In FY24, India’s agricultural exports, together with processed meals, amounted to $48.9 billion, with the share of processed meals exports rising to 25.6 per cent in FY22-23 from 13.7 per cent in FY14-15. Nonetheless, India’s whole agricultural export basket represents simply over 2 per cent of world agricultural commerce.
“The meals processing sector in South India exemplifies the Atmanirbhar Bharat initiative, relying totally on domestically grown produce. From cultivation to processing and consumption, each exercise happens throughout the nation.
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With focused interventions, the southern area may emerge as a world chief in processed meals exports,” stated Ravichandran Purushothaman, Chairman of the CII Nationwide Council for Chilly Chain and Agri Logistics and President of Danfoss India. He shared these insights throughout a dialogue with choose journalists on a report ready by Danfoss and CII, specializing in the potential of Southern States within the meals processing sector.
Expertise is highlighted as a key driver for development within the meals processing sector. The report emphasizes the significance of robotics and information in modernizing meals processing, together with monitoring particulars of what’s grown, the place, and when—a vital hole the Indian authorities’s agricultural digitization technique, with a price range of ₹150,000 crores, goals to deal with.
Leveraging expertise presents a chance to cut back wastage and improve worth addition.
Lots of India’s agricultural commodities have vital potential for worth addition. For instance, regardless of fluctuations in tomato costs, expertise now permits for the manufacturing of tomato puree that maintains the flavour of recent tomatoes. As consumption patterns shift, the demand for such value-added merchandise is predicted to develop.
The report additionally stresses the necessity for supportive public insurance policies and the promotion of startups, significantly given the labour challenges within the business. Modern applied sciences are important for enhancing effectivity in meals manufacturing.
For instance, a Chennai-based startup makes use of vertical farming with managed environment strategies to provide strawberries. At present, India imports 350 tonnes of strawberries each day at costs starting from 20 to 40 euros per kilo, however this startup can produce them at a a lot decrease value—5 to six euros per kilo.
Labourers, who are sometimes reluctant to work in conventional farms, are extra inclined to work in managed environments like vertical farms. This not solely offers a extra comfy working setting but additionally makes use of expertise to cut back wastage and enhance worth seize.
The actual problem lies not in funding however in addressing infrastructure gaps, significantly in reverse logistics. India’s fragmented provide chain hinders the seamless motion of merchandise from manufacturing centres to consumption hubs. For example, if bananas from Theni may attain Delhi in two days, farmers may earn ₹40-80 per kilo.
Nonetheless, the dearth of reverse logistics—corresponding to empty vehicles returning with out cargo—reduces income potential.
The report additionally requires stronger authorities coverage help, particularly in ability growth. Tamil Nadu’s dairy business, for example, has seen vital breakthroughs resulting from farmers buying the talents to maximise yield. Nonetheless, the state lags in technology-related areas like grading, sorting, and packing for merchandise corresponding to bananas.
The federal government ought to incentivize these actions and collaborate intently with agricultural universities. Purushothaman additionally emphasised the necessity for larger consciousness of presidency subsidies.
To higher coordinate efforts throughout states, he prompt that the meals processing sector in Southern India may gain advantage from a corporation just like the GST Council.
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