Regional Industry Conclave: Explore unlimited opportunities within Madhya Pradesh's thriving agricultural and food processing sector

State of Madhya Pradesh occupies almost 10% of the country’s geographical expanse and is home to about 7% of India's vast population. It boasts of a variety of 11 agro-climatic zones. Diversity in the state's agriculture produce sustains largely on river Narmada and its tributaries. Now with the new government in the saddle, it is striving to ensure “ease of doing business” in the agro-processing sector with a new version of policies. In the dynamic landscape of agriculture and food processing, Madhya Pradesh emerges as a beacon of innovation and progress under the guidance of Honourable Chief Minister, Shri Mohan Yadav. The state, often referred to as the "Food basket of India," plays a pivotal role in shaping the future of the nation's Agri-sector, blending traditional practices with cutting-edge technologies.

India’s Food Basket

Agriculture Sector:

Madhya Pradesh primarily an agrarian state with agriculture sector contributing 47 percent to the state's GSDP, stands as a testament to the transformative initiatives spearheaded by the government. The adoption of smart farming techniques, including Artificial Intelligence (AI), has propelled the state towards a digital farming revolution. Under the visionary leadership of Honourable Chief Minister Shri Mohan Yadav, the government is actively digitizing farmer producer organizations (FPOs) and modernizing the agricultural supply chain.

The influx of start-ups focusing on digital farming, in tandem with government initiatives, is creating an ecosystem poised for significant growth. With a strategic focus on superior seed quality, fertilizer manufacturing, agriculture machinery, and irrigation projects, Madhya Pradesh offers abundant investment opportunities in the farming arena.

The state is a 7-time winner of “Krishi Karman awards” – an award given to the best performing Indian states in food grain production. Madhya Pradesh is the largest producer of Orange, Spices, Garlic, Ginger, Gram & Pulses in India. The State has high area under cultivation for organic produce and horticulture production. State is the second largest producer of fruits, garlic, tomato, green peas, guava, green chilly & onion and third largest producer of citrus fruits including lemons, cabbage & flowers, and milk. Madhya Pradesh is the largest producer and exporter of wheat grains (Sharbati) - considered as the highest quality of wheat in India. In just 06 years, state horticulture production rank has jumped from 6th to 1st.

Food Processing:

The global food processing market, valued at $134.21 billion in 2021, is projected to grow at a CAGR of 11.82% until 2030, with the Asia-Pacific region, particularly India, China, Indonesia, and Malaysia, driving significant global growth. India, with its rich agricultural resources and strategic location, has witnessed rapid growth in its food processing industry, contributing to a market size of $866 billion in 2022, poised to play a vital role in the country's economic expansion.

In the realm of food processing, Madhya Pradesh has become a key player, harnessing its rich agricultural resource base and strategic geographic location. The state's food processing industry, growing at an average annual rate of 8.3%, is set to play an important role in the nation's economic growth. States’ commitment to industry-friendly policies has attracted major investments from giants like Mondelez, ITC, and Unilever.

Under the PM Formalisation of Micro Food Processing initiative, the state is empowering unorganized micro food processing enterprises through capacity building and support to various producer organizations. The establishment of government-funded food parks, private mega food parks, and agro processing clusters showcases the government's dedication to fostering a robust food processing ecosystem.

Madhya Pradesh's focus on skill development in the sector is highlighted by its collaboration with the World Economic Forum to develop a Food Innovation Hub. The state boasts five reputed institutes dedicated to educating and enhancing the skilled workforce across the entire value chain.

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Explore unlimited opportunities within Madhya Pradesh's thriving agricultural and food processing sector at the Regional Industry Conclave, Ujjain on March 1st and 2nd.
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Dairy Processing:

Dairy activities form an essential part of the rural economy of Madhya Pradesh, serving as important source of employment and income. Much of the dairy produce is sold as milk, on account of which the industry holds tremendous potential for value addition and overall dairy processing. Currently, the milk accounts for 48% share of the State’s total dairy production. Some of the fastest growing segments include yoghurt, cheese, UHT milk, flavoured milk, and butter milk.

Under State's leadership, the state is the 3rd largest milk-producing state in the country, contributing 8.6% to the total milk production. Initiatives by the Madhya Pradesh Cooperative Dairy Federation, such as productivity enhancement, showcase the state's commitment to sustainable growth in the dairy processing sector.

Madhya Pradesh Cooperative Dairy Federation- the apex body MPCDF, alone recorded an average milk purchase of 8.35 lakhs KGPD and an average regional milk sales of 7.16 lakhs LPD and a sales revenue of more than INR 1982 Crores in 2022-23. The overall milk production in the State was around 20.01  million tonnes in 2020-2021. Major players involved in dairy processing are Amul (GCMMF), MPCDF (Sanchi), Anit Industries (Sourabh), Pawanshree Food International, Sterling Agro Industries Ltd (Nova) amongst others.

One District One Product

24 agriculture and horticulture related primary products which are commonly cultivated across the state including kodo-kutki, bajra, orange / citrus, custard apple, mango, tomato, guava, banana, betel vine, potato, onion, green pea, chilli, garlic, ginger, coriander, mustard products, sugarcane products, amla and turmeric. The districts like Chhindwara, Agar Malwa, Shajapur, Rajgarh, Mandsaur, Betul and Sehore are known profoundly for the production of oranges making it ideal for setting up orange processing industries. Similarly, Betul, Katni, Anuppur, Rewa, Singrauli and Raisen districts of MP which are famous for the cultivation of mangoes have many mango-based food processing industries that are in the various stages of being set up.

The state government has realised the potential of these districts and has already proposed setting up of plants which can produce processed food products like juices, jams, squash, syrup, beauty products, perfumes, essential oils, pulp, dried mango powder, chutney, mango Pana and starch for commercial use.

Strong Government Support through Conducive Policy Environment

State government has provided impetus to the sector by making pro-industry policies. On the fiscal front, incentives offered to the food processing sector are 1.5 times the incentives offered to the other sectors in the state.

State government is leaving no stone unturned in attracting further investment in the state and will be highlighting the state’s prowess in the food processing sector in the upcoming Regional Industry Conclave 2024 Ujjain. Chief Minister along with his team will be discussing various opportunities which the state offers in the food processing sector and how the same can be tapped in future to really make tangible difference in the farm income.

In conclusion, Madhya Pradesh, guided by the vision of Honourable Chief Minister Shri Mohan Yadav, stands at the forefront of dairy, agricultural and food processing innovation. The state's comprehensive approach, blending traditional wisdom with modern technologies, creates a promising future for investors and stakeholders across the agriculture, food, and dairy processing value chain.