Actions such as village-level procurement, linkages between production and processing, creation of rural markets and the opportunity of selling outside the APMC market are required to improve production and post-harvest in agri sector, which will lead to double farmers’ income and also minimize post-harvest losses, the Economic Survey said.
It was said that the food processing industries (FPIs) have developed at an average annual growth rate at about 9.99 % over the last 5 years ending 2018-19, compared to around 3.12 % in agriculture and 8.25 % in manufacturing sector at 2011-12 prices.
A conceptual shift in how we perceive agriculture from a rural livelihood market to a modern business enterprise is required, the survey stated.’ In this sense, both production and post-production in agri sector needs urgent transformations to consistent growth,’ it mentioned.
Measures such as village-level procurement centers, interconnections between production and processing, rural market growth, sales options outside the APMC areas, warehouse upgrades and expansion of rail freight services, dedicated freight corridors, among others, are required and are being taken up on the post-production front.
The survey also said the key priority of post-production management must be sufficient storage and financially rewarding markets for agricultural products. Integrating agriculture with nutritional benefits by means of food fortification of staples is also essential.
In terms of the contribution to Gross domestic product (GDP), employment and investment, the food processing industry has also emerged as an important players in the Indian economy. At 2011-12 prices, the segment provides for as much as 8.98 % of Gross Value Added (GVA) in output in 2018-19.