Food Processing


Bihar, fundamentally an agrarian economy, has a large agricultural and animal production base offering abundant supply of raw material to be processed for human consumption. Despite these natural advantages, the level of food processing is very low and there is scope to improve the food processing levels to meet the increasing requirements of the state's growing population, while at the same time offering a sustainable consumption market..

Further, the rising income and changing life style in the cities as well as rural Bihar is changing the consumption demand towards processed food. Therefore, the state offers a substantial opportunity for the food processing industry and is expected to play a leading role in the industrialization drive of this state. Some of the strategic advantages in this sector across key product offerings are listed below.

Food-grains (cereals, pulses and oilseeds)

Bihar’s recent emergence as a maize powerhouse with farmers harvesting yields comparable to Midwest US levels is well known.

Strategic Advantage

  • The production level of cereals in the state has grown annually at 5.65% in the last 5 years i.e. 2010-11 to 2014-15. Total cereal production of the state was 143.21 lakh tonnes in 2014-15 which is one of the largest in the country.
  • Some of the major products of the state are:
    Rice: 82.41 lakh tonnes
    Wheat: 35.70 lakh tonnes
    Maize: 24.78 lakh tonnes
    Pulses:4.28 lakh tonnes
    Oilseeds: 1.27 lakh tonnes

Bihar has the highest maize productivity amongst all the Indian states.

Investment Opportunities

  • Maize processing units with installed capacity of more than 100 TPD, including units for manufacturing starch and cattle and/or poultry feed
  • Any other cereal processing/flour/starch/dough mixes, breakfast food manufacturing unit with installed capacity more than 100 TPD.
  • Pulses processing unit
  • Modern unit for oilseeds processing or extraction from raw materials obtained locally; like Vanaspati oil manufacturing from rice bran and vegetables like soya-bean, safflower/sunflower, mustard, ground nut, etc. as well as fats and oils extracted from bovine/sheep/goat/fish/marine animals, etc. Unit for solvent extraction for edible oils with or without integrated refining facility.
Note: Processing units purely for sorting, cleaning, and packaging that do not generate any substantial value addition shall not be considered under the priority sector.

Fruits & Vegetables