Mint Explainer | Inside the Centre’s plan to double food processing capacity

₹1.53 trillion annually.The push was outlined during a meeting chaired by the secretary of the ministry of food processing industries (MoFPI), according to a government statement on Tuesday, and reflects a broader attempt to modernize the farm economy by shifting value creation away from raw produce toward processed and packaged foods. Policymakers say the approach could stabilize farmer incomes, reduce wastage and strengthen exports through investments in infrastructure, technology adoption, and value addition.As India seeks to modernize its agriculture, expanding processing capacity has emerged as a key policy focus.

Greater processing is expected to help farmers move beyond volatile market prices by supplying produce to processors and food companies, potentially improving price realization through value-added markets.Agriculture and allied sectors contribute about 16% to India’s gross domestic product (GDP), while roughly 46% of the workforce depends on the sector, amplifying the economic impact of inefficiencies in storage and supply chains.Government estimates suggest about 6% of crops suffer post-harvest loss, translating into losses of roughly ₹1.2 trillion, with highly perishable fruits and vegetables accounting for a large share. Research by the Indian Council for Research on International Economic Relations (Icrier) estimates annual post-harvest losses of ₹1.53 trillion ($18.5 billion) between 2020 and 2022.

During this period, soybean recorded the highest percentage loss at 15.34%, followed by wheat at 7.87%, paddy at 6.37%, and maize at 5.95%.“Strengthening food processing is emerging as a key strategy to boost farmers’ incomes and reduce wastage. It also helps curb post-harvest losses by extending shelf life