National : Primus Partners, in collaboration with ASSOCHAM Goa State Development Council, today launched its latest report titled “Empowering Small-Scale Players in India’s Food Supply Chain can Unleash ₹1,000 Crore.” The report outlines how grassroots enterprises — including Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), cooperatives, and women-led micro-enterprises — can collectively unlock over ₹1,000 crore in additional income through decentralized food processing and value addition.
India’s food processing sector, currently valued between USD 389–535 billion, is projected to cross USD 700 billion by 2030. Despite this rapid growth, farmer incomes have increased by only around 5.2% annually, underscoring the need for a more inclusive approach that strengthens local processing units and community-driven enterprises.
The report emphasizes that beyond food parks and mega investments running into a few hundred crores, there is a need for interventions at the grassroots level — particularly through FPOs and SHGs — that can truly generate sustainable income for farmers and drive equitable growth across India’s agri-value chain.
By adopting simple processing technologies and modest capital investments of ₹10–25 lakh, small-scale processors can achieve a 20–25% uplift in value realization, while also reducing post-harvest losses and creating rural employment. The report highlights successful examples such as Sri Satya Sai Raithu Cooperative in Andhra Pradesh and Goa’s emerging jackfruit value chain, both of which demonstrate the transformative potential of decentralized value addition.
“The next chapter of India’s food processing journey will not be written by mega parks alone but by the millions of grassroots enterprises that add value where food is grown,” said Mr. M. Ramakrishnan, Managing Director, Primus Partners. “With the right market linkages, digital skilling, and blended finance, small-scale processors can become the real engines of inclusive growth—enhancing rural incomes, empowering women, and positioning India as the world’s most inclusive food processing hub.”
The report identifies three strategic priorities to accelerate this shift:
- Assured Market Access: Connecting FPOs and SHGs with retailers, hotel chains, and digital marketplaces such as ONDC.
- Blended Capital Deployment: Leveraging multilateral funding from ADB, World Bank, and fintech lenders like Samunnati to improve credit flow.
- Capacity Building: Establishing district-level Centres of Excellence for hands-on training, digital enablement, and business skill development.
The report was unveiled at the ASSOCHAM Goa Agri Conclave 2025, which brought together policymakers, industry leaders, and entrepreneurs to discuss pathways for inclusive and sustainable growth in India’s food processing ecosystem.
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