For agriculture to transform, it’s essential that farmers are empowered with knowledge, skill and entrepreneurship
Agriculture is the backbone of the Indian economy and will remain so for the next century or so. About 65 per cent of the Indian population depends on agriculture for their livelihood. However, subsistence agriculture does not generate enough income for the farmers and rural families due to which they are forced to leave this industry.
A viable model of agriculture can emerge only by connecting the farm sector to value-adding channels and the food processing industry. India can develop only when its villages develop and villages can develop only when the farmers and the rural youth prosper. Farmers and rural youth will prosper when they are empowered with the required knowledge, skill and entrepreneurship and are connected to value addition economic activities in the agri-business domain. A large network of agri-based rural micro-enterprises, owned by farmers and rural youth, needs to be established to bring prosperity to farmers/rural youth and villages.
Just like a farmer prepares his field before sowing the seeds so as to get a good yield, we have to make the farmers and the rural youth aware about the benefits of value addition and food processing. We have to train them and give them knowledge so that they either become entrepreneurs or trained workers for the food industry. We have to also handhold them for some time so as to help them establish micro-enterprise in the rural area itself.
India's economic security is still dependent on the agriculture sector and the situation is not likely to change in the foreseeable future. Even now, agriculture supports 58 per cent of the population as against about 75 per cent during independence. In the same period, the contribution of agriculture and allied sector to the gross domestic product has fallen from 61 per cent to 19 per cent.
As of today, India supports 16.8 per cent of the world's population on 4.2 per cent of world's water resources and 2.3 per cent of the global land. Per capita availability of resources is about four to six times less as compared to the world average. This will decrease further due to increasing demographic pressure and consequent diversion of the land for non-agricultural uses. Around 51 per cent of India's geographical area is already under cultivation as compared to 11 per cent of the world average.
The economic and social condition of farmers will largely depend upon the intervention of food processing industries in order to transform the farmer's produce to value added products. The viability model of agriculture in India will emerge by linking it to value addition, food processing preservation and establishing a large network of food processing micro and small enterprises in the villages.
The growth of the food processing industry will bring immense benefits to the economy. It will raise agricultural yields, enhance productivity, create employment and raise life standards of a large number of people across the country, especially those in the rural areas. Hence, popularisation of food processing technology and creating awareness among the masses is necessary for the development of the farmer’s income and to make them self-reliant.
Though India has a strong agricultural and horticultural production base, but it is a matter of great concern that low level of processing, inadequate post-harvest infrastructural facilities, and a lack of appropriate technology lead to wastage of agriculture produce. In particular, perishable commodities result not only in the loss to the national exchequer but cause severe hardship to our farmers and consumers. Various studies have revealed that we might be losing around Rs40,000 to Rs50,000 crore for the lack of post-harvest facilities and inadequate processing.
The different stages considered for assessment of losses are harvesting, collection, threshing, grading/sorting, winnowing/cleaning, drying, packaging, transportation, and storage, depending upon the commodity. Most of the wastage is happening in fruits, vegetables, pulses and cereals. With adequate processing facilities, much of this waste can be reduced. This will, thus, increase remunerative wage to the producer as well as ensure greater supply to the consumer.
Some of the major challenges being faced by the food processing sector are: Supply-chain infrastructure gaps (lack of primary processing, cold storage and distribution facilities at the Farm gate in the villages); inadequate link between production and processing (lack of process able varieties); seasonability of operations and low capacity utilisation; inadequate focus on quality and safety standards; lack of product development and innovation; supply chain institutional gaps (procurement dependence on agricultural produce market committee markets)
Another major constraint is the availability of skilled/trained manpower. This calls for major investments in developing human resources which will in turn help the farmers become entrepreneurs, train rural youth for the food processing industry which will help agriculture and food processing industry grow faster.
Central Government institutions like the National Institute of Food Technology Entrepreneurship and Management (NIFTEM) have already taken such initiatives. But to make the programme successful, it is imperative to involve 640 Krishi Vigyan Kendras and 45 agriculture universities and eight central universities where food technology is taught. These institute/universities will facilitate in catalysing the process of entrepreneurship with technical inputs from their renowned scientists/resource persons. NIFTEM will also network with the Mudra Bank, MSME schemes and the National Skill Development Corporation etc, to smoothen the process of finance to the budding entrepreneurs.
Since 2011, NIFTEM has been conducting skill development and capacity building programmes on a pan-India basis to skill the farmers and unemployed youth, besides upscaling the skill of employed youth. NIFTEM has adopted 39 villages, spread across 18 States. Its facilities and students are supervising and monitoring the development of entrepreneurship in the villages, particularly of farmers. Success stories have started emerging.
(The writer is vice chancellor of the National Institute of Food Technology Entrepreneurship and Management)