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Content
Production scenario
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Overview of marketing channels 7

Investment opportunities in rice value chain 10

Doing business in Odisha 17

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Production scenario

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Odisha is among top 5 States in area and production
of rice
Area in Production Percentage
Yield in Percent
State million ha (in million contribution
tonnes/ha contribution to
tonnes/ha) to National
National acreage
production

Uttar Pradesh 5.95 13.46 2.26 13.51% 13.22%

West Bengal 5.43 13.24 2.44 12.35% 13.00%

Punjab 2.82 11.29 3.98 6.40% 11.09%

Andhra Pradesh 4.10 10.49 2.56 9.31% 10.30%

Odisha 4.02 9.50 2.36 9.10% 7.43%

Bihar 3.32 6.77 2.04 7.55% 6.65%

Chhattisgarh 3.77 6.25 1.66 8.58% 6.14%

Tamil Nadu 1.90 5.08 2.87 4.33% 6.14%

Assam 2.54 4.77 1.88 5.77% 4.68%

Haryana 1.24 3.80 3.06 2.81% 3.73%

Karnataka 1.42 3.49 2.46 3.22% 3.42%

Jharkhand 1.47 3.48 2.37 3.34% 3.42%

Maharashtra 1.54 3.06 1.99 3.51% 3.00%

India 42.75 105.23 2.46

• During FY 2012-13, Odisha contributed to about 9% of acerage and 7.4% of


production of rice in India

Source- Indiastat, Department of Agriculture and Cooperation, Directorate of Agriculture and Food Production, Odisha

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Rice production in Odisha has steadily increased over
the last decade

Area in million ha Production in million tonnes Yield in tonnes per ha

• During the past decade productivity has increased at a CAGR of 2.41%.

• There is wide scope for increase in production by increasing productivity

• Area under HYV paddy is increased from 2.63 million ha in 2001-02 to 3.47 million ha in 2012-13
which is around 86% of the total cultivated area uder rice. Swarna, Swarna Sub-1 and Shankar are the
widely cultivated paddy varieties in Odisha

15 districts contribute to more than 70% of rice produced in Odisha


Major rice producing Total % of
production (in lakh total production
districts
tones

• Paddy is widely cultivated in most districts of Odisha Bargarh 7.4 9.7%


Balangir 6.5 8.6%
• Eight districts contribute to 50% of rice production
Kalahandi 6.2 8.2%

• Out of the total area under paddy cultivation 51.07% Mayurbhanj 4.2 5.6%
of area is under irrigation. Nabarangpur 4.2 5.5%
Subarnapur 4.2 5.5%
Sundargarh 4.1 5.4%
Sambalpur 3.2 4.2%
Source- Directorate of Agriculture and Food production, Odisha
Total 40.1 52.7 %

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More than 90% of rice is produced in Kharif season
• Only 8-10% of the total rice is produced in Rabi season
• Five districts contribute more than 70% of the Rabi production

Major districts producing rabi rice

Districts % of rabi rice


production

Bargarh 31.96%
Balasore 11.42%
Subarnapur 10.64%
Puri 10.54%
Kalahandi 10.05%
Major districts producing rabi rice
Total 74.61%

The table below shows the season wise data of area, production and varieties cultivated

Season Percent of Percent of total Month of Month of


total area production planting maturity Varieties cultivated

Kharif
Autumn (Upland rice) 13.9 10.3 June September Kalakeri, Kulia, Dular, Heera,
Annada, Shatabdi, Kalinga III, Parijat,
Pathara, Sidhanta

Swarna, Swarna Sub-1, Shankar,


Bhoi, Sarathi, Daya, Lalat, Konark,
Winter (medium and 79.3 80.6 July Oct- Nov Naveen, Surendra, Padmini,
low land) Jagannath, Mahsuri, Savitri,
Dharitri, Gayatri, Pooja, Mahanadi,
Jagabandhu and Upahar

Rabi
Hybrids like Ajay, Rajalaxmi,
Summer rice (irrigated) 6.8 9.1 Jan- Feb May-June KRH-2, PHB-71, PA 6201, PA
6444, PA 6129 and Sahyadri

6 Source- Directorate of Agriculture and Food production, Odisha


Overview of
marketing channels

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A snapshot of Rice value chain in Odisha

Farmers sell Wholesalers work Around 95% rice Govt. distribution Government
grain to local through licensed mills in state custom agencies procure procured rice
collectors/ traders or commission mill for government custom milled is distributed
co-operatives agents procurement rice from millers through fair
or traders. Mandi wholesalers Rice milling is carried Retailers purchase price shops.
and their commission out in small and through traders Better-quality
agents sell grain to medium size rice mills from the mandi rice sold in
millers and retailers which are huller mills wholesalers in retail shops is
where recovery is 58% larger towns & imported from
only cities and sell it to other states in
local villagers. India.

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Role of various government agencies in procurement and
distriution of rice

Small and marginal District OSCSC obtains


farmers sells to nearest administration the CMR from
PACS/WSHG/PP allocates mills millers. It might
to the PPC/ also enter into
Large farmers sell PACS/WSHG/ agreement
to paddy purchase centres RMCs based with NAFED,
of RMCs or temporary on the overall MARKFED and
purchase yards set up by procurement TDCC to obtain
RMCs at mill gates target for the CMR from millers
district

Paddy OSCSC delivers


State government procured surplus rice to FCI
agencies like OSCSC, by state and the remaining
NAFED, MARKFED government is distributed
and TDCC procure agencies is through Fair price
paddy directly from allocated shops under PDS
farmers or through to mills for
PACS/WSHG/PPCs. milling

PACS- Primary Agriculture Cooperative Society OSCSC- Odisha Civil Supplies Corporation Ltd.
WSHG- Women Self Help Group MARKFED- Odisha State Cooperative Marketing Federation Limited
PP- Pani Panchayats NAFED- National Agricultural Cooperative Marketing Federation of India
RMC- Regulated Market Committee TDCC- Tribal Development Cooperative Corporation of Odisha Ltd.
PPCs- Paddy Purchase Centres

Source- Directorate of Agriculture Corporation GoI, FS & CW Department, GoO, OSCSC, Global Agri “Odisha Agribiz sector scan”;
Interaction with local millers
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Investment
opportunities in
rice value chain

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Government of Odisha is keen to promote private sector
investments across the rice value chain

Government support across the value chain

Post harvest Processing and


Production handling, Logistics value addition
and warehousing

• GoI launched BGREI* in • Institutional storage • Agro Processing sector


2010-11 with the focus providers in the is identified as one
on rice and wheat for state viz Odisha of the priority sectors
improving the agronomy- State Warehousing in Industrial Policy
with adoption of cluster Corporation, CWC, FCI Resolution 2015 and
approach for enhanced and Regulated Market hence is eligible for
productivity Committee plan to add various tax incentives and
storage capacity of 2.1 capital subsidy
• GoO is providing input lakh MT
subsidies for increasing • Incentives are also
seed replacement rate and • Odisha government has available for rice
training farmers to use SRI signed an MoU with processing under Odisha
method of rice cultivation NABARD’s consultancy Food Processing Policy,
for better output services, NABCONS, for 2013 and also as Capital
constructing 544 rural incentive subsidy for CAE
godowns under APICOL*

*BGREI-Bringing Green Revolution to Eastern India


*APICOL-Agricultural Promotion & Investment Corporation of Odisha Ltd.

Source: Annual activity report of Agriculture Department, GoO

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State Government has identified 4 priority areas to
facilitate private investment

Up gradation of Investment in power Solvent production warehousing units


traditional rice co-generation units units for rice bran for storage of rice
mills

And is keen on increasing investment in modern rice mills


Recovery of fine rice improves drastically in a modern rice mill

Other
germ Rice Other
Rice waste For better bran germ
bran 15% Paddy 5% waste
conversion Husk 4%
4%
ratio there 23%
Fine
Rice
is a need for
up gradation Fine
54% Rice
of traditional 68%
Paddy rice mills to
Husk
27% modern mills

Output of traditional
Traditional Rice rice
Millmills Output of modern
Modern rice mills
Rice Mills

12 Source: NABARD knowledge bank (https://www.nabard.org/english/ricemill2.aspx)


GoI and GoO provide incentives for investing in modern rice
processing technology

Central Government (under Ministry of Food Processing Industries)

Incentive-Capital subsidy upto 25% of the cost of plant & machinery and technical civil works subject to a
maximum of Rs.50 lakhs in general areas

Condition- Only new Plant & Machinery shall be eligible

Incentives under Odisha Food Processing Policy, 2013


• 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 Rs.2 crores (33% Max
up to Rs. 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 Rs. 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 Rs. 2 lakh

• Exemption on entry tax on plant and machinery and balancing equipment procured by MSMEs

Source: MoFPI, MSME Department, GoO 13


Government of Odisha provides a number of incentives
to facilitate private investment in Rice Sector
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 premium, leviable 100% exemption upto 100 acres and 50% for balance area
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 Rs 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 Rs.10 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 Rs 3 Lakhs

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

FCI- Fixed Capital Incentive

State Government (under Agricultural Promotion & Investment


Corporation of Odisha Limited)

Incentive-Under Capital Investment Subsidy for Commercial Agri Enterprises (CAE), APICOL provides subsidy
up to 40% of the fixed capital excluding the cost of land) subject to a limit of INR 50.00 lakh (50% limited to
INR 50.00 lakh for SC/ ST/Women/ Graduate of Agriculture and allied discipline)

Condition- Integrated Rice Mill having minimum investment of 1 Crore in machineries. The relevant
machinery will be approved by the SLTC.

Source: MoFPI and APICOL website

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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 • Technical education is
Well     of    
construction phase
connected  
Advantage   imparted through quality
trained    
• Port connected to broad-
gauge and by National  ports    Odisha   human    
educational institutes and
colleges
Highway-5A resources   • State govt. focused on skill
development for MSME sector

Land  parcels  
Efficient measures to meet Availability  of     earmarked  for   Land parcels earmarked
industrial water requirement water   food  parks   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

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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

Structure Chaired by CMD, IPICOL and convened by CGM/ Chaired by the GM, RIC/DIC and convened by As-
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 17
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)