Maharashtra’s Food Processing Industry is booming with a significant push from the central and state governments. Maharashtra is the 2nd largest state in terms of population and 3rd largest in terms of geographical area. As per the 2011 census, Maharashtra had a population of 11.2 crores, with a literacy rate of 82.3% and a sex ratio of 929 (Females per thousand males). The state is one of the highly urbanized states of India with a population density of population as 365 (per sq. km). Maharashtra is India’s largest state economy, contributing ~15% to India’s GDP. The State is also an Industrial powerhouse. It contributes ~15.5% of India’s manufacturing and ~15.7% of exports from the country.
Analyzing Maharashtra’s Logistics & Infrastructure Profile
- The state has ideal logistics and infrastructure 720 km long coastline covered by 2 major (JNPT & MBPT) and 48 non-major ports.
- The state has a total National Highways length of 18,366 km and a state highway length of 30,465 km. Approximately 99.2% of villages have road connectivity in the state
- The state has a total railway length of ~11,631 km, capturing 9% of the country’s railway network.
- Maharashtra has 4 international and 8 domestic airports that are operational. Further, there are 2 upcoming airports in the state at Navi Mumbai and Pune (Purandar).
- The state ranks 2nd in terms of electricity generation installed capacity.
- Maharashtra has a 2.23 MMTPA of warehousing capacity along with 1.03 MMTPA of cold storage capacity.
Food Processing Hubs in Maharashtra
The state of Maharashtra boasts 292 industrial areas, 99 co-operative industrial estates, along with dedicated sectoral parks spread over 2.5 lakh acres of land. The state also has dedicated wine parks, silver parks, 9 SEZs, floriculture parks, food parks, etc.
Mega Food Parks
Currently, the state has three Mega Food Parks out of which two are operational, while the third one is under construction. These Mega parks are:
- Satara Mega Food Park Pvt Ltd
- Paithan Mega Food Park Pvt Ltd
- Wardha Mega Food Park Pvt Ltd (Under Implementation)
Food Parks
Apart from Mega Food Parks, there are 20 Food Parks located in the state. These food parks have state-of-the-art facilities such as Cold Storage, Packaging, tetra packaging, and food testing laboratories. Besides these Food Parks, the state hosts dedicated clusters of Raisins, cashews, Mango, oranges, tomatoes, masalas, Rice, Pulses, and soybean processing industries.
Maharashtra’s Food Processing Industry: Diving Into The Policy Front
The Food Processing Policy of the State aims to develop Maharashtra into a food processing hub in the country. The policy aims for a rapid and sustainable growth of the Food Processing Sector.
Objective
The main objective of the food processing policy is to accelerate the process of doubling farmers’ income by increasing their share in value addition. It has the following objectives:
Ease of Doing Business
The policy aims to ensure that Maharashtra state continues to be the most preferred investment destination in the food-processing sector in India.
Accelerating Growth
It aims to achieve a double-digit growth rate of the food processing industry sector every year.
Increasing Farmers’ Income
The policy aims to increase the farmers’ income through the participation of the Food Industry sector in the next five years.
Employment Generation
The policy aims to the employment for about 5 lakh skilled and semi-skilled manpower.
Value Addition
It aims to reduce the wastages and increase value addition and ensure better prices for farmers while ensuring the availability of affordable and quality produce to consumers.
Tackle Malnutrition
The policy aims to address the challenges of malnutrition and malnutrition by ensuring the availability of nutritionally balanced foods.
Infrastructure Development
To make food processing more competitive and future-ready through the creation of adequate infrastructure facilities along the supply chain. The policy promotes the use of modern technology and innovation in the food processing domain. It aims to promote traceability, food safety, and encourage optimum capacity utilization of assets and resources.
Checking Regional Disparity
The policy aims to trigger the process of balanced regional development by promoting the processing of locally produced food crops.
Components of The Scheme
Establishment of two independent directorates to promote the Food Processing Industry in the State
The policy aims to establish two independent directorates for promoting the food processing industry in the State. It aims to set up the one Directorate under the Directorate of Industries. It will provide basic infrastructure to the Mega Food Park and Food Park for food processing. Further, a Food Processing Directorate has been set up under the Commissionerate of Agriculture to handle individual cases of schemes to provide benefits to various Central and State Government Schemes.
Single Window Clearance System
The policy provides for a Single window system at the State level as the Maharashtra Industry, Trade and Investment Facilitation Cell (Maitri). It aims to facilitate various licenses required for investors who have established new industries in the Maharashtra Industrial Development Corporation. Furthermore, the Food Processing Policy has proposed setting up a Single window system service at the district level be set up to provide necessary help to the investor in the food processing industry. It has also planned to create a State E-platform for the same.
Strengthen Infrastructure Facilities for Agricultural Marketing
The policy has proposed a number of initiatives for the development of the food processing industry. The State Government will develop cluster development based on the production strengths of respective geographies. Market-oriented and high-value crops will be produced through the cluster. It also calls for the development of a comprehensive value chain development strategy for each group will be developed. It is also possible to promote Food Processing Industries, Mega Food Park, with all facilities. This would minimize the risk and improve the profitability of individual units. All relevant Government Departments, viz. Animal Husbandry, Irrigation, Industries and Commerce, and Marketing will coordinate with the State Food Processing Department and make concrete efforts in developing these clusters across the value chain. The State Agriculture Department will develop the food processing clusters with the help of the Ministry of Micro, Small, and Medium Enterprises.
Availability of Quality Raw Material
The state government has made a suitable amendment in the APMC Act to facilitate the direct purchase of agricultural produce from producer farmers, Private Market, Single License, e-trading, and contract farming.
Facilitation of Allotment of Land to the Food Processing Industry
The Food Processing Policy also underlines the amendment in the APMC Act for leasing the farmers’ land on a long-term commercial basis.
Non-Agriculture Permission
The policy provided for the amendments to section 42 of the Maharashtra Land Revenue Code, 1966. It will be made with and permission of micro, small, and medium food processing industries, requiring a non-agriculture permission for land use for the food processing industry
Support the Development of Logistics Infrastructure
The policy is provided to support the expansion of the food processing sector and logistics infrastructure. This infrastructure will cover facilities for grading, packing, pre-cooling, food processing units, logistics park, integrated cold chain solutions, and last-mile connectivity. It will also facilitate customized transportation, technology adoption like barcoding, radio-frequency identification (RFIDs) tags, on-farm and off-farm end retail infrastructure. These infrastructures are being developed in a planned manner with the help of the Private Sector.
Dedicated Cargo Hubs
Under the logistics sub-part, the scheme provided for setting up of Dedicated Cargo Hubs at the port and the railways of each state for storage of perishables will be set up. It will make the state empowered to support cross-regional multimodal logistics, as this would make interstate and international markets accessible to the food business. This will also reduce transportation costs and enhance the efficiency of the entire logistics network of the country, thereby enhancing farmer incomes and ensuring better prices to consumers.
Priority status to MSMEs
The policy has provided a priority status to the Micro, Small, and Medium Enterprises processing units. This status is similar to agriculture for the facilitation of land allocation as well as access to low-cost credit. It has also provided support from the Central and State Government departments to FPOs/FPCs for setting up primary processing units like sorting, grading, and packaging. It aims to link farmers with the market and promote investments.
Labour Laws
The policy has provided for the amendment to the Labour law. It aims to introduce the presumption that food processing industries fall under the category of seasonal industries. It will be valid unless the Labour Department, in consultation with the Agriculture Department, decides the same to be non-seasonal based on the facts of the case.
Electricity Duty Incentive
The policy provided for the concession of electricity tariff, electricity duty, and cess to the industries in Marathwada, Vidarbha, and North + Maharashtra (D and D zones) regions. It also provided for the future extension to the food processing and fruit processing industries established in the Konkan region.
Water Charges
The policy provided for a provision in the rule that micro, small, and medium food processing industries would not require permission to lift water for processing units, except for Mega Food Parks.
Pollution control
The policy provided for exemption from the Environment Department’s pre-sanction for those Agri/Food processing units that could not discharge effluent.
Skill Development
The policy provided for a 50% subsidy for obtaining industry-recognized skill certifications from recognized institutions to Agro and Food Processing units/infrastructure projects.
Promote Women Entrepreneurs
The policy provided for the promotion of women’s entrepreneurship. According to the policy, priority is being given to the projects being set up by a 100 percent women’s group in the state-sponsored all food processing scheme. It includes projects under the Chief Minister’s Agriculture and Food Processing Scheme, 2017.
Solar Power Generation Facility
The policy has provided for the counterveiling charges for the production of solar electricity by the food processing units. The produced electricity may be used at a distant place by feeding the electricity so produced into the feeder of the Distribution Company. However, the Wheeling Charges will continue to be applicable.
Way Forward
The Food Processing policy provided for the formation of a governing Body for the implementation of this policy. It is headed by the Minister of Agriculture and Horticulture as its chairperson. The State Government aims to implement the provisions of this policy under the ecosystem promoted by the GoI. This policy has set out the guiding principles for creating a conducive environment for the healthy growth of the Food Processing Industry in the state. It will foster a strong foundation for the food processing industry in the state.