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Agro and Food Processing
Karnataka has a strong ecosystem of food processing industry and a well-established infrastructure of food parks and cold chain infrastructure. It is the highest coffee producer in India—70% of India’s Coffee, also producing 60% of India’s Ragi (Finger Millet) and 60% of India’s safflower.
1st
in production of Coffee, Ragi, Sunflower, Gherkins, and Corn
3rd
highest in poultry meat production
3rd
largest state in certified organic produce
150+
Sector Incentives and Policy
Industrial Policy Incentives
| Particulars | Incentives |
|---|---|
| Capital Investment Subsidy | 25% (without cap) on fixed assets like Land, Building, Dormitory, ETP, Machinery etc. |
| Interest Subsidy | 5% on term loan for 5 years |
| Stamp Duty | 100% reimbursement |
| Power Tariff subsidy | Up to INR 2 for 5 years |
| Wage Subsidy | Up to INR 3000 per employee per month for 5 years2 |
| ESI and EPF Subsidy | 75% reimbursement for 5 years |
| Industrial Infrastructure | 40% grant support for fixed capital investment in factory buildings & common infrastructure + 50% subsidy on fixed capital investment in CETP & CSTP up to INR 5 Cr |
- Not applicable for garment units
- Applicable only for direct employment of domiciles
Initiatives and Growth Drivers
Agro and Food processing Clusters
FMCG Manufacturing cluster in Dharwad, Aequs FMCG Ecosystem in Hubballi Cluster – Special package of incentives available including capital expenditure subsidy of 20% of VFA and PLI of 3% of annual turnover and Agricultural implement manufacturing cluster in Bidar to foster innovation and product diversification.
Drip Irrigation Project
Ramthal Drip-to-Market Agro Corridor (DMAC) is the largest drip irrigation project by the Government of Karnataka and 2030 WRG (World Bank subsidiary)
Established Market Linkages
285 FPOs, 22 PPP-integrated horticulture projects, 14 federations of organic farmers, 535 sheep and wool producer’s cooperatives.
Sector Champions
Sanjay Sharma
CEO & Director
MTR Foods Private Limited
MTR’s tradition of food and hospitality began in 1924 with the establishment of the MTR Restaurant by the Maiya family in Bangalore. MTR’s wide range of products include ready-to-eat curries and rice, gravies, frozen food, ice-cream, instant mixes, spices, a variety of pickles & papads, and milk beverage drinks. To fuel further growth, MTR became part of the Nordic conglomerate, Orkla, in 2007. Post this joint venture, MTR Foods has taken major steps to revitalize its brand appeal and establish its presence in the homes of modern consumers across India. With an all-new brand presence and a unique brand identity, MTR Foods seeks to own the instant food category in the rest of India; with Spices as a constant focus in the southern regions.
Hemant Malik
Divisional Chief Executive, Foods Division
ITC Limited (Foods Division)
ITC’s Foods brands delight millions of households with a wide range of differentiated products developed by leveraging ITC’s in-house R&D capabilities, relevant consumer insights, a deep understanding of the Indian palate, its agri-sourcing & packaging strengths, innovative communication and an unmatched distribution network. The business continues to invest in every aspect of manufacturing, distribution and marketing to ensure that it can leverage emerging opportunities and fulfill its aspiration of being the most trusted provider of Branded Packaged Foods in the country.
Sector Contact
Email: [email protected]
Phone: 9880095955
