localization of agro-based food processing industries of North-West India

Food processing is a large sector that covers activities such as agriculture, horticulture, plantation, animal husbandry and fisheries. Agro based food processing is defined as a set of techno-economic activities, applied to all the products, originating from agricultural farm, aqua cultural sources, livestock and forests for their conservation, handling and value-addition to make them usable as food, feed, fiber, fuel or industrial raw materials. 


Localisation of Agro-based food processing industries of North-West India 

North western states like Punjab , Haryana and North Rajasthan have extensive network of agro based food processing industries. Some of the factors for localization are :

• Raw material base: Punjab one of the highest producers of wheat and rice, Rajasthan important area for millet, Haryana for milk and livestock. 

• Robust agri marketing infrastructure: Punjab has close to 30 agro processing clusters(one of highest in India). 

• Robust infrastructure: extensive network of good roads and internal container depots. 

• Stable adequate and cheap energy: Most NW states are energy surplus. 

• Governance: Prompt MSP procurement in these areas encourage rice millers, Support to FPIs in form of tax incentives and subsidies. 

• Geographical advantage: Plain areas and close location to key markets like Delhi.


Challenges 

• Agribusiness is characterized by raw materials that are mostly perishable, variable in quality and not regularly available. 

• The sector is subject to stringent regulatory controls on consumer safety, product quality and environmental protection. 

Agro-based industries needs to be set up at rural areas where raw material may be available in plenty –helps in the up-liftment of the rural economy. It provides rural population an opportunity for employment, generates income and thereby improves economic condition of people – which in turn creates potential for demand based industries

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