Agro Based food processing Industry (AFPI) is a sunrise industry that converts agricultural products into high value products by processing. AFPI contributes 28% to Agricultural GVA and 13% to exports, making India the second largest processor of fruits and vegetables.
North west India as a suitable location for AFPI:
1. Climate: Large climatic diversity, rivers and fertile soil aid growth of a variety of crops.
2. Infrastructure: Adequate Farm (electricity, groundwater, canals) and non-farm (well-connected roads, cold storages, mandis)
3. Credit availability and affluence of farmers enable investment in agriculture.
4. The region was the heartland of green revolution, enabling greater agricultural productivity in terms of quantity and variety.
5. Government investment and policy support: Dedicated procurement system, government schemes, numerous food parks, 100%FDI etc.
6. Proximity to markets of highly population density and urban areas of India.
Poor marketing, high logistics cost, low cold chain and storage infrastructure and social perception against packaged foods are major challenges. However financial initiatives and policy handholding will not only generate employment and nutrition security, but also double farmer income (Ashok Dalwai committee)
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