Odisha’s roadmap to become eastern India’s food processing hub hinges on investments, value addition, new food parks and stronger branding of traditional products, says additional chief secretary, Industries department Hemant Sharma, as he speaks to Sudarsan Maharana.
Where does Odisha see itself as a food processing hub in eastern India?
Our long-term vision is to become eastern India’s leading food processing hub. We have two clear objectives. First, we want to emerge as the top food processing destination in the region, serving Odisha, West Bengal, Assam, the Northeast, Jharkhand and Chhattisgarh. Second, every major domestic and international food brand operating in India should have a manufacturing facility in our state.
Which sub-sectors offer the biggest growth opportunities?
The biggest growth opportunity lies in packaged snacks. The seafood sector is primarily export-driven. Millets are emerging as a promising segment, while non-basmati rice is another key focus area. At Odisha Food Pro 2026, our primary focus will be on attracting investments in packaged snacks.
How is Odisha promoting the processing and branding of GI-tagged products?
Many of Odisha’s GI-tagged products are still not well known outside the state. While some are not suitable for packaging, others can be packaged effectively. For example, Odisha Rasagola can be packaged to extend its shelf life, enabling it to be transported and sold in wider markets. We are working to promote such products on a large scale.
We have identified products such as Chhena Poda, Chhena Jhilli and Khaja that are suitable for modern packaging. To promote these products, we need modern packaging, improved hygienic preparation methods, quality standardisation, FSSAI licensing and a longer shelf life without compromising their authenticity or flavour. This would also create greater income opportunities for our farmers.
What incentives is Odisha offering to attract food processing companies and startups?
Under the Odisha Food Processing Policy, we provide a 20 per cent capital investment subsidy, land at concessional rates, a `2-per-unit electricity subsidy and 100 per cent exemption from electricity duty. We also offer 100 per cent reimbursement of SGST. This is a major attraction, particularly for companies procuring raw materials locally, as it also helps increase farm-gate incomes.
Major food processing investments has Odisha attracted, and what are the next priorities?
We have achieved reasonable success in attracting investments. Several leading companies, including Nestlé, ITC, Britannia, Parle, Varun Beverages and Campa Cola, have established a presence in Odisha. However, these are largely national brands. What we now need are more domestic companies that can build national and international brands around Odisha’s own products.
Take Mudhi (puffed rice), for example. It has a strong local market, but its reach remains limited. According to estimates shared with us by a national player, Mudhi alone has the potential to become a `1,000-crore annual business. We are looking for companies that can transform Odisha’s traditional products into recognised brands. Our focus now is to attract larger domestic players that do not have a presence in Odisha yet.
How is the government supporting MSMEs and startups in food processing?
We have a separate policy for MSMEs. Under the Odisha Food Processing Policy, local MSMEs receive an additional incentive of up to 10 per cent. They also get land in food parks at highly concessional rates, enhanced SGST reimbursement, and other benefits if they establish units in any of the state’s 15 industrially underdeveloped districts.
How will small and marginal farmers benefit from the growth of food processing?
We have identified several priority sectors, including dairy, seafood, cashew, jackfruit, millets and non-basmati rice. We have also identified products such as sweet potato, Kuchinda chilli and Nabarangpur maize. While such products are already being traded, much of the value addition takes place outside Odisha. Our objective is to bring processing and value addition into the state so that farmers receive better farm-gate prices. Expanding processing capacity and value addition is essential to ensure that a larger share of the value generated across the supply chain reaches farmers.
How is Odisha expanding its food processing infrastructure?
At present, Odisha has five food parks. We are planning to establish five more - one between Khurda and Cuttack and the others in Bargarh, Nuapada, Berhampur and Balasore. Each park will span around 200 acre and equipped with essential infrastructure, including water supply, power, effluent treatment facilities and workers’ hostels. We expect these parks to attract significant investments.
Is the government planning a new food processing policy?
Our existing policy is already quite competitive. At present, we do not see the need for a new policy. However, if market conditions change or new opportunities emerge, we will make the necessary changes.
What is the strategy for expanding food processing exports?
Our strategy is currently focused on products such as seafood, cashew, millets and non-basmati rice. These sectors will receive focused marketing support initially, after which we will expand to other products. We also intend to promote GI-tagged products internationally, though that will take time, as we must first establish and strengthen these brands.
Employment potential of Odisha’s food processing sector?
According to a report prepared by ASSOCHAM, the food processing sector in the state has the potential to attract at least `10,000 crore in investments over the next two years. This could generate around 20,000 direct jobs in factories. If indirect employment is also taken into account, the total number of jobs could be nearly double. This is our target and one of the key outcomes we hope to achieve through Odisha Food Pro 2026.