Sector in Assam

Knowledge Partner

Emerging Opportunities

Agri-Horti

Sector in Assam

Content

01

Global Scenario

03

Assam: At a Glance

05

Policy Environment to drive the

Industry’s global competence

02

Agriculture &

Horticulture Scenario in India

04

Key infrastructure to support Agriculture and Horticulture in Assam

06

Opportunities

Global

Scenario

In the last few decades, agriculture has globally grown into a highly diverse but complex sector, with operational units ranging from small farm holdings to large corporate farming initiatives. Farm input and output are sold not only in local markets, but also across the world through sophisticated value chains. The global agriculture sector contributes towards 6.4%

of the entire world’s economic production. Total output of the agriculture sector is $5,084,80 Mn.

Even though agriculture represents a small share of the world’s economic output, the sector employs almost 30% of all workers.

Agriculture plays a crucial role in the economy of developing countries, and is the main source of food, income and employment to the rural populace. Underdeveloped regions rely on agriculture for a substantial portion of their GDP.

Percentage contribution to GDP by Agriculture and Allied sector

13 13.5 14 14.5 15 15.5 16 16.5 17 17.5

3.2 3.3 3.4 3.5 3.6 3.7 3.8

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

World India

China is the biggest contributor in agriculture followed by India. Both the countries account for 19.49% and 7.39% respectively of the overall world-wide agricultural production. United States is third in place followed by Brazil and Indonesia.

India has been the topmost producer of food grains, pulses, spices and milk

India, Thailand and Vietnam are top three exporters of rice in the world China is the most rapidly developing

consumer markets in the world for food and beverages

Although, rice is exported, ASEAN countries are the main importers of rice

Vietnam is also a major importer of U.S. processed foods, totaling US$628 million in 2018

India is the fifth largest seed market in the world

USA Contribution to GDP: 1%

Workforce: 2.5%

Brazil

Contribution to GDP: 4.3%

Workforce: 14.8%

The growth in population in the last two decades has propelled the overall agriculture production of crops such as rice, wheat, maize and soybean. Majority of this growth in global crop production has been witnessed primarily due to increase in yield and higher cropping intensity over the last decade, though the sector’s contribution to real GDP fell from 3.7%

to 3.4%. This relative decline is due to a faster growth of non- agricultural activities compared to agriculture. The sector, however, plays a crucial role in the agro-industry value-chain.

Global agriculture production is anticipated to grow by 15%

during the next decade. Moreover, agricultural land usage is estimated to be nearly the same. The expected growth in crop production can be credited largely to yield enhancements as well as advanced production intensity, motivated by technological modernisation. The forecasted growth in livestock output is based on a growth of herds, greater and efficient feed utilisation.

Robust economic development in the emerging economies also drives increase in demand for agricultural products. Cereals, which include wheat, rice, barley, maize, rye, oats and millet, make up the larger part of crop production. They continue to be the most important food source for human consumption.

However, rising population, urbanization, and increasing wealth

are driving most of the growth in the world as these factors prompt a dietary shift to higher value- added products.

Most of the food consumed worldwide is grown locally. Where there is not adequate local production to meet demand, trade has been instrumental in filling the gap. The scale of food and agricultural trade today is unprecedented. In real terms, the value of international flows has increased around fivefold over the past five decades, reflecting global trends in the overall volume of trade.

The food processing industry is of great importance as it offers vital links as well as synergies that it encourages between agriculture and industry. Globally, it is the leading sector across the world considering the total number of enterprises within the sector. Its significance and potential may also be credited to the scope for economic value addition offered in the sector. Globally, food processing is expected to grow by 6% up to 2021, while processing of higher-value-added foods in emerging markets is predicted to grow by 9%. Packaged food industry is another growing segment of the food processing industry. Key market drivers include technological improvement, changing lifestyle, modern retail trade and increased popularity of quick service restaurants.

Dairy is one of the major segments of the food processing industry, greatly benefited by the emergence of dairy processing as the fastest growing food producing sector in the world. Over the years, with emerging new markets and technologies, the sector has widened its scope Asia continues to dominate the global dairy market. China, India and countries in South East Asia account for a major portion of the global dairy industry, but milk supply in these regions has not been able to keep pace with the level of growing demand.

These markets offer huge potential for dairy companies that are looking to target global demand for dairy products.

With the increasing demand for high value food crops, agriculture diversification towards high-value crops can potentially increase farm incomes especially in countries where demand for such crops is increasing more quickly than that for staple crops. Over the last 30 years, consumption of eggs and meat has more than tripled. According to FAO projections, meat demand in low and middle income countries will increase by a further 80 percent by 2030 and by over 200 percent by 2050. Throughout the world, major shifts in dietary patterns are occurring, even in the consumption of basic staples towards more diversified diets both in urban and rural areas as well as among rich and poor households.

The global agriculture/farm machinery market is worth approximately USD 200 billion in FY19, with a predicted compounded annual growth rate (CAGR) of 9% from FY19 to FY25. Asia-Pacific, Europe and North America are the main performing regions of the agricultural and farm machinery market.20 As a key contributor to farm machinery, Europe holds 30% of the market share globally. The Indian farm equipment sector is forecasted to grow at a CAGR of 6% from FY19 to FY25.

The world’s population is expected to grow to almost 10 billion by 2050. Driven by growing population, higher incomes, urbanization and changing diets, consumption of the main agricultural commodities will increase most rapidly in Eastern Europe and Central Asia, followed by Latin America and other Asian economies. Annual cereal production needs to be 3 billion tonnes and the annual meat production needs to reach 470 million tonnes to feed the population in 2050. Food insecurity &

malnutrition have been critical issues across the world with the upsurge in population specifically in developing countries. The declining contribution of agriculture to GDP and employment are additional concerns. Although agricultural investments and technological innovations have boosted productivity levels considerably, the growth is yield has not been adequate enough to meet these emerging challenges and future requirements.

India

Contribution to GDP: 15.9%

Workforce: 49%

China

Contribution to GDP: 8.6%

Workforce: 35%

Russia

Contribution to GDP: 3.1%

Workforce: 14.4%

Europe

Contribution to GDP:

1.4%

Workforce: 3.9%

Agriculture &

Horticulture

Scenario in India

Overview

Agriculture and allied sectors have four sub-sectors, i.e. crops (horticulture and field crops), livestock, forestry, fishing and aquaculture. Nearly, 58% of India’s population is dependent on Agriculture and its allied sectors, including horticulture, for primary source of livelihood. The availability of high proportions of agricultural land and 15 agro-climatic Zones encourage the cultivation of varied crops in the region. For holistic rural development, sustainable agriculture in terms of rural employment, food security, and environmentally sustainable technologies such as biodiversity protection, soil conservation and sustainable natural resource management, are duly essential. In India, agriculture and allied activities have undergone several revolutions to finally reach this stage today.

As per estimates of National Income, agriculture and allied sectors contributed approximately 16.5% of India’s GVA at current prices during 2019-20.¹ The Horticulture sector contributes greatly to the growth of the Agriculture sector at around 30% of total agriculture output in the country. As per Third Advance Estimates, in the last 10 years, the total Horticulture production has increased from 211.2 million MT in 2007-08 to 313.85 million MT in 2018-19.

The Indian food and grocery market is the world’s sixth largest, with retail contributing 70% of the sales. The food processing industry accounts for 32% of the country’s total food market is one of the largest industries in India and is ranked fifth in terms

of production, consumption, export and expected growth. It contributes around 8.80% and 8.39% of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13% of India’s exports and 6% of total industrial investment^.2 GVA by Agriculture and Allied sectors

(At Constant Prices 2011-12)

233.0

249.2

274.2

FY12 FY15 FY18 RE

USD Bn

Indian agriculture is one of the key sectors as it contributes nearly 17.3%

to India’s GVA. The sector has witnessed a CAGR of 2.3% during 2012-15, however, the pace of growth has increased during 2015-18 at a CAGR of 3.2% on the back of favourable economic factors.

Proactive Government Policies

Investor Friendly Incentives

High levels of agricultural production, wide variety of crops

Geographhical trade benefits Diverse

Topographical profile

Favourable Agro Climatic Zones

01 02 03

Key Growth Drivers

04 05

06

1 Central Statistics Office (CSO), Ministry of Statistics & Programme Implementation 2 https://www.investindia.gov.in/sector/food-processing

The Indian food and grocery market is the world’s sixth largest, with retail contributing 70% of the sales. The food processing industry accounts for 32% of the country’s total food market is one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. It contributes around 8.80% and 8.39% of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13% of India’s exports and 6% of total industrial investment.

Mono-cropping, which has been the traditional practice in Indian agriculture is giving way to diversification in cultivation by adopting alternative methods of farming, and the key sector in this regard is horticulture. Recent trends show good potential for cultivation of flowering plants. In addition to the transformation of the local landscape, great scope exists for

export of flowers; and floriculture is important for bee-keeping industry which too provides an alternate source of income to the Indian farmers. India witnessed a shift in area from food- grains towards horticulture crops over last five years (from 2014-15 to 2019-20). The production of horticulture crops has outpaced the production of food grain since 2012-13.

With the goal of doubling farmer’s income by 2022, India is expected to generate better momentum in the agriculture sector in the next few years with an increase in investments in agricultural infrastructure such as warehousing, irrigation facilities and cold storage. Further, an increased use of genetically modified crops is likely to improve the farmer’s yield and give them better returns while opening up avenues for processing industries.

Indian Agribusiness - A Vibrant Sector

Farm Product

India has 2

largets arable land and Coastline of over 75000kms

Largest Producer Second Largest Producer

Rural Dividend Retail 2020 Value Addition/Processing

Milk Pulses Spices Tea Jute F&V Rice/

Wheat Poultry Fish Cotton

>50% of the rural population depends on Agriculture or livelihood

Retail market to nearly double to

US $ 915bn

e-commerce to grow 4X to

US $ 120bn

Organized/modern retail is

growing at over 20%

Consumption:

80% ^Raw

20% Value Added

70% ^{of the}

population lives in rural area

2%

6%

21% 23% 35%

F&V Poultry Meat Fisheries Milk

Over the years, India has made tremendous development in the Agricultural sector from being a food deficit to self-sufficient and from a net importer to a net exporter of agricultural commodities. Agriculture plays a vital role in India’s economy as 54.6% of the total workforce is engaged in agricultural and allied sector activities (as per Census 2011) and accounts for 17.1% of the country’s Gross Value Added (GVA).³

The total agricultural exports from India grew at a CAGR of 16.45% over FY10-18 to reach US$ 38.21 billion in FY18. In FY19, agriculture exports were US$ 38.54 billion and US$ 35.09

billion FY20. India is also the largest producer, consumer and exporter of spices and spice products.

The major food-grains produced in the country include rice, pulses, wheat, cereal, oilseeds, sugarcane and cotton. Crops in food grain baskets have shown improvements in terms of production as well as yield in the last few years. According to MOA’s fourth estimates, the production of rice and wheat was estimated at 117.94 million MT and 107.18 million MT in 2019-20.

Agriculture in India

Sources: Ministry of Agriculture, MOSPI, Secondary sources

Agriculture trend- Production trend (2016-2020*)

0 50 100 150 200 250 300 350 400

Total Food-

grains Rice Wheat Total Coarse

Cereals Total Pulses Total

Oilseeds Sugarcane Cotton#

2016-17 2017-18 2018-19 2019-20

Agriculture and Allied sector witnessed a growth of 2.88%

in 2019-20 at 2011-12 basic prices

Ranked second in terms of global food production

3 or the year 2017-18 (at current prices)

Below is a table indicating the production of each commodity from 2016-20:

Horticulture in India

The horticulture sector encompasses a wide range of crops which include fruits, vegetables, spices, flowers and plantation crops.

The percentage share of horticulture output in agriculture stands at 33%.

Crops Production (in Mn. Tonnes)

2016-17 2017-18 2018-19 2019-20

Total Food-grains 275.1 285 285.17 295.67

Rice 109.7 112.8 115.63 117.94

Wheat 98.5 100 103.6 107.18

Total Coarse Cereals 43.8 47 43.33 47.54

Total Pulses 23.1 25.4 23.22 23.02

Total Oilseeds 31.3 31.5 31.42 34.19

Sugarcane 306.1 379.9 352.5 268.21

Cotton# 32.6 32.8 35.87 33

Table 1: Production of Major Agricultural Crops

Production share of various horticulture crops (2018-20)

Sources: : DES, DAC&FW, M/o Agriculture & Farmers Welfare

# Million bales of 170 kgs. Each

Food grains and sugarcane are two key categories of agriculture crops produced in the country. Out of these, rice and wheat together contribute 75% of the overall food grain production in the country.

0 50000 100000 150000 200000 250000

Production 2018-19 Production 2019-20 Fruits Vegetables Flowers & Aromatics Plantation Crops Spices

Under the purview of agriculture & allied activities, the share of plan outlay for horticulture which was 3.9% during IX Plan, has increased to 4.6% during the XII Plan. In the last 10 years, the area under horticulture grew by 2.6% per annum and annual production increased by 4.8%. Presently, the sector has established its credibility in improving income through increased productivity, generating employment and in enhancing exports. As a result, horticulture has moved from rural confines to commercial venture.

The growth of horticulture crops in India is highly positive.

During 2018-19, the production of horticulture crops was

314 Million Tonnes from an area of 25.5 Million Hectares. The production of vegetables has increased from 101.2 Million Tonnes to 191.77 Million Tonnes since 2004-05 to 2019-20 and production of fruits has increased from 50.9 Million Tonnes to 97.97 Million Tonnes since 2004-05 to 2019-20. During 2019-20 the area under vegetables was 10.353 Million Hectares with a production of 191.77 Million Tonnes in India

For higher impetus to the sector, schemes like the Mission for Integrated Development (MIDH) is being implemented by adopting a holistic approach for increasing production of horticulture crops and reducing post-harvest losses.

India is the second largest producer, after China, of horticulture crops in the world.

Total horticulture production comprises of various crops

categories i.e. vegetables, fruits, plantations, spices,

flowers and others

“ “

India is the world’s largest producer of Banana, Papaya, Mango

and Guava

Organic products exported from India reached Rs. 4686 crores

(for 6.389 lakh MT) in 2019-20

Crop-wise segmentation

• Potatoes, onions & tomatoes together hold ~50% of the total vegetable output.

• Bananas, mangoes and citrus together contribute around 66%

of the total fruits in India.

Further, the total horticulture production has increased from 211.2 million tonnes in 2007-08 to 320.48 million tonnes in 2019-20 i.e. a CAGR of 3.53% during 2008-20. Horticulture sector has become one of the major drivers of growth as it is more remunerative than the agricultural sector. Interestingly,

India witnessed the shift in area from food grain towards horticulture crops over last seven years (from 2012-13 to 2019-20). Resultantly, the production of fruits and vegetables has overcome the production of food grains in the country in last 7 years.

Good potentialities exist for cultivation of flowering plants.

Increasing trends in area and production of flowers has been observed since 2003-04 onwards. In addition to the beautification of the local landscape, great scope exists for export of flowers; and floriculture is important for the bee-

keeping industry which too provides an alternate source of income to the Indian farmers. The highest production of Flowers was recorded in Tamil Nadu (482.52 Thousand Tonnes) followed by Andhra Pradesh (428.95 Thousand Tonnes).

To meet increasing demand for food and other Agri products and to improve farmer income India has been laying great stress on farm mechanization. India’s farm equipment market is likely to grow to US$ 18 billion by 2025 from USD 13 billion.

Currently, India’s farm equipment market is 7% of the global market, with more than 80% of the value contribution coming from tractors. Even though the growth of mechanisation has been slow, the overall food grain production in India grew from over 50 million tonnes in 1950–51 to 283 million tonnes in 2018–19. The adoption rates of farm equipment have increased as indicated by the sales of tractors sale and the rise in farm power availability (FPA) in the recent past. Domestic sales of tractors have increased from 3 lakh units in FY09 to 7.8 lakh units in FY19, registering a phenomenal CAGR of 10%.⁴ The Indian tractor market is the largest in the world and showed the best performance in FY19, registering a growth of 19%.

Tractors form 81.4% share in total FE market, followed by 3.7%

of rotavator, 2.5% thresher, 1.4% power tillers and 11% by others The availability of abundant and cheap labour in India has largely confined farm mechanization to tractors and power tillers. While tractors and power tillers still outsell other farm equipment like paddy trans-planters and combine harvesters, the gap has closed in recent years expanding the market for other players.

Notably, the government’s goal to double farmers’ incomes by 2022 by focusing on irrigation, supply of seeds and quality fertilisers, and pushing DBT to the agricultural sector under the PM-KISAN scheme have provided significant spurt to the farm equipment sector in the country. Farm equipment options are today rising to hi-tech and advanced technology

applications, drones.

Status of Farm Mechanisation

4 Farm mechanisation: Ensuring a sustainable rise in farm productivity and income, FICCI Source: Horticulture statistics at a glance, 2019

Food Grain Production vs Horticulture Production

311.7 284.8

0 50 100 150 200 250 300 350

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Horticulture Production (in million tonnes) Food Grains Production (in million tonnes)

Agriculture export and import scenario

Sources: World Trade Organisation, Agricultural and Processed Food Products Export Development Authority, Directorate General of Foreign Trade, Directorate General of Commercial Intelligence and Statistics, GT Analysis

Agriculture export scenario

• Agriculture sector (including allied sectors) contributes >12.5% in the country’s total exports. In 2020, India was the ninth largest exporter of agricultural products in the worldTotal agriculture exports from India has witnessed a CAGR of 13.7% during FY11-18 and has reached $38.21 billion in FY18 as compared from $15.6 billion in FY11.

• Total agriculture exports from India has witnessed a CAGR of 11.42% during FY11-19 and has reached $38.49 billion in FY19 as compared from $15.6 billion in FY11.

• During April-September 2020, the country has achieved a total agriculture exports worth of $18.12 Billion.

Agriculture import scenario

• In the last two decades, the share of agricultural imports in total imports in India has increased to 5% in FY18 from 2.8% in FY91.

• Agriculture imports has witnessed a year-over-year increase of around 20% during FY16-19.

• Major commodities imported to India are edible oils, pulses, fresh fruits and cashew nuts.

• Edible oil contributes ~50% in the total agriculture imports in India, followed by 12% in pulses category.

Total exports and share of agriculture

Total import and share of agriculture

13.6% 12.5% 12.2% 12.3% 12.6% 12.5%

0 5 10 15 20 25 30 35 40 45

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

EXPORTS AGRICULTURAL SHARE

450.2 448.0

381.0 384.4

465.6

3.7% 4.4%

5.7% 6.3%

5.0%

0.0%

2.5%

5.0%

7.5%

300 350 400 450 500

FY14 FY15 FY16 FY17 FY18

$ bn

India Total Exports (USD bn) Agriculture Sector Share in India Exports

Food processing: Emerging trends

The food processing industry accounts for 32% of the total food market in India and is ranked fifth in terms of production, consumption, export and expected growth. Interestingly, the gourmet food market is valued at US$ 1.3 billion and is growing at a Compounded Annual Growth Rate (CAGR) of 20%. India’s organic food market is expected to increase by three times by 2020.

According to the ministry of food processing industries (annual report), the sector employs 12.8% of the workforce in the organised sector (factories registered under Factories Act, 1948), and 13.7% of the workforce in the unorganised sector.

The organised sector contributes approximately 30% of the food processing industry in India. The highest share of the organised processed food is contributed by the meat and poultry segment, contributing approx. 27% of the total food processing sector. Despite being one of the largest producers of agricultural and food products in the world, India ranks fairly low in the global food processing value chains. In fact, as with the rest of India (most other sectors), this sector is also largely unorganised and informal.

The demand for food and processed commodities is increasing due to growing population and rising per capita income. There are projections that demand for food-grains would increase from 192 million tonnes in 2000 to 345 million tonnes in 2030.⁵ The Government of India aims to boost growth in the food processing sector by leveraging reforms such as 100 per cent Foreign Direct Investment (FDI) in marketing of food products and various incentives at central and state government level along with a strong focus on supply chain infrastructure.

Notably, the food processing industry is displaying a tremendous scope for exports. India’s geographical situation gives it the unique advantage of connectivity to Europe, Middle East, Japan, Singapore, Thailand, Malaysia and Korea. The export of processed foods, particularly the processed fruits and vegetables, animal products, rice, marine products and other processed foods has been increasing steadily over the years.

One such example indicating India’s location advantage is the value of trade in agriculture and processed food between India and Gulf region.

The graph below shows the percentage share of agricultural exports and processed products. Cereals are the major products being exported from India.

5 http://www.icar.org.in/files/ICAR-Vision-2030.pdf

The demand for high-value commodities (such as horticulture,

dairy, livestock and fish) is increasing faster than food-grains - for most of the high-value food commodities demand is expected to increase by more than 100% from 2000 to 2030.

Source: Agricultural and Processed Food Products Export Development Authority (APEDA)

Percentage share of Exports Category-wise (2018-19)

17%

6%

10%

13%

54%

Floriculture Fres Fruits and Vegetables Processed Fruits

and Vegetables Animal Products Other

Processed Foods Cereals

Assam:

At a Glance

Ranks 3rd in production of Pineapple, Jackfruit, Cabbage and Litchi

Among the top 10 states in

production of Rice, Mustard Carrot, Pointed gourd, Potato and Radish

Abundant productive and diversified water resources to support surplus fish production

Unique rice varieties like Bao Rice (Red Rice) and Chokowa

Cultivation of “The wonder spice” or

‘Bhut Jholokiya’ : infamous as one of the hottest peppers in the world, is practiced in Assam

Ranks 2nd in production of Ginger in the country

Introduction

Situated in the North-eastern region of India, Assam shares its borders with Bangladesh, Bhutan and the Indian states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and West Bengal. The state has a heterogeneous population with great socio-cultural and ethnic diversity.

The state is situated in the high rainfall zone which makes it a potential hotspot for development of Agriculture and Horticulture based industries.

The state has been blessed with abundance by nature. The Brahmaputra and the Barak rivers along with their tributaries provide plentiful water resource; the dense forest cover of almost 27.4% of the land in the state is home to a wide range of valuable timber, bamboo & medicinal plants; the fertile valleys

& hills sprints favour tea gardens and horticultural crops, further, the rich and fertile soil offers itself to production of vital food-grains. Notably, is under forest cover.

Agriculture is the principal occupation of majority (60%) of the rural population in the state in terms of employment and livelihood. The agriculture sector continues to provide employment to more than 50 per cent of the total workforce and support more than 75 per cent of the population of the state directly or indirectly. The principal crop under cultivation (constituting 67% of gross cropped area) is rice. There is huge potential for rapid growth in many areas which can result in this sector providing vital inputs for agro-based industries.

A good number of food processing industries have already come up in the state and yet the existing units constitute only a fraction of the state’s potential. The State could easily be poised for a major boom of processed food products such as chips, semi-processed/frozen fruits and vegetables, juices, jams, spice preparations, etc. which are in high demand in the global market and can be produced using the states horticultural produces as raw material.

Highlights of agriculture production

01 02 03

04 05 06

Snapshot

State capital Dispur

Geographical area 78,438 sq. kms

Population (Census 2011) 31.20 Mn.

Gross state domestic product (GSDP) USD 37.23 billion (2016-17) CAGR 11.78% (2010-11 to 2016-17)

Key Crops Paddy, Pineapple, Banana, Litchi, Jackfruit, Cabbage, Cauliflower, Ginger, Turmeric, Tea, Total no. small & medium industries 45,509

Physical Infrastructure

Assam is well connected by Rail, Road, Air and inland waterways. The state has over 2400 kms of railway lines, over 3800 kms of national highways supported by a robust network of state, district and village roads, 6 well connected airports and over 1500 kms of inland waterways. The state accounts for approximately 60% of the total road length in the North- east. The major towns in the state are connected by National Highways. Within the State, broad gauge rail network connects all the major towns.

In December 2018, India’s longest rail-cum-road bridge named Bogibeel bridge, was inaugurated in Assam. The bridge is a 4.94 km long strategically important project over the Brahmaputra river.

All major airlines operate regular flights to and from Guwahati.

There are also regular intra-state air services connecting the six civil airports (Guwahati, Tezpur, Jorhat, Dibrugarh, Silchar

& North Lakhimpur) of the state. Some of the tea gardens have their own air-strips and aircrafts. In addition to this the rivers Barak and Brahmaputra along with their tributaries provide a cost effective mode of transportation. Two Government- owned organisations (Central Inland Waterways Corporation and Directorate of Inland Waterways, Assam) operate water transport services on the river Brahmaputra and Barak on a commercial basis. These services are used for transportation of passengers as well as goods. Assam’s internal waterway network connects it to Bangladesh, giving it access to the ports of Chittagong, Kolkata and Haldia.

Agriculture is of prime significance to Assam, engaging more than half of the total working populace and generating roughly one-third of the GSDP. Rice accounts for major sown area.

Tea and jute, widely cultivated in the Brahmaputra valley are important foreign-exchange earners.

At current prices, the Gross State Domestic Product (GSDP) of Assam is estimated to reach INR. 4.09 trillion (USD 58.47 billion) in 2020-21. Notably, the GSDP of the state grew at a CAGR (in INR.) of 12.58 per cent from 2015-16 to 2020-21.⁶ A sectoral analysis reveals that during 2016-17(QE) the percentage contribution of Agriculture and allied sector to total GSDP of Assam at current prices was 17.67%, industry sector 23.37%

and services sector contributed 47.83%.

Livestock and dairy farming have shown good growth potential since the late 20th century, and the state government has been actively promoting these sectors. The sector is expected to be one of the leading sectors contributing to socio- economic growth of the state and will generate better income opportunities.

Taking advantage of the state’s strategic location, Assam has been able to attract significant investments in the manufacturing sector, with many national and global leaders like Unilever, Patanjali, Britannia Industries, Emami, Sun Pharma etc. setting up large processing units in the state.

Economy

Snapshot Details

Total road length (kms) 309, 131

Rail length (route kms) 2,442.57

Ports Pandu, Karimganj, Badarpur, Silchar

Airports International - Guwahati Domestic – Guwahati, Silchar, Dibrugarh, Jorhat, Tezpur, Lakhimpur & Rupsi

Sectoral composition of GSDP at current prices

Sector/year 2011-12 2017-18

Agriculture and its allied 19.89% 17.67%

Industry 30.63% 23.37%

Service 43.97% 47.83%

Taxes and Subsidies 5.51% 8.21%

Source: Economic Survey of Assam 2017-18

6 Ministry of Statistics and Programme Implementation

Assam is located in a sub-tropical zone characterized with hot & wet summers and cool & dry winters. The favourable agro-climatic conditions with six agro climatic zones creates opportunity for cultivation of enormous varieties of food grains, fruits and vegetables, spices and others throughout the year.

State’s agriculture usually depends on the south-west monsoon rains.

Agro-climatic zones

Agriculture Production Scenario

Although, most states in India are slowly moving away from their traditional agriculture-based economy towards an industry or service-oriented economy, Assam is still heavily dependent on the agricultural sector. Development of the agriculture sector in Assam therefore, contributes to inclusive development. Agriculture is considered as the major component and plays an imperative role in the state’s economy.

Agro-economic activities in Assam have paramount importance as a source of livelihood to its people. The Agricultural Census, 2015-16 reveals that there were 27.42 lakh operational holdings in Assam covering an operated area of 29.76 lakh hectares. The state ranks 9th in the country in Rice production.

Being encompassed under one of the 14 global bio-diversity hotspots, the state has enough options for farming

as well as investment in the sector.

The state is home to 27.50

lakh farm families The cropping intensity stands at 146%

with a target to reach 233% by 2030

Highlights of agriculture production

Barak Valley Zone

District: Cachar, Hailakandi & Karimganj

Lower Brahmaputra Valley Zone

Districts: Goalpara, Dhubri, Kokrajhar, Bongaigaon, Kamrup, Nalbari, Barpeta

Central Brahmaputra Valley Zone

Districts: Nagaon, Marigaon

North Bank Plain Zone

Districts: Darrang, Dhemaji, Lakhimpur & Sonitpur

Hills Temperature Zone

District: Karbi Anglong & North Cachar Hills

Upper Brahmaputra Valley Zone

Districts: Dibrugarh, Golaghat, Jorhat, Sivasagar &

Tinsukia

Paddy, Coarse Cereals and Maize are the major agricultural crops produced in Assam. As per estimates, the total area under paddy cultivation during the year 2016-17 was 24.67 lakh hectares. Further, the area for paddy cultivation in 2019- 20 increased to 25.4 lakh ha.The production of rice in the state has increased to 52.14 lakh tonnes in 2019-20 from 51.27 lakh tonnes in 2016-17. Interestingly, there has been a significant increase in paddy production in the year 2018-19 and has pegged to total production of 89.28 lakh tonnes.

Other crops include oilseeds, pulses (legumes, such as peas, beans, or lentils), sugarcane, rape (an oil-yielding plant, the leaves of which are used for fodder), mustard etc. Through improved cultivation methods, many farms yield more than one crop per year.

Crops Production (2018-19) (lakh MT) District with highest production

Food Grain

Rice 52.14 Nagaon, Sonitpur, Barpeta

Maize 1.28 Darrang. Karbi Anglong, Sonitpur

Wheat 0.14 Barpeta, Dhubri, Morigaon

Gram/Chana 0.015 Dhubri, Karbi Anglong, Sonitpur

Pigeon Peas/ Tur 0.05 Karbi Anglong, Sonitpur

Rabi Pulses (Mug/ Masoor/ Peas) 1.41 Barpeta, Sonitpur, Dhubri

Oilseeds (rapeseed/castor/linseed/mustard/nizer/sesame)

Oilseeds 1.85 Kokrajhar (LBV), Lakhimpur (NBP)

Plantation

Sugarcane 13.37 Karbi Anglong,

Arecanut 0.47 Hailakandi, Nagaon, Tinsukia

Source: Department of Agriculture, Assam

Source: Department of Agriculture, Assam

Rice production in 2017-20 (In MT)

0 100000 200000 300000 400000 500000 600000

2017-18 2018-19 2019-20

Wheat production has been 23.70 thousand MT in the year 2017-18 than previous year. Additionally, production of Maize and Oilseeds has increased by 8 and 5.6% respectively.

There are more than 1000 tea gardens in Assam. Assam boasts the single largest tea producing region globally and

contributes over 50 per cent (0.63 MMT, Jan — Dec 2015) of India’s total tea production (1.2 MMT, Jan — Dec 2015). The state houses over 765 tea gardens across Tinsukia, Dibrugarh, Sivasagar, Jorhat, Golaghat, Nagaon, Sonitpur and Cachar districts.

Source: Department of Agriculture, Assam

Agricultural Commodities Production Assam 2019-20 (in MT)

Horticulture Production Scenario

Horticulture crops occupy about 15% of the gross cultivable area of the state, with an annual production of more than 76 lakh MT of various horticultural produce. Assam, encompassing one of India’s 14 biodiversity hotspots, has uniquely diverse agro climatic conditions which provide ideal conditions for rich horticultural production — fruits, vegetables, flowers, spices, nut crops, tuber crops, medicinal and aromatic plants, mushrooms etc.

Various initiatives by the government such as Horticulture Mission for North East & Himalayan Region (HMNEH), Rastriya Krishi Vikas Yojana (RKVY), Micro- Irrigation under PMKSY and Mission Organic Value Chain Development for the North Eastern region (MOVCD NER) have helped the horticulture sector boom. Resultantly, horticulture has moved from rural confinement to commercial venture attracting youth since it has proved to be economically- rewarding.

Crops Production (2019-20) (lakh MT) District with highest production

Orange 2.03 Kamrup, Karbi Anglong, Dima Hasao

Banana 9.06 Sonitpur, Goalpara, Golaghat, Cachar

Papaya 1.5 Karbi Anglong, Dima Hasao, Sonitpur

Pineapple 3.07 Dima Hasao

Cabbage 6.98 Barpeta, Cachar, Nalbari, Dhemaji

Cauliflower 4.20 Barpeta, Nalbari, Kamrup, Golaghat

Potato 7.56 Kokrajhar, Barpeta

Sweet potato 0.25 Nagaon

Tapioca 0.32 Kokrajhar

Black Pepper 0.07 Lakhimpur

Ginger 1.68 Dima Hasao, Karbi Anglong

Turmeric 0.21 Dima Hasao

Garlic 6.23 Dhubri

Chillies 0.19 Barpeta, Dhubri, Kamrup

0 10000 20000 30000 40000 50000 60000

Tur Other Cereals & Small Millets Gram Moong Masur Wheat Matikalai Maize Sesamum Mustard 0

50000 100000 150000 200000 250000 300000 350000 400000 450000 500000

Tur Other Cereals & Small Millets Gram Moong Masur Rice Wheat Matikalai Maize Sesame Mustard

Assam ranks second in pineapple and third in Litchi production.⁷ Assam Lemon is a variety widely cultivated in the state with production of 1.19 MT (2018-19) and is popular across eastern India and beyond. Within the state Banana leads in fruit production followed by Pineapple.

Vegetable production in Assam, contributes nearly 43.8% to state horticulture production. The major vegetables produced

are potato, Sweet Potato, Tapioca, Cucumber, Cauliflower, Cabbage, Tomato, Jack Fruit, Bitter Gourd, Brinjal, Okra Peas, Carrot, Radish etc. The vegetable production in Assam has increased by 26.92 Lakh MT during the last 16 years.⁸ Potato and Cabbage are among the widely produced vegetables in Assam with production of 7.56 lakh MT (2019-20) and 6.98 lakh MT (2018-19), respectively.

Assam is among the top producers of spices in the country.

Spices production in Assam contributes around 6.56% to state horticulture production. Total spices production is 2.08 lakh MT (2019-20). Major spices grown in Assam are Ginger, Turmeric, Coriander, Garlic, Chilies etc. Among these, Ginger ranks first with a production of 1.68 lakh MT (2019-20), making Assam the second largest Ginger producer in the country contributing

14.71%⁹ to the country’s Ginger production. Turmeric production has pegged to 19.40 thousand MT.

Since farming of flowers assures better return compared to many other crops, cultivation of Marigold, Tuberose, Anthurium, Gerbera, Rose, Orchids etc. is rapidly increasing in the state and are encouraged by the government with assistance under HMNEH, RKVY, CM Floriculture Mission etc.

In India, Assam has the largest area, under Pineapple cultivation (16 thousand Ha), and produced 308769 MT of (2018-19). Kew, Queen and

Mauritius are the key varieties.

North Eastern region is famous for its Naga King Chili, Mizo chili and Cherry pepper. The cultivation of

Bhoot Jholokiya is mainly practiced in Manipur and Assam.

Source: Department of Horticulture, Assam

Fruit production in 2018-20 (in MT)

0 50000 100000 150000 200000 250000 300000 350000 400000 450000

BANANA 2018-19 BANANA 2019-20 PINEAPPLE 2018-19 PINEAPPLE 2019-20 ORANGE 2018-19 ORANGE 2019-20 PAPAYA 2018-19 PAPAYA 2019-20 ASSAM LEMON 2018-19 ASSAM LEMON 2019-20 GUAVA 2018-19 GUAVA 2019-20 LITCHI 2018-19 LITCHI 2019-20 MANGO 2018-19 MANGO 2019-20 COCONUT 2018-19 COCONUT 2019-20 ARECA NUT 2018-19 ARECA NUT 2019-20 OTHER FRUITS 2018-19 OTHER FRUITS 2019-20

7 http://agriexchange.apeda.gov.in/Market%20Profile/one/LITCHI.aspx

8 https://dirhorti.assam.gov.in/sites/default/files/swf_utility_folder/departments/horticulture_medhassu_in_oid_5/portlet/level_1/files/PRESENT%20SCENARIO%20HORTICULTURE%20IN%20ASSAM.pdf

9 http://agriexchange.apeda.gov.in/India%20Production/India_Productions.aspx?cat=Spices&hscode=1097

Source: Department of Horticulture, Assam

Vegetable production 2019-20 (in MT)

0 50000 100000 150000 200000 250000

POTATO SWEET POTATO TAPIOCA ONION GARLIC JACKFRUIT

CUCUMBER RADISH CARROT TOMATO PEAS OKRA

CAULIFLOWER CABBAGE BRINJAL BITTER GOURD

Source: Department of Horticulture, Assam

Spice production 2019-20 (in MT)

0 10000 20000 30000 40000 50000 60000 70000 80000 90000

CHILLIES TURMERIC GINGER CORIANDER BLACK PEPPER OTHER SPICES

Industrial and Food Processing Scenario

Industrialisation in Assam dates back to the days of the first commercial plantation of tea as tea occupies an important position in the state’s economy. The overall industrial scenario of the state is investment friendly. The Industrial relations scenario in the state is peaceful. There is a low incidence of labour related disputes. Direct collective bargaining of negotiations between employers and employees is widely practiced.

Agriculture is the main source of livelihood of people of Assam which has employed more than 50% workforce and support livelihood for 75 percent population in Assam. The contribution of agriculture and allied activities is 19.34 percent in 2016-17 in the GSDP of Assam. As a result, agro based industries play crucial role for agricultural and economic development in Assam. Agro-based industries facilitate optimization of resource use, output management, enhance farmer income, widening of market, value addition to national income and employment creation. Raw materials of agro based industries are paddy, wheat, tea, ginger, chilly, orange, maize, banana, passion fruits, mustard, turmeric, and such other crops grow intensively and is abundant in the entire region. Agro based industries broadly include - Grain Mill Products Industry (Rice, Oil and Flour Mill), Food Processing Industry, milk and allied industries, meat industry in Assam. Rice takes up the major share of the total units in the project area followed by food processing activities (pickle, jam, jellies, squashes etc.)

Important agro-based industries are rice mill, paddy de- husking, chow making, oil mill, spice grinding, small flour mill, pickle making, chips making, banana fiber extraction unit etc.

under food products and allied industries in Assam. The state has Livestock as an important component of the mixed farming system and dependence on livestock as an alternative source of income, is significant.

Industries in Assam can be broadly classified into four categories:

a) Agro- based Industry b) Mineral- based Industry

c) Forest- based Industry d) Other Industries

More than

600 ha

of land dedicated to industrial use with dedicated tea park, food processing park, a gri-export zones and others

64 commercial estates

50 of industrial estate/

area

11

3

Industrial Growth Centres (IGC)

More than

52 lakh tonnes (2019-20)

of rice production

Major Investments

Britannia

Approximately INR. 350 Cr. invested for manufacturing biscuits

North East Nutrients Pvt. Ltd.

INR.170 Cr. invested

Dabur LTD.

With an investment of INR. 250 Cr. the manufacturing facility, located in Balipara Industrial area, will manufacture the entire range of Dabur’s Ayurvedic Medicines, Health Supplements, Hair Oils, Shampoos, Toothpastes, Skin Care and Home Care products

Assam: The trade hub

Assam’s proximity to some neighbouring countries such as Bangladesh, Nepal and Bhutan, open up huge potential for trade. The major Border checkpoints through which border trade flows to Bangladesh from Assam are: - Sutarkandi (Karimganj), Dhubri, Mankachar (Dhubri) and Golokanj. To facilitate border trade with Bangladesh, Border Trade Centres have been developed at Sutarkandi and Mankachar.

CG Foods Pvt. Ltd.

INR. 30 Cr. invested for manufacturing packed Noodles

Patanjali Ayurveda

More than INR. 1000 Cr. of investment for manufacturing consumer products such as cosmetics, nutritional foods and kitchen essentials

ITC Ltd.

Investment of INR. 500 Cr. to set up unit with primarily focus on food processing - mainly biscuits and snacks

Farm Mechanisation

Assam has the largest cultivable plain land in North-East India but power consumption for mechanization is 0.75 kW/ha which is still below the national average of 1.5 kW/ha. For sustainable food grain production and drudgery reduction, mechanization of agriculture is mandatory to an optimum level. The main source of power is animal and human, and in some pockets mechanical power is available such as tractor and power tiller.

Assam Government has launched a Mega Mission named as Chief Minister Samagra Gramya Unnayan Yojana (CMSGUY) to double the farm income in five years. The Mega Mission is

planning its activities to bring the desired change in the rural areas of the state. In order to enhance farm mechanization in the state and to facilitate double cropping, one tractor unit comprising of one tractor, its accessories and matching implements will be provided to one selected beneficiary group in each revenue village. In this regard, the Governing Council of Mega Mission Society for CMSGUY, has laid down 70% (Seventy percent) subsidy to the selected groups on procurement price of tractor unit including implements subject to a maximum of Rs. 5.5 Lakh (Rupees Five and a half

Lakhs) only.

Factors boosting agriculture and horticulture sector in Assam

Increase in urban population

Exports opportunities

Increase in farm power availability

New technologies

Conducive

Policy environment

Key infrastructure to support Agriculture and Horticulture

in Assam

1 Mega Food Park at Tihu Nalbari, District: North East Mega Food Park Ltd. (NEMFPL) was promoted under Mega Food Park Scheme of the Ministry of Food Processing Industries (MoFPI), Govt. of India, the project is established with the objective of providing adequate infrastructure for the food processing industry along with the value chain from the farm to the market. It is located at Nathkuchi, Nalbari district.

The project is developed in a land area 50.23 acres with common facilities like cold store of 1500 MT, CETP, Quality control lab, electric substation etc. The food park has state of the art infrastructure which includes warehouses (4 each

of 2500 MT), Quality control and FPO lab, common facility building, food processing training centers etc.

2 Nezone Food Park Pvt. Ltd.: The project is promoted by a private sector entity under Agro Cluster Scheme of Ministry of Food Processing Industries with an objective to provide dedicated infrastructure to attract investments in food processing sector. The project is spread across an area of 10.50 acres with an investment of INR 20.86 crore. The project has common facilities like CETP, Cold Storage, Dry warehouse, etc.

4 Approved Agro Processing Clusters by Ministry of Food Processing Industries:

5 Approved proposals under CEFPPC scheme of Ministry of Food Processing Industries:

2 Land Custom Stations:

3. Border Trade Centers (BTCs) have been established at Mankachar (Dhubri), Sutarkandi (Karimganj) and Darrang (Kamrup).

4. Agri Export Zone (AEZ) Ginger, Assam: The project has been implemented under grant from APEDA and ASIDE Scheme

of Ministry of Commerce and Industries, GOI for facilitating export of fresh ginger and supply of raw materials to export oriented ginger processing units. The project has got facilities like cold store of 2000 MT, Sorting Grading line of 5 MT, Testing lab etc.

1 There is an Export Promotion Industrial Park (EPIP) at Amingaon covering 68.10 acres of land and occupied by 58 units. The EPIP is developed to provide infrastructural facilities of high standard for export oriented units. The EPIP

supports industries in diverse areas like Food Processing, Engineering, Herbal products, Cosmetics, Cane & Bamboo, Pharmaceuticals, and Plastic processing.

Processing Infrastructure

Export Infrastructure

S.No. Name of Project Execution

Agency Location Date of

Approval Project Cost

(INR Crore) Status 1. M/s Subh Karan Food Park Hudumpur Kochpara Mirza, Kamrup

(Rural) 03.10.2019 22.513

Under Implementation 2. M/s Jai Shree Krishna Developers Tehsil-Tinsuk, Tinsukia, Assam. 03.12.2019 19.117

3. M/s Surindera Agro

Processing Cluster Tehsil Tezpur, District-Sonitpur, Assam 09.01.2020 20.06

S.No. Name of Applicant Location Sector Project Cost

(INR Crore) Status 1. M/s Sona Gold Agrochem Pvt Ltd

Hudumpur Kochpara Mirza, Kamrup (North East

Mega Food Park, Tihu

Grain Milling 22.3

Completed 2. M/s P L Industries Pvt. Ltd

Consumer Products 4.45 24.49

Under Implementation 3. M/s Graintech Foods India Pvt. Ltd

F&V processing 15.48 4. M/s Hygen Beverages Pvt Ltd

S.No. Name of LCS Status

1. Sutarkandi Functional & trading is going on, Infrastructure created under ASIDE scheme 2. Karimganj steamer ghat Functional. Funder under ASIDE scheme.

3. Mankachar Functional. Funder under ASIDE scheme.

S.No. Name of LCS Status

1. Sutarkandi Functional & trading is going on, Infrastructure created under ASIDE scheme 2. Karimganj steamer ghat Functional. Funder under ASIDE scheme.

3. Mankachar Functional. Funder under ASIDE scheme.

1 Logistic Hub, Bijni, Bongaigaon (Proposed) – Facilities include truck parking yard with parking lot for small vehicles, warehouse and cold storage.

2 Logistic Hub, Jagiroad (Propsed) - Facilities include truck parking yard with parking lot for small vehicles, warehouse and cold storage.

3 Two Mega Cold Storage at Sonapur and Changsari 4 36 Cold Storage Units with cumulative capacity of

157906 MT

5 126 godowns with a combined storage capacity of 5,59,455 MT

6 Assam has four riverine ports namely Pandu Port, Karimganj Port, Badarpur Port, Silchar Port

7 Ministry of Road Transport and Highways has planned to develop a multimodal logistics park (MMLP). The development includes railway sidings, container terminals, warehousing, non-cargo processing, a truck terminal, common facilities, support infrastructure and equipment. A special purpose vehicle, backed by the Asian Development Bank (ADB), will be created to execute the project, which will be executed in two phases—Phase I of around Rs155.46 crores and Rs115.88 crores for Phase II.

8 22 Godowns constructed under Rural Godown Scheme of Government of India across the state with a cumulative capacity of approximately 14,500 MT.

1 15 Soil Testing Laboratories including one under private sector with an objective

2 Tissue Culture Laboratory in Silchar

3 North East Institute of Science and Technology (NEIST), Jorhat (formerly Regional Research Laboratory) is a constituent establishment of the Council of Scientific and Industrial Research (CSIR), a premier R&D organisation of India, which has a chain of laboratories across the country 4 Guwahati Biotech Park (GBP), is a platform to promote

entrepreneurship in the Northeast India. Situated in northern bank of the river Brahmaputra, surrounded by lush green environment and in proximity to premier Institutes of Northeast India: IIT Guwahati, Assam Engineering College, Institute of Advanced studies of Science & Technology and

Guwahati University and the Brahmaputra Industrial Park.

GBP aims to be a place where educators, researchers and business class come together as collaborative partners for the upliftment of science and technology entrepreneurship in Northeast India.

5 Assam Agriculture University, Jorhat: Assam Agricultural University is the first institution of its kind in the entire North-Eastern Region of India. The goal of the institution is to produce globally competitive human resources in farm sector and to carry out research in both conventional and frontier areas for production optimization as well as to disseminate the generated technologies as public good for benefitting the food growers/produces and traders involved in the sector while emphasizing on sustainability, equity and overall food security at household level

Logistics Infrastructure

Research Infrastructure

1 24 numbers of regulated market committee, 20 numbers of principal markets and 206 numbers of sub- market yards 2 532 Auction Platforms/ Retailers Sheds, 806 rural primary markets, 405 wholesale markets, 735 rural primary markets, 3 One organic market

4 18 packaging rooms, 42 drying platforms & 15 processing units in the state 5 Cold Storage:

Agri Marketing Infrastructure

S.No. Location Capacity (MT) Source of Fund

1. Byrnihat (Near Guwahati) 500 Spices Board & Assam State Agricultural marketing board

2. Singimari (Near Guwahati) 2000 North East Council

3. Gossaigaon (Kokrajhar) 2000 North East Council & Assam State Agricultural marketing board 4. Chenijan (Jorhat) 2000 North East Council & Assam State Agricultural marketing board

5. Kharupetia (Darrang) 5000 Under Warehousing Infrastructure Fund of NABARD

6. Chhaygaon (Kamrup) 5000 Under Warehousing Infrastructure Fund of NABARD

Policy Environment to drive the

Industry’s global

competence

Assam - Department of Agriculture & Horticulture

Horticulture Mission for North East & Himalayan States

The scheme supports holistic growth of Horticulture sector. It aims to support skill development and create employment generation for youth in horticulture and post-harvest management especially in cold chain sector.

• Pack House – INR 4 lakhs/unit

• Integrated pack house with facilities for conveyor belt, sorting, grading, washing etc. – INR 50 lakh/unit

• Pre- Cooling Unit – INR 25 lakh/unit

• Cold Storage units type 1 – basic mezzanine structure – INR8000/MT

• Cold Storage units type 2 – PEB structure – INR 10,000/MT Mission Organic

Value Chain Development in Assam (MOVCD)

Developing commodity specific commercial organic value chain under integrated and concentrated approach with end-to-end facilities for production, processing, storage and marketing.

Development of organic parks/zones with facilities for collection, aggregation, value addition, processing, storage and market- linkages for specific commodities requiring capital intensive technology.

• Functional infrastructure for collection, aggregation, grading units and North-Eastern (NE) organic bazaar @ INR 15 lakhs (75% subsidy).

• Integrated Processing Units with Total Financial Outlay (TFO) of INR 800 lakh or more limited to 75% to Farmer Producer Companies (FPCs) and 50% to private entrepreneurs as credit linked back ended subsidy.

• Integrated pack house with 75% subsidy to FPCs on TFO of 50 lakh or more and 50% to private entrepreneurs or maximum of 37.50 lakh whichever is less as credit linked back ended subsidy.

• Transportation/ 4 wheeler up to TFO of 12 lakhs (50%).

• Refrigerated transport vehicle/ Pre-cooling/ cold stores/ ripening chambers up to TFO of 25 lakhs (75% subsidy to FPC and 50% to private).

National Mission on Agriculture Extension Technology – Submission on agricultural mechanization

• Demonstration, Training and

distribution of post-harvest technology and management(PHTM): aims at popularizing technology for primary processing, value addition, low cost scientific storage/transport

• Promotion of farm machinery and equipment in North-Eastern region

PHTM

• For SC/ST/Small & Marginal Farmers, Women and NE beneficiary:

60% cost of unit with maximum permissible subsidy per machine of INR 1.50 lakhs

• For other beneficiary:50% cost of unit with maximum permissible subsidy per machine of INR 1.25 lakhs

• Promotion of farm machinery and equipment in North-Eastern region

• Financial Assistance for procurement of machinery/implements:

100% cost of machinery/implement/equipment up to INR 1.25 lakhs per beneficiary

Other enabling policies of Government of Assam

Assam Industrial

Policy 2019 The Industrial and Investment Policy of Assam was declared in July, 2019 by the State Government containing the fiscal incentives for investors in Assam. All new units as well as existing unit undergoing substantial expansion, modernization and diversification shall be eligible to enjoy the incentives under the policy.

The industrial policy includes Food processing Industries, Cold Chain & Cold Storage, Sugar Industries as thrust sector in the manufacturing sector

• A single window clearance system has already been setup

• State Goods and Service Tax (SGST) reimbursement:

» Reimbursement of 100% SGST paid through debit in electronic cash ledger account in the term of sub-section (1) of section 49 of Assam GST Act, 2017, upto 15 years.

» 100% Stamp duty shall be reimbursed, subject to a monetary ceiling of Rs.25 lakh (Twenty five lakh)

» Manufacturing and Specified Services sector units will be eligible for reimbursement of power subsidy @ Rs. 2.00 per unit consumed for a period of 5(five) years

» Subsidy on Generating set @ 50% of the cost subject to a limit of Rs. 20 lakhs on cost of generating set, taxes and transportation only will be provided

» Subsidy up to the extent of 75%, subject to a ceiling of Rs.10.00 lakh per unit for technology transfer, quality certification and ZED Certification

North East Industrial Development Scheme (Neids), 2017

Government of India as approved North East Industrial Development Scheme (NEIDS), 2017 with financial outlay of Rs.3000 crores up to March, 2020. Government will provide necessary allocations for remaining period of scheme after assessment before March 2020.

NEIDS is a combination of the incentives covered under the earlier two schemes with a much larger outlay. All eligible industrial units, which are getting benefits of one or more components of other schemes of the Government of India, will also be considered for benefits of other components of this scheme.

The overall cap for benefits under all components of incentives will be of Rs.200 crores per unit.

• Central Capital Investment Incentive for Access to Credit (CCIIAC) 30% of the investment in plant and machinery

• Central Interest Incentive (CII) 3% on working capital credit advanced by eligible Banks/ Financial institutions for first 5 years

• Central Comprehensive Insurance Incentive (CCII) Reimbursement of 100% insurance premium on insurance of building and Plant & Machinery

• Goods and Service Tax (GST) Reimbursement up to the extent of Central Govt. share of CGST and IGST for 5 Years Income Tax (IT) Reimbursement: Reimbursement of Centre’s share of income tax for first 5 years including the year of commencement of commercial production by the unit Export Policy of

Assam, 2018 The policy is focusing on existing focus sectors where the State has competitive advantage etc.

With a key objective to boost exports from the existing focus sectors where Assam has competitive advantage through increased market penetration as well as explore new products and markets to diversify and extend the export basket of the state, to enhance ease of doing exports through creation of simple, effective and efficient institutional mechanisms, simplified processes and more efficient organization and coordination of export promotion efforts the Export Policy of Assam was framed.

Further, strengthening of export infrastructure such as inland Container Depots (ICDs), Common Facility center, Cold Storage facilities, quality testing labs, Air connectivity, rail-road-waterways connectivity to ports, trade facilitation center, etc. with the help of Public Private Partnership models, setting up of a branch of Indian Institute of Foreign Trade in the state is also the key objective.

The policy will be valid for a period of 5 years from the date of notification with a scope for revision after 3 years. Incentives will be provided for Infrastructure Development, Quality Development as well as Freight Incentives for export.

The Sugar Policy

Assam, 2017 The basic objective of the policy is to initiate Sugarcane cultivation in the State as well as to assist the new cogeneration Sugar Mills which are to be set up in the State.

Through the policy, Govt. of Assam is committed to generate more and more rural employment through cultivation of Sugarcane as well as setting up new cogeneration Sugar Mills, The policy is in place from 01/01/2018 and 31/12/2022 and the State Government and will be applicable to Sugar proposes to provide to provide some incentives for the benefit of farmers and sugar mills through the policy:

Incentives for Sugar Mills:

• Reimbursement of interest on term loan obtained from Nationalized bank/FI under Government/Sugar Development fund @ 2% subject to maximum of INR 5 Crore per annum

• Reimbursement of 100% SGST for a period of 15 years

• 100% exemption on stamp duty on purchase of land and execution of lease agreement

• Reimbursement @ 2% of contribution made towards employee provident fund scheme for a period of 10 years

• One time incentive of 50 lakh for setting up of tissue culture laboratory