How farmers can add value to their produce

Raj Kumar and Gurpreet Kaur

VALUE addition via agro-processing at the farm level can raise farmers’ income and generate employment opportunities. Agro-processing can also help in lowering post-harvest losses of the produce. A study by NABARD Consultancy Service Pvt Ltd (2022) estimated the average post-harvest losses to the tune of 4.87-11.61% for vegetables, 6-15% (fruits), 3.9-5.9% (cereals), 5.6-6.7% (pulses) and 2.9-7.5% (oilseeds). In order to prolong the shelf life of perishable farm produce, it is vital to do value addition through agro-processing, which needs infrastructure, capital, technology and expertise.

Investment required for agro-processing complex at farm level

Note: Additional cost of construction of shed — about Rs 20-25 lakh — on around 3,000 sq ft area.

Agro-processing is a set of techniques by which products are obtained from farm produce as per the demand of consumers. Presently, the produce is procured by public agencies or private traders in the mandis; subsequently, various products are manufactured in agro industries. After adding the profit margin of intermediaries such as wholesalers, dealers and retailers, the products are made available to consumers at exorbitant prices. The farmer’s share in the price paid by the consumer remains very small. Thus, both the producer and the consumer suffer. Among farmers and extension workers alike, there is a dearth of knowledge regarding agro-processing. Robust and active agro-processing at the farm level is essential for the commercialisation and diversification of agriculture. Small farmers would undoubtedly benefit as it will enable them to generate income from sources other than the raw produce.

To fully reap the benefits of the farming, it is beneficial to sell the produce after processing and proper packing. Initially, farmers can clean and pack their produce at their own level and then sell it directly to consumers. For example, making flour from wheat, proper packing of corn maize, chickpeas, moong, etc. can earn 15-20 per cent more than selling the raw produce in the market. The oil of canola mustard variety GSC-7 can fetch a higher price than ordinary mustard oil. Making vesan from chickpeas, salted dal from moong bean, milk/cheese from soyabean and jaggery/shakkar/gachak from sugarcane can also be good choices. Similarly, the sale of turmeric powder instead of raw turmeric nodes can fetch a price of about Rs 150-200 per kg. Punjab Agricultural University (PAU) has developed machines for turmeric processing. The turmeric washing and polishing machine costs about Rs 1 lakh and requires an HP motor. The turmeric boiling machine can be run by using crop residue and has an average capacity of 10-12 quintals per hour. It costs Rs 5-6 lakh and can also be custom-hired at a rent of about

Rs 5,000 per day to process the produce. However, a commercial boiling pan, usually used for boiling sugarcane juice to make jaggery, can also be utilised for this purpose; it costs about Rs 3 lakh. A solar dryer and a turmeric grinding machine are also available for drying turmeric.

Tomatoes can be sold in the form of ketchup and puree after processing. Green peas can be stored at a low temperature during their peak season and sold later at higher prices. Mushrooms can be sold in the form of pickle and dried powder. Honey may be marketed by packing it in small bottles for better earnings rather than selling it in large tins at lesser prices. Some other options include bottling of ready-to-consume sugarcane juice, preparation of value-added jaggery cubes/bars, installing a mini groundnut decorticator-cum-sunflower thresher and maize sheller, installing a

multipurpose grain mill for grinding cereals/pulses/spices to produce flour/grits/powder/split; and the honey processing unit for small entrepreneurs to process honey in the production catchment itself.

Setting up a complex

Agro-processing complexes (APCs) in rural areas need to be developed to generate employment and income for the rural youth. About 300 such APCs are already running successfully in Punjab, even as more need to be installed. These can be set up individually or jointly by a group (self-help group or farmer producer organisation), which will help in cost-sharing and marketing of the products and there will be more number of working hands. For processing at the farm/village level, APCs may be started with a few machines such as a mini rice mill, baby oil expeller, flour mill, grinder, pulse cleaner-cum-grader and a feed mill. Financial assistance can be sought from government banks, Khadi and Village Industries Commission, Ministry of Food Processing Industries, etc. These institutions provide 25% subsidy to farmers and 30% to farm women for setting up the units. For border/backward areas, facilities such as electricity connection on priority, tax exemption and reduction in interest rates on loans are also provided.

Reliable certification

A flour mill, oil expeller and grinder can be run smoothly with the help of only one helper. After meeting all expenses, one can earn up to Rs 30,000-40,000 per month. The net returns from the entire agro-processing complex may be between Rs 50,000 and

Rs 1,25,000 per month, depending on the managerial efficiency. To make the processed products trustworthy among consumers, these should be certified by AGMARK or FSSAI (Food Safety and Standards Authority of India). To boost the sale of products, regular contact with wholesalers/retailers in cities for bulk orders is also desirable. Farmers can also sell their produce at Kisan Melas, farmers’ training camps, etc. The Atma Huts set up by the Department of Agriculture and Farmers’ Welfare as well as Apni Mandis can also be of great help for the sale of the processed produce. For basic knowledge and training, Krishi Vigyan Kendras of PAU are the go-to centres. For advanced training, the university’s Department of Processing and Food Engineering can be approached.

The authors are Principal Extension Scientists

(Agricultural Economics), Dept of Economics & Sociology, PAU, Ludhiana

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