Regular Programmed budget is funded by its members, through contributions set at the FAO Conference. This budget covers core technical work, cooperation and partnerships including the Technical Cooperation Programmed, knowledge exchange, policy and advocacy, direction and administration, governance and security in Gujarat. Gujarat State ranks first with respect to risk covered (Sum Insured), premium income, subsidies paid, farmers covered and claims paid under NAIS among the implementing States. National Horticulture Mission (in effect till XI plan) with main thrust on augmenting production of all horticultural products (Fruits, Vegetables, Flowers, Plantation crops, Spices, Medicinal Aromatic plants) in the states

1. Agri-business and Food processing
SECTOR PROFILE

2. Table of Contents
1. India–preferred investment destination
2. Gujarat–preferred investment destination in India
3. Food & Agro sector
• 3.1 Indian overview
• 3.2 Gujarat scenario
4. Advantage Gujarat
5. Doing Business in Gujarat
6. Tax & regulatory framework in Gujarat

3. INDIA - PREFERRED INVESTMENT DESTINATION
1
01

4. INDIA - PREFERRED INVESTMENT DESTINATION
th 9 largest economy in the world
by nominal GDP and
rd 3 largest by purchasing
power parity (PPP)
Recorded the highest growth
rates in the mid-2000s
One of the fastest growing
economies in the world (GDP
growth rate – 8.6% in 2011)
GDP growth rate
15.0%
10.0%
5.0%
Sectors’ contribution to GDP
Trade Scenario, USD billion
India is one of the
major G-20 economies:
400
350
300
250
200
150
100
50
th the 17 largest exporter and
th 11 largest importer in the world
Main Export Partners
1.73
1.6
1.52
Automobile
industry
Construction
activities
nd The 2 preferred global
investment destination
China
India
Brazil
US
10%
Growth
Decline
No Change
(World Investment Prospects Survey
2010-2012 by UNCTAD)
USD 254 billion of FDI inflows
between April 2000 and
March 2012
US
13%
UAE
12%
China
8%
Hong Kong
4%
Main Import Partners
China
12%
UAE
7%
Saudi Arabia
6%
US
6%
Australia
5%
FDI Confidence Index, 2012
A.T. Kearney Survey
FDI - Top Sectors
9.5% 9.6% 9.3%
6.8% 8.0% 8.6%
0.0%
2006 2007 2008 2009 2010 2011
0
1990-91 1994-95 2000-01 2004-05 2010-11
Export Import
1.52
1.87
0 0.5 1 1.5 2
Germany
Services
30%
Telecommunications
12%
Computer software
and hardware
11%
Real estate
11%
Power
7%
6%
Metallurgical
industries
5%
Pharmaceuticals
5%
Petroleum
and natural
gas
3%
CAGR
Exports
14%
CAGR
Imports
14%
- 200 400 600 800 1,000 1,200
Agriculture Industry Services
USD, billion
16%
17%
17%
18%
19%
20%
25%
26%
26%
26%
25%
26%
59%
58%
57%
56%
56%
2011-12
(A)
2010-11
(Q)
2009-10
2008-09
2007-08
2006-07 54%
02

5. World's largest
democracy with
1.2 billion people
Land of abundant
natural resources
and diverse
climatic conditions
Enabling business
environment
with greater global
participation
Strong Market
Fundamentals
Access to
technology as
a result of the
IT revolution
Impetus on
Infrastructure
Development
Progressive
simplification and
rationalization of
direct and indirect
tax structures
Competitively
priced skilled
labour
ADVANTAGE INDIA
03

6. GUJARAT - PREFERRED INVESTMENT
DESTINATION IN INDIA
2
04

7. GUJARAT HAS BEEN RANKED 1ST AS PER THE “ECONOMIC FREEDOM RANKINGS
FOR THE STATES OF INDIA, 2012” REPORT
Double digit growth rate with Gross State
Domestic Product of USD 75 billion
(2010-11) growing at a five year average of 10%
Growth in agricultural output in
the state over the last 10 years 11%
A highly industrialized state - Gross State
Domestic Product contribution from
manufacturing sector 28%
Gujarat’s Degree of Openness
(ratio of exports from state to
Gross State Domestic Product) 53%
A state with a population of 60 million and
one of the highest urbanization levels 43%
Increase in seat availability in
technical institutions over last 3 years 100%
A state with a high and
growing literacy rate 79%
26% A state with one of the highest share in
investments under implemented projects
in India
05

8. FOOD & AGRO SECTOR
3
06

9. FOOD & AGRO SECTOR INDIAN OVERVIEW
3.1
GUJARAT INDIA
07

10. OVERVIEW
• World’s largest producer of milk and livestock, with an annual production of 122
Million Metric Tonnes (MMT) of milk with 528 million livestock
• 2nd largest producer of fruits and vegetables, producing 213 MMT
• 3rd largest producer of food grains, producing 250 MMT and fish production of 8.3 MMT
• India produces 63 billion eggs, with 649 million poultry
• Agriculture engages 70% of Indian population. Food Processing sector alone employs
13 million directly and 35 million indirectly (2010-11)
• Agriculture contributes to 18% of Indian GDP. Food Processing contributes 14% of the
manufacturing GDP, which amounts to Rs. 2,800 billion. (2010-11)
Segments of the
Food & Agro Industry
Food Grains | Spices | Fruits & vegetables | Diary products | Meat &
poultry | Fisheries | Flowers | Processed foods & beverages
• The Indian food market is slated to reach USD 300 billion in 2015
• The Food Processing Industry is estimated to be worth around USD 67 billion and expected to increase to USD 175
billion by 2025
• 46 out of 60 soil types and 20 agri-climatic regions exist in India. India has 52% cultivable land compared to 11%
world average. India has 1.84 million sq.km of arable land, which is more than that in China, USA, Japan
• India is among 15 leading exporters of agricultural products in the world
• India's agricultural exports amounted to USD 23.2 billion with a 1.7% share of world trade in agriculture in 2010.
Exports of agricultural products are expected to account for 5%of the world's agriculture exports by 2014
Sources: Annual Report 2010-11, Ministry of Food Processing Industries (MoFPI); IBEF; International Trade Statistics 2011, published by the World Trade Organization
(WTO); APEDA; National Institute of Food Technology Entrepreneurship and Management; Director General of Commercial Intelligence & Statistics
08

11. KEY SEGMENTS
Grains Spices
• Production of food grains during 2011-12 is estimated
at an all time record level of 250.42 MMT which is a
significant achievement mainly due to increase in the
production of rice and wheat.
• India has emerged as world's top rice exporter
overtaking traditional leaders, Vietnam and Thailand.
• India's total rice export in 2011-12 is expected to be
6.5-7 MMT , which is around 7% of the country's total
production.
• India produces a wide variety of spices like black
pepper, cardamom, ginger, garlic, turmeric, chilli
and a large variety of tree and seed spices.
• The total production of spices was 4.0 MMT and the
area covered was 2.5 million hectares.
• India is the largest producer of ginger.
• Spice Board of India plans to promote exports of
spices by establishing 25-30 spice parks in different
parts of the country. This will help in achieving
export of spices worth USD 5.6 billion (Rs 30,000
crore) by 2020.
India can move from self reliance
in food to being a major exporter
of agri products
Indian annual Projected
Production
in MMT production demand in
(2010-11) 2020
Rice 95 123
Wheat 86 101
Pulses 18 41
Soyabean 13 13
Sources: Department of Agriculture and Cooperation, GoI; IBEF; FAPRI Agri Report, 2009
09

12. Share of Indian production of fruits & vegetables
41%
compared to global production
23% 24%
10%
100%
80%
60%
40%
20%
KEY SEGMENTS
Vegetables
• India accounts for about 15.5% of the 890 MMT of total global vegetable
production.
• India is the largest producer of okra amongst vegetables & ranks second in
production of potatoes (10%), onions, cauliflowers, brinjal, cabbages, etc.
Fruits
• China, India, Brazil, US, Italy, Spain, Mexico, Iran, Philippines and France are the
top ten aggregate fruit producers
• India accounts for about 10% of the 500 MMT of total global production of fruits
(excluding melons)
• India is the largest producer & consumer of cashew nuts
• India is the third largest producer of coconut and leads 90 coconut-producing
countries of the world, producing 11 MMT (2010-11)
Sources: APEDA, Department of Agriculture and Cooperation, GoI;
30% 36%
0%
Mango Banana Cashew nut Onion Cauliflower Green Peas
India World
India’s export (2010-11)
India exported fruits &
vegetables worth Rs.38.56
billion which comprised of fruits
worth Rs.26.35 billion &
vegetables worth Rs.12.21
billion.
India is the second largest producer of fruits and vegetables in the world, after China
• The vast production base offers India tremendous opportunities for export.
• During 2010-11, India produced 75.8 MMT of fruits and 137.7 MMT of vegetables. The area under cultivation of fruits
stood at 6.6 million hectares while vegetables were cultivated at 8.2 million hectares.
10

13. KEY SEGMENTS
Dairy India is the largest producer of milk in the world.
• In 2011, the production was 122 MMT. The production level is expected to
reach 180 MMT by the year 2021-22
• Indian Milk production contributes to 15% of global milk production.
• The market size of Indian Dairy Industry is estimated at around USD 60
billion (INR 2,662 billion).
• The organized cheese market including its variants of processed cheese
is valued at around Rs. 4.50 billion.
• French cheese major, Fromageries Bel, a 10-billion French franc outfit, has
entered the Indian market with La Vache Kirit or what is worldwide known
as The Laughing Cow
“The dairy industry must
respond to the rapidly growing
demand for milk as the
projected demand of 180
million Tonnes by 2021-22
would require our annual
increase in milk production,
which has been growing at 2.5
MMT to 5 MMT”
- Dr Amrita Patel,
Chairman, National Dairy
Development Board (NDDB).
Meat & poultry
• India has a large livestock base constituting 304.8 million
livestock including 199.1 million cattle, 105.3 million
buffalo, 71.6 million sheep and 140.5 million goat.
• The livestock population is projected to increase to 322
million by the year 2015.
• India ranks second in goat population around the world
with goat population share of 25% in India's Livestock
population.
• Indian Poultry Industry is booming and emerging as
the world's 2nd largest market.
• India produces 63 billion eggs and 649 million
poultry.
• India is the Ninth largest producer of poultry meat
with a production of 2.5 MT of poultry meat.
• The market size for Poultry Industry is estimated at
around USD 7.9 billion (INR 350 billion) and is growing
at an attractive rate of 12%-15% annually.
Sources: GAIC
11

14. KEY SEGMENTS
• India earned USD 48.5 million (around Rs 215.27 crore) from
exports of flowers to over 90 countries during 2010-11 (April to
December)
• Flower production in India was spread over 0.18 million hectares
with a production (2010-11) of 1 MMT of loose flowers and 69
million tonnes of cut flowers.
• Major importers of Indian flowers are USA (5,830 MT), Germany
(3,587 MT), Netherland (2,334 MT), United Kingdom (3,273 MT) and
United Arab Emirates (618 MT) and Pakistan (2 MT).
Flowers
Sources: Department of Agriculture and Cooperation, GoI; Indian Express
Major flower importing countries
12

15. KEY SEGMENTS
Processed food
• The Food Processing Industry is estimated to be worth around USD 67
billion and expected to increase to USD 175 billion by 2025
• The Processed Food sector has a potential of attracting USD 33 billion
investment
• About 6% of the total Indian produce is processed
• There are over 25,000 registered units in the food sector with investments
of Rs 840 billion
Crop Cumulative
wastage (%)
Cereals
3.9 –
6.0%
Pulses 4.3-6.1%
Oil seeds 6.00%
Fruits & Vegetables 5.8 -18.0%
Milk 0.80%
Fisheries 2.90%
Meat 2.30%
Poultry 3.70%
Value of Exports of food processing
related commodities
Rs. crore
19,257
23,685 23,766
26,802 29,211
34,204
43,783
49,352 50,759
63,733
70,000
60,000
50,000
40,000
30,000
20,000
10,000
-
2001-02
2001-03
2001-05
2001-04
2001-06
2001-08
2001-07
2001-11
2001-10
2001-09
Ministry of Food Processing Industries (MoFPI) through its Vision 2015
envisages
• Increasing the level of processing of perishables from 6% to 20%;
• Raising value addition from 20% to 35%
• Enhancing India’s share in global food trade from 1.5% to 3.0%
Year FDI in
Food
Processing
(in Rs Cr.)
2004 -05 174
2005 -06 183
2006 -07 441
2007 -08 632
2008 -09 456
2009 -10 1314
2010 -11 858
Sources: Annual Report 2010-11, Ministry of Food Processing Industries (MoFPI); IBEF; APEDA; National Institute of
Food Technology Entrepreneurship and Management; Director General of Commercial Intelligence & Statistics
13

16. Sources: Union Budget 2012-13
GOVERNMENT SUPPORT & ENABLERS
• The target for agricultural credit in 2012-13 has been raised to
Rs. 575,000 crore (USD 107.4 billion). This is an increase of Rs. 1 lakh crore
(USD 18.7 billion)
• The total plan outlay for agriculture and cooperation has been increased
by 18% from Rs. 17,123 crore (USD 3.2 billion) in 2011-12 to Rs. 20,208
crore (USD 3.7 billion) in 2012-13
• The allocation for Rashtriya Krishi Vikas Yojna was also increased by 17%
to Rs. 9,217 crore (USD 1.7 billion)
• A short term RRB Credit Refinance Fund was proposed. Also Kisan Credit
Card Scheme is to be modified to make it a smart card which can be used
at ATMs
• A new centrally sponsored scheme-National Mission on Food
Processing is to be started in cooperation with States in 2012-13
• Proposal made to allocate Rs 300 crore (USD 56 million) to Vidarbha
Intensified Irrigation Development Programme under RKVY.
• Interest subvention scheme for providing short term crop loans to
farmers at 7% interest per annum would be continued in 2012-13.
Additional subvention of 3% is to be made available for prompt paying
farmers
• Rs. 2,242 crore (USD 418.63 million) project launched with World Bank
assistance to improve productivity in the dairy sector
• Rs. 500 crore (USD 93.36 million) proposed to be provided to broaden
scope of production of fish to coastal aquaculture
Union Budget 2012-13
The Government of India's focus in the 12th Five Year Plan will be
"mechanization of agriculture"
14

17. GOVERNMENT SUPPORT & ENABLERS
Food processing industries have been put in the list of priority sectors for
bank lending – implying easier availability of credit
• External Commercial Borrowings available for cold storage projects
• Automatic approval for foreign equity up to 100% is permitted for most
of the processed food items
• The Government proposed to reduce basic customs duty from 7.5% to
2.5% on sugarcane planter, root or tuber crop harvesting machine and
rotary tiller and weeder and parts for the manufacture.
• Fringe Benefit Tax on food processing is abolished.
• Investment linked tax incentives are extended to cold chains and
warehousing of agricultural products.
• Creation of NABARD’s fund for funding the sector.
• The NABARD has increased financial assistance in Gujarat by 50% in 2011-
12, to touch Rs 4,340 crore (USD 810 million) as compared to Rs 2,894
crore (USD 540 million) in 2010-11
• Customs duty and excise duty reduced progressively on machinery and
other inputs
• 30 Mega Food Parks have been approved, out of which 15 are ongoing
projects
Sources: Ministry of Food Processing Industries (MoFPI); The Times of India
15

18. INVESTMENT TRENDS
• The Centre has set an investment target of USD 18.9
billion (Rs. 100,000 crore ) by 2015 in the Food Processing
sector
• There are 25, 367 registered food processing units in the
country whose total invested capital is USD 15.9 billion
(Rs. 84,094 crore )
• The Government of India has approved setting up of 15
Mega Food Parks (apart from ongoing 15 MFPs) under
Infrastructure Development Scheme, with a total grant of
USD 149 million (Rs. 787.50 crore), during the 11th Five Year
Plan
• The 30 Mega Food Parks will help 20,000 SMEs engaged in
the manufacturing and processing of food products every
year.
• The Ministry of Food Processing Industries has allocated
USD 112 million (Rs. 595 crore) for different schemes to be
implemented in the food processing sector during 2011-12
• An Inter-Ministerial Task Force on Agricultural Marketing
Reforms, constituted by the Union Ministry of Agriculture,
had recommended the creation of additional cold chain
facilities with an investment of USD 473 million (2,500
crore)
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
Plan allocations through Five Year Plans in
Mega Food Park scheme (Rs. 15.75 billion)
Modernization of abattoirs (Rs. 8.28 billion)
Integrated cold chain facilities (Rs. 2.10 billion)
Sources: Ministry of Food Processing Industries (MoFPI); IBEF; India Food Report 2008; 11th Five Year Plan
650
180
4,031
2,613
-
Total Plan allocation Allocation for infrastructure
development
Food Processing
10th five year plan 11th five year plan
In Rs. crore
FDI: The food processing
industries in India have attracted
Foreign Direct Investment (FDI)
worth USD 1.3 billion from April
2000 to September 2011.
The major infrastructure
envisaged under the 11th
Five Year Plan
16

19. POLICY INITIATIVES
Food processing industries have been put in the list of priority sectors for
bank lending – implying easier availability of credit
• Most of processed foods are exempted from the
purview of licensing under the Industries Act
• Food processing industries are included in the list of
priority sectors for bank lending (Budget 2001-02)
• Automatic approval of foreign equity up to 100% is
available
• Excise Duty on processed fruits and vegetables has
been brought down from 16% to 0%
• Income Tax Holiday was announced for certain
categories of food processing industries (Budget
2004-05).
• Excise Duty has been waived off on milk products
and poultry and Excise Duty on aerated drinks has
been reduced to 16% from 24% (Budget 2006-07).
• Excise Duty on Ready to Eat packaged foods and
Ready to Mix food items has been reduced to 0%
from 8% (Budget 2007-08).
• Customs Duty of Food Processing machinery has
been reduced to 5% from 7.5%.
• Excise Duty on refrigerated motor vehicles (reefer
vans) has been reduced from 16% to 8%.
Customs Duty on refrigerated motor vehicles has
been waived off.
• Exemption limit of Excise Duty for small scale
industries has been raised from Rs. 10 million to
Rs. 15 million
• All services provided by Technology Business
Incubators and their Incubatees whose annual
business turnover is less than Rs. 50 lakh have
been exempted service tax for the first 3 years.
• Project import status with concessional import
duty of 5% and full exemption of service tax for
installation and commissioning of mechanized
handling systems, pallet racking systems and
warehouses.
• Project import status with concessional import
duty of 5% and full exemption of service tax to
the initial setting up and expansion of cold
storage, cold rooms including farm pre-coolers
for preservation or storage of agricultural /
related sector produce; and processing units for
such produce
Sources: Annual Report 2010-11, Ministry of Food Processing Industries (MoFPI);
17

20. FOOD & AGRO SECTOR GUJARAT SCENARIO
3.2 18

21. OVERVIEW
Gujarat tops the agriculture growth table in the country growing
at a CAGR of 10.7% over the last decade.
15.2
16.5
14.7
15.2
13.5 14.5 14.5 15.9
25,582 32,940 38,162
12.5
14.1
48,441 47,540
23,222
28,577 27,815 32,408 28,506
120,000
110,000
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
-
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Agriculture contribution to GSDP at Current Prices In Rs. Crore
Agriculture contribution to GSDP at Constant Prices (2004 -05) In Rs. Crore
Agriculture contribution to GSDP at Current Prices % of total GSDP
Agriculture contribution to GSDP at Constant Prices (2004 -05) % of total GSDP
Rs. Crore
• Out of the total geographical area of 196 lakh hectares
in Gujarat, total cropped area is around 128 lakh
hectares (65%).
• Gujarat has seven agro-climatic zones and wide
varieties of soil
• The production of total food grains during 2010-11 is at
10.1 MMT as against 5.6 MMT in 2009-10.
• The production of cotton during 2010-11 is at 9.8
• Under the MIS
Scheme 3.2 lakh
hectares were
covered and 2.0 lakh
farmers benefitted
during 2005-11
period.
• Farmers had an
additional income of
Rs. 946 crore during
2005-11 due to MIS
14.2
18.2
78,143
14.6
107,253
47,092
20.9
53,333
40
35
30
25
20
15
10
5
0
Share of the sector as a % of GSDP
million bales as against 7.4 million bales in 2009-10.
• The major vegetables grown in Gujarat are Onion,
Potato, Brinjal, Tomato, Okra and Cucurbits.
• The State mainly produces spices viz. Cumin, Fennel,
and Garlic.
• GoI and GoG have spent Rs. 8530 million during
2005-2011 under Micro Irrigation System (MIS)
Scheme
Sources: Socio Economic Review 2011-12 of Gujarat; Department of Agriculture and Cooperation, GoI; Gujarat Green
Revolution Company Ltd.
19

22. KEY SEGMENTS
Food Grains
6,000
5,000
4,000
3,000
2,000
1,000
0
1800
1600
1400
1200
1000
800
600
400
200
0
Area in HA & production in ‘000 tonnes
Rice Wheat Jowar Bajra
Area in 2009 -10 Area in 2010 -11
Production in 2009 -10 Production 2010 -11
5,444
6,872
7,876 8,276
Sources: Socio Economic Review 2011-12 of Gujarat; Previous Socio-Economic Reviews
Cotton
• There is an increase of 79.65% in food grain production
in 2010-11 over the previous year 2009-10
• The productivity of food crops is estimated at 20.03
MT/Hectare
The production of total food grains during the year 2011-
12 is estimated at 10.1 MMT against the production of 5.6
MMT in 2009-10
• The production of cotton during the year showed an
increase of 32.75 percent in 2010-11 over the previous
year.
Production of cotton in Gujarat
7,014 7,401
9,825
1,906 2,011 2,372 2,422 2,354 2,464 2,623
2004 - 05 2005 - 06 2006 - 07 2007 - 08 2008 - 09 2009 - 10 2010 - 11
Area in '000 hectares Production in '000 MT
The production of cotton in Gujarat amounts to 31% of
production in the country.
20

23. KEY SEGMENTS
Fruits, vegetables & spices
The growth in vegetable production was the highest and recorded 45% growth in volumes in
2011-12 as against 2008-09 production figure
• State is in leading position in production of
Onion,Potato, Banana, Lime and Papaya
• The average productivity of vegetables is estimated at
18.95 MT/Hectare
• Gujarat has the highest productivity in custard and
guava production in India
• World’s largest producer of cumin
• The state also enjoys leading position (1st rank to 4th
rank) at all-India level in the productivity levels of major
fruits and vegetables including onion, potato, banana,
guava, tomato, lime, papaya, etc.
The famous kesar variety of mango in Gujarat, known as
‘Gir Kesar’ mango, has been granted Geographical
Indication tag, thus making it the second mango variety
in India to have such distinction.
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
60.0
Production in lakh tonnes
78.4 73.6
69.9 72.6
68.1
9.1
9.4
Fruits Vegetables Spices
9.5
2008 -09 2009 -10 2010 -11
At all-India level, the State contributes 14 percent to 20 percent share in major fruit and vegetable crops like;
Papaya, Sapota, Onion, Banana and Lime.
Sources: Socio Economic Review 2011-12 of Gujarat; Department of Horticulture, Gujarat; Agriculture and Cooperation
Department, Gujarat.
21

24. KEY SEGMENTS
Flowers
Production of flowers in Gujarat in 2010 -11
30,939
49,562
3,978 5,496
26,044
18,030
597 3,204
3,209 1,699
60,000
50,000
40,000
30,000
20,000
10,000
-
Rose Merigold Mogra Lilly Others
Area in hectares Production in MT
• During 2010-11 the production of flowers was 1.3 lakh
tonnes, spread over 15,000 hectares
• State has taken a lead in the sector of establishing
Green House by producing high value flowers like
Dutch Roses, Gerberas and Carnation. Government of
Gujarat offers 50% subsidy for setting up green
houses
• Major flowers grown in the state are Roses Lily,
Marigold, Jasmine, Tuberose. Flowers like Dutch Roses,
Gerberas and Carnation are being grown.
• Flowers grown in south Gujarat are sold in the world's
biggest flower markets of Amsterdam in Holland and
London in United Kingdom on a regular basis.
• Different varieties of Dutch roses that are being grown
in the green houses of Mahudi, Vyara, Bagumara and
Bardoli reach the markets in Tokyo, Dubai and those in
European countries via Amsterdam every week.
• Three firms from south Gujarat export as much as 1.5
lakh Dutch roses from the state. One of these also
exports 50,000 Gerbera flowers to London.
Sources: Socio Economic Review 2011-12 of Gujarat; Department of Horticulture, Gujarat; Agriculture and Cooperation
Department, Gujarat. The Times of India
22

25. KEY SEGMENTS
Fisheries
3.54 lakh ha
• Fishing fleet have increased up to 35,275 (2011) of
which 23,066 were mechanized and 12,209 were
non-mechanized
• During the year 2010-11, the total fish production
in Gujarat has been estimated at 7.75 lakh tonnes
• The area of continental shelf is estimated at
164,000 sq.km and is 32.54 % of the shelf area|
of India
Gujarat contributes 28% of the national
marine export in quantity and 15% in
terms of value
7,00,000
6,80,000
6,60,000
6,40,000
6,20,000
6,00,000
5,80,000
5,60,000
5,40,000
Source: Socio Economic Review 2011-12 of Gujarat; Directorate for Animal husbandry, cow breeding and fisheries, Gujarat
23
Total Coastal Belt 1,600 Km
Inland Reservoirs
Major fish categories
Marine Small Sciaenids, Bombay Duck,
Ribbon Fish, Catfish, Promfret
Inland Katla, Rohu, Mrigral
Value of Fish Production in 2010-11 was Rs. 41.51 billion
Gujarat ranks first among the states in marine fish
production and exported 1.98 lakh tonnes of marine
products worth Rs. 2,156 crore in 2010-11
5,20,000
Marine fish production in Gujarat in MT
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
20010-11
Production in MT

26. Animal husbandry
Animal husbandry plays a vital role in Gujarat’s rural economy, while
contributing nearly 5% to the state GSDP
• Gujarat has 23 Intensive Cattle Development
Projects (ICDP) with 1078 Breeding Centres in the
state which are aimed at improving the breed of
cattle and buffaloes
• Gujarat has 12 Intensive Poultry Development
Projects (IPDP), 5 District poultry Extension Centres,
and 85 Poultry Service Centres
• As per the provisional results of livestock* census
2007, total livestock population of Gujarat was
237.94 lakh
• As per the estimates of the Integrated Sample Survey
(ISS) of major livestock products, the production of
milk has increased to 93.21 lakh tonnes in 2010-11 as
against 88.43 lakh tonnes in 2009-10
Cow Gir, Kankarej
Buffalo Jafrabadi, Mehsani, Surti
Sheep Patanwadi, Marwadi
Goat Surti, Mehsani, Kutchchi, Zalawadi,
Gohilwadi
Horse Kathiawadi, Marwadi
Camel Kutchchi
Major Livestock Products
2008-09 2009-10 2010-11
Milk
(In million tonnes) 8.38 8.84 9.32
Eggs
(In million numbers) 1267.50 1276.20 1326.90
Wool
(In million kilos) 2.85 2.92 2.92
Source: GAIC; Socio Economic Review 2011-12 of Gujarat; Directorate for Animal husbandry, cow breeding and fisheries, Gujarat
24
KEY SEGMENTS

27. KEY SEGMENTS
Dairy
235
234
231
1593
1415
1192
1978
1912
1851
5285
5110
2010-11
2009-10
2008-09
Source: GAIC; Directorate for Animal husbandry, cow breeding and fisheries, Gujarat
Gujarat Cooperative
Milk Marketing
Federation (GCMMF)
• State level apex body of milk cooperatives in Gujarat
– aims to provide remunerative returns to farmers
and also serve interest of consumers by providing
quality products which are good value for money.
• I n d i a' s l a rg e s t fo o d p ro d u c t s ma r k e t i n g
organisation. Dairy No. 1 in Asia and Dairy No. 2 in the
world
• GCMMF has received the APEDA Award from
Government of India for Excellence in Dairy Product
Exports for the last 13 years.
• Milk Collection (Total - 2010-11) - 3.45 billion litres
• Milk collection (Daily Average 2010-11) – 9.45 million
litres (peak 12 million)
• During the year 2010-11 export turnover was of
Rs. 98 crore
• 17 Cooperative dairy plants & 25
private dairy plants
• 14,598 Milk Cooperative Societies
• 115 lakh liter/day milk production
• 3.01 million of milk producers
Gujarat
Dairy
Facts
Production of milk in lakh kgs
248
957
1850
4857
5514
0 2000 4000 6000 8000 10000
2007-08
Goat Cross-b red cow Indigenous cow Buffalo
25

28. CENTRAL GOVERNMENT INITIATIVES
National Horticulture Mission (in effect till XI plan) with
main thrust on augmenting production of all
horticultural products (Fruits, Vegetables, Flowers,
Plantation crops, Spices, Medicinal Aromatic plants) in
the states.
• Under the Kisan Credit Card
S c h e m e w h i c h w a s
introduced in 1998-99, total
accounts have increased to
27.02 lakh with an amount
of Rs.16,067 crore (till
September 2011).
• Schemes for Agri Infrastructure like Mega Food Parks,
Cold Chains, modernization of Abattoirs
• S c h e m e f o r t e c h n o l o g y u p g r a d a t i o n a n d
establishment and modernization of food processing
industries.
• Scheme for quality assurance, codex standards, R&D
and other promotional activities.
• Strengthening of institutions like Indian Institute of
Crop Processing Technology
Source: Socio Economic Reviews of Gujarat; Ministry of Food Processing Industries (MoFPI)
• Keen implementation of other
GoI initiatives: NFSM, ATMA
• The public sector banks have
been formulating Special
Agricultural Credit Plans (SACP)
since 1994-95 to improve credit
flow to the agriculture sector.
• Rashtriya Krishi Vikas Yojana (introduced in 2007, valid till 2012) –
District wise State plan scheme to incentivize the States that increase
their investment in Agriculture and allied sectors
• Under this scheme subsidy is provided to Agriculture Produce Market
Committees for Cold-Storage, Godown, Solid Waste Management and
New Market Development.
26

29. STATE GOVERNMENT INITIATIVES
• The Eight Krushi Mahotsav 2012 was started on 24 April 2012
• An assistance of worth Rs.720 crore has been given to around 15.17 lakh famers in 25
days. Assistance for purchasing 11,000 tractors and 34,00 rotavators was also given.
• 225 talukas and 4397 village clusters were visited with 4400 Krishi Raths.
• Around 3.5 lakh soil specimens were tested in laboratory .
• 2.75 lakh soil health cards were given.
• 40 lakh animals were vaccinated and around 4.5 lakh animals were treated for
diseases
• National Agricultural Insurance Scheme -(NAIS/Rashtriya Krishi Bima Yojana) – Gujarat State ranks first with
respect to risk covered (Sum Insured), premium income, subsidy paid, farmers covered and claims paid under NAIS
among the implementing States.
• Gujarat Green Revolution - GGRC is aimed to provide
professional services on Micro Irrigation System coupled
with required equipments and essential agro inputs to the
farmers of Gujarat
• Soil Health Cards (SHCs) under the Soil Health Programme of the Agriculture Department: The SHCs are
prepared after the soil is tested scientifically for various properties like productivity, mineral composition, water
retaining capacity and others. The SHCs also contain information on what kind of pesticides, fertilisers, seeds and
how much water should be used to get better productivity from the land. These details would help farmers take
accurate action to increase productivity of the land. Till December 2011, 38.20 lakh SHCs were distributed to
farmers. 2.75 lakh SHCs were given during Krushi Mahotsav 2012
• Soil and water testing laboratories and Krushi Vigyan Kendra (KVKs) Support
The State Government initiatives like Krushi Mahotsava, have put Gujarat in a leading position in Onion, Potato,
Banana, Lime and Papaya production. State has taken a lead in establishing Green House for producing high
value flowers like Dutch Roses, Gerberas and Carnation
Sources: Agriculture and Cooperation department, Gujarat
27

30. STATE GOVERNMENT INITIATIVES
Kisan Credit Cards: The Gujarat Government has initiated a programme to cover all
its farmers under the ‘Kisan Credit Cards’ issued by commercial banks which aims at
augmenting their borrowing capacity from banks and will also take care of their
day-to day needs. The Government has directed all officials to cover those farmers
who have so far not been issued Kisan Credit Cards
• Farm Accident Insurance Scheme
• Gujarat Comprehensive Community Accidental
Insurance Scheme
• Gujarat Agro Industries Corporation (GAIC) -
Promotes agricultural activities at the ground
level and helps in development of agro industries
and accelerates demand-based production of
agro products to develop agro industries in the
new global agricultural environment.
• Three phase 24×7 electricity supply to all villages
(Jyotigram Yojna)
• Enabling of Contract Farming
Sources: Agriculture and Cooperation department, Gujarat
• Framing of Bio-technology Policy & Agri Business Policy
• Policy for waste land utilization
• Financial assistance up to Rs 75 lakh is made available to
educational institutions in food technology for starting
the course as well as for up gradation.
• At the end of year 2010-11, 205 Agriculture Produce
Market Committees (APMCs), 199 Main Yards of Market
Committees and 201 Sub Market Yards were
operational in the State.
• 37 APMCs connected by futures market through
NMCDX
“Gujarat State Horticultural Mission (GSHM)”, a registered society has been formed for implementation of
“National Horticulture Mission (NHM)” in the state, with a view to double the horticulture production and income
by the year 2012 by adopting end-to-end approach with simultaneous development of post harvest infrastructure
and marketing facilities. The Mission is being implemented in 15 potential districts and covers 10 important
crops of the state viz. mango, chikoo, amla, banana, papaya, lime, cumin, fennel, flowers, medical and aroma crops.
28

31. EDUCATIONAL INFRASTRUCTURE
Has colleges offering courses in
Source: Websites of the universities; GAIC; Agriculture and Cooperation department, Gujarat;
Anand Agricultural University
• It was set up to provide education support to
the farming community in areas such as
Agriculture, Horticulture, Engineering,
Information technology and Business Studies.
• It aims to promote development in rural areas
through education, research and
support services
Junagadh Agricultural University
•
agriculture, Agricultural Engineering
and Technology and fisheries,
Veterinary Science and Animal
Husbandry.
• Offers MBA in Agri Business
Management
Kamdhenu Veterinary University
• It was set up in 2009-10 for the development of research, education, and extension in the
field of Animal Husbandry, Diary Development and Fisheries
• Has established Diary Science College and Livestock Inspector Training Centre
Sardarkrushinagar Dantiwada Agricultural University
• Offers courses in faculties such as agriculture,
horticulture, veterinary science and animal husbandry,
home science and nutrition, diary science and food
technology
• Offers a course in Agri Business Management
Navsari Agricultural University
• Has faculties of agriculture,
horticulture, veterinary
science and forestry
Indian Institute of Management Ahmedabad offers a two-year Post-Graduate Programme
in Agri-business Management (PGP-ABM)
29

32. TREND IN INVESTMENTS
• The State has received cumulative
foreign direct investment (FDI) inflows
across all sectors worth USD 7.2 billion
during April 2000 to April 2011
• 690 MoUs & Announcements
were
signed in Vibrant Gujarat 2011 for
projects to be established in the Food
and Agri sector
• Proposed investment – INR 34,851
crore
• The average investment per MoU is
about Rs. 50 crore
Source: iNDEXTb
30

33. INVESTMENT OPPORTUNITIES
Mega Food Park Scheme of India (MFPS)
MFPS is expected to facilitate the achievement of
the Vision 2015 of Ministry of Food Processing
Industries to raise the processing of perishables in
the country from the existing 6% to 20%, value
addition from 20% to 35% and the share in global
food trade from 1.5% to 3% by the year 2015. The
present scheme/benefits of Mega Food Park of
Government of India will be extended to the Mega
Agribusiness Parks be developed in Gujarat over
the next 3 years.
Sources: Ministry of Food Processing Industries
Agri / horticulture infrastructure projects: cold
storage, fresh fruits and vegetables pack house,
mechanized grain handling and storage at port, Food
Parks, terminal markets, irradiation centers.
Export-oriented processing
Value added processing based on local resources
• Natural resources based opportunities: natural
food colors, medicinal herbs extraction, tree oil
based bio-pesticides, Food Processing enzymes
and so on.
• Newer technology based projects/opportunities
Horticulture related industries in State
Onion dehydration units | Mango pulp and pickles units | Canned vegetables | Potato flakes |
Tissue culture laboratories | Nurseries | Spices and psyllium processing units | Cold storages
31

34. KEY INDUSTRY PLAYERS IN GUJARAT
32

35. GUJARAT FOOD & AGRO SECTOR – SUCCESS STORY
Amul: the brand that spurred a white revolution in India
Dairy No. 1 in Asia & Dairy No. 2 in the world
The key success factors are – strong supply chain & distribution network,
diversified product line, low cost strategy, adoption of technology
& e-initiatives
• Formed in 1946, managed by Gujarat Cooperative Milk
Marketing Federation limited (GCMMF)
• The Amul model has helped India to emerge as the
largest milk producer in the world. More than 13 million
milk producers pour their milk in 1,28,799 dairy
cooperative societies across the country.
• GCMMF has received the APEDA Award from
Government of India for Excellence in Dairy Product
Exports for the last 13 years.
• Amul has more than 150 chilling centres in villages
• Exports to Mauritius, UAE, Bangladesh, Australia, China,
South Africa, Singapore, Malaysia, Nepal, Pakistan,
Hong Kong & USA
• GCMMF has been accorded a "Trading House" status
• GCMMF is India's largest food product marketing
organization with annual turnover (2010-11)
US$ 2.2 billion (Rs. 9,774 Crores)
• Aims for a turnover of 27,000 crore by 2020
• Total Milk handling capacity per day - 13.67 million
litres
• Milk Collection (Total - 2010-11) - 3.45 billion litres
• Milk collection (Daily Average 2010-11) - 9.2 million
litres (peak 12 million)
• During the year 2010-11, achieved export turnover of
Rs. 98 crore
• Has 5 lakh distribution centres in the country
Future:
• Amul has signed an agreement with Walmart
to stock its products in Walmart stores in USA
• Looking to offer low-fat version of its products
• Planning to enter Japan and Sri Lanka
• Has tied up with Glaxo to sell baby food
2.5 Sales in USD billion
0.4 0.4 0.5 0.5 0.5 0.5 0.5 0.5 0.6 0.6 0.7
2.0
1.5
1.0
0.5
1995-96
1996-97
1998-99
Sources: www.amul.com
0.9
1.1
1.3
1.5
1.7
2.2
0.0
1994-95
1997-98
2000-01
2001-02
1999-00
2002-03
2003-04
2005-06
2006-07
2004-05
2008-09
2007-08
2010-11
2009-10
33

36. GUJARAT FOOD & AGRO SECTOR – SUCCESS STORY
McCain
McCain’s journey to success began in 1997 when it made its entry into India
with a proposal to invest Rs.1 billion (USD 25 million) in potato fry business.
McCain-McDonald’s India’s initiative with Gujarat farmers has grown into a
unique technology driven enterprise
• McCain is the most famous Canadian brand
name in the world, which manufactures frozen
food products, such as French fries, appetizers,
pizzas, vegetables, desserts, juices, entrees and
oven meals.
• 2006 – Plant opened in Gujarat to produce retail
and food-service French fries, and potato
specialties. Among the potato specialties the
plant eventually produced a number of popular
Indian style potato snacks.
• The plant supplies markets in Sri Lanka, Pakistan,
Bangladesh and Nepal, as well as India and
exports 10-15% of its output to South and
South-East Asian countries and the Middle East.
• McCain Foods sources significant share (nearly
85%) of the potatoes needed for manufacturing
its products from Gujarat itself. It has
undertaken potato contract farming in various
parts of north and central Gujarat.
• McCain Foods India (MFI) processes and
supplies frozen potato products from its $14.6
million plant on the National Highway number 8
that connects Delhi and Mumbai. The plant is
located 60 km away from Ahmedabad, enroute
to Mehsana.
Sources: Business Standard
The potato consumption
of McDonald India is almost
entirely met by McCain Foods
34

37. GUJARAT FOOD & AGRO SECTOR – SUCCESS STORY
Desai Fruits and Vegetables (DFV)
Desai Fruits and Vegetables is re-engineering the Indian agro landscape by
pioneering new techniques and concepts in farming & packaging to make
available quality agro products to the world.
• In 1999 - Ajit Desai, a simple farmer with a vision
seeded an ambitious enterprise in Amadpore, a
small village in Gujarat to tackle the problem of
lack of proper facilities, infrastructure and counsel
for the Agricultural sector in India. This movement
is today redefining the norms and introducing
world-class concepts in cultivating, packaging
and supplying fruits and vegetables in India.
• DFV provides a wide range of high quality tropical
fruits and vegetables. The product portfolio
includes over 10 types of fruits and 30 types of
vegetables. However, the key focus of DFV over
the years has been on four key products: Banana,
Mango, Pomegranate and Grapes.
• Desai Fruits and Vegetables has integrated pack
houses located at Navsari and Bharuch in Gujarat
and Baramati, Nasik and Karad in Maharashtra.
Sources: http://www.desaifv.com
With a group of over 2500 small and medium sized
•
farmers, DFV has created an eco-system that
provides natural and fresh fruits and vegetables.
• In April 2006, Contract Farming India AG, a
company based in Zug, Switzerland had taken up
a strategic stake in Desai Fruits and Vegetables.
• DFV is certified to ISO 22000 and BRC standards.
Also, its farmers are getting certified to Eurepgap
standards. Mango and grapes farmers are already
certified and all the pomegranate farmers are
expected to be certified.
• The pack-house is APEDA recognized and enjoys
IRW and WFLO memberships. The Company has
been approved by China for Mango and enjoys
protocol between APEDA and DCS.
35

38. GUJARAT FOOD & AGRO SECTOR – SUCCESS STORY
Riddhi Siddhi Group
Riddhi Siddhi Gluco Biols Ltd.(RSGBL) is one of the largest wet corn miller in India.
RSGBL is known for innovations and excellence in the field of transforming Corn
(maize) crop into essential industrial raw materials, adopting the most modern
technologies.
• Incorporated in 1990, Riddhi Siddhi Gluco Biols Ltd is a
leading manufacturer of starch and starch derivatives. The
Company is promoted by the Ahmedabad-based
Chowdhary family, traditionally engaged in trading sago and
tapioca starch
• RSGBL owns four state-of-the-art strategically located plants
across India, at Gokak (Karnataka), Viramgam (Gujarat),
Puducherry (Pondicherry – UT) and Pant Nagar (Uttrakhand)
• RSGBL is an ISO 9001-2000 and ISO 22000 certified
organization
• The company is managed by more than 1600 employees; its
stocks are listed and actively traded in the stock exchange
• RSGBL has its export presence across 25 countries
• RSGBL has enhanced its installed capacity more than 20-fold
in 15 years - acquired two multi-national corn processing
units (Glaxo Smithkline and Hindustan Unilever)
French company Roquette Freres, one of
the largest maize starch manufacturing
companies in the world, has acquired a
14.9 % strategic stake in RSGBL
RSGBL production unit at Viramgam, Gujarat
36

39. GUJARAT FOOD & AGRO SECTOR – SUCCESS STORY
Balaji Group
Balaji Group has pioneered the concept of potato wafers manufacturing by
focusing on customers taste and requirements. The company has almost
90% market share of Gujarat’s wafers market and 70% market share of
state’s namkeen (snacks) market.
• In year 2003 Balaji Group introduced the biggest fully automated Potato processing machinery plant
in India which can process 4500 kg. potato and make 1200 kg. of chips per hour.
• Balaji has established a very strong network of distributors across the state of Gujarat, to ensure
supply of fresh products across the state within 24 hours.
• The company strongly believes in Value for Money strategy, ensuring great quality and taste and
distributing sufficient dealer margins
• Balaji Group largely focuses on continuous R & D, to keep their products suited to the changing
demands of the customers.
37

40. ADVANTAGE GUJARAT
4
38

41. GUJARAT – THE STATE WITH STRATEGIC LOCATION
39

42. GUJARAT – INDIA’S ECONOMIC POWERHOUSE
40

43. GUJARAT – ROBUST INFRASTRUCTURE
41

44. GUJARAT – STRONG URBAN, SOCIAL AND EDUCATIONAL INFRASTRUCTURE
42

45. GUJARAT – LAND OF INNOVATIVE HUMAN CAPITAL
43

46. GUJARAT – NEW PARADIGM FOR INDUSTRIAL GROWTH
The current phase – involving Integrated development of large areas like SIRs,
PCPIR and DMIC – is poised to transform the industrial scenario in the state
Phase of industrial development
Level of Integration
202 Industrial
Estates
83 product
clusters
SEZs
• Multi product
• Chemical
• Textile
• Pharma
• IT / ITeS
• Electronics
• Engineering
• Biotech
• Gems &
Jewellery
Integrated large area
developments
• Special Investment Regions
(>100 sq. km.) and Industrial Areas
(50-100 sq. km.)
• Delhi Mumbai Industrial Corridor
• GIDC Industrial Estates
• Petroleum, Chemicals and
Petrochemicals Investment Region
• Knowledge corridor
• Logistics parks
• Theme towns
Phase I Phase II Phase III Phase IV
44

47. GUJARAT - PROACTIVE GOVERNANCE
Source: Socio-Economic Review Gujarat, 2011-12, Department of Economic affairs, March 2009
45

48. OPPORTUNITIES TO INVEST IN GUJARAT
46

49. DOING BUSINESS IN GUJARAT
5
47

50. OVERALL FRAMEWORK FOR DOING BUSINESS
48

51. TAX FRAMEWORK
49

52. EXCHANGE CONTROL REGIME
50

53. FRAMEWORK FOR SETTING UP INDUSTRY IN GUJARAT
51

54. KEY GOVERNMENT AGENCIES
66
52

55. INDUSTRIAL PROMOTION FACILITATORS
53

56. KEY CONTACT PERSONS
Department of Agriculture and
Co-operation, Government of Gujarat
Shri R. K. Tripathy
Principal Secretary ,
Department of Agriculture & Co-operation
Block No. 5, First floor,
New Sachivalaya,
Gandhinagar, Gujarat
PHONE : +91-79-23250803
Gujarat Agro Industries Corporation Ltd.
Shri. N.K. Singh, IFS,
Managing Director, GAIC
Khet - Udyog Bhavan,
Opp. Old High Court,
Navrangpura,
Ahmedabad - 380 014.
PHONE : +91-79-2754 4741/42/43, +91-79-2754 0254
FAX : +91-79-2754 2518
54

57. National Partner Knowledge Partner Exhibition Partner
Relationship Partner Airline Partners
nd Head Office: Block No. 18, 2 Floor, Udyog Bhavan, GH-4, Sector 11, Gandhinagar 382 010 Gujarat, INDIA
Phone: +91-79-23250492/93 Fax: +91-79-23250490
www.indextb.com, www.ic.gujarat.gov.in E-mail: indextb@indextb.com
Regional Office: A-6, State Emporia Building, Baba Kharak Singh Marg, New Delhi 110 001, INDIA
Telefax: 011-23747002, 23360049 E-mail: indextbnd@indextb.com
For more details and online registration, log on to www.vibrantgujarat.com