Punjab Agro-Industries Corporation (PAIC)


Incorporated in 1996, as a state government undertaking, Punjab Agro-Industries Corporation today has a strong extension service network and excellent rapport with the farmers. The corporation has an equity capital base of Rs.466.6 million and employs about 1000 people at different levels in its regional, district and corporate offices. It is the nodal agency of the state government for promotion of agro-based industries in Punjab.


To provide agricultural inputs
Punjab Agro-Industries’ marketing policies are consumer-oriented handled by hard core professionals. 3 regional offices, 14 district offices, 90 retail outlets, 800 private dealers, 25 tractor sale-cum-service centers and 11 petrol pumps cater to the requirement of state farmers for fertilizer, pesticides, farm machinery, diesel/petrol, custom-hiring services and other requirements. It has offices and outlets in the remotest possible corners of the state. Punjab Agro-Industries Corporation’s annual sales turnover of agricultural inputs is around Rs.2000 million.

To introduce new technologies
Punjab Agro remains on the look out for innovative and state-of-the-art technologies for adding value to the state’s is agricultural produce and residues. Therefore R&D, development and promotional activities form an essential part of our corporate culture. Examples are:
Development of a new process for fractionation of cellulose, silica, lignin and hemi-celluloses from rice straw in technical collaboration with the Institute Armand Frappe, Quebec, Canada.
Sourcing technology for manufacture of xylitol from rice husk/bagasse.
Introducing new agricultural practices for improving the yield and quality of grapes, tomatoes, potatoes, soybean and sunflower.

Introduction of latest technologies for inversion of sucrose into Fructose enzymatically; cultivation and processing of aromatic crops for manufacture of essential oils and aroma chemicals; processing of fresh eggs for manufacture of frozen egg liquids and powders; manufacture of honey based cosmetics, health foods and medicine, cultivation of fresh water prawns. Micro-propagation of field/forest crops, flowers and ornamentals through tissue culture; growing and canning of mushrooms; processing of buffalo meat for export etc.

Punjab Agro has been instrumental in introducing post harvest management technologies for increasing shelf-life and transportability of perishable horticultural crops such as kinnows; grapes, exotic flowers by creating grading and waxing facilities, pre-cooling centers, refrigerated vans, flower auction house etc. Avenues are being explored for export of fresh fruits, vegetables and flowers, and some success has already been achieved in this direction.

To act as an institutional promoter
As an institutional investor, PAIC invests equity capital as a co-promoter. It contributes towards the equity of new projects in the Assisted Sector from 10 to 50% depending upon the size of the project. In the Joint Sector it contributes from 26 to 50%. Projects in the Assisted Sector are encouraged by the corporation. The corporation identifies project ideas through environment-scanning, conducts feasibility studies and market surveys, determines viable projects and thereafter selects financial/technical collaborator, depending, inter-alias, on experience and investment capability. It provides total assistance from selection of site, technology, preparation of project report; assistance in arrangement of term loans, working capital from commercial banks and raising funds through public issues. PAIC actively assists the private Indian and foreign investors in obtaining all kinds of official sanctions, licenses, permits, and arranging for other infrastructural facilities for proper, efficient and economic working of new projects.


PAIC has won the National Productivity Council Award in recognition of its promotional work, for the last seven consecutive years.

It has launched 21 successful projects costing about Rs.3,500 million. Among our valued partners are:

- Pepsi, Inc. USA
- Food Engineering Services, USA
- Dairy Tek, USA
- Institut Armand-Frappier, Canada
- Imporio Lader Wahen, Germany
- Westfalia Separator, Germany
- Schulle, Germany
- Carmeltech, Israel
- Chemtec, Israel
- Sandvik Process System, Italy
- AG Seeds, Australia
- Rice Engineering, Thailand
- Fletcher Challenge, New Zealand
- TMCI, United Kingdom Raisio, Finland
- Dalsem Holland
- Meijer Holland
- IMV, France

PAIC is currently implementing 15 agro-industrial projects in the areas of agro products and residues utilization, agro-chemical and food and horticulture at the total capital cost of about Rs.15,000 million.

Projects Under Implementation

Project Capacity Cost (Rs in million)
Kraft paper from agro resides 20 TPD 48
Invert Sugar from cane sugar 5 TPD 16
Day old broiler chicks 16 lakh P.A. 19
Solvent Extraction and refining of vegetable oils 150 TPD of oil seeds 73
Wine from grapes 1.5 lakh liters P.A. 9
Frozen egg liquids and powers 332 TPA Frozen egg liquids 3156 TPA Egg Powers 180
Photographic, pharmaceutical Di-calcium Phosphate and Edible grades of gelatin from dried animal bones 6058 TPA 526
Cellulose, silica, lignin and protein rich food from paddy straw (pilot plant) 1 TPD of paddy straw 70
Newsprint and Printing and writing paper from bagasse and eucalyptus wood 400 TPD 12000
Sodium caseinate, cheese, butter and ghee from whole milk 40,000 liters of milk per day 44
Hybrid seeds 1000 TPA of oil seeds 50
Bio-fertilisers and bio- pesticides Bio-fertilisers 300 TPA
Bio-pesticides 70,000 ltrs
Frozen fruits and vegetables, 100,000 TPA of fruits and vegetables 1280
Frozen semen 260,000 dozen of bull’s semen per annum 65
Spice oils and oleoresins 2 TPD 33

Another 34 projects costing about Rs. 9,100 million are at different stages of conceptualisation.

Project Under Consideration

Project Capacity Approximate cost
(Rs in million)
Gluten and starch from wheat 4 TPDH of wheat 368
Integrated sugar-cum-indus trial alcohol-cum-panel board cum diketene and acetoacetic esters Sugar-2500 TCD
Alcohol-30 KLPD
Panel Board-18 TPD
Diketene, Acetoacetic Esters-3000 TPA
Medium Density Fibre Board and Particle Board from cotton stalks eucalyptus wood and bagasse MDFB 300 tpd
Particle Board 100 TPD
Precipitated silica from rice husk ash 3000 TPA 60
Spinning mill 50000 spindles 1154
Portable alcohol from damaged wheat 135 lakh litres of IMFL per annum 250
LDPE Wide Width tubular blown film 15 TPD 50
Xylitol from rice husk/bagasse 500 TPA 150
Food grade caramel 500 TPA 20
Industrial Enzymes 500 TPA 80
Potable alcohol from potatoes Extra neutral alcohol
3 million litres per annum
Potato flakes and granules 1 TPH 200
Beaker’s yeast 300 TPA 20
Polyols from castor oil 2000 TPA 60
Guar gum from guar seeds 25 TPD 5
Edible grade spirulina algae 100 TPA 20
High Fructose syrup from broken rice 40 TPD 250
Edible grade rice bran oil 50 TPD 120
Enriched feed, butonol, acetone, carbon di-oxide and mixed solvent from maiz 5000 TPA 150
Tissue culture 1 million of flowering and ornamental plants per annum 10
Dehydration of onions and vegetables 5000 TPA 250
Semi-candied fruit and rice Semi-candied fruits 600 TPA
Rice-1200 TPA
Hybrid oil seeds, solvent extraction and refining of vegetable oils Refined oil-100 TPD Hybrid Oil seeds-1000 TPA 500
High Tech Feed 30,000 TPA 51
Fruit juice concentrates 10 TPH of fruit 258
Hybrid seeds 1000 TPA 21
Potato starch 3000 TPA 300
Micro sprinkler 200 Hectare 60
Potato seeds 4000 TPA 60
Cotton development 200 Hectare 20
Dairy farm 3000 liters per day of milk 50
Flour mill 400 TPD of flour 400
Barley Malt, Malt extract and Beer Barely Malt-10000 TPA
Malt Extract-20000 TPA
Beer-15000 KLPA
Asparagus growing and canning 300 TPA 50
Grain based distillery 18,000 LPD 230
Spirulian algae 250 TPA 60.50
Production of cellulose, silica, lignin and protein rich food from rice straw 300 TPD 930.20
Precipitated silica from rice husk ash 300 TPA 60.00
Rice Husk Particle Board 2500 TPA 60.00
Bio-fertilizers manufacturing project 100 TPA 5.00
Canned Fruit & Vegetables 3000 TPA 70.00
Production of Natural Food Colours from Flower/Petals cultivation of exotic vegetables for export 3435 MT 60.00
Integrated project for production and export of strawberries 8 MT 15.00
Dried/Preserved flowers/foliage plants   15.00
Production of Papain from Papaya 35 TPA 30.00
Pre-cooling and cold storage of fresh fruits 50 tonnes 20.00

Punjab Agro-Industries Corporation & the New Industrial Policy

  • The "New Industrial Policy, 1996’’ notified by the Punjab government recognizes agro-based industry as a thrust area and provides a special package of incentives. These are: Investment incentive at the rate of 30% for fixed capital investment subject to a maximum of Rs 5 million.

  • Sales-tax exemption/deferment for 10 years subject to maximum of 300% of fixed capital investment.
    Generator set subsidy at the rate of 50% of the cost of captive generator set, subject to a maximum of Rs.1.5 million. The above incentives are available to the following categories of agro based industries:
    Freeze drying & dehydration of fresh fruits & vegetables.

  • Potable/Industrial Alcohol from raw materials other than Molasses.

  • Bio-conversion of maize/corn into organic chemicals/compounds other than starch.

  • Products manufactured from agricultural residues excluding pulp & paper.

  • Processing of aromatic & medicinal plants for extraction of their oils/extracts.

  • Tissue culture.

  • Integrated poultry projects involving pureline breeding, grand-parent franchiser breeding & modern hatcheries.

  • Processing of eggs for the manufacture of pastes & powders.

  • Mechanized processing, preservation & packing of fish & other fishery products.

  • Refrigeration equipment for cold storage & for refrigerated vans including units developing alternate technology for refrigeration like solar energy etc.

  • Other hi-tech industries in the agro-industrial sector involving processing of agricultural produce/residue available in the state.

  • For projects of special significance for growth of industry, having capital investment of over Rs1000 million, special packages of incentives shall be provided by an Empowered Committee headed by the Chief Minister.

For further details, contact:
Managing Director
Punjab Agro Industries Corporation Ltd.
2 Sec 28 A, Chandigarh
Phone : 91-172-657037, 657472(O) , 91-0172-545900 (R)
Fax : 91-172-40398



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