Agro Processing Cluster, Cluster Food Processing in India, Research Report


Cluster Food Processing is one of the principal agricultural practices employed to satisfy the growing demand in this sector. The rise in population density especially in emerging economies is one of the main determinants that promote this practice. According to the market database, it is reliant on the district-based harvest. Agroclimatic zones are known to promote harvest within these regions. These areas have ideal conditions that boost a specific crop’s growth. This procedure ensures that the nutritional deficit observed amongst crops can be eradicated. Each agricultural cluster is focused on a single crop. Therefore, the environmental conditions can be optimized as per requirement. This practice serves beneficial especially in the case of water-intensive crops.

The value reaped through cluster food processing is directly proportional to an increase in modern agricultural practices. In India, roughly 58% of the population is dependant on agriculture as a source of daily income. Therefore, the agro-processing cluster scheme was propelled by the Ministry of Food Processing Industries to aid this cause.


Aim of Agro-Processing Cluster

An agro-processing cluster is aimed at the development of innovative infrastructure amongst entrepreneurs. This allows a group of industrialists to set up food processing units based on the cluster approach. It links the producers to processors and markets through an implemented supply chain. Each cluster under this scheme consists of two basic components, i.e. Basic Infrastructure and Core Infrastructure. The basic infrastructure includes roads, water supply, power supply, and drainage. The core infrastructure or the common facilitates constitute warehouses, cold storage, tetra pack, sorting, and grading.


Requirements of Agro-Processing Cluster

According to the market database, these schemes have a minimum of 5 processing units. The setups are installed simultaneously along with common infrastructure. Roughly 10 acres of land are required to set up clusters. Therefore, this scheme can be highly capital intensive. Although, these programs allow the optimal use of capital, the return on investment is higher as compared to conventional farm-based practices.

Agro-processing clusters allow horticulture crops to be incentivized. Additionally, it assists other measures such as grading-based pricing. Pricing is observed to be one of the key agricultural challenges faced by farmers in India. The reduction in price discrepancy linked to a crop would promote healthy agricultural practices in this nation. The use of free trade warehousing zones is another factor that could propel the growth associated with this market. Another factor that could optimize farm-based issues is the establishment of potable processing units. The inclusion of this unit would hereafter increase the connectivity across the supply chain. It would aid in the ease of processing as well as transportation across the region.

Global Market Database can be used to understand the current dynamics of the Agricultural Industry. The impact of reforms like cluster food processing on this market can be studied regionally using this B2B market research tool.

Agro-processing clusters in India are set up by the Project Execution Agency (PEA) or organizations including government forums, NGOs, PSUs, Private Sector, etc. These entities are eligible for financial assistance under the scheme guidelines.


The benefit of Agro-Processing Cluster


According to the market database, the PEA is accountable for the overall implementation of the undertaken projects. The processing units would be established by the PEA as well. Additionally, the inclusion of an agro-processing cluster can benefit an emerging economy through the multiplier effect. In India, each food processing unit under this scheme is anticipated to account for a direct employment generation of 500-1000 people.


Need Market research of Agro-Processing Cluster?

The objective of this technique is to implement an entire preservation infrastructure from the farm gate to the consumer. It generates both backward and forward linkages across the supply chain. Global Market Database provides free market numbers across the Indian Agricultural Industry.


Technologies in Agriculture

According to the market database, several government reforms are now focused on increasing the awareness amongst farmers about modern agricultural technologies. The use of ideal practices that cause a rise in income amongst farmers is also being implemented within India. The Indian Agricultural faction is anticipated to boom owing to the inclusion of modern farming practices. The rise in the integration of smart technology based on IoT is some of the other practices that are poised to augment growth positively.