MP NEWS: Madhya Pradesh’s growing steps in the field of food processing

Bhopal. About 7% of the country’s population lives in Madhya Pradesh, a state with 10% of the country’s area. Various crops are produced here in 11 agro-climatic zones. The diversity of agricultural produce in the state is mainly dependent on the Narmada River and its tributaries. Under the guidance of Chief Minister Dr. Mohan Yadav, the present government is trying to ensure ‘Ease of Doing Business’ through simple policies, due to which Madhya Pradesh is writing new chapters of innovation and progress in the field of agriculture and food processing. Madhya Pradesh, known as the ‘Food Basket of India’, is playing an important role in advancing the country’s agriculture sector by combining traditional practices with cutting-edge technology.

India’s foodbasket

agricultural sector

Madhya Pradesh is an agricultural state and agriculture contributes 47 percent to the state’s GSDP, which is proof of the initiatives taken by the government. The state is moving towards a digital farming revolution by adopting smart farming technologies including Artificial Intelligence (AI). Under the visionary leadership of Chief Minister Dr. Mohan Yadav, the government is actively digitizing Farmer Producer Organizations (FPOs) and modernizing the agricultural supply chain.

The emergence of start-ups focused on digital farming along with government initiatives is creating an important ecosystem for development. With a strategic focus on improved seed quality, fertilizer manufacturing, farm machinery and irrigation projects, Madhya Pradesh offers abundant investment opportunities in the farming sector.

Madhya Pradesh is a 7-time winner of the ‘Krishi Karman Award’ – this award is given to the Indian state with the best performance in food grain production. Madhya Pradesh is the largest producer of orange, spices, garlic, ginger, gram and pulses in India. The state has a high area under cultivation for organic produce and horticulture production. The state is the second largest producer of fruits, garlic, tomatoes, green peas, guava, green chillies and onions and the third largest producer of citrus fruits including lemon, cabbage and flowers and milk. Madhya Pradesh is the largest producer and exporter of Sharbat wheat, which is considered the highest quality of wheat in India. In just 6 years, the state’s horticulture production rank has increased from sixth place to first.

Food Processing

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

In the field of food processing, Madhya Pradesh has become a major player by utilizing its rich agricultural resources and strategic geographical location. The state’s food processing industry, growing at an average annual rate of 8.3%, is set to play a significant role in the country’s economic growth. The state’s commitment towards industry-friendly policies has attracted major investments from giants like Mondelez, ITC and Unilever.

Under the formalization of PM Micro Food Processing Initiative, the State is empowering unorganized micro food processing enterprises by providing capacity building and support to various producer organizations. The establishment of government-funded food parks, private megafood parks and agro-processing clusters reflects the government’s dedication to promoting a strong food processing ecosystem.

Madhya Pradesh’s focus on skill development in this sector is highlighted by its collaboration with the World Economic Forum to develop the FoodInnovationHub. The state has five prestigious institutes dedicated to educating and enhancing the skilled workforce across the entire value chain.

dairy processing

Dairy activities are an essential part of the rural economy of Madhya Pradesh, serving as an important source of employment and income. Most of the dairy products are sold in the form of milk, due to which there is tremendous potential for value addition and overall dairy processing in the industry. At present, the share of milk in the total dairy production of the state is 48%. Some of the fastest growing segments include curd, cheese, UHT milk, flavored milk and buttermilk.

Under the leadership of the present government the state is the third largest milk producing state in the country, contributing 8.6% to the total milk production. Initiatives like productivity enhancement of Madhya Pradesh Cooperative Dairy Federation reflect the state’s commitment to sustainable development in the dairy processing sector.

Madhya Pradesh Cooperative Dairy Federation- Apex body MPCDF recorded average milk procurement of 8.35 lakh KGPD and average regional milk sales of 7.16 lakh LPD and sales revenue of over Rs 1982 crore in 2022-23 alone. The total milk production in the state in 2020-2021 was around 20.01 million tonnes. Major players involved in dairy processing include Amul (GCMMF), MPCDF (Sanchi), Uniindustries (Saurabh), Pawanshreefood International, SterlingAgro Industries Ltd (Nova).

One District One Product (ODOP)

24 primary agriculture and horticulture products which are commonly cultivated across the State, including Kodo-Kutki, Bajra, Orange/Lemon, Custard Apple, Mango, Tomato, Guava,