The Madhabnagar institute would be the second after the one in Lucknow and would be fully-funded by the Centre, Indian Council of Agricultural Research Deputy Director General N K Krishnakumar said.
Krishnakumar and state Food Processing Minister Krishnendu Narayan Chowdhury laid the foundation for the institute which will come up on 70 acres.
Research on mango, litchi and guavas, besides medicinal plants and vegetables which will benefit farmers of eastern and north eastern states would be conducted at the institute, Krishnakumar said.
In West Bengal the climate and soil facilitated good crop but no scientific method was employed to increase productivity unlike in other states.
"West Bengal lags behind other states in this respect," Krishnakumar said.
Chowdhury on the occasion said that steps will be taken to market mango grown in Malda, where it is a leading crop, to the national and international markets.
A farmers' training centre was also inaugurated during the day.
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