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Agro & Food Processing

Gujarat is a leading producer of various agricultural crops within India as well as worldwide.

Gujarat has highest production in the world for:

  • Castor (67)
  • Fennel (67%)
  • Cumin (36%)
  • Isabgol (35%)
  • Groundnut (8%)
  • Guar seed (6%)

The state has also emerged as a frontrunner in several other sectors.

  • 12 District Milk Producers’ Union
  • 10,725 Milk Cooperative Societies
  • 150 lakh liter/day Milk Production
  • 20.84 lakh Members of Milk Cooperative Societies


  • 3.54 lakh hectors of inland reservoirs
  • Fish industry generates approx. Rs. 1200 crore yearly with exports worth Rs 390 crore
  • Leading producer of marine fish (6.71 lakh mt/year) in the country (24% share)

Animal Husbandry:

20 million livestock with 7 million cattle and an equal number of poultry population
Contributes nearly 5% of state GDP

Traditional Horticulture and Floriculture:

Traditional strengths - Mango, Banana, Sapota, Lime, Guava, Tomato, Potato, Rose and Merigold The agriculture and marine output in Gujarat has witnessed tremendous growth in the past. Significant growth achieved in the past 4 years.

  • Oilseeds and Cotton: 51% annual growth
  • Pulses: 49% annual growth
  • Cereals: 36% annual growth Achieved due to better water management and systematic planning income in agriculture sector has increased by 40%

As a result, the Agro and Food processing sector has received a big boost in the state. Some of the salient features of the Agro sector in Gujarat are as:

  • Oil seed processing - 1200 oil extraction units
  • 49 solvent extraction units
  • Fruit and vegetable processing - 15 organised units, 30 small/ medium scale units
  • Seed spices - 40 units of ground spices
  • 25 units of Isabgol processing
  • Fish processing - 60-65 sea food processing units
  • Milk processing - 13 co-operative sector dairies
  • 26 private sector dairies

Gujarat has a vast network of market centres and yards

  • APMCs: 1178
  • Main Yards: 160
  • Sub Yards: 235
  • Cold storage centres: 2
  • 4-Special Yards: Cotton, Tobacco, Spices and Groundnut

Agrovision-2010 provides the framework for an accelerated growth of agro industrial sector in Gujarat

  • Growth targets
    • Agriculture value added to grow at a real rate of 6.8% till 2010
    • Key role to be played by private investors
    • Doubling of per capita income in real terms for population dependent on agriculture
  • Envisages major improvements in the area of
    • Production and Productivity of focus crops
    • Agricultural Research and Education
    • Land Resources
    • Livestock
    • Irrigation and Water Management
    • Cooperatives in Agriculture
    • Agriculture Marketing, Processing and Infrastructure
    • Fisheries and Agricultural Inputs

This strategic vision is supported by sectoral and infrastructure advantages in the state of Gujarat

Advantage – Agriculture sector:

• Integrated Water Management and assured irrigation
• Diversified Crops and Cropping systems
• Climatic diversities – 8 agro climatic zones
• Abundant natural resources suitable for a variety of commercial crops
• Strong Agri Marketing system, Agro based Industries & Co-operatives
• Strong agri research capabilities
• Enterprising Farmers having business instincts

Advantage – Infrastructure for the industry

  • Proximity to national and international markets through well developed ports, airports and roads
  • 41 ports
  • Quality power supply
  • 11 airports
  • Longest coastline in the country (1600 km)
  • Road network exceeding 73,000 km and efficient railway network
  • Quality manpower
  • Proactive Govt.

Thrust areas for investment are:

  • Supply chain infrastructure
    • Cold chain projects
    • Value added centres for agri products
  • Fresh produce export by air and sea route
    • Banana, Kesar and Alphonso Mango, Vegetables and Floriculture products
  • Food Processing
  • Marine export
  • Farm implements and seeds
  • Emerging technologies like biotechnology and genetic engineering
  • Organic farming
  • Value added dairy products
Agro Industry

The Agro Industries are those units which add value to agricultural products/residues, both food and non-food, by processing in to products which are marketable or usable or edible, or by improving storability or by providing link from farm to the market or a part thereof. Agro industry also includes high-tech agriculture and biotechnology based agriculture.

The Agro Based and Food Processing Industry in the State consist of Small, Medium and Large Scale Sector Units producing wide variety of products. As at the end of March 2003, there were about 16,400 Small scale industrial units in Food Processing Beverage and Tobacco Processing Products with a share of 5.88 % of the registered units in the State. There were 1875 working factories in this sector of industry accounting for 9.20 % of the registered factories and 10.35 % share of Workers employed in factory sector in the State.

Out of the total industrial approvals in large and medium sector the food processing industry accounts for 610 approvals which works out to about 6.51 % of the total approvals granted to all industry in the State as at the end of April 2005.

Further, according to monitoring information, 253 Large and Medium and large Scale Units with investment of Rs. 28,040 million have been commissioned in Food Processing Sector in the State whereas, 94 industrial units envisaging an investment of Rs.19,190 million are under various stages of implementation as at the end of April 2005.

Agro Vision

The Gujarat Agro Vision 2010 has been formulated with defined growth parameters of gross state domestic product, per capita income and increase in non farm income of rural population due to multiplier effect. A holistic approach has been envisaged with emphasis on agricultural research, conservation of soil and water, economic and social sustainability. A comprehensive Agro Industrial Policy - 2000 has been formulated.

Agro Industry Policy

In the new industrial policy the state has identified agro industries as the major thrust area. The policy aims to spur investments in agro processing, agro infrastructure and hi tech agriculture by monetary and non-monetary incentives. The key features of the state policy are:

  • Interest subsidy to agro industrial units and infrastructure projects.
  • Assistance in preparation of project reports.
  • Assistance in setting up of excellence / specific crop development institutes.
  • Assistance in quality certification.
  • Assistance in patent registration.
  • Airfreight subsidy for agro exports.
  • Assistance in research and development activities in the sector.
  • Equity participation in joint sector format to facilitate private investment
  • Provision of government land on long lease basis at concessional rate.

Venture fund financing to develop unique technologies in agro & food processing, horticulture, aquaculture, sericulture, hi tech agriculture and other agro related activities.

Investment Opportunities

Gujarat is one of the most industrialized states in India. In agricultural production too, the state is equally advanced and now accelerating its pace into high tech agriculture. The government has decided to accord priority to agro processing and horticulture, in view of high export potential for fruits like mango, banana and chikoo. The government would support the sector by providing assistance to farmers for agricultural inputs and systems like drip irrigation and encourage development of infrastructure facilities like warehousing, cold chain, pack hoses, interventions like banana ripening etc. for better pre harvest and post harvest crop management.

The sector has strong base with highly diversified cropping and a farming community, which is responsive to changes in agricultural technologies and practices. The state also has other strengths like decent logistical infrastructure like airport, seaport and extensive road & railway network.

The State of Gujarat has strength in Agro Based Industry in terms of natural resources established industrial base, skilled labour force, enterprising farmers, network of market yards and other requisite infrastructure. The State invites investment proposals from within and outside the country in all sector in general and with particular emphasis on agro based and food processing industry which has been identified as one of the thrust areas of the investment. Based on the availability of raw materials, infrastructure as well as domestic and export needs, a list of investment opportunities has been identified.

>>Industry Association:

>>Central Government Ministry:

>>Export Promotion Council-(INDIA):

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