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Content

Production & consumption scenario of maize in Odisha 4

Odisha as an investment destination for maize processing 10

Doing Business in Odisha 19

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Production & consumption
scenario of m aize in Odisha

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Odisha is a corn surplus state

Area and Production scenario of major corn clusters of Odisha (2013-14 data)

Districts Area in Lakh Ha Production in Lakh Tones % of total production

Nabarangpur 0.69 1.92 28.5%


Kalahandi 0.19 0.75 11.0%
Koraput 0.30 0.70 10.5%
Rayagada 0.16 0.62 9.0%
Kendujhar 0.27 0.47 7.0%
Kandhamal 0.17 0.29 4.5%
Mayurbhanj 0.15 0.24 3.5%
Odisha Total 1.93 7.79 73.8%

• Seven districts contribute to around 74% of the total production


• Nabarangpur district alone contributes to around 30% share in total production
• Adoption of high yielding variety seeds contributes to 89% of total a rea and 93.3% of the total production
• Almost 92% of the total maize is produced in Kharif season

Maize growing districts

Source: Directorate of Agriculture and Food Production, Odisha

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Area and production has been increasing over the last decade
2.78
2.58
2.32 2.41
2.29 2.19
2.24

1.60
1.50
1.32
1.85
2.44

1.87

1.99
3.19

2.15
4.82

2.24

5.14

2.28

4.99

2.52
6.49

2.62

2.81
6.76

7.79
2.8

6.8

2.8
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Area (in lakh ha) Production (in lakh tones) Productivity (in Tones/ha

Average maize yield increased from 1.32 tons/ha in 2004-05 to 2.78 tons/ha in 2013-14

6 Source: Directorate of Agriculture and food production, Odisha


Agro-climate of Odisha is suitable for corn production
Suitable agro climatic conditions, availability of high yielding varieties and increasing price
realisation at farm level has a potential of shifting cultivation from other crops towards corn

Agro-climatic factor Requirement Odisha

Fertile well drained alluvial or red loams free from coarse


Soil type
materials and rich in nitrogen.
Soil pH 7 to 8.5

Rainfall  Annual rainfall of 50-75 cm

Temperature  21°C to 30°C.

Photoperiod 11.5 to 12.5 hour per day

A number of seed varieties are used by Odisha farmers -


based on maturity period
Type Extra Early maturity Early maturity Medium maturity Late maturity

HM 9, Malviya hybrid Pro 311, Bio 9681,


Hybrid Vivek 27 Parkash, HIM
makka 2, DK 701, Seed Tech 2324 ,
129, X 3342
DMH 115, Pro 345 PAC 705

Composite D 994 - - -

Agriculture Department, Odisha is promoting and distributing the following certified hybrid
seeds under various programs-
• PEHM-5, Deccan-103, Shakti, HQPM-1 and Navjyot

Source: FICCI report- Empowering India-Redesigning G2B relations, Directorate of Agriculture and food production, Odisha 7
Given the production surpluses, the state caters to
neighboring states as well
• Surplus corn is transported from Odisha
to Chhattisgarh West Bengal, Andhra
Pradesh and Karnataka for value addition
and processing

• Chhattisgarh and Andhra Pradesh have


major share in import from Odisha

High potential for leveraging value addition opportunities


• About 10 units are involved in flake manufacturing and oil production

• Annual processing capacity of animal feed is about 2.6 lakh tonnes

• There is high potential for establishing units producing industrial or consumer products
such as starchs, sweeteners, ethanol etc

Source: Interaction with Nabarangpur Mandi S ecretary, IFC’s Maize Value chain Report

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Value added products are imported from other states
Processing&
Production Post harvesting Agri Marketing Agri Logistics Consumption
Value addition

Around 7 lakh 50% of the cobs are Village level Almost 75% Only about 25% Consumer
tonnes maize is shelled at village aggregators at -80% of of corn is utilised buys value
produced every level and sold to farm gate sell production is for processing added products
year in Odisha aggregators at farm to wholesalers exported to within the processed
gate who forward neighboring state indicating outside the state
sell to traders states (West the untapped
and processors Bengal, domestic
Chhattishgarh potential for
Only 48% and Andhra setting up of
surplus traded Pradesh) for processing units
through RMCs processing

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Odisha as an
investment destination
for maize processing

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In addition to the production surplus, the state is well located
to source off-season (rabi) raw material from surrounding
production centres
Production % of
States Prod.
(in Lakh MT
• Major production clusters
of AP and Chhattisgarh are Andhra Pradesh 44.8 20.9%
situated within 500 Km Bihar 15.41 7.2%
radius.
Odisha 6.76 3.1%
• These States contributes to
West Bengal 4.20 2.0%
25% of India’s total corn
production Jharkhand 4.08 1.9%
• 92% production of maize Chhattisgarh 1.75 0.8%
in Odisha is in Kharif India Total 214.9
season. 70% of maize
in neighbouring state is
produced in rabi season,
thus ensuring year round
supply

The state is well connected to these centres through road and rail
Neighboring     Maize  prod.   Distance  from  Jeypore   Distance  from  Khurda  district  
State   Centers   (Nabrangpur  dist)    in  Kms   in  Kms  

Karimnagar   533   1000  


Telangana   Warangal   457   930  
Kharif &  
Maize AP   Nizamabad   670   1120  
Vijayawada   463   755  
ChhaCsgarh   Ambikapur   660   575  
West  Singhbhum   765   400  
Jharkhand  
Palamu   828   734  
Rabi Begusarai   1056   856  
Maize Bihar   Bhagalpur   1140   776  
Purnea   1232   915  
WB   Dinajoor   1251   861  

Nabarangpur (major maize production center of Odisha) is around 270 Km from Raipur (CG) and 300 Km
12 fromVisakhapatnum (AP) via road
Government of Odisha is keen on promoting private sector
investments across the Maize value chain
Government support across the value chain

Post harvest
Production Processing and
handling, Logistics
value addition
and warehousing

• DA&FP* Odisha is • Two dedicated maize • Agro Processing Sector


incentivizing Hybrid mandis with all facilities is identified as one
Maize Cultivation by established in major of the priority sector
providing incentives up to maize producing areas in Industrial Policy
50% of cost of the inputs Umarkote and Raigarh Resolution 2015 and
to hybrid maize growers hence is eligible for
• Additional warehousing various tax incentives and
• Centrally Sponsored capacity will be added capital subsidy*
Scheme ISOPOM (Maize) by OSWC and RMC to
is implemented to bring storage capacity to • Incentives are also
provide training on better ~ 15000 MT available under Odisha
production technologies to Food Processing Policy,
farmers 2013

DA&FP*- Department of Agriculture and Food Production, Odisha ISOPOM- Integrated Scheme for Oilseeds, Pulses, Oil Palm and Maize

5 priority areas to facilitate private investment

Animal feed Value added Corn based Corn oil units Rural
processing unit products like- starch producing warehousing
corn flakes, units units
popcorn, corn
sweeteners etc.

Source: Annual activity report of Agriculture Department, GoO


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Government of Odisha provides a number of
incentives for investment in Maize
Industrial Policy Resolution (IPR), 2015
Agro Processing sector is identified as one of the priority sectors in IPR 2015

Incentive Provision

Exemption from payment of land premium, 100% exemption upto 100 acres and 50% for balance area
leviable under OLR Act, 1960
1.100% on acquisition of plant & machinery for setting up of industrial units
Entry Tax exemption
2. 100% of FCI on purchase of raw materials for a period of five years

Stamp duty exemption 100% exemption

VAT exemption 100% of VAT paid for 7 years of FCI

Interest subsidy 5% per annum on term loan for 5 years availed from PFI’s/ banks up to INR 1 crore

Power: Electricity Duty exemption 100% Exemption from electricity duty for 5 years for contract demand up to 5 MW

Patents registration cost reimbursement 100% of the registration cost up to maximum of INR10 Lakh

Renewal for consecutive 2 years i.e., for a period of 3 years at 100% to a total maxi-
Quality certification (ISO) charges reimbursement mum of INR 3 Lakhs

Technical Know-how cost reimbursement 100% of the expenditure with limit of INR 1 lakh for indigenous technology and
INR 5 lakh for imported technology

FCI- Fixed Capital Incentive

• Government earmarked land will be allotted to enterprises at prevailing rates as provided by GoO and IDCO
• Capital Investment subsidy to enterprises @ 25% of the project cost subject to a limit of INR 2 crores (33% Max upto
INR 3 crore for units promoted by women, SC & ST entrepreneurs and units promoted in KBK (Kalahandi, Balangir,
Koraput) areas
• 5% per annum back ended interest subsidy on working capital loan for first 5 years from commencement of operations of
the units subject to a limit of INR 5 lakh per year for 5 years
• Electricity Duty exemption for a maximum 10 yrs. from date of commercial production
• Reimbursement up to 50% of cost of quality certification subject to ceiling of INR 2 lakh

Other incentives
The Department of Agriculture (DoA) has set up dedicated centers for maize procurement at Umerkot and Raighar under the
Nabarangpur Regulated Market Committe. These centers are meant to serve farmers and private players with accurate price and
market information and facilitate fair transactions

Reimbursement of VAT on Maize used for poultry feed

Odisha State Warehousing C orporation is supporting entrepreneurs to set up warehouses of 2,500 MT or less under Odisha
PEG scheme through PPP model

14 Source: IPICOL Website, MSME Department, Govt. of Odisha, APICOL


And Odisha supports this positive business environment with
excellent infrastructure
Excellent road and rail network Robust power infrastructure
• 15 national highways • Power surplus state
• Road Density of 161 Km per 100 • 7296.3 MW of installed capacity
square km area • 29 power companies have signed MoU
• Railway network of the South Eastern to set up thermal power plants with an
Railways and the East Coast Railways installed capacity of 37,000 MW
Excellent  road   Robust  power  
 and  rail  network    infrastructure  

Well connected ports Availability of trained


• 2 major, 2 minor ports Availability     human resources
and 4 other ports are in Well     of     • Technical education is
construction phase connected  
Advantage   imparted through quality
trained    
• Port connected to broad-  ports    Odisha   human    
educational institutes and
gauge and by National colleges
Highway-5A resources   • State govt. focused on skill
development for MSME sector
Land  parcels  
Availability  of     earmarked  for  
Efficient measures to meet Land parcels earmarked
water   food  parks  
industrial water requirement for food parks
• Sufficient availability of water resources • GoO is in process of setting
through natural sources up 3 mega food parks
• Presence of Hirakud reservoir & rivers like and one sea food park at
Tel, Mahanadi cater to industrial water strategic locations in the
requirement state

Source: Team Odisha website www.teamodisha.org, IPICOL

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Doing Business in
Odisha

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Easier and faster approval process…

Odisha Industries Facilitation Act (OIFA) 2004 allows all clearances required to start and operate an
industry through a single point within a set time period

SWCA: Single Window Clearance Authority

Investment Facilitation Cell


To strengthen the investor facilitation, the Government has constituted dedicated Investor Facilitation Cells at
the State and District levels. The key objective is to guide the investors, assess the project proposals for land
and utility requirements and follow up for timely approvals for establishment & operation of the units.

State Level facilitation cell District level facilitation Cell

Investment size More than INR 50 Crores Less than INR 50 crores

Chaired by CMD, IPICOL and convened by CGM/ Chaired by the GM, RIC/DIC and convened by As-
Structure
GM, IPICOL. sistant Manager DIC/RIC.
Representatives from IDCO, SPCB, OPTCL, Representatives from IDCO, SPCB, DoF&B and dis-
DoF&B, Water Resource Department and Industry trict level industry association.
association

Source: www.investodisha.org
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Investment promotion and Promotion, establishment and
Investor facilitation for operation of industries in the
approvals state
Industrial
promotion
facilitators Industrial Promotion Industrial Development
and Investment Corporation of Orissa
Corporation of Odisha Limited (IDCOL)
Limited (IPICOL)

Land acquisition Financial support and subsidy for Financial assistance to small and
Infrastructure Development promotion and development of medium scale industries
agro-based and food-processing Provides soft loans and margin
Project construction
industries. money for rehabilitation of sick
Industrial promotion
industrial units

Orissa Industrial Agricultural Promotion


Infrastructure and Investment
Development Corporation of Orissa
Corporation (IDCO) Limited (APICOL)

Facilitation of business in Export promotion of goods Aiding and assisting SSI units
pisciculture in brackish water from Odisha in the state for their sustained
areas, freshwater ponds and Marketing assistance to SSI growth and development
other water sources. units of the state

Orissa Pisciculture Orissa Small


Development Industries
Corporation Limited Corporation Ltd
(OPDC) (OSIC)

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Industries Department
Government of Odisha
Bhubaneswar- 751 001, Odisha, India
Tel: +91-674-2536640/2390253, Fax: +91-674-2536819/2394051
Email: indsec@ori.nic.in, Website: http;//orissa.gov.in/industries/index.htm

Industrial Promotion & Investment Corporation of Odisha Limited (IPICOL)


(The Secretariat of Team Odisha)
(An ISO 9001:2008 Certified Investment Promotion Agency)
IPICOL House, Janpath, Bhubaneswar-751 022, Odisha , IndiaTel: +91-0674-2542601/03, 2542607-08, Fax:
+91-0674-2543766 E-mail: info@investodisha.org, indsec.or@nic.in, Website: www.investodisha.org

Odisha Industrial Infrastructure Development Corporation (IDCO)


(Govt. of Odisha undertaking )IDCO Tower, Janpath, Bhubaneswar – 751 022, Odisha, IndiaTel: +91-674-
2540820/2542784, Fax: +91-674-2542956 Email: cmd@idco.in, Website: www.idco.in

Odisha Investment and Export Promotion Office (OIEPO)


Office of the Chief Resident Commissioner, Govt. of Odisha Odisha Niwas, 4 –Bordoloi Marg, Chanakyapuri,
New Delhi -110 021,Tel: +91-11-23014250, Fax: +91-11-23010839 Email : oiepo.teamorissa@gmail.com,
rc.odisha@gmail.com Website : www.oiepo.teamorissa.org

Directorate of Industries
Killa Maidan, Cuttack-753 001, Odisha, India
Tel: +91-671-2301892, Fax: +91-671-2307331
Email: diorissa@nic.in, Website: http://ws.ori.nic.in/diorissa

The Agricultural Promotion & Investment Corporation of Odisha Limited (APICOL)


(A wholly owned corporation of the Government of Odisha) Department of Agriculture
326, Baramunda, Bhubaneswar – 751 003, Odisha (India),
Tel: 0674-2354125, Fax-0674-2354006
Email: apicol96@yahoo.com / info@apicol.co.in, Website: www.apicol.co.in

Come. Invest. Grow.


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Developed under Odisha Inclusive Growth Partnership (OIGP)

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