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LATEST NEWS UPDATES | Agri industrialisation is need of the hour, and this calls for focus on secondary agriculture -Ashok Dalwai

Agri industrialisation is need of the hour, and this calls for focus on secondary agriculture -Ashok Dalwai

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published Published on Aug 13, 2020   modified Modified on Aug 16, 2020

-The Financial Express

In part one of this article (Secondary agriculture is of primary importance; August 10; https://bit.ly/31H0h0E), the need to expand the market range both horizontally (territorial extension) and vertically (functional expansion), as also the role of agro-processing in achieving the latter in particular, were discussed. In this part, the article dwells upon promoting secondary agriculture on the shoulders of food and non-food processing.

Current status of agro-processing

The processing sector in India still veers around food processing, and there is minuscule production of high-value products like chemicals from ethanol. The country imports most such products including proteins, starch, enzymes, adhesives, agar, biochemical, etc. India’s food processing industry (FPI) is relatively at a nascent stage, and currently processes less than 10% of its agri-produce. In 2017-18, the FPI accounted for 7.9% of manufacturing GVA and 9.5% in agricultural value added. As a percentage of the nation’s overall GVA, the FPI contributed just 1.59, but accounted for 1.8 million and 5.1 million jobs in registered and un-incorporated sectors, respectively. Obviously, the potential that the country’s bio-resources hold (758 million tonnes of crop residues and 1.2 billion tonnes of primary agri-produce) awaits fulsome utilisation.

Growing from primary to secondary agriculture—options

The way forward to secondary agriculture is to strengthen food processing and then graduate to non-food processing for bio-materials, biochemical and fuel. That no integrated effort has so far been made can be best illustrated by taking the case of seaweed. While the utility of seaweed in producing agar and further value-added products like agarose and sepharose is well known, the paradox is that despite India having a coastal length of around 8,000 km, it still imports seaweed from Spain.

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The Financial Express, 13 August, 2020, https://www.financialexpress.com/opinion/agri-industrialisation-is-need-of-the-hour-and-this-calls-for-focus-on-secondary-agriculture/2053362/


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