Skip to main content

2021 | Book

Agro and Food Processing Industry in India

Inter-sectoral Linkages, Employment, Productivity and Competitiveness

Editors: Dr. Seema Bathla, Dr. Elumalai Kannan

Publisher: Springer Singapore

Book Series : India Studies in Business and Economics


About this book

This book provides different facets of India's agro and food processing industry in both organised and unorganised segments. It brings forth the topical issues having potential to accelerate the pace of growth in its employment, investment and productivity and strive for improving the global competitiveness. Using advanced quantitative techniques, it brings new evidences on inter-sectoral (agriculture-industry-services) employment and production linkages, contractual arrangements through Farmer Producer Companies, and subcontracting in the processed food sector. It also throws light on India's comparative advantage in export of primary and processed food products.

With rising per capita income, urbanisation, and changing food habits of people, India is increasingly striving to improve productivity and competitiveness in agriculture and manufacturing. A concerted policy focus to accelerate private investment in food processing, largely viewed as a sunrise industry, is expected to contribute to large scale job creation and external trade not only in the manufacturing but also in the agricultural sector. Keeping this in mind, considerable insights are featured in the book at the industry and firm levels due to a significant bearing of technological, tariffs and non-tariff barriers and labour regulations on their trade intensity, employment and efficiency. Containing perspectives from the top agriculture and industry economists in the country, the book will be very useful to researchers, academicians, trade analysts and policy makers.

Table of Contents

Chapter 1. Introduction
Since 1991, India has been integrated with global markets, per capita income has risen, urbanization has grown and, therefore, the economy has experienced many shifts. One shift has been in consumer behaviour and food preferences. Awareness of the health effects of alternative foods is growing, too, and demand is rising continually for safer and more nutritious foods and, also, for processed and packaged foods. As consumer demand for non-traditional food products affects the production mix (on-farm activity) and the post-harvest management of farm produce (off-farm activity), the policy and regulatory framework must facilitate the supply-side transition of India’s food system and help it adapt to and align with these evolving demand patterns. To meet the growing demand for processed and packaged foods, investment in processing of agricultural produce must be encouraged, the food value chains organized, and the regulatory environment for food safety strengthened.
Seema Bathla, Elumalai Kannan

Agriculture-Industry-Services Linkages

Chapter 2. Post-harvest Food Management, Extent of Processing and Inter-sectoral Linkages
The state of transformation of India’s food system is reflected in the changes taking place in the size and scale of the agro-processing and agro-services sectors, and their inter-linkages with agricultural sector. Knowledge gaps are, however, extensive given the diversity in economic activities, a large and varied consumer base, domestic and trade policies that influence the growth of the sector, and regional differentials. This chapter delves into three important questions, which are the prerequisites to understand the evolving food system in India—both on-farm, in terms of production mix, and off-farm, in the post-harvest management of farm produce. First, what is the size of agribusiness in the non-farm economy in terms of output (measured as gross value added) and employment? Second, what is the share of agricultural output that is processed, and what is the nature and extent of agricultural inputs (domestic and imported) used by the manufacturing and service sectors? And finally, what are the magnitudes of inter-industry (agriculture-industry) and intra-industry linkages?
Seema Bathla, Madhur Gautam
Chapter 3. Output and Employment Linkages of the Primary, Secondary and Tertiary Sectors in the Indian Economy: A Computable General Equilibrium (CGE) Analysis
Nitin Arora, Rahul Arora
Chapter 4. The Food Processing Industry in India: Regional Spread, Linkages and Space for Farmer Producer Organisations
The linkages between agriculture and industry have attracted the attention of academicians and policymakers alike, and the role of agriculture and its linkages with industry is part of the main discourse in the two-sector growth models in Kuznets’ (1961) elucidation of agriculture’s contribution to the economy. According to Bhattacharya and Rao (1986), sectoral linkages in India weakened during the green revolution (1967–1978) compared to the previous period. Since the result seemed counterintuitive, Satyasai and Viswanathan (1997, 1999) analysed the intersectoral linkages and found that these strengthened over time, though the magnitude of the relation weakened in later years. Irrespective of the metrics, agriculture and the other sectors are interrelated; none of the sectors can be sustainable in isolation. Using the by-products of one (sub)sector as the inputs for the others is the key to reaping economies of scale.
K. J. S. Satyasai, Aparajita Singh
Chapter 5. Forging Linkages to Promote Agriculture Exports Through Contract Farming: A Case Study of Okra Cultivation
Anjani Kumar, Gaurav Tripathi

Employment, Investment and Productivity Growth

Chapter 6. Temporal and Spatial Patterns in Employment and Productivity Growth in the Organised Food Industry
In the recent decades in India, the improvement in infrastructure and fiscal incentives has led to a favourable business environment, readily available markets, the availability of sufficient raw material for value addition and rising per capita income.
Seema Bathla, Shiv Jee
Chapter 7. Unorganised Food Processing Enterprises in India: Key Performance Indicators
The agro-processing industry, particularly the food processing industry, plays a major role in rural development as it facilitates commercialisation of agriculture and enhancement of factor income.
N. Padmavathi, Parmod Kumar
Chapter 8. Dynamics of Competition in Food and Agriculture Inputs Industries in India: A Mobility Analysis
Competition is key in enhancing efficiency and productivity in the industry.
M. L. Nithyashree
Chapter 9. Labour Regulations and Employment Growth in the Organised Food Processing Industry in India
Prateek Kukreja
Chapter 10. Beyond the Polemics: Subcontracting in the Unorganised Food Manufacturing Sector in India
Shayequa Zeenat Ali
Chapter 11. Investment Pattern and Sources of Finance in Micro, Small and Medium Agro-Processing Enterprises in India
Santosh Kumar

External Trade, Competitiveness and Determinants

Chapter 12. India’s Trade in Agro-Processed Products: Revealed Comparative Advantage and Its Determinants
Despite a structural change in the Indian economy in favour of the services sector, agriculture continues to provide employment to the vast majority of the rural population.
Ankur Jain, Elumalai Kannan
Chapter 13. Trade Competitiveness of the Indian Dairy Industry: An Empirical Analysis
India is the largest milk producer in the world. Milk and other dairy products account for about 67% of the value of the livestock sector, and these products support the livelihoods of nearly 50% of India’s rural households.
Yashobanta Parida, Avinash K. Ghule, Priyankkumar Tulsidas Dudhrejiya
Chapter 14. Protection Structure and Comparative Advantage in Primary and Processed Agriculture Exports
India has substantially reduced tariffs and non-tariff barriers in agriculture, industry and services sectors—following rapid transformations in the world trade and the Structural Adjustment Program of the World Bank, and in consonance with the stipulations of the World Trade Organization (WTO).India has a comparative advantage in rice, fish, meat, sugar, oilseeds and spices, and it has become a net exporter of agriculture commodities, but it still ranks poorly among agriculture-exporting countries.
Abhishek Jha, Seema Bathla
Chapter 15. Protection Structure and Total Factor Productivity Growth in India’s Organised Food Industry
An evaluation of the level of protection accorded to primary agricultural products (Categories I and II) and processed agricultural products (Categories III and IV)—based on the data at four-digit level of the harmonised system (HS)—finds that the average applied tariff rate fell from 41% in 2001 to 35.3% in 2017, though with large variations (Chap. 14 of this book).
Seema Bathla
Chapter 16. Productivity, Competitiveness and Export Performance: A Plant-Level Analysis of India’s Wearing Apparel Industry
To eliminate poverty in India in the foreseeable future, the Indian economy needs to grow at the rate of about 8% per year, or higher, for the next two decades; manufacturing-sector growth must accelerate markedly.
Bishwanath Goldar, Yashobanta Parida
Chapter 17. Import Content, Value-Added and Employment Generation: An Input–Output-Based Analysis of India’s Exports
Since 1991, India’s economic integration with the global economy has significantly increased its dependence on the rest of the world, and this increasing dependence could well be viewed in terms of the rising share of international trade of goods and services in its gross domestic product (GDP).
Devender Pratap, Shibananda Nayak
Agro and Food Processing Industry in India
Dr. Seema Bathla
Dr. Elumalai Kannan
Copyright Year
Springer Singapore
Electronic ISBN
Print ISBN

Premium Partner