IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Value Addition in Agriculture and Allied Sectors

  • Saikumar.B.C
  • Manjunatha.A.V
  • Chengappa.P.G
  • N.Nagaraj
Registered author(s):

    India is one of the World’s major food producers contributing less than 1.5 percent of international food trade. This implies that there is a vast scope for investment in agro processing for better value addition and job creation. In year 2000, the sales turnover of Indian food industries is Rs. 140,000 crores with higher percentage of employment generation potential as compared with other sectors i.e., 54,000 persons get direct employment per Rs.100 million of investment in the food sector as compared to 48,000 in textiles and 25,000 in paper industry. Currently in India, value addition to raw materials at different stages includes primary processing with 75 percent, whereas secondary and tertiary processing together accounts only 25 percent. Value of Indian food industry has increased from Rs.3.09 trillion in 1993- 94 to 3.99 trillion in 2000 –01. Indian food processing earnings was 20 US $ billion in 1995-96 and expected to increase to 60 US $ billion by the end of 2006. Turn over of the total Indian food market is 2,50,000 crore per year contributing 1.5 percent to the global processed food trade. Annual consumption of value added foods alone would grow to Rs.2, 25,000 crore by 2007 will be larger than manufacturing sector. Agro-Food Processing industries can reduce losses to the tune of Rs.8000 crore by increasing value addition from current level of 7 percent to 35 percent. Present rate of 2 percent of commercial processing can be increased to 10 percent by 2010 by investing Rs.15, 000 crore this creates additional employment directly for 77 lakh people and indirectly for 3 crore people.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.rcssindia.org/jge
    Download Restriction: Only to subscribers

    File URL: http://www.rcssindia.org/jge
    Download Restriction: Not freely downloadable

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Research Centre for Social Sciences,Mumbai, India in its journal Journal of Global Economy.

    Volume (Year): 6 (2010)
    Issue (Month): 4 (August)
    Pages: 311-327

    as
    in new window

    Handle: RePEc:jge:journl:646
    Contact details of provider: Web page: http://www.rcssindia.org

    Order Information: Email:


    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:jge:journl:646. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr J K Sachdeva)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.