In his inaugural address at the world Coconut Day Celebrations, Kerala Industries Minister P Rajeev stated the state’s role as one of the major producers of coconut & its products, specifically coconut oil. In addition to the traditional products, the minister has called out for concerted efforts for developing a range of diversified value-added products from coconut.
He also stated the increase of innovative products which include nata-de-coco and coconut chips that hold significant potential in both local as well as global markets.
“We need to promote small scale industry for the production of such diversified products. Convergence of the schemes of the Government and Coconut Development Board will help in extending quality support to entrepreneurs in the coconut sector,” said Kerala Industries Minister P Rajeev.
The agro-industry is one of the vital engines of economic growth, specifically in agrarian economies. Here agriculture forms the backbone of livelihoods & sustenance. However, the conventional agricultural model often confines itself to manufacturing as well as selling raw products, which does not leave any significant untapped potential for wealth generation. As value edition in the agro industry is one of the transformative approaches which enhances the economic worth of agricultural products by branding, processing or enhancing their functionality or form. This paradigm shift from only cultivating crops to creating high-value products via innovation as well as strategic interventions opens up avenues for diversifying revenue streams, boosting profitability as well as fostering sustainable growth. In this article let us look at how value addition in agro-industries help in unlocking new revenue streams.
A significant advantage of value addition is its capacity of it to enhance profitability at all levels of the agriculture value chain. Farmers as well as agro-industries obtain a huge share of the consumer price by processing raw agricultural products into either semi-finished or finished goods. For example, raw milk when sold in bulk gives a lower price when compared to processed diary products such as flavored milk, cheese or yogurt. Likewise, what multiplies the market value of grains is converting them into either ready-to-eat products such as breakfast cereals or even pasta. This surge in profitability directly benefits traders, farmers and processors and it in turn ensures that the agro-industry stays a viable as well as attractive economic activity. Moreover, value addition helps agricultural stakeholders to diversify their revenue streams by either coming to premium markets or even catering to the niche consumer demands which include glutten-free, organic or nutritionally enriched products. Diversification reduces the risks that are associated with global trade disruption, market fluctuations, crop values making value-added agro-industries more resilient as well as adaptive to change.
Speaking at the food processing session titled ‘Technological advancements, food safety regulations, supply chain management and consumer trends in Telangana’ at the HMTV Business Summit 2024, Dr Rangaiah V Setlem, Founder & CEO, Indigene Protein Foods said “There is an urgent need to go for value addition in the agriculture sector for India to accelerate its economic growth”. “India will become world’s number one economy if complete value addition is achieved in the agriculture sector,” he added.
Value addition possesses huge potential for job creation as well as rural development in agro industries. Packaging plants, processing units as well as distribution networks need a skilled as well as semi-skilled workforce which led to creation of employment opportunities in semi-urban and rural areas where such kind of options are limited often. Governments as well as private investors can increase economic activity in underdeveloped segment, reduce income disparities as well as curb mitigation to urban centers by establishing agro-industrial clusters. For instance, the establishment of fruit-processing industrial plants in regions where the apple growth is higher renders job opportunities and ensures a steady income for local farmers by providing a reliable market for their products. Furthermore, the development of ancillary industries which include cold storage, marketing & logistics amplify the economic impact of value addition. The effect of such activities stimulates local communities and this in turn helps in enhancing the standard of living as well as strengthens the socio-economic landscape of rural communities.
One of the critical benefits of value addition lies in its ability of minimizing post-harvest losses and this is a significant challenge in the agro-sector specifically in growing economies. Perishable goods are prone or rapid spoilage owing to inadequate storage & transportation infrastructure. Drying, freezing, canning, & converting surplus produce into processed products which include purees, sauces or frozen meals that can extend the shelf life of the aforementioned products are some of the important value addition techniques. For instance, surplus tomatoes during high harvest can be processed into ketchup or canned for off-season consumption, and these will help in preventing wastage as well as ensuring better prices for farmers.
A workshop was organized on "Profiling of Potential Varieties of Non-Basmati Rice and Value-Added Products of Rice" In the month of September this year by The Agricultural and Processed Food Products Export Development Authority (APEDA) under the Ministry of Commerce and Industry jointly with ISARC at New Delhi.
During his address, Chairman, APEDA Abhishek Dev appreciated ISARC’s efforts, stating, “These projects not only respond to the growing demand for healthier food options but also capitalize on traditional rice varieties to create value-added products.”
Value addition in agro-industries represents a game-changing strategy to unlock new revenue streams as well as addressing a few of the most pressing challenges that are faced by the agricultural industry. The agro industry can improve profitability, reduce waste, create job opportunities as well as contribute to sustainable development. However, realizing the complete potential of value addition requires overcoming systemic challenges via targeted policies, capacity-building initiatives & investments.
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