The agriculture sector in India has shown robust growth, in the second quarter of the 2024-25 fiscal year, and recorded a growth rate of 3.5 percent. In India more than 70% people are working in agricultural activities and business entrepreneurship. Agro-based industries promote the efficient use of resources, management of production, increase farmer earnings, expand markets, contribute to national income via value addition, and create job opportunities. These sectors significantly reduce the waste of agricultural products and guarantee stable and improved prices for farmers, as well as availability of the commodities in processed form to consumer throughout the year. According to Inc42, the Indian agricultural sector is predicted to increase to US$ 24 billion by 2025. During 2024-25, processed vegetables accounted for US$ 122.91 million, miscellaneous processed items accounted for US$ 302.07 million and processed fruits and juices accounted for US$ 143.51 million.
Over the past five years, India’s agricultural sector has grown at a rate of 4.18% per annum on average, contributing significantly to the economic growth of the nation. Approximately 55% of the population relies on agriculture as their source of income. Agro-based industries are the key forces behind rural employment and economic progress. They offer direct and indirect employment opportunities in diverse sectors such as farming, processing, packaging, transport, and marketing. By generating multi-varied job opportunities, these industries minimize rural unemployment and avert en-mass migration to the urban centers for employment. The total allocation of Rs 1.37 lakh crore has been provided to the Ministry of Agriculture and Farmers' Welfare in the Union Budget for financial year 2025-26, out of which Rs 1.27 lakh crore will go to the Department of Agriculture and Farmers' Welfare and Rs 10,466 crore will go to the Department of Agricultural Research and Education. Governments and private sector entities are investing in agro-industries and rural entrepreneurship, further accelerating economic growth.
"Government policies are helping farmers expand their planting areas. The new plantations should be ready for harvest by 2030-31, and that's when we'll see a big jump in production," said Sougata Niyogi, Chief Executive Officer - Oil Palm Business, Godrej Agrovet Limited, to Economic Times.
Small agro-industries like dairy farms and processing units encourage rural women and youth towards self-employment. Through the processing of raw materials, they increase the profitability of agriculture and reduce post-harvest losses. For instance, Amul Dairy Cooperative Movement transformed India’s dairy sector through the formation of small-scale farmers into cooperatives. It guarantees stable employment and income to hundreds of thousands of rural dairy farmers in India. Milk is being collected directly from farmers at village level. It reduces intermediaries, nsuring that farmers receive a higher price for their milk. The involvement of women in dairy farming grew, enhancing rural financial autonomy.
Agri-tech brings new changes and innovation to existing agricultural practices with the help of digitalization and modern techniques. National Agricultural Market (e-AM) scheme offers free software as well as financial support of INR75 lakh each to the Agriculture Produce Market Committee (APMC) mandi for associated hardware, such as quality-assuring tools and the establishment of infrastructure for cleaning, grading, sorting, packing, composting, etc. Agro-based industries create huge rural infrastructure in the interest of farmers and industries. The processing plant and storage units result in better road connectivity, power supply, and irrigation facilities.
S Krishnan, Secretary within the Union Ministry of Electronics & IT said, “There may be harvesting, post-harvesting expertise and sorting-Electronics and ICT. These are productive enhancing applied sciences. We additionally discuss value-added agriculture in vegetables and fruit which implies you may apply expertise extra successfully and management these elements in GreenHouse by way of sensors."
The use of automated processing methods, smart irrigation, and precision farming increases efficiency and productivity. Mobile apps and digital platforms assist farmers in accessing market prices, weather forecasts, and agricultural best practices, eliminating the need for middlemen. Cold storage and warehousing are essential in avoiding spoilage and maintaining a year-round supply of farm products. Furthermore, supply chain innovations such as artificial intelligence for logistics and blockchain enable smoother transportation and distribution at lower operational costs.
Maharashtra Sugar Industry is the main sugar-producing state of India with a network of cooperative sugar factories. The factories have constructed excellent road infrastructure, improving transportation in rural regions. Irrigation systems have also improved, guaranteeing regular supply of water for sugarcane cultivation. New technology and research laboratories have improved the yield of crops. Biomass energy is employed in most of the mills, encouraging clean power generation within villages. The sector offers direct and indirect employment to lakhs of workers and farmers.
Agro-based industries are important in empowering women and fostering rural entrepreneurship. Rural women have traditionally been engaged in farming activities, but agro-industries offer them organized employment opportunities and economic independence. Numerous women-owned businesses, including dairy farming, organic food production, and textile weaving, have thrived, leading to economic and social development. The role of Indian women farmers can be described with 85% of their population participating in agricultural work, 47% engaged in tree planting and cotton farming, 45% involved in oilseed production, 39% in vegetable farming, and 60-80% of food produced by them. The small businesses not only offer a means of sustenance but also generate employment within the community.
Chirag Paswan, Minister of Food Processing Industries said, “We want every stakeholder concerned with the industry to come on this platform and support the growth of India’s food processing platform nationally and internationally.”
Women entrepreneurs are well-rooted in agro-processing, handicrafts, and food packaging businesses, contributing even more to the economy. In addition, skill development courses and training workshops have been implemented to train women in new farm practices, quality assurance, and online marketing. E-commerce platforms have opened doors for rural women to market their produce to the wider world, enhancing their profitability.
Ram Nath Kovind, Lawyer and former President of India said, "The food industry can be a huge employer. And this is of utmost importance for a country such as India, which has such a large youth population. It is also net worthy that women are deeply involved in the food sector."
Lijjat Papad Cooperative in Mumbai with a small group of women making papads in their homes. Today, it has more than 45,000 women in India, and it is an area of economic independence. The cooperative model offers women fair wages while working at home. Training programs offer rural women business skills with opportunities for entrepreneurship. Lijjat Papad's success story encourages rural women to establish small-scale businesses.
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