
• Maharashtra has declared Grape Processing Industry policy to give impetus to grape processing and wine industry. 90 % of the wine industry of the country is located in Maharashtra. The state has two wine parks- Nashik and Sangli.
Eight notified Agri Export Zones for products like mangoes, grapes, pomegranate etc
Under Mega Food Parks Scheme, Ministry of Food Processing Industries (MoFPI) has sanctioned four Mega Food Park project in Jain Agro Trading Company Private Limited, Wardha ("In-principle" approval). Vinay Tiwari Agro Estates & Farms Pvt. Ltd, Ahmednagar, Paithan Mega Food Park Ltd,Aurangabad and Satara Mega Food Park Pvt. LTd. Satara.
There are approximately 27 projects approved by MoFPI under its Cold Chain, Value Addition and Preservation Scheme
Under the scheme for Setting up of New/ Modernization of Existing Abattoirs of Ministry of Food Processing Industries (MoFPI), Maharashtra has been sanctioned 2 Abattoirs Projects so far - Ahmednagar Dist. Goat Rearing & Processing Co-operative Federation, Ahmednagar has been completed and Aurangabad Municipal Corporation, Padegaon, Aurangabad under PPP mode has been approved by the Approval Committee, commercial operations is expected to commence shortly.
Major Food Processing Hubs
• Food Parks: Eight Specialized Food Parks with facilities like cold storage, warehousing, advanced packaging, tera packaging & food testing laboratory. They are located at: Butibori (Nagur), Shandra (Aurangabad), Nevasa (Ahmednagar), Latur, Osmanabad, Nanded, Chiplun (Ratnagiri)
• Wine Parks: MIDC has set up three Wine parks at: Vinchur, near Nashik, Addn Vinchur near Nashik, Palus near Sangli
• Floriculture: Three Floriculture Parks developed as world class facility for production of flowers of different types and varieties. MIDC provides nursery, post-harvest infrastructure and logistic facilities. The parks are located in Talegaon (Pune), Mudkhed (Nanded) and Osmanabad.
• Central Food Technology Research Institute (CFTRI), Mumbai cater to the technology transfer and business development services to the Food Industries and
allied organizations in Mumbai as well as the Western region of the country.
Policy & Regulatory Support for the Food and Agriculture Sector
VAT + CST Abatement Stamp Duty Exemption Electricity Duty
Exemption Plus, a host of other benefits.
Mega and Ultra Mega projects can qualify for fiscal incentives up to 100% of the fixed capital investment.
10% additional incentive is provided by the state if the project creates double the employment required for the eligibility.
Grape Processing Policy
10% additional incentive on top of IPS is provided by the state if the project creates double the employment required for the eligibility.
• For wine industries, concession for excise duty at 25% of the production expenditure incurred by units
• Preferential Area of Wine Industries enabling to requisite grant loan
• Simplification in system for license/permission for wine production by empowering collector to issues license within 30 days
• Establishment of Wine Institute for R&D, training and quality of wine.
Draft Agro Industrial Policy 2010 (Yet to be finalized)
Policy emphasizes on adopting a cluster-based approach for developing agro processing sector in the state. Integrated projects would be promoted including micro-clusters, MSMEs and large scale multi-lateral funded projects. The policy also proposes to promote market led extension services, market linkages, development of marketing and post harvest infrastructure, formation and strengthening of farmers groups etc. Other focus areas- food quality and safety, R&D, capacity building and agri-tourism.
Tax in Maharashtra on Food
VAT: The levy and collection of VAT is governed by the Maharashtra VAT Act, 2002. Subject to the provisions of this Act, for most of the products, VAT is levied @ 0% to 5% on the basis of type of products.
Octroi Tax: This tax is levied by 21 municipal corporations in the state at the time of entry of goods in the city. Rates range from 0.1% to 7 % . The state government is in process of replacing the Octroi tax with Local Body Tax (LBT).
Invest in Mega Food Parks in Maharashtra- Paithan & Satara
Schemes for Food Processing
National Mission for Food Processing
1. Technology up-gradation/setting up/Modernization of Food Processing Units.
2.Cold Chain,Value Addition and Preservation Infrastructure for Non-Horticultural Products.
3.Setting up/Modernization/Expansion of Abattoirs.
4.Human Resources Developement (Degree/Diploma Courses,EDP,FPTC,Training at recognized Insutitutes and sensitization cum awareness programme).
5.Promotional Activities(Seminar/Workshop,Studies/Surveys,Exhibitions/Fairs,Advertisement & Publicity).
6.Creating Primary Processing Centers/Collection Centers in Rural Areas.
7.Modernization of Meat Shops.
9.Old Food Parks.
Technology up-gradation/setting up/Modernization of Food Processing Units
Eligible Sectors: Fruits and Vegetables, Milk, Meat, Poultry, Fishery, Oilseed, Rice Miling, Flour Milling, Pulse Prcocessing and Agr-Horticulture sectors including flavours and colours, Oleoresins, spices, Coconut, Mushrooms and Hops.
Eligible Units: Companies-private/PSUs/NGOs, Co-poperatives, Individuals engaged in setting up/expansion/modernisation of FPU.
Subsidy: 25% of Cost of plant & Machinery and technical civil works maximum Rs.50 Lacs
Food Processing Training Center
Central & State Government organisations, Educational and Training Institutions, Schools and colleges, ITIs, NGOs Co-operatiives.
Single Product Line Center: Rs. 4 Lacs (Fixed Capital cost) and Rs. 2 Lacs for working capital
Multi Product Line Center: Rs. 11 Lacs (Fixed Capital cost) and Rs. 4Lacs for working capital
Maharashtra State Fod processing Mission Directorate, MAIDC
Krushi Udyog Bhavan, Dinkarrao Desai Marg, Arey Milk Coloney, Goregain East