The study advocated setting up of large scale agro-processing plants with the help of private sector and suggested that Madhya Pradesh is the ideal state for investment. The growth in the food processing sector will, thereby, push the growth in employment by 2.61 per cent.
According to the study, encouragement for large scale agro-processing industry would lead to establishment of export oriented units. It would also attract the multinationals companies to set up food, feed and other processing plants to produce export quality products.
The industry would also contribute in developing the rural sector to generate income and employment. Primary processing operations like pre-cleaning and grading can be undertaken in rural areas before processing on industrial scale. Horticulture crops are also important as they generate both substantial employment opportunities and good income per unit area. Considerable manpower is employed at all stages right from cultivation to harvesting, packaging and retailing. Equally important is the role, these crops can play as foreign exchange earner, due to the inherent export potential, the study said.
According to the PHDCCI study, private enterprises can develop captive farms where suitable varieties of horticultural crops can be developed and demonstrated.
This will motivate the farmers around to adopt those varieties which are needed by the industry in fresh form or for processing.