Agro-processing industries

Indian Economy glossary

Also called: Agro-based industries · Topic: Rural Development: Diversification, Allied Sectors and Organic Farming · NCERT: Class 10, Ch 2 "Sectors of the Indian Economy"; Class 11, Ch 5 "Rural Development"

Meaning

Agro-processing industries turn farm produce into processed goods, such as jaggery from sugarcane, pickles from fruit or packaged milk products. They belong to the rural non-farm economy, which is rural work outside agriculture. They are one of its dynamic, fast-growing parts. They matter because agriculture is already overcrowded. Processing creates jobs off the farm and gets farmers better prices for their produce.

Example

Making jaggery from sugarcane is a common village agro-processing activity. The PMFME scheme (2020) supports micro food-processing units under One District One Product.

Don't confuse with

  • Traditional home-based non-farm work: pottery, crafts and handlooms are also non-farm work. However, they lack infrastructure and support and have low productivity, while agro-processing is growing fast.

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