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Despite highest agricultural growth rate MP at 11th place in food processing sector

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MP 11th in food processing

Indore: Despite achieving highest agricultural growth rate in the country, the state could not muster the opportunity of developing food processing industry (FPI) and the state stands at 11th place in national ranking.

These facts are stated in a study conducted by ASSOCHAM India and Thought Arbitrage Research Institute (TARI). The study titled ‘Food processing industry: Contributing to Make in India,’ released by ASSOCHAM secretary general DS Rawat and Ms Kshama Kaushik, director, TARI at a press conference held here on Wednesday.

The study also said that Madhya Pradesh, with largely an agrarian economy is a potential leader and can further help in propelling growth of food processing industry in India. But it is concerning to note that sector for food and agro-based products had attracted a meagre Rs 3,382 crore out of the total outstanding investments worth about Rs 6 lakh crore attracted by in fiscal year 2015-16.


MP is India’s largest producer of soyabean (60 per cent), pulses (27 per cent) and apart from being second leading state for rapeseed and mustard (11 per cent) it is also the third leading state in wheat production (16 per cent). As such MP should promote grain and oilseeds-based food processing industry in the state which accounts for about half of the total output of food processing industry. Promotion of FPI could change farmers earning and industry scenario in the state.

Talking to media Rawat and Kaushik said that the state need to immediately increase capacity of FPI by 30%. This can be done under public private partnership and also reinforcing the existing food processing policy and by increasing investment in the area.

Govt should declare MSP for every agri product

Strongly advocating for declaration of minimum support price of every agricultural produce Rawat said that Union governments should come out with a policy in this regard. In case of sudden fall of prices of horticulture produce, the interest of farmers could be safeguarded. If government takes steps in this direction, then the farmers need not to throw their hard earned produce at roadside or in mandies without selling them.